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JONBUR Research · Initiation

Taekyung Industrial · 015890 · Chemicals

Taekyung Industrial: Low Multiples and a Wide Model Range Alongside Modest Returns

Why this report

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Taekyung Industrial closed at ₩4,700 on 2026-10-21, trading at 0.4x book value and 5.0x earnings, with a trailing operating margin of 8.2%. The model estimate is far above the share price but spans a very wide range, and returns on equity remain modest.

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.

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Thesis

The data supports a picture of a low-valued chemicals company with growing revenue and steady operating profit. The share price is ₩4,700, near the lower half of its 52-week range of ₩4,300 to ₩5,340, and the stock is down 9.1% over one year. P/E of 5.0, P/B of 0.4 and a dividend yield of 5.3% all sit at the low end of the company's own five-year history, where year-end P/B was 0.5 to 0.7.

What the data does not support is a clear case that returns are improving enough to justify a higher multiple. ROE was 8.5% on a trailing basis, up from 5.4% in 2025 but similar to 2022. Net margin is thin at 3.2%. A filing on 2026-08-06 amended a production suspension notice, and the data gives no detail on its size or effect. No recent news headlines are available.

Business overview

Taekyung Industrial is a KOSPI-listed chemicals company founded in 1982 and listed in 1996. It has 29,228,750 listed shares and a market value of about ₩137.4B. It is run by three co-CEOs: 김해련, 박충기 and 김민정. Revenue has grown from ₩516.8B in 2021 to ₩777.1B in 2025, with a decline of 10.5% in 2023 and a rise of 41.9% in 2022 showing how uneven the path has been. The data does not describe product lines or segments.

Financial analysis

These figures come from filed financial statements. Trailing twelve-month revenue to H1 2026 was ₩845.0B, above the ₩777.1B for 2025 (growth of 15.0% that year). Operating income was ₩69.1B for an 8.2% margin, compared with ₩55.4B and 7.1% in 2025 and 8.2% in 2024. Net income was ₩27.2B, against ₩16.8B in 2025 and ₩20.4B in 2024.

ROE was 8.5% on a trailing basis. Liabilities to equity were 67.7%. Cash was ₩121.9B against borrowings of ₩245.2B, so borrowings exceed cash by about ₩123.4B. Free cash flow was ₩53.2B. Enterprise value is ₩234.0B. EV/EBITDA is not available.

Valuation

Current P/E is 5.0, P/B 0.4 and P/S 0.2, with a dividend yield of 5.3%. In its own history, year-end P/E ranged from 7.0 to 11.8 and P/B from 0.5 to 0.7, so current multiples are below those levels. Among listed chemical and related peers, P/B ranges from 0.3 (KCC) to 2.3 (SKC), with Hanwha at 0.4 and LG Chem at 0.5; P/E is available for only Hanwha (6.7) and KCC (0.9).

The valuation model (5-year discounted cash flow, 6.1% rate, based on trailing figures to H1 2026) gives a base estimate of ₩22,775 per share, with a bear case of ₩5,031 and a bull case of ₩57,247. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. Even the bear case is above the ₩4,700 price, but the spread between cases is very large, which signals high sensitivity to assumptions.

Catalysts

  • The half-year report filed on 2026-08-14 showed trailing revenue of ₩845.0B and operating income of ₩69.1B, which investors may continue to weigh.
  • The amended production suspension filing of 2026-08-06 could matter depending on its duration and impact, which the data does not detail.
  • A corporate value-up plan was filed on 2026-03-24, which may be relevant to how the company approaches shareholder returns.
  • The dividend yield of 5.3% and the trend in free cash flow of ₩53.2B may draw attention if payouts are maintained.

Risks

  • The production suspension noted in a filing could reduce output or earnings, and the data does not quantify it.
  • Net margin of 3.2% leaves little cushion if input costs or demand shift.
  • Borrowings of ₩245.2B exceed cash of ₩121.9B, so debt service matters if earnings weaken.
  • Revenue has been volatile, with a 10.5% fall in 2023 following a 41.9% rise in 2022.
  • Foreign ownership slipped from 2.6% to 2.4% over 60 days and foreign investors were net sellers over the last 20 days, indicating limited overseas demand.

Closing view

The data shows a company with improving trailing revenue and profit, a 5.3% dividend yield, and multiples below its own five-year history. Against that, returns on equity are modest, margins are thin, debt exceeds cash, and a production suspension filing remains unexplained in the data. The model estimate sits well above the share price but with a very wide bear-to-bull range, so it is best read as a reflection of assumptions rather than a firm view of value.

Model estimate of fair value

Bear
₩5,031
+9%
Base
₩22,775
+394%
Bull
₩57,247
+1142%

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 6.1%). 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)Taekyung Industrial: Low Multiples and a Wide Model Range Alongside Modest Returns

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