Hansol Chemical: Profits Stable Near 17% Margin as Shares Rally 31.8% in a Month

Thesis

The data supports a picture of a profitable chemicals company recovering from a 2023 earnings low. Revenue grew 13.9% in 2025 after 0.6% in 2024 and a 12.9% decline in 2023, and operating income rose from ₩124.1B in 2023 to ₩156.2B in 2025. Trailing operating income of ₩159.8B is slightly higher still.

The data does not support a return to the 2021-2022 margin levels of 25.7% and 21.0%. Margins have stayed in the 16-18% range for three years. The recent 31.8% one-month price gain has pushed multiples above year-end 2025 levels (P/E 17.5x, P/B 2.4x) without a matching jump in reported earnings, though the data has no news headlines to explain the move. The price remains below the 52-week high of ₩346,500 and well above the low of ₩175,000.

Business overview

Hansol Chemical (code 014680) is listed on KOSPI in the Chemicals sector. It was founded on 1980-03-13 and listed on 1989-05-20. The CEO is listed as 한장안. It has 11,335,195 listed shares and a market capitalization of about ₩2.99T. Revenue was ₩768.7B in 2021, ₩885.5B in 2022, ₩771.7B in 2023, ₩776.4B in 2024 and ₩884.0B in 2025. The data does not provide a product or segment breakdown.

Financial analysis

These figures come from filed financial statements (DART). Trailing twelve months to H1 2026: revenue ₩931.9B, operating income ₩159.8B, net income ₩154.5B, giving an operating margin of 17.2% and a net margin of 16.6%. ROE is 14.9%.

Annual net income was ₩147.3B in 2025, ₩122.7B in 2024, ₩105.3B in 2023, ₩155.1B in 2022 and ₩148.3B in 2021. ROE was 14.3% in 2025, versus 21.4% in 2022 and 21.5% in 2021.

The balance sheet shows liabilities to equity of 38.4%, cash of ₩97.3B and borrowings of ₩301.6B, so borrowings exceed cash by about ₩204.3B. Trailing free cash flow is ₩124.6B.

Valuation

Current multiples are P/E 19.3x, P/B 2.7x, P/S 3.2x and EV/EBITDA 14.7x, with a dividend yield of 0.9%. Enterprise value is about ₩3.19T. At year-end 2025 the P/E was 17.5x and P/B 2.4x, so both are higher now. Year-end multiples for earlier years are not available.

Peers in the data trade at much lower book multiples: LG Chem 0.5x, Hanwha 0.6x, Hanwha Solutions 0.6x, KCC 0.4x and SKC 1.8x. Peer P/E is available only for Hanwha (10.3x) and KCC (1.1x); the others have no P/E reported. These peers are larger or differently structured, so the comparison is limited.

Catalysts

• The half-year report for June 2026 was filed on 2026-08-13 and is the source of the latest trailing figures.
• Several 5%+ holding reports were filed between 2026-08-04 and 2026-10-07, indicating ongoing changes in large shareholder positions.
• Changes in the largest shareholder's holdings were filed on 2026-07-30 and 2026-09-29.
• Insider shareholding reports were filed on 2026-07-02 and 2026-10-06.
• The 31.8% one-month share price move may draw attention to the next set of results, though no date for them is in the data.

Risks

• The stock trades at higher multiples than at year-end 2025 after a sharp one-month rally, leaving less room for earnings disappointment.
• Operating margins of 16-18% are far below the 25.7% reached in 2021, and revenue fell 12.9% in 2023, showing earnings can be cyclical.
• Borrowings of ₩301.6B exceed cash of ₩97.3B, which adds financing exposure.
• Investor flows, foreign ownership and short interest are not available, so the drivers of the recent price move cannot be assessed.
• No news headlines are provided, and the repeated large-shareholder filings are not explained in the data.

Closing view

The filed numbers show a company with steady profitability, a 14.9% ROE and positive free cash flow, recovering from a weak 2023. The share price has moved faster than earnings, lifting P/E to 19.3x and P/B to 2.7x, and the data lacks flow and news information to explain it. Peer comparisons are limited by missing figures and different business profiles. Investors should weigh the earnings stability against the higher starting multiples and the unexplained shareholder filing activity.

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, 2026InitiationHansol Chemical: Profits Stable Near 17% Margin as Shares Rally 31.8% in a Month