Tokai Carbon Korea Q3 2026 Preliminary Earnings: Operating Profit Up 35.0% Year on Year

What happened

On 2026-10-29 the company filed preliminary results for July to September 2026. These are provisional figures and may change after the final close.

Revenue was ₩110.1B, up 39.0% from ₩79.2B a year earlier and up 16.1% from ₩94.9B in the previous quarter. Operating profit was ₩30.2B, up 35.0% from ₩22.4B a year earlier and up 12.6% from ₩26.9B in the previous quarter. The implied quarterly operating margin is about 27.4%, based on these two figures.

Pre-tax profit from continuing operations was ₩29.2B, up 17.6% year on year but down 0.9% from the previous quarter. Net profit was ₩23.0B, up 34.2% year on year but down 2.7% from the previous quarter.

For January to September, revenue was ₩300.4B (up 30.4%), operating profit was ₩85.6B (up 31.0%) and net profit was ₩71.8B (up 36.3%).

What it changes for the thesis

The previous report described a profitable, low-debt company with a revenue recovery since 2023, and said operating margin had stayed at 27.8% to 29.4% rather than returning to the 38% to 40% of 2021 and 2022. These results fit that picture. Revenue growth is strong, and the quarterly margin of about 27.4% is in the same range as recent years, not a return to the earlier peak.

The previous report also said the share price and multiples had moved up faster than earnings. Earnings growth of about 30% to 35% narrows that gap somewhat but does not remove the question. Pre-tax and net profit slipped slightly from the prior quarter, so the growth is not uniform across every line.

What it changes for the valuation

The share price closed at ₩220,000 on 2026-10-28, down 21.4% over one month and up 29.6% over one year. P/E is now 31.7 and P/B is 4.5, compared with 43.7 and 6.2 in the previous report. These multiples are based on trailing figures to the first half of 2026 and do not yet include this quarter.

The previous report had no model fair value. The model now gives a range of ₩63,987 (bear), ₩87,003 (base) and ₩121,472 (bull) per share, using a 9.1% discount rate and data to the first half of 2026. This is a model estimate based on the assumptions shown. The share price is well above even the bull case. The model does not yet include these Q3 results, so it may change when the figures are updated.

Closing view

The filing shows solid growth: operating profit up 35.0% year on year with a stable margin of about 27.4%. That supports the earlier view of a profitable, low-debt business in recovery. It does not show a return to the margins of 2021 and 2022, and net profit slipped from the previous quarter. The gap between the share price and our model range is large, which means the market is assuming more than the model's assumptions do. The figures are provisional and the model has not yet absorbed them. This note is not a recommendation.

Model estimate of fair value

Bear

₩63,987

-70%

Base

₩87,003

-59%

Bull

₩121,472

-43%

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 9.1%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Preliminary earningsOct 29, 2026
• 5%+ holding reportOct 6, 2026
• 5%+ holding reportOct 2, 2026
• Investor relations (IR) eventSep 4, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• Preliminary earningsAug 7, 2026
• [Amended] New Facility Investment, etc. (Voluntary Disclosure)Jun 26, 2026
• Investor relations (IR) eventMay 15, 2026
• Quarterly report (Mar 2026)May 15, 2026
• 5%+ holding reportMay 7, 2026
• Corporate value-up planMay 4, 2026
• Preliminary earningsApr 28, 2026
• Daily prices up to 2026-10-28
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 29, 2026Update noteEarningsTokai Carbon Korea Q3 2026 Preliminary Earnings: Operating Profit Up 35.0% Year on Year
2. Oct 13, 2026InitiationTokai Carbon Korea: High Margins and Strong Share Price Run, With Multiples Well Above Recent Year-End Levels