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JONBUR Research · Initiation

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Socar · 403550 · Other

Socar: Operating profit turned positive, but net losses and a weak cash flow persist

Why this report

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

Socar's revenue has grown for three straight years and operating income has been positive since 2025, yet the company still reports net losses and negative free cash flow. The share price of ₩10,490 sits well below a model estimate of ₩17,021 only in the bull case, and above the base case of ₩6,673.

Written Oct 19, 2026 · Data as of Oct 16, 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 an improving operating picture: operating margin moved from -2.3% in 2024 to 4.9% in 2025 and 6.1% over the trailing twelve months to H1 2026. Revenue growth of 9.0% in 2025 backs that up.

The data does not yet show a clean path to profit. Net income was -₩15.4B over the trailing twelve months, ROE is -7.6%, and free cash flow is -₩62.4B. Liabilities are 209.7% of equity, with borrowings of ₩233.5B against cash of ₩124.1B.

The share price is down 9.8% over one year and 3.2% over one month, but up 5.7% over three months. It trades at ₩10,490 versus a 52-week range of ₩9,000 to ₩21,000, close to the lower end. Recent filings show share-related activity, but the data gives no details on size or intent.

Business overview

Socar is listed on KOSPI (listed 2022-08-22, founded 2011-10-31) and is classed in the data under sector Other. CEO is 박재욱. Market capitalisation is about ₩398.0B with 37,939,942 listed shares. Enterprise value is about ₩507.3B.

Revenue was ₩397.6B in 2022, ₩398.5B in 2023, ₩431.8B in 2024 and ₩470.7B in 2025. Trailing twelve-month revenue to H1 2026 is ₩458.7B. The data gives no segment breakdown.

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Model estimate of fair value

Bear
₩1,000
-90%
Base
₩6,673
-33%
Bull
₩17,021
+70%

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 6.8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026Update noteModel fair value changeSocar: Model fair value estimate cut by 61% to ₩2,575 per share
  2. Oct 19, 2026InitiationStart of coverage (reader request)Socar: Operating profit turned positive, but net losses and a weak cash flow persist

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