Enchem makes electrolyte, the material that serves as the pathway for ions moving inside a rechargeable battery, and earns money by supplying it to finished-battery makers. It ran a loss in 2025 with revenue of ₩312.8 billion and an operating loss of ₩78.4 billion, but first-quarter 2026 revenue of ₩84.1 billion was up 23.3% year over year, showing the top line growing again. The notable point recently is that expanded North American shipments led by its Georgia plant in the United States, along with cash inflows from a local-production tax credit, form a foundation for an earnings recovery, while a heavy balance sheet with a debt ratio of 235% and a lingering disclosure-related sanction mean the pace of recovery and financial stability both still need to be confirmed.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 235.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 61.3%).
- The most recent full-year net result was a loss.
- Revenue fell 14.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 23.3% higher than a year earlier.
- ROE is -14.4% (controlling-interest basis). It is below the sector average.
- Operating margin is -25.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Oh Jeong-gang 14.41% (individual)
Controlling bloc incl. related parties 21.04%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Enchem specializes in electrolyte, one of the four core materials of lithium-ion rechargeable batteries.
- Electrolyte is the liquid that helps lithium ions move between a battery's positive and negative electrodes, and it governs a battery's charge/discharge performance and lifespan.
- Most of the company's revenue comes from selling this electrolyte, and alongside electric-vehicle use, demand has recently broadened to energy storage systems (ESS) used in data centers and power grids.
- It supplies domestic and overseas battery makers, and a distinguishing feature has been expanding production bases across the United States (including Georgia), Europe and China.
- The share price is ₩22,350, well below the 20-day (₩28,335), 60-day (₩35,867) and 120-day (₩48,970) moving averages.
- The three moving averages pressing down from top to bottom form a classic bearish alignment.
- The six-month return is -65.2%, leaving the stock 77% below its 52-week high.
- The RSI (a value expressing recent upward and downward strength on a 0-100 scale, with below 30 typically oversold) is 34.5, close to a bottoming zone but not yet fully into oversold territory.
- The trend itself is still pointing down.
- Until the earnings recovery is confirmed in the numbers, the basis for a rebound is weak here.
- Start with valuation metrics.
- The P/E ratio (how many times one year's earnings the price represents) cannot be calculated because of the loss.
- The P/B (how many times the company's net assets the price represents) is 1.04x, close to book value.
- The P/S (how many times one year's revenue the price represents) is 1.55x.
- Profitability has yet to recover: ROE (how much is earned in a year on equity) is -14.4% and the operating margin is -25.1%, a loss structure where costs exceed revenue.
- The financial burden is clear.
- The debt ratio (debt relative to equity) is 235%, so debt exceeds equity, and the current ratio is 61%, meaning assets that can be turned into cash quickly are less than debt due within a year.
- Reflecting debt sharpens the picture further: net debt (total borrowings less cash) is about ₩260.3 billion, and EV/Sales (enterprise value divided by revenue) is 2.51x.
- The FCF yield (actual cash generated relative to market cap) is -3.7%, meaning that in an expansion phase spending heavily on plant build-out, cash is still flowing out net.
- The long-run trend has swung between surges and slumps.
- Revenue fell from ₩509.8 billion in 2022 to ₩312.8 billion in 2025, the result of slowing EV and battery demand (the chasm) combined with falling material prices.
- Earnings turned from a profit in 2022 to consecutive losses in 2023-2025.
- Still, signs of an inflection are appearing.
- First-quarter 2026 revenue rose 23.3% year over year to ₩84.1 billion, the top line growing again.
- In that same quarter the operating loss was ₩24.2 billion and the net loss ₩11.4 billion, so losses continued.
- There are two keys to the recovery.
- One is the advanced-manufacturing production tax credit granted for U.S. local production.
- By the company's account this is a cash-like benefit that, after a cumulative roughly USD 29.78 million in 2023-2025, is expected to bring additional receipts in 2026 as well.
- The other is the normalization of North American shipment volumes; the company has stated that top-line growth in the second quarter will be clear.
- Whether these two axes translate into profit is the point to watch this year.
- In 2026 the flow of disclosures splits into two streams.
- One is financing and governance moves.
- In April came a decision to dispose of its own convertible bonds, plus acquisitions and disposals of other companies' shares and the provision of debt guarantees and collateral to others, one after another.
- These read as financing activity to support overseas subsidiaries and the expansion of production bases.
- In June there was also a disclosure adjusting the conversion price of convertible bonds.
- The other stream is signals to watch.
- Following an April notice of designation as a company in breach of disclosure obligations, it was actually designated as such in May.
- This means it failed to meet disclosure obligations on time, a matter that bears directly on credibility.
- On the business side, U.S. tariff refunds and tax-credit benefits and expanded North American shipments are confirmed through company materials and presented as the basis for an earnings recovery.
- Enchem is a classic recovery candidate whose earnings are being watched to see whether they pass an inflection point.
- The strengths are clear: its position in the North American electrolyte market, the actual cash inflow of a tax credit from U.S. local production, and the first-quarter 2026 revenue rebound form the foundation for a recovery.
- The broadening of demand into ESS is also favorable.
- On the other side, the weaknesses must be viewed together.
- The heavy balance sheet — a debt ratio of 235% and a current ratio of 61% — is vulnerable to interest rates and the funding environment.
- Above all, it was still in the red through the first quarter of 2026, so a return to profit has not yet been confirmed in the numbers.
- The designation as a company in breach of disclosure obligations is a burden in terms of governance and disclosure credibility.
- In sum, this is a structure where the scale of recovery grows if North American shipments and the tax credit translate into profit and the balance sheet stabilizes; conversely, if the demand recovery is delayed or the funding burden grows, losses and financial risk grow together.
🔎 Valuation vs peers Inconclusive
Compared against listed Korean companies in the rechargeable-battery materials and electrolyte space.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Chunbo | 0.00x | 1.02x | -13.64% |
| Lotte Energy Materials | 0.00x | 1.05x | -9.51% |
| Ecopro BM | 277.09x | 6.31x | 2.28% |
Most electrolyte and rechargeable-battery materials stocks are in the red or have thin earnings amid slowing demand, making P/E comparisons difficult. Enchem too has no P/E because of its loss, and its revenue-based P/S (1.55x) is actually on the low side versus peer material stocks. The P/B of 1.04x is close to book value, similar to the group of loss-making material stocks. But this reflects the whole sector being in a downcycle, making it look cheap relative to revenue and assets — different from an undervaluation confirmed by earnings. Until a return to profit and balance-sheet improvement show up in the numbers, it is hard to call the stock cheap or expensive, so we view it as inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩22,350 and the market capitalization is ₩489.7 billion. The price sits below its 20-day moving average (₩28,335) and below its 60-day moving average (₩35,867). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.5, a neutral level. The one-month change is -27.1%, the three-month change is -36.6%, and the position relative to the 52-week high is -77.2%. Relative strength versus the KOSDAQ is 18 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 17% of all stocks. Over the past three months it lagged the index by 17.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -17.42% / 6M -58.85% / 12M -63.15%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.04x is in line with the sector median (0.97x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -14.4%, below the sector average (4.0%). The operating margin is -25.1%. The debt ratio is 235.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $281.5M | $242.4M | $207.3M | -14.47% ↓ slower |
| Operating profit | $3.4M | -$33.4M | -$52.0M | — |
| Net profit | -$32.7M | -$368.1M | -$44.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $142.1M | $337.9M | $281.5M | $242.4M | $207.3M |
| Operating profit | -$17.2M | $10.2M | $3.4M | -$33.4M | -$52.0M |
| Net profit | -$12.9M | $14.5M | -$32.7M | -$368.1M | -$44.9M |
| Revenue CAGR | 4-yr avg 9.91% | ||||
Revenue fell 14.5% year over year (2023 ₩424.7 billion → 2024 ₩365.7 billion → 2025 ₩312.8 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.9%. The two-year revenue CAGR is -14.2%. In the most recent quarter (Q1 2026), revenue was 23.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 235.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 61.3%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 14.5% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-20UpdateDesignated as a company in breach of disclosure obligations for failing to meet disclosure obligations on time (confirmed after an April notice of designation).A burden in terms of disclosure credibility and governance. If demerit points accumulate there could be restrictions related to trading and listing, a point to watch in the medium term. Source
- 2026-05-15EarningsFirst-quarter 2026 report — revenue ₩84.1 billion (+23.3% year over year), operating loss ₩24.2 billion, net loss ₩11.4 billion.The top line grew again, but losses continued. Whether the revenue recovery translates into profit needs to be confirmed in later quarters. Source
- 2026-04-30FilingMaterial-event report (amended) including a decision to dispose of its own convertible bonds — a decision related to financing and capital structure.In the nature of securing expansion funds, but convertible bonds can be a future source of a rising share count (dilution), so neutral to noteworthy. Source
- 2026-04-30FilingAmended disclosure of decisions to acquire and dispose of other companies' shares and to provide debt guarantees and collateral to others — financing activity related to overseas subsidiaries and production bases.Activity supporting North American and overseas expansion. But debt guarantees and collateral can add to the financial burden, so the scale and terms need to be checked. Source
- 2026-06-08FilingDisclosure adjusting the conversion price of the 13th convertible bonds — a repricing of the conversion price on the back of the share-price decline and other factors.A lower conversion price means more shares are issued on conversion, which can widen the dilution of existing holders' stakes. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08Disclosure
- 2026-05-29Amended filing
- 2026-05-20Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-30Material-fact report (amended)
- 2026-04-30Material-fact report (amended)
- 2026-04-30Material-fact report (amended)
- 2026-04-27Disclosure
- 2026-04-24Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.