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JONBUR Research · Initiation

Tongyang · 001520 · Building materials

Tongyang: Sharp Share Price Decline as Operating Losses Persist and Sales Shrink

Why this report

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Tongyang's shares closed at ₩993 on 2026-10-26, down 49.5% over one year, while trailing revenue of ₩582.1B came with an operating loss of ₩23.5B. A model estimate of ₩323 per share sits well below the current price, with a very wide bear-to-bull range.

Written Oct 27, 2026 · Data as of Oct 26, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a business under pressure. Revenue has fallen from ₩866.3B in 2023 to ₩630.6B in 2025, and the trailing twelve months to H1 2026 show ₩582.1B. Operating income has been negative in 2024, 2025 and the trailing period.

On the other side, net income has stayed positive in the trailing period (₩11.7B) and in 2025 (₩20.1B) despite operating losses, so profit is not coming from core operations as shown here. The data does not explain the source of that gap. Price-to-book is very low at 0.1, but low multiples have accompanied falling sales and a falling share price, so the data does not show that the discount is closing.

Flows are small in the last 20 days: foreigners were net buyers of about ₩105.6M and retail net sellers of about ₩90.0M. Foreign ownership slipped from 2.8% to 2.3% over 60 days.

Business overview

Tongyang is a KOSPI-listed company in the building materials sector, founded in 1955 and listed in 1976. It is led by co-CEOs 정진학 and 유정민. It has 107,122,032 listed shares and a market capitalisation of about ₩106.4B.

Revenue was ₩699.6B in 2021, peaked at ₩866.3B in 2023, then declined 13.4% in 2024 and 16.0% in 2025. Details on products or segments are not available in the data provided.

Financial analysis

These figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩582.1B, operating loss ₩23.5B (operating margin -4.0%), net income ₩11.7B (net margin 2.0%), return on equity 1.6%.

Annual operating margin moved from 3.1% in 2023 to -0.1% in 2024 and -3.3% in 2025. 2024 net loss was ₩74.2B (ROE -9.9%), while 2025 net income was ₩20.1B (ROE 2.8%).

Balance sheet: cash ₩96.0B against borrowings of ₩229.2B, and liabilities to equity of 95.3%. Free cash flow in the trailing period was negative at ₩21.8B.

Valuation

Current multiples are P/E 9.1, P/B 0.1 and P/S 0.2. Enterprise value is about ₩120.7B; EV/EBITDA is not available. Dividend yield is 0.0%. Year-end P/B was 0.2 to 0.4 from 2021 to 2025, so the current 0.1 is below its own history. Year-end P/E was 9.0 in 2025, 11.8 in 2023 and 19.4 in 2021.

Peers show P/E of 9.4 to 28.7 and P/B of 0.3 to 4.0. Hanil Holdings is closest at P/E 9.4 and P/B 0.3. Tongyang's P/B is below all listed peers.

The valuation model (5-year discounted cash flow at a 6.7% rate, based on trailing figures to H1 2026) gives a base case of ₩323 per share, a bear case of ₩0 and a bull case of ₩1,929. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. The base case is below the ₩993 close, and the range is very wide, reflecting uncertain cash flows.

Catalysts

  • Insider shareholding reports were filed on 2026-10-07 (many) and 2026-10-27, which may show changes in insider holdings.
  • The next filed financial statements will show whether the operating loss narrows from ₩23.5B on a trailing basis.
  • Foreign ownership fell to 2.3% from 2.8% over 60 days, so a change in that trend could affect trading interest.
  • No news headlines are available in the data for this period, so no company-specific news event is identified.

Risks

  • Revenue has declined for two straight years, by 13.4% in 2024 and 16.0% in 2025, and the trailing figure is lower still.
  • Operating losses persist, with a -4.0% trailing operating margin and negative free cash flow of ₩21.8B.
  • Borrowings of ₩229.2B exceed cash of ₩96.0B, with liabilities at 95.3% of equity.
  • Reported net income is positive despite operating losses, so earnings quality is unclear from the data.
  • The 52-week low in the data is shown as ₩0, which looks unreliable, and the shares fell 49.5% over one year, indicating high price volatility.

Closing view

The evidence points to a company with shrinking sales, operating losses and negative free cash flow, trading at a very low book multiple of 0.1 and below its own history and its peers. Positive net income and a P/E of 9.1 provide some counterweight, but the data does not explain what drives profit below the operating line. The model's base estimate of ₩323 per share is under the current price and the bear-to-bull range is extremely wide, so the picture is highly uncertain. Whether the low valuation reflects opportunity or justified caution depends on whether operating results stabilise, which the data does not yet show.

Model estimate of fair value

Bear
₩0
-100%
Base
₩323
-67%
Bull
₩1,929
+94%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 27, 2026InitiationStart of coverage (reader request)Tongyang: Sharp Share Price Decline as Operating Losses Persist and Sales Shrink

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information