SKC: Deep Losses and Heavy Borrowing, With a Rights Offering and Share Deals in Recent Filings

Thesis

The data supports a picture of a company under financial strain. Revenue has grown for three straight years since 2023 (6.9% in 2025), but operating losses have persisted and the trailing operating margin is -9.8%. Net losses are much larger than operating losses, at -38.8% on a net margin basis, which points to heavy costs below the operating line. The data does not explain why. The recent filings on a rights offering, debt guarantees and share acquisitions suggest active capital and portfolio moves, but details such as size, purpose and terms are not in the data. The share price is 47.7% below its 52-week high of ₩184,400 and 58.0% above its low of ₩61,100, so it has been volatile. Investor flows, foreign ownership, short balance and news headlines are not available.

Business overview

SKC is listed on KOSPI in the Chemicals sector. It was founded on 1973-07-16 and listed on 1997-07-18, with 37,868,298 listed shares and Kim Jong-woo named as CEO. Revenue was ₩3.40T in 2021 and ₩3.14T in 2022, then fell 50.0% to ₩1.57T in 2023. It has since risen to ₩1.72T in 2024 and ₩1.84T in 2025. Trailing revenue to H1 2026 is ₩2.08T. The data does not break revenue down by product or segment.

Financial analysis

All figures come from filed financial statements (DART), consolidated where available. Operating income was ₩464.7B in 2021 (13.7% margin) and ₩220.3B in 2022 (7.0%), then turned negative: -₩216.3B in 2023, -₩276.8B in 2024 and -₩305.0B in 2025 (-16.6%). Net income was ₩220.9B in 2021, then losses of ₩68.4B, ₩275.5B, ₩443.5B and ₩734.4B from 2022 to 2025. Trailing to H1 2026, operating income is -₩203.5B and net income is -₩805.1B, with ROE of -50.8%. Liabilities to equity stand at 156.7%. Cash is ₩1.23T against borrowings of ₩3.16T, so borrowings are about 2.6 times cash. Trailing free cash flow is -₩959.9B, meaning the business is consuming cash.

Valuation

Earnings-based multiples (P/E and EV/EBITDA) are not meaningful because of the losses. Price-to-book is 1.8, price-to-sales is 1.8 and dividend yield is 0.3%. Enterprise value is ₩5.58T, well above market cap because of the debt load. Year-end P/B was 4.8 in 2025, so the current 1.8 is lower than that point, though earlier years are not available. Among listed peers, P/B is 0.5 for LG Chem, 0.6 for Hanwha, 0.6 for Hanwha Solutions and 0.4 for KCC, all below SKC's 1.8. Peer P/E is 10.3 for Hanwha and 1.1 for KCC, while the others have none. Soulbrain has no multiples in the data. SKC therefore trades at a higher book multiple than these peers despite weaker returns.

Catalysts

• The amended rights offering (paid-in capital increase) decision filed on 2026-09-29 could change the share count and funding position, though terms are not in the data.
• Repeated filings on acquisition of shares in another company (2026-09-04, 09-10, 09-22, 09-28 and 10-08) point to ongoing investment or restructuring activity.
• Debt guarantee decisions for third parties were filed on 2026-09-22 and amended on 2026-10-08, which may affect the company's obligations.
• A filing on 2026-09-22 labeled a major management matter relevant to investors could be material, but its content is not in the data.
• The next financial statements will show whether operating losses are narrowing from the -₩203.5B trailing level.

Risks

• Trailing net loss of ₩805.1B and ROE of -50.8% show ongoing erosion of equity.
• Borrowings of ₩3.16T far exceed cash of ₩1.23T, and liabilities are 156.7% of equity.
• Trailing free cash flow of -₩959.9B means external funding may remain necessary.
• A rights offering could dilute existing shareholders depending on its terms, which are not available.
• Guarantees of debt for other parties and share acquisitions could add exposure, and the data gives no detail on their size.

Closing view

The data shows a company with recovering revenue but persistent operating losses, larger net losses, heavy borrowing and negative free cash flow. Recent filings indicate active financing and investment steps, yet their details and any investor flow or news context are missing. The 1.8 price-to-book is above the listed peers' 0.4 to 0.6, while the business is loss-making. The balance of evidence is mixed and leans toward financial strain, with outcomes depending on details not yet visible in this data.

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, 2026InitiationSKC: Deep Losses and Heavy Borrowing, With a Rights Offering and Share Deals in Recent Filings