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JONBUR Research · Initiation

Hyosung TNC · 298020 · Chemicals

Hyosung TNC: Sharp One-Month Share Price Drop, Thin Margins and a Wide Model Range

Why this report

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

Hyosung TNC closed at ₩271,000 on 2026-10-12, down 20.5% over one month but up 30.3% over one year, with a market cap of about ₩1.2T. Filed statements show trailing revenue of ₩8.4T with a 4.5% operating margin and 1.3% net margin, and a DCF model estimate far above the current price with a very wide range.

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 picture of a large-revenue, low-margin chemicals company whose earnings have recovered from a weak 2022 and 2025 but remain far below the 2021 peak. Trailing net income of ₩112.5B and ROE of 7.0% are well above 2025 (₩10.8B, 0.7%), and free cash flow is positive at ₩190.1B. The shares trade at 0.7x book and a P/E of 10.4, with a 4.6% dividend yield. Against this, leverage is high (liabilities to equity 188.2%), borrowings of ₩926.5B are large relative to cash of ₩107.1B, and the price has fallen 20.5% in a month and sits well below the 52-week high of ₩557,000. The data does not explain the drop: no news headlines, investor flow, foreign ownership or short balance data are available.

Business overview

Hyosung TNC is listed on KOSPI in the Chemicals sector. It was founded on 2018-06-04 and listed on 2018-07-13, with 4,327,682 listed shares. Co-CEOs are listed as 이창황 and 유영환. Revenue has ranged between ₩7.5T and ₩8.9T over 2021-2025: ₩8.6T in 2021, ₩8.9T in 2022, ₩7.5T in 2023, ₩7.8T in 2024 and ₩7.7T in 2025. Trailing revenue to H1 2026 is ₩8.4T. Product-level or segment detail is not available in the data provided.

Financial analysis

These figures come from filed financial statements (DART). Operating income was ₩1.42T in 2021 (16.6% margin), then ₩123.6B in 2022, ₩213.4B in 2023, ₩270.7B in 2024 and ₩251.5B in 2025 (3.3% margin). Net income was ₩770.4B in 2021, ₩11.6B in 2022, ₩93.2B in 2023, ₩134.5B in 2024 and ₩10.8B in 2025. Trailing to H1 2026, operating income is ₩375.8B (4.5% margin), net income ₩112.5B (1.3% margin) and ROE 7.0%. ROE history: 54.2% in 2021, 0.9% in 2022, 7.5% in 2023, 9.8% in 2024 and 0.7% in 2025. Liabilities to equity is 188.2%, borrowings ₩926.5B, cash ₩107.1B and free cash flow ₩190.1B.

Valuation

Current P/E is 10.4, P/B 0.7, P/S 0.1 and dividend yield 4.6%; enterprise value is ₩2.0T and EV/EBITDA is not available. Year-end 2025 P/B was 0.6 and P/E 89 on depressed earnings. Peers show P/B of 0.4 to 1.8 (LG Chem 0.5, Hanwha 0.6, Hanwha Solutions 0.6, KCC 0.4, SKC 1.8), and P/E is available for only Hanwha (10.3) and KCC (1.1). The valuation model (5-year DCF, 4.9% rate, TTM to H1 2026) gives a base estimate of ₩1,861,404 per share, with a bear case of ₩570,238 and a bull case of ₩4,995,384. This is a model estimate based on the assumptions shown, not a target. All three cases are above the ₩271,000 price, and the very wide spread shows how sensitive the result is to assumptions on a thin-margin business.

Catalysts

  • Half-year report and preliminary earnings were filed in August and July 2026, and the trailing figures already reflect H1 2026.
  • An IR event was held on 2026-07-31 alongside preliminary earnings.
  • A Trading Plan Report for Executives and Major Shareholders' Specific Securities was filed on 2026-09-29, and insider shareholding reports were filed on 2026-10-06 and monthly before that.
  • The 4.6% dividend yield could matter to income-focused holders, though dividend details are not in the data.
  • Next earnings filings would show whether the margin improvement to 4.5% continues.

Risks

  • Margins are thin, with a 1.3% trailing net margin, so small cost or price changes can swing profit, as in 2022 and 2025.
  • Leverage is high, with liabilities to equity at 188.2% and borrowings of ₩926.5B versus cash of ₩107.1B.
  • The share price fell 20.5% in one month and the cause is not visible, because news, flow and short-interest data are unavailable.
  • The model range (₩570,238 to ₩4,995,384) is extremely wide, so the estimate has limited precision.
  • Revenue has not grown on net since 2021 and was down 1.0% in 2025.

Closing view

The data shows a low-margin company with recovering profit, high debt and positive free cash flow, trading at below book value after a sharp one-month decline. The model estimate sits far above the market price, but its wide range and the thin margins argue for caution in reading it. Missing flow, ownership and news data leave the cause of the recent drop unexplained, so the evidence is mixed and does not point clearly either way.

Model estimate of fair value

Bear
₩570,238
+116%
Base
₩1,861,404
+606%
Bull
₩4,995,384
+1796%

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 4.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Hyosung TNC: Sharp One-Month Share Price Drop, Thin Margins and a Wide Model Range

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