Ask Warren

JONBUR Research · Initiation

Taekwang Industrial · 003240 · Chemicals

Taekwang Industrial: Loss-Making Operations, Net Profit From Other Sources, Trading Far Below Book Value

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Taekwang Industrial (KOSPI, Chemicals) posted an operating loss of ₩32.3B over the trailing twelve months to H1 2026 while reporting net income of ₩118.7B and holding no borrowings. The shares closed at ₩857,000 on 2026-10-21, well below the 52-week high of ₩1,634,000 and at 0.2x book value.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

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

XfWATGr/in@

Thesis

The data supports a picture of a financially conservative company: cash of ₩318.2B, zero borrowings and liabilities at 13.4% of equity. The shares trade at 0.2x book value, a level that has been steady at 0.2x to 0.3x at each year-end since 2021.

The data does not show a recovery in core operations. Operating income has been negative in four of the last five years, and revenue has fallen from ₩2.70T in 2022 to ₩1.83T in 2025. Net income is positive mainly because of items below the operating line, and the filings provided do not break these down. Trailing free cash flow is negative at ₩409.9B.

Recent news and filings point to corporate activity: several responses to rumour or news reports, a signed MOU with Hankook Carbon on a shipbuilding acquisition, and a shareholder request from Trustone to inspect board minutes. The data gives no financial terms for any deal.

Business overview

Taekwang Industrial is a KOSPI-listed chemicals company, founded in 1961 and listed in 1975. It has 1,113,400 listed shares and a market capitalisation of about ₩954.2B. It is led by co-CEOs 이부의 and 정인철.

Revenue peaked at ₩2.70T in 2022 and was ₩1.83T in 2025, a 13.9% decline that year. Trailing revenue to H1 2026 was ₩1.95T. Foreign ownership is 3.4%, up slightly from 3.3% sixty days ago, and the short balance is 0.2%.

Financial analysis

These figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩1.95T, operating income -₩32.3B (margin -1.7%), net income ₩118.7B (net margin 6.1%), ROE 2.9%.

Annual history: operating income was ₩355.3B in 2021 (13.7% margin), then -₩122.1B in 2022, -₩99.4B in 2023, -₩27.2B in 2024 and -₩36.0B in 2025. Net income was ₩341.8B in 2022, -₩18.5B in 2023, ₩214.5B in 2024 and ₩80.8B in 2025. ROE ranged from -0.5% to 8.5% over the period.

The balance sheet shows ₩318.2B of cash, no borrowings and liabilities to equity of 13.4%. Trailing free cash flow is -₩409.9B. The data does not explain the drivers of this figure.

Valuation

Current multiples: P/E 8.0x, P/B 0.2x, P/S 0.5x and dividend yield 0.2%. Enterprise value is about ₩148.8B, and EV/EBITDA is not available. Year-end P/B has been 0.2x to 0.3x since 2021, while year-end P/E ranged from 2.4x to 10.5x, so the current P/E is within that range but above most past readings.

Among listed peers, P/B is 0.5x for LG Chem, 0.7x for Hanwha Solutions, 0.4x for Hanwha, 2.3x for SKC and 0.3x for KCC. Peer P/E is available only for Hanwha (6.7x) and KCC (0.9x).

The valuation model (5-year discounted cash flow at an 8.0% rate, based on trailing figures to H1 2026) gives a base estimate of ₩109,114 per share, with a bear case of ₩89,146 and a bull case of ₩247,368. This is a model estimate based on the assumptions shown, not a target. All three cases sit far below the ₩857,000 share price, which suggests that the market is valuing the company on factors the cash-flow model does not capture, such as assets or corporate events. The data does not identify those factors.

Catalysts

  • The MOU with Hankook Carbon on a shipbuilding acquisition, reported on 2026-10-14, could change the company's business mix, though no terms are in the data.
  • Trustone's request to inspect board minutes, reported on 2026-10-13, points to shareholder pressure over governance.
  • Repeated filings responding to rumour or news reports (September and October 2026) show ongoing market attention to corporate developments.
  • The amended new facility investment and related-party transaction filings of 2026-09-30 may reveal capital spending plans.
  • The next quarterly results will show whether the operating loss is narrowing from -₩32.3B on a trailing basis.

Risks

  • Operating income has been negative in four of the last five years, so core earnings are not yet self-sustaining.
  • Net income relies on items outside operations, and the data does not show whether these will recur.
  • Trailing free cash flow of -₩409.9B is a large cash outflow relative to ₩318.2B of cash.
  • Revenue has declined from ₩2.70T in 2022 to ₩1.83T in 2025, with no sign of a turnaround in the data.
  • The share price is down 4.0% over one month and far below its 52-week high, and the model estimates are well below the market price, so the valuation is hard to anchor.

Closing view

The data shows a debt-free company with large cash holdings that trades at a deep discount to book value, but one whose operations have been loss-making for most of the past five years and whose trailing free cash flow is sharply negative. The model estimates of ₩89,146 to ₩247,368 per share are far from the ₩857,000 price, so the market appears to be pricing in something beyond cash-flow assumptions, and the data does not say what. Potential acquisition activity and governance disputes add uncertainty in both directions, and the figures given do not allow a firm conclusion.

Model estimate of fair value

Bear
₩89,146
-89%
Base
₩109,114
-87%
Bull
₩247,368
-70%

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 8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 22, 2026InitiationStart of coverage (reader request)Taekwang Industrial: Loss-Making Operations, Net Profit From Other Sources, Trading Far Below Book Value

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