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JONBUR Research · Initiation

Foosung · 093370 · Chemicals

Foosung: Profit Recovery After Two Loss Years, With a Share Price Up 131.6% Over One Year

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Foosung (KOSPI, Chemicals) returned to profit in 2025 and the trailing figures to H1 2026 show an operating margin of 7.6%, while the share price has risen 131.6% over one year to ₩14,310. Trailing P/E of 42.1 and P/B of 4.2 are well above the listed peers shown, and the valuation model produced no estimate.

Written Oct 13, 2026 · Data as of Oct 12, 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 clear earnings recovery. Operating income moved from a loss of ₩46.1B in 2023 and ₩9.6B in 2024 to ₩25.3B in 2025 and ₩43.3B on a trailing basis to H1 2026. Return on equity improved from -21.7% in 2024 to 10.5% trailing.

The data does not show that the recovery is stable. Trailing free cash flow is negative at ₩10.0B, borrowings of ₩241.0B exceed cash of ₩68.6B, and margins remain below the 15.2% to 17.3% seen in 2021 and 2022. The share price is 39.2% below its 52-week high of ₩23,550 but 141.3% above its low of ₩5,930, so much of the improvement may already be reflected in the price. Investor flow, foreign ownership, short balance and news data are not available, so market positioning cannot be assessed.

Business overview

Foosung is a KOSPI-listed company in the Chemicals sector, founded on 2006-11-24 and listed on 2006-12-22. It has 107,255,330 listed shares and a market capitalisation of about ₩1.53T. Trailing revenue is ₩569.9B. Annual revenue was ₩381.3B in 2021, ₩610.6B in 2022 (up 60.1%), ₩523.2B in 2023, ₩437.8B in 2024 and ₩471.6B in 2025 (up 7.7%). The data does not describe products or segments.

Financial analysis

All figures come from filed financial statements (DART). Trailing to H1 2026: revenue ₩569.9B, operating income ₩43.3B (7.6% margin), net income ₩36.5B (6.4% margin), ROE 10.5%.

Annual net income was ₩22.6B in 2021, ₩97.0B in 2022, a loss of ₩53.9B in 2023, a loss of ₩69.4B in 2024 and ₩5.3B in 2025. Operating margin went 15.2%, 17.3%, -8.8%, -2.2% and 5.4% over the same years.

The balance sheet shows liabilities to equity of 110.7%, cash of ₩68.6B and borrowings of ₩241.0B. Trailing free cash flow is -₩10.0B. Dividend yield is 0.0%.

Valuation

Current multiples are P/E 42.1, P/B 4.2, P/S 2.7, and enterprise value of ₩1.71T. EV/EBITDA is not available. At the end of 2025 P/E was 152 and P/B was 2.4, so P/B has risen since then while P/E has fallen as earnings grew. Earlier year-end multiples are not available.

Peers in the data trade at much lower P/B: LG Chem 0.5, Hanwha 0.6, Hanwha Solutions 0.6, KCC 0.4 and SKC 1.8. Peer P/E is available only for Hanwha (10.3) and KCC (1.1). Foosung is also far smaller than these peers by market cap.

The valuation model returned no fair value estimate (fair_value_model is null), so there is no model estimate to compare with the ₩14,310 share price.

Catalysts

  • The half-year report for June 2026, filed on 2026-08-14, provides the latest earnings data behind the trailing margin of 7.6%.
  • Several 5%+ holding reports were filed on 2026-07-01, 2026-07-03, 2026-08-28 and 2026-10-02, indicating changes in major shareholdings, though the data does not show who or in which direction.
  • The next quarterly report would show whether the move from loss to profit continues; the March 2026 quarterly report was filed on 2026-05-15.
  • A filing on 2026-03-24 relating to exercise of conversion or subscription rights suggests possible changes in share count, with details not given in the data.

Risks

  • Trailing free cash flow is negative at ₩10.0B, so profit is not yet turning into cash.
  • Borrowings of ₩241.0B are about 3.5 times cash of ₩68.6B, and liabilities to equity stand at 110.7%.
  • Earnings have been volatile, swinging from a ₩97.0B net profit in 2022 to losses in 2023 and 2024.
  • Valuation multiples of 42.1 P/E and 4.2 P/B are high relative to the peers shown, leaving less room if earnings disappoint.
  • The share price has risen 131.6% in one year and the data contains no investor flow, short interest or news information to explain it.

Closing view

The filed numbers show a genuine turnaround from two loss-making years, with improving margins and a trailing ROE of 10.5%. Against that, cash generation is negative, debt exceeds cash, margins are well below 2021 and 2022 levels, and the stock trades at higher multiples than the peers listed. With no model estimate and no flow or news data, the evidence is mixed: the earnings trend is positive, but whether it is sustained and already priced in cannot be determined from 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).

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Foosung: Profit Recovery After Two Loss Years, With a Share Price Up 131.6% Over One Year

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