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JONBUR Research · Initiation

Cosmo Advanced Materials & Technology · 005070 · Chemicals

Cosmo Advanced Materials & Technology: Revenue Recovering Slightly but Profits Near Zero, Share Price Up 13.2% in 3 Months

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

The filed financials show revenue down from a 2023 peak of ₩629.6B to ₩456.3B in 2025, with operating margin thin at 1.3% on a trailing basis and a net loss of ₩7.1B. The share price closed at ₩43,650 on 2026-10-12, up 13.2% over three months, while the valuation model has no estimate available.

Written Oct 13, 2026 · Data as of Oct 12, 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 company whose earnings have weakened sharply. Operating margin fell from 7.1% in 2021 to 0.5% in 2025, and ROE moved from 12.1% in 2022 to -0.1% in 2025. Trailing revenue of ₩482.7B (as of H1 2026) is above the 2025 figure of ₩456.3B, which hints at a modest revenue recovery, but trailing net income is still negative at -₩7.1B. The share price is 8.6% higher over one month and 9.4% over one year, and sits between its 52-week low of ₩26,600 and high of ₩66,400. So the market price has held up better than reported profits. The data does not show the reasons for the profit decline, and no news headlines were available. Investor flow, foreign ownership and short balance data are also not available.

Business overview

Cosmo Advanced Materials & Technology (코스모신소재, code 005070) is listed on KOSPI in the Chemicals sector. It was founded in 1973, listed in 1987, and is led by CEO 홍동환. It has 32,510,756 listed shares and a market capitalization of about ₩1.4T. Revenue grew from ₩305.9B in 2021 to ₩629.6B in 2023, then fell to ₩569.7B in 2024 and ₩456.3B in 2025. The data does not describe the company's products or segments.

Financial analysis

All figures come from filed financial statements (DART). Trailing twelve months to H1 2026: revenue ₩482.7B, operating income ₩6.3B (1.3% margin), net income -₩7.1B (-1.5% margin), ROE -1.4%. Annual operating income was ₩32.5B in 2022, ₩32.3B in 2023, ₩25.0B in 2024 and ₩2.4B in 2025. Net income went from ₩27.7B in 2022 to ₩17.6B in 2024 and -₩0.5B in 2025. Revenue growth was -9.5% in 2024 and -19.9% in 2025. On the balance sheet, liabilities-to-equity is 58.3%, cash is ₩128.1B and borrowings are ₩116.7B, so cash slightly exceeds borrowings. Trailing free cash flow is positive at ₩9.9B.

Valuation

The stock trades at a price-to-book of 2.6 and a price-to-sales of 2.9. P/E, EV/EBITDA and dividend yield are not available because earnings are negative or data is missing. Enterprise value is about ₩1.41T. The year-end 2025 P/B was 2.8, so the current multiple is slightly lower. Listed peers show lower P/B: LG Chem 0.5, Hanwha 0.6, Hanwha Solutions 0.6, KCC 0.4 and SKC 1.8. Only Hanwha (10.3) and KCC (1.1) have P/E values shown. The company therefore trades at a higher book multiple than all five peers listed, while its ROE is negative. The valuation model has no fair value estimate for this company (fair_value_model is null), so there is no model estimate to compare with the ₩43,650 share price.

Catalysts

  • The amended half-year report (Jun 2026) filed on 2026-09-30 and the added attachment on 2026-08-14 may bring updated financial detail.
  • Several 5%+ holding reports were filed between June and September 2026, including on 2026-09-28, which point to changes in large shareholder positions.
  • The preliminary earnings release on 2026-07-22 was the latest earnings update visible in the data, and the next results could show whether margins recover from 1.3%.
  • Trailing revenue of ₩482.7B is above the 2025 level, so continued growth in coming reports would be a datapoint to watch.

Risks

  • Profitability is very low, with a 1.3% operating margin and a trailing net loss of ₩7.1B.
  • Revenue has fallen two years in a row (-9.5% in 2024 and -19.9% in 2025).
  • The P/B of 2.6 is above all listed peers while ROE is -1.4%, so the price depends on a recovery not yet visible in filed numbers.
  • Multiple amended filings (annual, quarterly and half-year reports) appear in the data, and the reasons for the amendments are not given.
  • Investor flow, foreign ownership, short balance and news data are unavailable, which limits visibility into market positioning.

Closing view

The filed numbers show a company with falling revenue through 2025, margins close to zero and a small trailing loss, though trailing revenue and free cash flow are modestly positive and cash covers borrowings. The share price has risen over recent months and the book multiple is above peers, which is not matched by current returns. With no model estimate available and limited flow and news data, the evidence is mixed and leaves open how quickly earnings may recover.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Cosmo Advanced Materials & Technology: Revenue Recovering Slightly but Profits Near Zero, Share Price Up 13.2% in 3 Months

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