Purit is a small-to-mid-cap chemicals company that makes high-purity chemical materials used in advanced-industry processes such as semiconductors and displays and earns revenue by supplying them to customers. In April 2026 it announced a ₩35 billion investment (32.57% of shareholders' equity) to build a new plant, signaling intent to expand capacity, and amid stable finances — ROE 14.1%, debt ratio 114.2%, current ratio 424% — this year's earnings are growing rapidly, though there were disclosures of ongoing embezzlement/breach-of-trust allegations between late 2025 and early 2026. What stands out lately is a two-sided setup: if the earnings-improvement trend continues and the new plant expansion runs as planned, the undervalued appeal — a price pressed -39.7% below the 52-week high and a forward P/E lower than peers — grows clearer, but with revenue rising only modestly, whether the margin-improvement trend holds and how the follow-through on the embezzlement/breach-of-trust disclosures is resolved are the variables that will split the path.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Most recent quarter (Q1 2026) revenue was 4.8% higher than a year earlier.
- ROE is 14.1% (total-net basis). It is above the sector average.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Alcohol Industrial 48.85% (corporate)
Controlling bloc incl. related parties 56.32%
With the controlling bloc holding 56%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Purit is a company in the chemicals sector that earns money by making and selling high-purity chemical materials used in advanced-industry processes such as semiconductors and displays.
- Revenue from supplying products to customers is the basis of its income.
- As a small-to-mid-cap name with a market cap of ₩134.9 billion, it helps to watch how each major disclosure affects results and the share count alongside the business flow itself.
- The latest closing price is ₩7,430 and the market cap is ₩127.7 billion.
- The price sits below the 20-day line (₩8,479) and below the 60-day line (₩10,080).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0–100 scale) is 35.6, a neutral level.
- The one-month change is -14.9%, the three-month change is -9.8%, and the position versus the 52-week high is -42.9%.
- Relative strength versus the KOSDAQ is 75 (1–99, converting the past year's return versus the index with more recent weighting — higher means stronger than the market).
- That places it around the top 24% of all stocks by strength.
- Over the past three months it outpaced the index by 17.1%.
- It helps to read the chart alongside trading volume and disclosure dates.
- This is a structure where profitability and finances support each other.
- ROE (how much is earned in a year on equity) is 14.1%, above the industry average; the debt ratio (debt relative to equity) is 114.2%, the current ratio (cashable assets against debt due within a year) is 424%, and the interest coverage ratio (how many times operating profit can cover interest) is 15.95x, so finances are stable.
- Last year's operating profit was ₩17.2 billion and net profit was ₩15.2 billion.
- The current P/E ratio (how many times a year's earnings the share price is) is 8.43x and the P/B (how many times book value the share price is) is 1.19x, but these figures are on last year's confirmed results and do not fully capture the current situation, in which this year's earnings are growing rapidly.
- For a stock whose earnings are turning upward, the forward P/E on this year's expected earnings is closer to the true picture, and Purit's forward P/E is below the industry median, read as an undervalued signal.
- This is a phase of clearly improving earnings.
- Last year's operating profit was ₩17.2 billion, up +23.3% year over year, and net profit was ₩15.2 billion, up +28.2%, with the growth rate accelerating.
- In the most recent quarter (first quarter of 2026), revenue was ₩28.7 billion (+4.8% year over year), operating profit was ₩6.0 billion (+78.8%), and net profit was ₩4.9 billion (+50.4%) — earnings jumped sharply while revenue rose only slightly.
- Profit growth far outpacing revenue growth means margins improved as the share of high-value-added products and utilization efficiency rose.
- If this trend continues, this year's operating profit is expected around ₩30.2 billion and net profit around ₩22.7 billion — a phase promising a step up in earnings power from last year.
- On top of this, in April 2026 the company decided to build a new plant (investment of ₩35 billion, 32.57% of shareholders' equity) to expand capacity, a capacity-expansion investment aimed at meeting growing demand.
- In other words, this year's expected earnings are not simply a scaled-up single quarter but a picture supported together by margin improvement and the flow of demand and expansion.
- The disclosures show both the growth basis and the checkpoints together.
- In the April 20, 2026 new facility-investment disclosure, the company itself set out its intent to expand capacity in line with business expansion by announcing a ₩35 billion investment (32.57% of shareholders' equity) to build a new plant.
- This is material that serves as a primary basis for future revenue and earnings.
- Meanwhile, on December 24, 2025 and January 2, 2026, there were disclosures on the progress of embezzlement/breach-of-trust allegations.
- These are matters to weigh on the reputation and management side rather than finances themselves, and checking the amounts, the stage of proceedings, and any follow-up disclosures helps gauge the actual degree of impact.
- This is a stock with clear strengths.
- As this year's earnings grow rapidly, the forward P/E has become cheap versus peers, supported by 14.1% ROE profitability and stable finances (debt ratio 114.2%, current ratio 424%).
- The price is a pressed position, down -39.7% from the 52-week high, so it is hard to say the earnings improvement is fully reflected in the price.
- This is a stock where undervalued appeal grows clearer if the earnings-improvement trend continues and the new plant expansion runs as planned, and conversely the points to check are whether the margin-improvement trend holds given only modest revenue growth, and how the follow-through on the embezzlement/breach-of-trust disclosures is resolved.
- In sum, this is a stock where earnings are improving while the price has come down, read as undervalued, with the expansion results and the disclosure follow-through as the variables that split the path.
🔎 Valuation vs peers Undervalued
A comparison set of chemicals names with adjacent market caps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Genic | 11.77x | 5.42x | 46.01% |
| Noroo Paint | 8.93x | 0.35x | 3.96% |
| TK Chemical | 1.17x | 0.11x | 9.49% |
We looked first at a public-data comparison set of chemicals names with similar market caps. The current P/E (how many times a year's earnings the share price is) is 8.43x and the P/B (how many times book value the share price is) is 1.19x. However, because smaller-cap names are heavily affected by earnings swings and financing disclosures, we did not draw firm conclusions from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | — | ₩30.2 billion | ₩22.7 billion |
| Next quarter | Q2 2026 | — | ₩7.0 billion | ₩5.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩7,430 and the market capitalization is ₩127.7 billion. The price sits below its 20-day moving average (₩8,479) and below its 60-day moving average (₩10,080). 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 35.6, a neutral level. The one-month change is -14.9%, the three-month change is -9.8%, and the position relative to the 52-week high is -42.9%. Relative strength versus the KOSDAQ is 75 (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 76% of all stocks. Over the past three months it outpaced the index by 17.1%. 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 +17.09% / 6M -6.33% / 12M +12.82%
Key metrics vs sector median
Valuation
The P/E of 8.43x is below the sector median (14.79x). The P/B of 1.19x is above the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 14.1%, above the sector average (4.0%). The debt ratio is 114.2%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $79,486 | $0 | $0 | — |
| Operating profit | $8.5M | $9.3M | $11.4M | +23.34% ↑ faster |
| Net profit | $8.0M | $7.8M | $10.0M | +28.19% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $79,486 | $0 | $0 |
| Operating profit | — | — | $8.5M | $9.3M | $11.4M |
| Net profit | — | — | $8.0M | $7.8M | $10.0M |
The three-year revenue trend is 'mixed'. Operating profit rose 23.3% year over year. Profit is growing at an accelerating pace. In the most recent quarter (Q1 2026), revenue was 4.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 14.1% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-20UpdateNew facility investment: New facility investment / (2026.04.20) new facility investment; 1. Investment type: new facility investment (new plant construction); 2. Investment details: investment amount (won) 35,000,000,000, shareholders' equity (won) 107,460,626,907, ratio to equity (%) 32.57, large-corporation status: not applicable; 3. Investment purpose: to expand production capacity in line with business expansionThis is planning material the company itself presented. Where figures are given, treat them as a primary basis for the outlook box; where none are given, treat it only as directional material. Source
- 2026-01-02UpdateProgress on embezzlement/breach-of-trust allegations: check the original risk filingThis can lead to non-financial burdens or reputational risk. The amount, the stage of proceedings, and follow-up disclosures should be checked. Source
- 2025-12-24UpdateProgress on embezzlement/breach-of-trust allegations: check the original risk filingThis can lead to non-financial burdens or reputational risk. The amount, the stage of proceedings, and follow-up disclosures should be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,430 | ₩7,430 | Confirmed | link |
| Most recent quarterly results | revenue ₩28.7 billion, operating profit ₩6.0 billion | revenue ₩28.7 billion, operating profit ₩6.0 billion | Confirmed | link |
| Annual results | revenue ₩0, operating profit ₩17.2 billion | revenue ₩0, operating profit ₩17.2 billion | Confirmed | link |
| Original outlook/plan disclosure | : /(2026.04.20) 1. 2. 35,000,000,000 107,460,626,907 (%) 32.57 3. | : /(2026.04.20) 1. 2. 35,000,000,000 107,460,626,907 (%) 32.57 3. | Confirmed | link |
| Original risk disclosure | ㆍ: | ㆍ: | Confirmed | link |
| Original risk disclosure | ㆍ: | ㆍ: | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-14Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-20Disclosure
- 2026-03-23Shareholders' meeting notice
- 2026-03-19Disclosure
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
📖 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.