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Ji-Tech · 417500 · Chemicals

Ji-Tech: Profit Recovery in the Latest Twelve Months, Model Estimate Below Share Price

Why this report

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Ji-Tech's trailing twelve-month revenue reached ₩66.7B with a 24.5% operating margin, well above 2025 levels, and the shares have risen 25.1% over one year to ₩3,990. The valuation model's base estimate of ₩1,606 per share sits well below the current price, and recent filings show convertible bond and rights offering activity.

Written Oct 23, 2026 · Data as of Oct 22, 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 clear earnings recovery: trailing operating income of ₩16.3B compares with ₩10.4B in 2025, and ROE improved to 14.1% from 9.0%. Foreign ownership rose to 6.8% from 5.2% sixty days ago, and the short balance is only 0.1%.

The data also shows reasons for caution. Revenue has been volatile across years, free cash flow is small at ₩1.6B compared with net income of ₩10.9B, and borrowings of ₩40.9B exceed cash of ₩16.9B. A rights offering decision in August 2026 and convertible bond filings point to active capital raising, and the details are not in the data given. No news headlines are available.

Business overview

Ji-Tech is a KOSDAQ-listed company in the Chemicals sector, founded on 2014-03-28 and listed on 2022-11-04. It has 33,845,627 listed shares and a market capitalization of about ₩135.0B. The CEO is listed as 함석헌.

Revenue history: ₩68.3B in 2022, ₩43.4B in 2023 (-36.5%), ₩57.3B in 2024 (+32.1%) and ₩53.6B in 2025 (-6.5%). Product and customer details are not available in the data.

Financial analysis

Figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩66.7B, operating income ₩16.3B (24.5% margin), net income ₩10.9B (16.4% margin), ROE 14.1%.

Annual operating margin was 16.7% in 2022, 9.4% in 2023, 15.2% in 2024 and 19.4% in 2025. Net income was ₩10.9B, ₩3.7B, ₩10.7B and ₩6.7B over the same years. Net income in 2024 exceeded operating income, which suggests non-operating gains, though the data does not say what they were.

Liabilities to equity are 62.7%. Cash is ₩16.9B against borrowings of ₩40.9B. Trailing free cash flow is ₩1.6B.

Valuation

The stock trades at a P/E of 12.4, P/B of 1.6 and P/S of 2.0, with a dividend yield of 2.5% and enterprise value of ₩158.3B. EV/EBITDA is not available. Year-end P/E was 7.8 in 2022, 36.6 in 2023, 9.8 in 2024 and 15.8 in 2025, and year-end P/B ranged from 1.4 to 2.1, so current multiples are within the company's own range.

The listed chemical peers are much larger and show mixed readings: P/B of 0.3 to 2.1, and P/E of 6.5 and 0.9 where available (several are not available). Comparability is limited.

The discounted cash flow model, a model estimate based on the assumptions shown (7.6% rate, trailing data to H1 2026), gives a base case of ₩1,606 per share, with a bear case of ₩781 and a bull case of ₩3,012. Even the bull case is below the ₩3,990 close, meaning the market price embeds more optimistic assumptions than the model. This is not a target or a signal.

Catalysts

  • The rights offering (paid-in capital increase) decision on 2026-08-14 could change the share count and funding position, and the terms are not given in the data.
  • Convertible bond filings in June and September 2026, plus the securities issuance results on 2026-09-16, show ongoing financing activity.
  • The half-year report on 2026-08-10 showed trailing operating margin at 24.5%, and the next quarterly filing will show whether that holds.
  • Foreign investors were net buyers of about ₩1.6B over 20 days and foreign ownership rose to 6.8%.
  • Several 5%+ holding and insider shareholding reports between April and July 2026 point to changes in ownership.

Risks

  • Revenue has swung between -36.5% and +32.1% in recent years, so the current profit level may not be stable.
  • Free cash flow of ₩1.6B is small relative to ₩10.9B of net income, indicating weak cash conversion.
  • Borrowings of ₩40.9B exceed cash of ₩16.9B, which leaves exposure to financing costs.
  • A rights offering and convertible bonds may dilute existing shareholders, depending on terms not shown here.
  • The share price is above the model's bull case of ₩3,012, so it depends on assumptions more favorable than those modeled.

Closing view

The filings show a strong earnings rebound, with higher margins and ROE, and a share price up 25.1% over a year. Against that, cash generation is thin, debt exceeds cash, capital-raising filings are active, and the model estimates sit below the market price. The evidence is mixed, and further filings should clarify the financing terms and whether margins persist.

Model estimate of fair value

Bear
₩781
-81%
Base
₩1,606
-61%
Bull
₩3,012
-27%

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 7.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 23, 2026InitiationStart of coverage (reader request)Ji-Tech: Profit Recovery in the Latest Twelve Months, Model Estimate Below Share Price

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