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Temc · 425040 · Chemicals

Temc: Shares Up 51.0% in Three Months While Model Estimate Sits Well Below Price

Why this report

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Temc, a KOSDAQ-listed chemicals company with a market value of about ₩288.1B, has risen 51.0% over three months to ₩13,140, still well below its 52-week high of ₩30,300. A valuation model estimate based on the assumptions shown is ₩5,264 per share, far under the current price, while earnings have been lower than in 2022.

Written Oct 27, 2026 · Data as of Oct 26, 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 story of a sharp share price recovery alongside modest, recovering profitability. Trailing revenue is ₩276.3B with an operating margin of 6.2% and ROE of 9.2%, far below the 2022 levels of 15.1% and 41.8%. News headlines mention expectations around semiconductor specialty gases and earnings improvement, but the filings provided do not confirm any specific business change, so that narrative is unverified here.

The data does not support a clear value argument. P/E is 15.7 and P/B is 1.3, higher than year-end 2024 and 2025 levels (P/B 0.9). Foreign ownership dropped from 5.9% to 0.8% in 60 days, and retail investors were net buyers over 20 days while foreigners and institutions were net sellers. Free cash flow is almost nil at ₩0.7B.

Business overview

Temc is a chemicals company on KOSDAQ, founded on 2015-01-26 and listed on 2023-01-19, led by CEO 유원양. It has 21,922,898 listed shares and a market cap of ₩288.1B. Revenue history in the data: ₩351.7B in 2022, ₩200.8B in 2023 (-42.9%), ₩310.2B in 2024 (+54.5%) and ₩279.7B in 2025 (-9.8%). The data does not describe products or customers in detail. Recent filings include a half-year report, a buyback trust contract (2026-08-04), conversion rights exercise on a first series, and an acquisition of shares in another company (2026-05-22).

Financial analysis

These figures come from filed financial statements. Operating income was ₩24.8B in 2025 (8.9% margin), up from ₩19.7B in 2024 (6.4%), and net income rose to ₩16.0B from ₩12.9B. Over the trailing twelve months to H1 2026, revenue was ₩276.3B, operating income ₩17.2B (6.2%), and net income ₩18.3B (6.6%), so net income exceeds operating income. ROE was 9.2%.

The balance sheet shows liabilities to equity of 55.8%, cash of ₩60.8B and borrowings of ₩107.5B, so borrowings exceed cash by about ₩46.7B. Trailing free cash flow is only ₩0.7B. Enterprise value is ₩334.5B. The dividend yield is 0.0%.

Valuation

At ₩13,140 the stock trades at a P/E of 15.7, P/B of 1.3 and P/S of 1.0. Its own year-end history shows P/E of 10.5 and P/B of 0.9 for 2025, and P/E of 13.3 and P/B of 0.9 for 2024, so current multiples are higher than the recent past. EV/EBITDA is not available.

Peers in the data are much larger: LG Chem (P/B 0.4), Hanwha Solutions (0.6), Hanwha (P/E 6.1, P/B 0.4), SKC (P/B 2.0) and KCC (P/E 0.9, P/B 0.3). Temc's P/B of 1.3 is above most of these, apart from SKC. Peer P/E is not available for several companies.

The valuation model (5-year discounted cash flow at a 7.3% rate, based on trailing figures to H1 2026) gives a base estimate of ₩5,264 per share, with a bear case of ₩1,102 and a bull case of ₩12,714. This is a model estimate based on the assumptions shown, not a target. Even the bull case is below the current price of ₩13,140, and the wide range shows high sensitivity to assumptions.

Catalysts

  • The buyback trust contract signed on 2026-08-04 may affect share supply, though the amount is not given in the data.
  • The half-year report filed on 2026-08-14 is the latest earnings reference, and the next quarterly filing will show whether margins keep improving.
  • Media coverage on 2026-10-14, 2026-10-15 and 2026-10-24 (Maeil Business Newspaper, Money Today) highlights expectations around semiconductor specialty gases and earnings improvement.
  • The 2026-05-22 filing on acquiring shares in another company and the 2026-05-27 conversion rights exercise may change the ownership or business structure, with details not available here.
  • Insider shareholding and 5%+ holding reports in May and June 2026 provide signals on major holder positioning.

Risks

  • The share price of ₩13,140 is well above the model base estimate of ₩5,264 and even the bull case of ₩12,714, which implies a reliance on assumptions beyond the model.
  • Foreign ownership fell from 5.9% to 0.8% in 60 days, and foreigners sold ₩5.8B net over 20 days.
  • Revenue has been volatile, with swings of -42.9%, +54.5% and -9.8% in the last three years, and margins are well below 2022.
  • Trailing free cash flow is only ₩0.7B against ₩107.5B of borrowings, and the stock pays no dividend.
  • The stock gained 51.0% in three months and trades at 43.4% of its 52-week high, signalling large price swings, with a short balance of 2.2%.

Closing view

The data shows a company with recovering but modest profitability, a stretched share price relative to the model estimate, and sharply changing investor participation. Multiples have risen from the 2024 and 2025 year-end levels while free cash flow remains thin. Positive news coverage about specialty gases is not yet backed by figures in the filings supplied. The evidence is mixed, and the wide model range shows how uncertain the outlook is.

Model estimate of fair value

Bear
₩1,102
-92%
Base
₩5,264
-61%
Bull
₩12,714
-6%

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 7.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 27, 2026InitiationStart of coverage (reader request)Temc: Shares Up 51.0% in Three Months While Model Estimate Sits Well Below 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