OCI Holdings: Shares Up 161.3% in a Year as Earnings Remain Thin and Valuation Multiples Look Stretched

Thesis

The data shows a sharp price recovery from a 52-week low of ₩83,400, with gains of 3.4% over one month and 10.5% over three months. The share price has moved far more than reported profits. Trailing net income is ₩37.4B, and net margin is 1.0%, so the P/E of 113.8 reflects low earnings rather than strong profitability. Price-to-book is 1.0, close to the 0.6 recorded at the end of 2025, which suggests the market now values the company near its accounting equity. Operating profit did return to positive in the trailing period (₩93.0B) after a ₩57.6B operating loss in 2025, which is a point in the data's favor. Free cash flow is negative, and flows, foreign ownership and short interest are not available, so the data cannot show who is driving the rally.

Business overview

OCI Holdings is a KOSPI-listed holding company, founded in 1974 and listed in 1985, with 18,814,917 listed shares and a market capitalization of about ₩4.3T. It has two co-CEOs, 이우현 and 이수미. Revenue has ranged from ₩2.6T to ₩4.7T over the last five years: ₩3.2T in 2021, ₩4.7T in 2022, ₩2.6T in 2023, ₩3.6T in 2024 and ₩3.4T in 2025. Trailing revenue as of H1 2026 is ₩3.6T. The data does not describe individual business lines or subsidiaries beyond filing titles.

Financial analysis

These figures come from filed financial statements (DART). Operating margin was about 19% to 21% in 2021 to 2023 (operating income peaked at ₩976.7B in 2022), then fell to 2.8% in 2024 and -1.7% in 2025. Net income went from ₩880.3B in 2022 to ₩713.5B in 2023, ₩97.7B in 2024 and a loss of ₩89.9B in 2025. ROE fell from 25.2% in 2022 to -2.3% in 2025 and is 0.9% on a trailing basis. Revenue growth was 35.0% in 2024 and -5.5% in 2025. Trailing figures as of H1 2026: revenue ₩3.6T, operating income ₩93.0B (2.6% margin), net income ₩37.4B (1.0% margin). Liabilities to equity are 71.4%. Cash is ₩892.8B, and free cash flow is -₩104.3B. Borrowings are not available in the data.

Valuation

The current P/E is 113.8, P/B is 1.0, P/S is 1.2 and the dividend yield is 0.5%. Enterprise value is about ₩3.4T, and EV/EBITDA is not available. Year-end P/E is not available for past years because of losses or missing data, and the only historical P/B point is 0.6 at the end of 2025, so the current 1.0 is higher than that. The listed peers are SK Square (P/E 4.0, P/B 2.4), KB Financial (9.9, 1.0), Shinhan Financial (9.1, 0.8), SK (4.9, 1.1) and Hana Financial (8.6, 0.8). OCI's P/B is in line with that group, but its P/E is far higher because trailing earnings are low. Several peers are financial companies, so comparability is limited.

Catalysts

• An investor relations (IR) event was filed on 2026-10-08, which may bring more information on company plans.
• A Material Matters Report on a business suspension at a subsidiary was filed on 2026-09-29, and its effect on earnings is not quantified in the data.
• Amended filings on acquisition of property, plant and equipment (2026-09-30 and 2026-07-23) point to ongoing capital spending.
• The 2026-08-10 filings on terminating a treasury-share acquisition trust contract, and the 2026-08-11 result report, change the company's buyback arrangements.
• An insider shareholding report (2026-10-06) and a change in the largest shareholder's holdings (2026-07-28) were filed recently.

Risks

• Trailing earnings are small (net margin 1.0%, ROE 0.9%), so the P/E of 113.8 leaves little room if profits stay weak.
• Free cash flow is negative at -₩104.3B, which could strain funding of capital spending.
• The share price is 45.4% below its 52-week high of ₩414,000 and 171.0% above its low, which points to high volatility.
• The business suspension at a subsidiary could weigh on future results, and the data gives no detail on its size.
• Investor flows, foreign ownership, short interest and news are not available, so sentiment and positioning cannot be assessed.

Closing view

The data shows a stock that has rebounded strongly while reported profits are only beginning to recover from a loss in 2025. Operating income is positive again and cash of ₩892.8B and a liabilities-to-equity ratio of 71.4% offer some balance sheet support, but margins are far below the 19% to 21% of 2021 to 2023 and free cash flow is negative. The P/B of 1.0 is in line with peers, while the P/E of 113.8 reflects depressed earnings. Missing data on flows, borrowings and EBITDA limits the conclusions, so the picture remains mixed.

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).

Report history

1. Oct 13, 2026InitiationOCI Holdings: Shares Up 161.3% in a Year as Earnings Remain Thin and Valuation Multiples Look Stretched