Ask Warren

JONBUR Research · Initiation

Kolon Industries · 120110 · Chemicals

Kolon Industries: Low Price-to-Book and Thin Margins After a Sharp One-Year Rally

Why this report

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

Kolon Industries (KOSPI, Chemicals) closed at ₩53,800 on 2026-10-12, up 53.5% over one year but down 6.3% over one month and well below its 52-week high of ₩104,900. Trailing earnings have recovered from 2025, yet margins and returns on equity remain low, and the stock trades at 0.3x book value.

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.

XfWATGr/in@

Thesis

The data supports a picture of a company whose earnings are recovering from a weak 2025 but remain modest. Trailing net income of ₩135.8B compares with ₩38.3B in 2025, and trailing free cash flow of ₩439.3B is strong relative to a market value of ₩1.48T. Against that, the operating margin is 4.0%, ROE is 3.4%, and revenue has not grown meaningfully since 2022. The P/B of 0.3 is similar to or below peers in the data (0.4 to 1.8), which reflects the low returns on equity. The data does not show investor flows, foreign ownership or short balance, so we cannot say who has been driving the price. An exchange inquiry on 2026-10-12 about a news report or price move indicates unusual attention, but the data does not say what prompted it.

Business overview

Kolon Industries is listed on KOSPI in the Chemicals sector. It was founded on 2010-01-05 and listed on 2010-02-01, with 27,519,091 listed shares and a market capitalization of about ₩1.48T. Co-CEOs are listed as 허성 and 김민태. Revenue has been in a range of ₩4.7T to ₩5.4T over 2021 to 2025: ₩4.66T in 2021, ₩5.37T in 2022, ₩5.06T in 2023, ₩4.84T in 2024 and ₩4.87T in 2025. Trailing revenue to H1 2026 is ₩4.98T. The data does not describe individual product lines.

Financial analysis

These figures come from filed financial statements (DART). Operating margin fell from 5.4% in 2021 to 4.5% in 2022, 3.1% in 2023, 3.3% in 2024 and 2.2% in 2025, then rose to 4.0% on a trailing basis. Operating income was ₩108.9B in 2025 versus ₩252.7B in 2021, and is ₩197.3B trailing. Net income was ₩189.2B in 2021, ₩179.8B in 2022, ₩42.8B in 2023, ₩98.6B in 2024 and ₩38.3B in 2025; trailing it is ₩135.8B (net margin 2.7%). ROE was 7.8% in 2021 and 1.0% in 2025, and is 3.4% trailing. On the balance sheet, liabilities to equity are 86.5%, cash is ₩229.3B and borrowings are ₩657.6B. Trailing free cash flow is ₩439.3B. A 2026-09-17 filing covered a decision to issue debt securities recognized as capital; the data gives no amount.

Valuation

Current multiples are P/E 10.9, P/B 0.3, P/S 0.3, EV/EBITDA 4.3 and a dividend yield of 2.8%, with enterprise value of about ₩1.91T. At the end of 2025 the P/E was 32.2 and the P/B 0.3, so the earnings multiple has fallen as profits recovered while P/B is unchanged. Among peers, Hanwha has a P/E of 10.3 and a P/B of 0.6, KCC a P/E of 1.1 and a P/B of 0.4, LG Chem a P/B of 0.5, Hanwha Solutions a P/B of 0.6 and SKC a P/B of 1.8; several peers have no P/E in the data. The valuation model estimate (fair_value_model) is not available for this company, so there is no model estimate per share to compare with the ₩53,800 price.

Catalysts

  • The 2026-10-12 exchange inquiry about a news report or price move may lead to a company disclosure that clarifies recent price action.
  • Repeated 5%+ holding reports (2026-09-07, 2026-10-01, 2026-10-02) and a change in the largest shareholder's holdings on 2026-08-31 point to shifting ownership.
  • The H1 2026 report (filed 2026-08-14) showed trailing profit recovering, so the next quarterly results will show whether the improvement continues.
  • The 2026-09-17 filing on debt securities recognized as capital could affect the capital structure.
  • A 2026-10-13 news item says the company unveiled an AI product analysis tool in Germany, though the data does not show any financial impact.

Risks

  • Margins and returns are low, with a 4.0% operating margin and 3.4% ROE, leaving earnings sensitive to cost or demand changes.
  • Revenue has not grown since 2022, and 2023 and 2024 both saw declines.
  • Borrowings of ₩657.6B exceed cash of ₩229.3B, and liabilities are 86.5% of equity.
  • The stock is volatile: the 52-week range is ₩33,900 to ₩104,900, and it is down 6.3% in one month after a 53.5% one-year gain.
  • Investor flow, foreign ownership and short-selling data are unavailable, which limits visibility into market positioning.

Closing view

The data shows a company with recovering earnings, strong trailing free cash flow and a low P/B of 0.3, but also thin margins, low ROE, flat revenue and meaningful debt. The low book multiple fits with weak returns on equity rather than being clearly out of line with peers. With no model estimate or flow data available, the evidence is incomplete, and the picture depends on whether the 2026 profit recovery proves durable. This is a description of the data, not a recommendation.

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)Kolon Industries: Low Price-to-Book and Thin Margins After a Sharp One-Year Rally

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