OCI is a chemical-materials company spun off from OCI Holdings in 2023. Carbon chemicals - carbon materials for tires, rubber, and cables such as carbon black - account for about two-thirds of revenue, while basic chemicals such as semiconductor-grade polysilicon, hydrogen peroxide, and phosphoric acid make up the rest. In the first quarter, strength in carbon chemicals lifted operating profit 171.6% year on year, confirming an earnings rebound, but a serious industrial accident at the activated-carbon facility of the Gwangyang No.1 plant in June remains a variable for second-half results. The strengths are a recovery phase in which profit passes an inflection and returns to a normal track, a net-cash balance sheet, and a P/B of 0.74x. The cautions are that carbon-black margins swing with oil prices, raw-material costs, and downstream demand; that the June accident is a variable for second-half operation and costs; and that the full contribution from semiconductor-grade expansions will take time.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 9.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 6.0% lower than a year earlier.
- ROE is -5.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder OCI Holdings 44.97% (corporate)
Controlling bloc incl. related parties 46.51%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis
- OCI is a chemical-materials company created in 2023 when a business division was spun off from OCI Holdings.
- It earns money along two axes.
- First, carbon chemicals (carbon black and the like) are the mainstay, at about two-thirds of revenue.
- Carbon black is a carbon material that makes tires, rubber, and cables black and durable.
- Second, basic chemicals (semiconductor-grade polysilicon, hydrogen peroxide, phosphoric acid, and the like) account for the rest.
- Polysilicon is the raw material for semiconductor wafers, while hydrogen peroxide and phosphoric acid are materials used in semiconductor cleaning and etching processes.
- In short, this is a dual structure: earning cash from traditional carbon materials while pursuing growth in semiconductor materials.
- The latest close is ₩85,900 and the market cap is ₩769.0 billion.
- The price sits below the 20-day line (₩95,100) and below the 60-day line (₩112,568).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 38.1, a neutral level.
- The one-month change is -18.5%, the three-month change is -7.0%, and the position versus the 52-week high is -42.7%.
- Relative strength versus the KOSPI is 55 (1-99, based on the past year's return against the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 45% of all stocks by strength.
- Over the past three months it lagged the index by 25.3%.
- Chart reading is best done alongside volume and the dates of disclosures.
- In valuation, taking last year's figures at face value is distorting.
- 2025 was a bottom for the chemical cycle, with operating profit squeezed to about ₩0.4 billion and a net loss (-₩62.6 billion).
- As a result, the P/E (how many times one year's earnings the price represents) cannot be computed because profit was negative.
- Instead, the P/B (how many times the company's net assets the price represents) is 0.74x.
- That is, the share price is set below book equity.
- The debt-to-equity ratio is 98.6%, not heavy for a chemical company.
- On the cash side, net debt (total borrowings minus cash; negative means net cash) is -₩233.6 billion, so cash actually exceeds debt, a net-cash position.
- Financial strength itself is firm.
- That said, on last year's basis EV/EBIT (enterprise value including debt divided by operating profit) does not yield a meaningful figure because operating profit was near zero.
- This multiple should be judged only after profit normalizes.
- The three-year revenue trend runs ₩1.29 trillion in 2023 → ₩2.22 trillion in 2024 → ₩2.01 trillion in 2025, jumping sharply in 2024 before pulling back -9.3% last year.
- Profit swung more.
- Net profit went ₩52.2 billion in 2023 → ₩96.0 billion in 2024 → a -₩62.6 billion loss in 2025, with last year the cycle bottom.
- The important inflection is this year's first quarter.
- Revenue was ₩506.6 billion (-6.0% year on year), but operating profit surged 171.6% from a year earlier to ₩27.8 billion, and net profit turned to a ₩24.8 billion gain, thanks to a recovery in carbon-chemical profitability.
- On top of that, second-half growth material is on standby.
- A 30,000-ton expansion of conductive carbon black was completed in the first half and enters commercial production in the second half, and a 5,000-ton phosphoric-acid expansion is slated for the third quarter.
- This volume adds to second-half profit.
- This year's profit is on a path back to a normal track from last year's loss.
- So while it looks expensive on last year's loss, on this year's earnings the multiple of market cap to profit comes down.
- This year's events came with recovery signals and risks together.
- On the recovery side is the first-quarter result.
- Strength in carbon chemicals lifted operating profit 171.6% year on year, confirming an earnings rebound via disclosure.
- On the risk side is the serious industrial accident at the activated-carbon facility of the Gwangyang No.1 plant in June.
- In the near term this accident could translate into a burden on that line's operation and safety management, so it should be left as a variable for second-half results.
- Beyond these, regular disclosures followed, including the April confirmation of consolidated financial statements and a treasury-share-related filing.
- The points to watch are clear.
- It is strong when carbon-chemical margins are alive and expansion volume is added - the first quarter was that signal.
- Last year's loss was the cycle bottom, and this year reads as the year profit returns to a normal track.
- The net-cash position backs this recovery in financial strength.
- The share price sits below book equity at a P/B of 0.74x.
- The cautions are just as clear.
- Carbon black is a material whose margins swing with oil prices, raw-material costs, and downstream tire and rubber demand.
- The June serious accident is a variable for second-half operation and costs.
- The semiconductor-grade polysilicon and phosphoric-acid expansions are growth material, but full contribution will take time.
- In sum, it is strong in the recovery phase past the earnings inflection, and weaker if a spike in raw-material costs or safety and operating disruptions overlap.
🔎 Valuation vs peers Undervalued
As a mid-cap chemical-materials company handling both carbon black and basic chemicals, the comparison set is Kumho Petrochemical (carbon black and rubber materials), Hansol Chemical (semiconductor and fine chemicals), and its parent OCI Holdings.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumho Petrochemical | 9.68x | 0.45x | 4.66% |
| Hansol Chemical | 18.76x | 2.56x | 13.63% |
| OCI Holdings | — | 0.87x | -2.29% |
Last year (2025) was a cycle bottom with a net loss, so the P/E cannot be computed, and looking at this trailing figure alone understates the company's actual earnings power. Reflecting that first-quarter operating profit rose 171.6% from a year earlier and net profit turned positive, and that second-half carbon-black and phosphoric-acid expansion volume is added, this year's profit returns to a normal track. On this forward-earnings basis, the multiple of market cap to profit falls to about 9x. The P/B of 0.74x is also a level below book equity. Compared with Hansol Chemical, which carries a fine-chemicals premium, the valuation gap is large, and factoring in the profit normalization, the current price reads as an undervalued zone. That said, carbon-black margins, raw-material costs, and the second-half impact of the June serious accident are variables.
Price history Close · MA20 · MA60
The latest close is ₩85,900 and the market capitalization is ₩769.0 billion. The price sits below its 20-day moving average (₩95,100) and below its 60-day moving average (₩112,568). 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 38.1, a neutral level. The one-month change is -18.5%, the three-month change is -7.0%, and the position relative to the 52-week high is -42.7%. Relative strength versus the KOSPI is 55 (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 55% of all stocks. Over the past three months it lagged the index by 25.3%. 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 -25.29% / 6M -7.61% / 12M -37.14%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.68x is below 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -5.6%, below the sector average (4.0%). The operating margin is 0.0%. The debt ratio is 98.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $854.2M | $1.5B | $1.3B | -9.29% ↓ slower |
| Operating profit | $38.1M | $73.2M | $291,902 | -99.60% ↓ slower |
| Net profit | $34.6M | $63.6M | -$41.5M | -165.20% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $854.2M | $1.5B | $1.3B |
| Operating profit | — | — | $38.1M | $73.2M | $291,902 |
| Net profit | — | — | $34.6M | $63.6M | -$41.5M |
| Revenue CAGR | 2-yr avg 24.86% | ||||
Revenue fell 9.3% year over year (2023 ₩1.3 trillion → 2024 ₩2.2 trillion → 2025 ₩2.0 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 99.6% year over year. The decline widened. Over the 3 years on record, revenue compound annual growth (CAGR) is 24.9%. The two-year revenue CAGR is 24.9%. In the most recent quarter (Q1 2026), revenue was 6.0% lower 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.
Points to watch
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 9.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-22EarningsFirst-quarter 2026 operating profit of ₩27.8 billion, up 171.6% year on year, with net profit turning positive at ₩24.8 billion. Led by improved carbon-chemical profitability.An inflection point returning from last year's loss to a profit track. The starting point of a medium-term earnings recovery. Source
- 2026-06-08UpdateSerious industrial accident during work at the activated-carbon facility of the Gwangyang No.1 plant (1 death, 2 injuries).In the near term, a burden on that line's operation and safety management. A downside variable for second-half results. Source
- 2026-05-14FilingFirst-quarter 2026 report filed. Revenue ₩506.6 billion, operating profit ₩27.8 billion, net profit ₩24.8 billion confirmed.The rebound results are confirmed in formal financial statements. Grounds for the recovery trend. Source
- 2026-04-02IRNotice of an investor-relations (IR) presentation. Aimed at sharing results and business plans.A communication channel for confirming the company's business direction and expansion plans. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating-profit growth rate | +171.6% YoY (operating profit ₩27.8 billion) | +171.4% (operating profit ₩27.8 billion) | Confirmed | link |
| Business-segment mix (carbon chemicals vs. basic chemicals share) | approx. 63%, approx. 36% | : | Confirmed | link |
| P/B | 0.74x | — | Unverified | link |
| Estimated 2026 net profit | approx. ₩92.0 billion(self-estimate, forward PER approx. 9.0x) | — | Unverified | — |
Recent filings
- 2026-06-08Disclosure
- 2026-05-29Disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-11OwnershipLargest-shareholder ownership change report
- 2026-04-22EarningsFair-disclosure notice
- 2026-04-02Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-13PeriodicAnnual business report
📖 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.