Ask Warren

JONBUR Research · Initiation

Chosun Refractories · 462520 · Building materials

Chosun Refractories: Thin Profits and a Sliding Share Price Against a Below-Book Valuation

Why this report

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

Chosun Refractories closed at ₩10,890 on 2026-10-30, down 24.2% over one year and close to its 52-week low of ₩10,740. Revenue is above ₩500B, but net profit is very small, so the price-to-earnings ratio is high while the price-to-book ratio is 0.6.

Written Oct 31, 2026 · Data as of Oct 30, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

Thesis

The data supports a picture of a company with sizable sales but little profit left over. Trailing net income is ₩2.2B on revenue of ₩523.0B, a net margin of 0.4% and return on equity of 1.0%. That explains the high P/E of 58.7 alongside a P/B of 0.6.

The share price has fallen 14.2% in one month, 21.9% in three months and 24.2% in one year. Foreign ownership slipped from 0.7% to 0.4% over 60 days, and over the last 20 days foreign investors and institutions were net sellers while retail investors were net buyers.

On the other side, free cash flow is positive at ₩10.2B, a dividend yield of 1.8% is shown, and two major sales or supply contract filings appeared on 2026-10-06. The filings in the data do not give contract values, so their effect on earnings cannot be judged. News points to a final agreement with Mokpo City on redeveloping the former Mokpo plant into a cultural complex, but the financial impact is not in the data.

Business overview

Chosun Refractories is listed on KOSPI and is classified in building materials. It was founded on 2023-07-04 and listed on 2023-07-28, with 11,855,168 listed shares and a market capitalization of about ₩129.1B. The enterprise value is about ₩269.6B, which reflects borrowings well above cash.

The numbers have a short history. Revenue was ₩279.4B in 2023, ₩500.6B in 2024 (up 79.2%) and ₩532.0B in 2025 (up 6.3%). The 2024 jump may reflect the company's formation in 2023, but the data does not say so. Recent filings include a corporate value-up plan and an annual general meeting on 2026-03-26, and a cash dividend decision on 2026-06-30.

Financial analysis

These figures come from filed financial statements. Trailing twelve-month revenue to H1 2026 was ₩523.0B, with operating income of ₩22.4B (margin 4.3%) and net income of ₩2.2B (margin 0.4%).

Operating margin fell from 11.4% in 2023 to 4.0% in 2024 and 4.5% in 2025. Net income went from ₩23.6B in 2023 to ₩5.8B in 2024 and ₩2.2B in 2025. Return on equity fell from 11.1% to 2.7% and then 1.0%.

The balance sheet shows liabilities-to-equity of 123.7%, borrowings of ₩196.8B and cash of ₩56.3B. Free cash flow over the trailing period was ₩10.2B. Interest costs are not in the data provided.

Valuation

The current P/E is 58.7, versus year-end readings of 75.2 for 2025, 31.5 for 2024 and 10.7 for 2023. The P/B is 0.6, versus 0.8 at the end of 2025 and 2024 and 1.2 at the end of 2023. The price-to-sales ratio is 0.2 and the dividend yield is 1.8%. EV/EBITDA is not available.

Among the listed peers, P/E ranges from 9.6 (Hanil Holdings) to 27.9 (Tokai Carbon Korea), and P/B from 0.3 to 3.9. Chosun's P/E is above all of them, while its P/B of 0.6 is in line with Hanilcementco and below Sampyo Cement (0.7).

The valuation model uses a 5-year discounted cash flow at a 5.6% rate, based on trailing figures to H1 2026. It gives a base estimate of ₩62,580 per share, with a bear case of ₩20,118 and a bull case of ₩152,405. This is a model estimate based on the assumptions shown, not a target. All three cases are above the ₩10,890 close, and the very wide range shows how sensitive the result is to the assumptions, including the cash flow forecast.

Catalysts

  • Two major sales or supply contract filings on 2026-10-06 could affect future revenue, although their values are not in the data.
  • The final agreement with Mokpo City on redeveloping the former Mokpo plant into a cultural complex was reported on 2026-10-27 and 2026-10-28.
  • The amended half-year report filed on 2026-09-30 may change how the latest earnings are read.
  • The corporate value-up plan filed on 2026-03-26 and the dividend decision on 2026-06-30 relate to shareholder returns.
  • Continued net selling by foreign investors and institutions, offset by retail buying, will show whether the share price trend changes.

Risks

  • Net margin of 0.4% and return on equity of 1.0% leave little room for earnings to absorb cost increases.
  • Borrowings of ₩196.8B are far larger than cash of ₩56.3B, and liabilities are 123.7% of equity.
  • Operating margin has fallen from 11.4% in 2023 to 4.3% on a trailing basis.
  • The share price is near its 52-week low after a 21.9% fall in three months, and foreign ownership has dropped to 0.4%.
  • The model estimate has a very wide range of ₩20,118 to ₩152,405, so it is highly assumption-dependent.

Closing view

The data shows a company with revenue above ₩500B but sharply lower profitability since 2023, a leveraged balance sheet and a falling share price. A P/B of 0.6 and a model base estimate well above the current price are set against a P/E of 58.7 and weak returns. The wide model range, unclear contract values and a redevelopment agreement with no stated financial effect mean the evidence is mixed, and the next filings on margins and cash flow will matter most.

Model estimate of fair value

Bear
₩20,118
+85%
Base
₩62,580
+475%
Bull
₩152,405
+1299%

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 5.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 31, 2026InitiationStart of coverage (reader request)Chosun Refractories: Thin Profits and a Sliding Share Price Against a Below-Book Valuation

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