Despite its name, Chosun Refractories does not build ships; it is Korea's leading integrated maker of refractories—materials that neither melt nor crumble at high temperatures. Refractories are a base material that lines the interiors of blast furnaces and electric arc furnaces at steel and steelmaking plants, and more than 70% of revenue comes from steel and steelmaking, making it a business inseparable from the steel industry. In March it voluntarily disclosed a corporate value-up plan, and in September 2025 it disclosed two supply contracts of ₩74.7 billion and ₩24.0 billion (about ₩98.7 billion combined). The point to watch now is that its position as Korea's number one with steady replacement demand, a distinct earnings recovery in 2026 (operating profit +54%, net profit +115%), and a P/B of 0.84x are strengths, while a debt ratio of 226% and a current ratio of 85.9%—finances that are not ample—can become a burden if the recovery falters or the large contracts prove one-off, so they should be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 226.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 85.9%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 6.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.8% higher than a year earlier.
- ROE is 1.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.5%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder CR Holdings 59.03% (corporate)
Controlling bloc incl. related parties 80.17%
With the controlling bloc holding 80%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Despite its name, Chosun Refractories is not a shipbuilder; it is Korea's leading integrated maker of refractories—materials that neither melt nor crumble at high temperatures.
- Refractories are a base material that lines the interiors of blast furnaces and electric arc furnaces at steel and steelmaking plants so they can withstand the heat of molten metal, and more than 70% of revenue comes from the steel and steelmaking side.
- In other words, it is a business inseparable from the steel industry: as long as steel equipment keeps running, refractories keep being consumed and replacement demand keeps arising.
- The latest close is ₩15,240 and the market cap is ₩180.7 billion.
- The price sits below the 20-day line (₩15,348) and above the 60-day line (₩14,748).
- With the short- and mid-term trends diverging, direction should be read separately.
- RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0–100 scale) is 49.9, a neutral level.
- The one-month change is +8.3%, the three-month change is +8.2%, and the position versus the 52-week high is -11.3%.
- Relative strength versus the KOSPI is 36 (1–99, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 64% of all stocks by strength.
- Over the past three months it lagged the index by 13.6%.
- Chart reading is best done together with volume and disclosure dates.
- Full-year 2025 revenue was ₩532.0 billion, operating profit ₩23.9 billion, and net profit ₩2.2 billion.
- The headline P/E ratio (how many times one year's earnings the price is) looks very high at 81.28x, but this is not because the price is expensive—it is because 2025 net profit was temporarily depressed to a trough.
- For such an earnings-inflection stock, the coming flow of profit is closer to the true picture than a P/E calculated from a single year's figures.
- Rather, the P/B (how many times book value the price is) is 0.82x, meaning it trades below even the company's net assets.
- That said, with a debt ratio (debt relative to equity) of 226% and a current ratio (assets that can be turned to cash immediately versus debt due within a year) of 85.9%, financial headroom is not ample, so whether the earnings recovery continues is worth watching alongside.
- Full-year 2025 revenue of ₩532.0 billion was up 6.3% from the prior year (₩500.6 billion), with the top line growing steadily.
- The key is the distinct earnings recovery that appeared in 2026.
- On a cumulative basis, first-quarter 2026 operating profit was ₩9.0 billion, up 54.3% year on year, and net profit was ₩7.5 billion, up 115.1%.
- Already, the first-quarter net profit of ₩7.5 billion far exceeds the full-year 2025 net profit of ₩2.2 billion, showing a rapid return to normal earning power after hitting bottom.
- This year's projected operating profit of ₩36.8 billion is a step above 2025's ₩23.9 billion, which can be seen as the result of periodic replacement demand for steel equipment combining with a recovery in refractory unit prices and volumes.
- Rather than a sharp jump in revenue, this is a phase where depressed margins find their footing and profit recovers.
- On March 26, 2026, it voluntarily disclosed a corporate value-up plan.
- As company-provided planning material, if it contains specific figures it becomes a primary basis for gauging future direction.
- On September 24, 2025, it disclosed two single sale/supply contracts (₩74.7 billion and ₩24.0 billion).
- Combined at about ₩98.7 billion, this corresponds to a substantial portion of annual revenue, so whether these contracts are one-off or recurring transactions will shape the future flow of revenue recognition.
- The strengths are distinct.
- As Korea's number one refractory business bound together with the steel industry, replacement demand is steady, and in 2026 operating profit (+54%) and net profit (+115%) revived distinctly in an earnings-recovery phase.
- On top of this, the share price sits at a P/B of 0.84x, below net assets, so if the recovered profit holds there is room for the undervaluation to unwind.
- The high-looking P/E is merely a trace of 2025 earnings being depressed for one year and is hard to read as a sign of being expensive.
- On the other hand, the point for caution is on the financial side.
- With a debt ratio of 226% and a current ratio of 85.9%, the coffers are not ample, so if the earnings recovery falters or the large contracts prove one-off, the felt burden can grow.
- In sum, as long as steel equipment operation and refractory replacement demand hold up, the earnings recovery and undervaluation can come to the fore together, while if the recovery wobbles, the weak finances can be a drag.
🔎 Valuation vs peers Overvalued
A peer set close in market cap within shipbuilding.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daeyang Electric | 6.16x | 0.57x | 9.21% |
| Ilseung | 12.45x | 2.02x | 16.26% |
| Halla IMS | 9.54x | 1.22x | 12.83% |
Within shipbuilding, we looked first at a public-data peer set close in market cap. The current P/E ratio (how many times one year's earnings the price is) is 81.28x and the P/B (how many times book value the price is) is 0.82x. That said, for lower-market-cap names the impact of earnings swings and financing disclosures is large, so we did not conclude from metrics based only on last year's confirmed results. 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 | ₩530.1 billion | ₩36.8 billion | — |
| Next quarter | Q2 2026 | ₩135.4 billion | ₩8.6 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩15,240 and the market capitalization is ₩180.7 billion. The price sits below its 20-day moving average (₩15,348) and above its 60-day moving average (₩14,748). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.9, a neutral level. The one-month change is +8.3%, the three-month change is +8.2%, and the position relative to the 52-week high is -11.3%. Relative strength versus the KOSPI is 36 (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 36% of all stocks. Over the past three months it lagged the index by 13.6%. 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 -13.63% / 6M -31.91% / 12M -53.48%
Key metrics vs sector median
Valuation
The P/E of 81.28x is above the sector median (12.45x). The P/B of 0.82x is below the sector median (1.64x). 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 1.0%, below the sector average (15.0%). The operating margin is 4.5%. The debt ratio is 226.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $185.2M | $331.8M | $352.6M | +6.27% ↓ slower |
| Operating profit | $21.1M | $13.3M | $15.8M | +19.19% ↑ faster |
| Net profit | $15.6M | $312,230 | $1.5M | +371.88% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $185.2M | $331.8M | $352.6M |
| Operating profit | — | — | $21.1M | $13.3M | $15.8M |
| Net profit | — | — | $15.6M | $312,230 | $1.5M |
| Revenue CAGR | 2-yr avg 38.00% | ||||
Revenue rose 6.3% year over year (2023 ₩279.4 billion → 2024 ₩500.6 billion → 2025 ₩532.0 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 19.2% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 38.0%. The two-year revenue CAGR is 38.0%. In the most recent quarter (Q1 2026), revenue was 0.8% 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 226.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 85.9%).
- Revenue rose 6.3% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure): original company plan confirmedThis is company-provided planning material. If it contains figures, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2025-09-24ContractConclusion of a single sale/supply contract (voluntary disclosure): contract value ₩24.0 billionThe contract value and term are key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term reading. Source
- 2025-09-24ContractConclusion of a single sale/supply contract: contract value ₩74.7 billionThe contract value and term are key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩15,240 | ₩15,240 | Confirmed | link |
| Latest quarterly results | revenue ₩131.9 billion, operating profit ₩9.0 billion | revenue ₩131.9 billion, operating profit ₩9.0 billion | Confirmed | link |
| Annual results | revenue ₩532.0 billion, operating profit ₩23.9 billion | revenue ₩532.0 billion, operating profit ₩23.9 billion | Confirmed | link |
| Original outlook/plan disclosure text | : | : | Confirmed | link |
| Original contract disclosure text | ㆍapprox. : approx. ₩24.0 billion | ㆍapprox. : approx. ₩24.0 billion | Confirmed | link |
| Original contract disclosure text | ㆍapprox. : approx. ₩74.7 billion | ㆍapprox. : approx. ₩74.7 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-13PeriodicQuarterly report
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-17OwnershipOwnership-change filing
- 2026-02-25Disclosure
- 2026-02-25Shareholders' meeting notice
- 2026-02-20EarningsEarnings 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.