Isu Specialty Chemical is a fine-chemicals maker that was spun off from Isu Chemical in 2023. Roughly two-thirds of its revenue comes from proprietary fine-chemical products such as TDM and IPA, with TDM in particular serving as a near-monopoly cash cow at home. The company funnels that cash into lithium sulfide (Li2S), a key material for solid-state batteries. Using the PureLi2S process it developed with the U.S. firm KBR, it has reliably produced spec-grade lithium sulfide at its Onsan demonstration plant, and it is now preparing commercial production through a ₩85.2 billion investment while also signing an MOU with Dongwha Electrolyte to co-develop solid electrolytes. The appeal is that fine chemicals generate steady cash, 2026 earnings have returned to a recovery track, and the value of the lithium sulfide business grows as solid-state commercialization advances; the cautions are that a large share of future value is already priced into the roughly ₩2 trillion market cap, so expectations could unwind if commercialization is delayed, and that debt and liquidity are a burden during this heavy-investment phase.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 69.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 23.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 9.8% higher than a year earlier.
- ROE is 0.6% (total-net basis). It is below the sector average.
- Operating margin is 0.4%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Isu 25.04% (corporate)
Controlling bloc incl. related parties 35.45%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis
- Isu Specialty Chemical is a fine-chemicals company that was carved out of Isu Chemical in a 2023 spin-off.
- About two-thirds of its revenue comes from proprietary fine-chemical products such as TDM (tertiary dodecyl mercaptan, an additive used in rubber and plastics), IPA, NOM and D-Sol, while roughly one-third comes from trading products such as base oil and MEK.
- TDM in particular is a cash cow with what is effectively a near-monopoly position in the domestic market.
- The company channels the cash it earns here into its future growth engine, lithium sulfide (Li2S), the key material for the solid-state battery often called the 'dream battery.' At its Onsan plant in Ulsan, it has successfully completed demonstration production using the PureLi2S process developed with the U.S. firm KBR, and it is now pushing to scale up to commercial production.
- The latest close is ₩60,000 and market capitalization is ₩1.8 trillion.
- The price sits below both its 20-day line (₩73,000) and its 60-day line (₩93,910).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that scales upward versus downward momentum over the past 14 days on a 0-100 range) reads 29.9, close to oversold territory.
- The one-month change is -24.2%, the three-month change is -36.5%, and the price stands -53.9% below its 52-week high.
- Relative strength versus the KOSPI is 45 (on a 1-99 scale converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market), placing it around the top 55% of all stocks by strength.
- Over the past three months it lagged the index by 51.3%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- 2025 results showed revenue of ₩411.5 billion (+24% year on year), so the top line kept expanding, but operating profit fell to ₩1.6 billion (-89%) and net profit to ₩0.8 billion (-93%).
- As a result, the P/E ratio on last year's earnings (a measure of how many times one year's profit the share price represents) works out to an abnormal figure above 2352.94x, because 2025 was an 'earnings trough' year in which a major scheduled maintenance overhauled and product-price competition overlapped.
- In other words, last year's P/E is effectively meaningless for this stock.
- On the balance sheet, the debt ratio (borrowings against equity) is 176% and the current ratio (cash-like assets against debt due within a year) is 69%; as it is in the middle of large-scale lithium sulfide facility investment, its short-term payment capacity is not especially ample.
- The P/B (how many times net asset value the share price represents) of 13.65x also looks high, but that reflects future growth expectations, not current earnings, being priced into the stock.
- Revenue expanded quickly after the spin-off, from ₩117.5 billion in 2023 to ₩332.1 billion in 2024 and ₩411.5 billion in 2025 (including the effect of the business being fully reflected post-split).
- Earnings were strong in 2024 but were compressed in 2025 by scheduled maintenance and price competition; what matters is the recovery signal in 2026.
- First-quarter 2026 net profit was ₩1.88 billion, already more than double the full-year 2025 net profit (₩0.8 billion), and operating profit of ₩3.48 billion likewise topped double the full-year 2025 figure (₩1.6 billion).
- With one-off burdens such as scheduled maintenance gone and TDM prices recovering, earnings are returning to a normal track.
- On top of this, an investment is underway to expand lithium sulfide capacity from 40 tons per year to about 150 tons, roughly 3.7 times, so a recovery in fine-chemical earnings overlaps with growth in new materials.
- Given this earnings inflection, this year's profit looks set to rise sharply from last year; even though last year's P/E looks high, that is merely a mirage of a trough year, and the picture is entirely different on a forward-earnings basis.
- Through 2026 the company has carried on routine disclosures, including a regular IR event in May, reports on the execution status of trust contracts related to treasury shares, and changes in specified securities held by executives and major shareholders.
- On the business side, the key event is lithium sulfide commercialization.
- Through joint development with the U.S. firm KBR (contracted in 2023), it reliably produced spec-grade lithium sulfide at the Onsan demonstration plant; it is preparing commercial production through a ₩85.2 billion investment; and in early 2025 it signed an MOU with Dongwha Electrolyte to co-develop solid electrolytes.
- This signals a medium- to long-term shift from a single fine-chemicals structure toward solid-state battery materials.
- The points to watch split clearly into two.
- The favorable case is that fine chemicals such as TDM generate steady cash from a near-monopoly domestic position, that earnings had already returned to a recovery track by 2026, and that the value of lithium sulfide, a material where the company has an early foothold, grows as solid-state battery commercialization advances.
- The cautionary case is that the current market cap (about ₩2 trillion) cannot be explained by fine chemicals' present earnings alone.
- Much of the future value of lithium sulfide, which has not yet materialized as revenue in earnest, is already priced into the stock, so expectations could unwind if solid-state battery commercialization is delayed or volumes come through more slowly than expected.
- The debt ratio and liquidity are also a burden given the investment phase.
- In short, this is a growth-option stock that should be judged not by 'a multiple on current earnings' but by 'whether the solid-state-material option is realized.'
🔎 Valuation vs peers Inconclusive
Compared with names that share a similar structure of a fine-chemicals base with a new-materials (secondary battery / solid-state) growth option layered on top: Foosung (fluorine-based fine chemicals plus battery materials), Soulbrain (fine chemicals plus semiconductor and battery materials), and affiliate Isu Chemical (fine and petrochemicals).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Foosung | 239.19x | 3.80x | 1.59% |
| Hansol Chemical | 18.76x | 2.56x | 13.63% |
| ISU Chemical | — | 3.42x | -32.33% |
The P/E on last year's earnings (above 2,600x) is a distortion produced by 2025 being an earnings-trough year when scheduled maintenance and price competition overlapped, so it cannot be used to judge value. On a forward basis reflecting the 2026 earnings recovery, the multiple falls sharply, but the stock still sits at a high multiple relative to current earnings, much like names such as Foosung that carry new-materials transition expectations. That is because it is the future option of solid-state battery materials, not fine chemicals' current earnings, that explains much of the market cap. Set against Soulbrain (P/E around 21x), which earns profit normally, it looks expensive on a simple comparison, but the nature of the businesses (mature fine chemicals versus the early stage of a new-materials transition) differs, so they cannot be measured by the same multiple. It is therefore hard to declare the stock cheap or expensive on an earnings multiple; value hinges greatly on whether solid-state commercialization progresses, so an inconclusive verdict is appropriate for this growth-option name.
Price history Close · MA20 · MA60
The latest close is ₩60,000 and the market capitalization is ₩1.8 trillion. The price sits below its 20-day moving average (₩73,000) and below its 60-day moving average (₩93,910). 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 29.9, near oversold territory. The one-month change is -24.2%, the three-month change is -36.5%, and the position relative to the 52-week high is -53.9%. Relative strength versus the KOSPI is 45 (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 45% of all stocks. Over the past three months it lagged the index by 51.3%. 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 -51.34% / 6M -38.65% / 12M -43.02%
Key metrics vs sector median
Valuation
The P/E of 2352.94x is above the sector median (14.79x). The P/B of 13.65x is above 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 0.6%, below the sector average (4.0%). The operating margin is 0.4%. The debt ratio is 175.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $77.9M | $220.1M | $272.7M | +23.91% ↓ slower |
| Operating profit | -$4.1M | $9.4M | $1.1M | -88.63% |
| Net profit | -$4.1M | $7.0M | $510,020 | -92.68% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $77.9M | $220.1M | $272.7M |
| Operating profit | — | — | -$4.1M | $9.4M | $1.1M |
| Net profit | — | — | -$4.1M | $7.0M | $510,020 |
| Revenue CAGR | 2-yr avg 87.11% | ||||
Revenue rose 23.9% year over year (2023 ₩117.5 billion → 2024 ₩332.1 billion → 2025 ₩411.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 88.6% year over year. Over the 3 years on record, revenue compound annual growth (CAGR) is 87.1%. The two-year revenue CAGR is 87.1%. In the most recent quarter (Q1 2026), revenue was 9.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 23.9% year over year, a sign of growth.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 69.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-16FilingCorrection to new-facility investment for the lithium sulfide (Li2S) commercial plant (Mother Plant) — investment of ₩85.2 billion (70% of equity), designed for an initial 150 tons and an eventual 500 tons, expected completion 2026-06-30Medium term: a core investment on which the company is betting its future in solid-state materials. If commercial production translates into revenue it becomes a growth engine, but the large initial investment cost weighs on short-term financial capacity. Source
- 2026-05-15EarningsFiling of the first-quarter 2026 report — revenue ₩108.57 billion (+9.8% year on year), operating profit ₩3.48 billion, net profit ₩1.88 billion, already exceeding the prior full-year profit and signaling an earnings recoveryMedium term: confirms the inflection at which earnings compressed by 2025 scheduled maintenance and price competition are normalizing. Grounds for dispelling the mirage of last year's P/E. Source
- 2026-05-12IRNotice of an investor presentation (IR) — communicating the business situation and the progress of lithium sulfide commercializationShort term: reflects market interest in the recovery of fine-chemical prices and the lithium sulfide mass-production schedule. Source
- 2026-04-29FilingReports on holdings of specified securities by executives and major shareholders and disclosure of changes in large-holding positionsShort term: material for checking shifts in the ownership structure. Separate from business results. Source
- 2026-04-27FilingFiling of a report on changes in shares held by the largest shareholder and related partiesShort term: material for confirming changes in major-shareholder stakes. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 net profit | ₩1,884,047,000 | DART 2026 1 | Confirmed | link |
| 2025 revenue | ₩411,470,361,000 | DART 2025 | Confirmed | link |
| Lithium sulfide commercial plant investment amount | ₩85.2 billion | ₩85,200,000,000 / ₩121,654,548,291 70.03% | Confirmed | link |
| Progress of lithium sulfide (Li2S) commercialization | — | KBR | Confirmed | link |
| 2026 full-year net profit (internal estimate) | approx. ₩9.0 billion | — | Unverified | — |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-12Disclosure
- 2026-05-12Disclosure
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipLargest-shareholder ownership change report
- 2026-04-10Disclosure
- 2026-03-30Disclosure
- 2026-03-30Amended filing
📖 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.