Soulbrain: Earnings Recover in 2026 as Shares Rise 37.4% Over One Year

Thesis

The data supports an earnings recovery. Trailing operating income of ₩168.1B compares with ₩133.6B in 2025, and trailing ROE of 11.8% compares with 7.7% for 2025. The balance sheet is conservative, with liabilities at 22.0% of equity and cash of ₩251.8B against borrowings of ₩13.9B.

What the data does not settle: trailing revenue is still below the 2022 peak of ₩1.09T, and margins and ROE remain below 2021-2022 levels. The share price is 25.2% below its 52-week high of ₩530,000 but 84.0% above the low of ₩215,500, so it has moved a long way already. Investor flows, foreign ownership, short balance and news headlines are not available, so the drivers of the recent rise cannot be confirmed from this data.

Business overview

Soulbrain is a KOSDAQ-listed company in the Chemicals sector, listed on 2020-08-06 with 7,778,566 shares. The data gives no product or customer detail, so this report does not describe what it makes. Annual revenue was ₩1.02T in 2021 and ₩1.09T in 2022, fell 22.6% to ₩844.0B in 2023, then rose to ₩863.4B in 2024 (+2.3%) and ₩923.4B in 2025 (+7.0%). Trailing revenue as of H1 2026 is ₩1.06T.

Financial analysis

All figures come from filed financial statements (DART). Operating income was ₩188.8B in 2021, ₩207.1B in 2022, ₩133.5B in 2023, ₩167.9B in 2024 and ₩133.6B in 2025. Operating margin was 18.4%, 19.0%, 15.8%, 19.5% and 14.5% in those years. Net income fell from ₩167.7B in 2022 to ₩79.1B in 2025. ROE fell from 24.0% in 2021 to 7.7% in 2025.

Trailing to H1 2026: revenue ₩1.06T, operating income ₩168.1B (15.8% margin), net income ₩127.6B (12.0% margin), ROE 11.8%. Free cash flow is ₩109.9B. Cash of ₩251.8B far exceeds borrowings of ₩13.9B.

Valuation

The current P/E is 24.2, P/B 2.7 and P/S 2.9, with a dividend yield of 0.6%. Enterprise value is ₩2.85T; EV/EBITDA is not available. At year-end 2025 the P/E was 25.8 and P/B 1.9, so P/B is higher now while P/E is slightly lower on higher earnings. Earlier year-end multiples are not available.

The listed peers (LG Chem, Hanwha, Hanwha Solutions, KCC, SKC) show P/B of 0.4 to 1.8, all below Soulbrain's 2.7. Peer P/E is available only for Hanwha (10.3) and KCC (1.1). The peers are larger and may differ in business, so the comparison is limited.

Catalysts

• A shareholders' meeting was called and a record-date determination was filed on 2026-10-12, though the agenda is not shown in the data.
• A buyback trust contract was signed on 2026-07-31, which may bear on share supply.
• The half-year report filed on 2026-08-14 showed trailing operating income of ₩168.1B, and the next filings will show whether the recovery continues.
• Multiple 5%+ holding reports were filed between July and September 2026, indicating changes in major shareholder positions, though details are not in the data.

Risks

• Net income and ROE remain well below 2021-2022 levels, so the recovery may be incomplete.
• Revenue fell 22.6% in 2023, showing earnings can swing sharply.
• At a P/E of 24.2 and P/B of 2.7, valuation is above its year-end 2025 P/B of 1.9, leaving less room if earnings disappoint.
• The share price gained 20.2% in one month, and a rapid move can reverse.
• Investor flow, foreign ownership, short interest and news data are unavailable, limiting visibility into market positioning.

Closing view

The filed numbers show a clear improvement from 2025 on margins, profit and returns, backed by a net cash balance sheet and positive free cash flow. The share price and valuation have already risen, and trailing results are still below the 2021-2022 peak. Gaps in flow and news data limit the picture. The evidence is mixed-to-constructive on fundamentals, with valuation higher than a year ago.

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).

Report history

1. Oct 13, 2026InitiationSoulbrain: Earnings Recover in 2026 as Shares Rise 37.4% Over One Year