Ask Warren

JONBUR Research · Initiation

Chinyang Holdings · 100250 · Rubber & plastics

Chinyang Holdings: Thin Operating Margins, a One-Off-Looking Profit Jump and Low Multiples

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Chinyang Holdings closed at ₩2,900 on 2026-10-29, with a market cap of ₩185.3B and a price near the low end of its 52-week range. Trailing net income of ₩117.4B is far above operating income of ₩4.9B, so reported earnings multiples look very low but are not clearly tied to the core business.

Written Oct 30, 2026 · Data as of Oct 29, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

Thesis

The data supports a picture of a low-valued stock: P/B is 0.4, P/E is 1.6 and the dividend yield is 6.9%. However, the trailing net margin of 41.4% sits beside an operating margin of just 1.7%, which means most of the trailing profit came from outside operations. The data does not say what the source was. The recent filings include an amended sale of property, plant and equipment, which may or may not be related, so that link cannot be confirmed. Free cash flow is negative at ₩62.9B and borrowings of ₩150.1B exceed cash of ₩94.3B. The low P/E should therefore be read with caution.

Business overview

Chinyang Holdings is listed on KOSPI in the rubber and plastics sector, with 63.9M listed shares. It was founded on 2008-01-07 and listed on 2008-02-15. It has two co-CEOs, 양준영 and 최창호. Revenue has grown from ₩224.8B in 2021 to ₩279.8B in 2025, with a dip of 2.5% in 2025 after growth of 5.8% in 2024 and 15.6% in 2023. Recent filings show a corporate value-up plan (March 2026), several cash dividend decisions (July 2026) and a corporate governance report (June 2026). Foreign ownership is 2.0%, unchanged over 60 days, and short balance is 0.1%.

Financial analysis

These figures come from filed financial statements. Over the last twelve months to H1 2026, revenue was ₩283.8B, operating income ₩4.9B (margin 1.7%) and net income ₩117.4B (margin 41.4%), with ROE of 27.5%. In 2025, revenue was ₩279.8B, operating income ₩5.8B (margin 2.1%) and net income ₩18.2B, with ROE of 4.9%. Annual operating margins ranged from 1.3% to 3.1% over 2021-2025, and net income ranged from ₩10.0B to ₩36.1B. The trailing jump to ₩117.4B is well outside that range. Liabilities to equity are 51.5%. Cash is ₩94.3B against borrowings of ₩150.1B, and trailing free cash flow is -₩62.9B.

Valuation

Current multiples are P/E 1.6, P/B 0.4, P/S 0.7 and a dividend yield of 6.9%. EV/EBITDA is not available. Enterprise value is ₩241.0B. Year-end P/B was 0.5 to 0.7 in 2021-2025, so today's 0.4 is below its own history. Year-end P/E was 5.7 to 23.4, far above the current 1.6, which is distorted by the trailing profit jump. Peers show P/E of 3.1 to 19.8 and P/B of 0.3 to 2.5: Hankook Tire & Technology 5.8 and 0.5, Kumho Tire 3.1 and 0.6, Nexen Tire 3.6 and 0.3, Dongwon Systems 9.7 and 0.7, Pum-Tech Korea 19.8 and 2.5. No valuation model estimate per share is available for this company, so no comparison with the share price can be made.

Catalysts

  • The half-year report filed on 2026-08-14 provides the latest figures, and the next periodic filing will show whether the trailing profit level persists.
  • Cash dividend decisions filed in July 2026 are relevant to the 6.9% dividend yield.
  • The amended filing on the sale of property, plant and equipment (2026-07-16) may affect the balance sheet and cash flow.
  • The corporate value-up plan filed on 2026-03-26 is a governance-related item investors may follow.
  • A 5%+ holding report was filed on 2026-03-18, a sign of changes in large shareholdings.

Risks

  • Operating margin is only 1.7%, leaving little buffer against cost or demand changes.
  • Trailing net income is far above operating income, so earnings quality and repeatability are unclear from the data.
  • Free cash flow is negative at -₩62.9B and borrowings of ₩150.1B exceed cash of ₩94.3B.
  • The share price is down 11.7% over one year and 6.3% over one month, and sits near the 52-week low of ₩2,790.
  • Foreign ownership of 2.0% and small recent investor flows suggest thin trading interest, and no recent news headlines are available.

Closing view

The data shows a small company with low multiples, a high dividend yield and a share price near its 52-week low. Against that, core operating profit is thin, cash flow is negative and the trailing profit appears driven by non-operating items that the data does not explain. The low P/E of 1.6 is therefore a weak guide, while the P/B of 0.4 and the dividend yield give a firmer but still incomplete picture. No model estimate is available, so investors need to look into the source of the profit and the use of dividends and asset sale proceeds in the filings themselves.

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 30, 2026InitiationStart of coverage (reader request)Chinyang Holdings: Thin Operating Margins, a One-Off-Looking Profit Jump and Low Multiples

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