KG ChemicalKG케미칼

KG Chemical's shares have fallen sharply over the past year, while the company remains thinly profitable with heavy borrowings.

KG Chemical, a South Korean fertilizer and chemicals maker, reported trailing twelve-month revenue of about ₩9.8T and operating income of about ₩276B as of H1 2026. The share price is ₩3,840, down 24.6% over one year and near the lower end of its 52-week range, while the company carries borrowings of about ₩2.4T against cash of about ₩651B. Free cash flow over the trailing period was negative at about -₩60B.

What stands out

• Operating margin fell from 7.6% in 2022 and 5.0% in 2023 to 3.4% in 2025 and 2.8% on a trailing basis, while revenue has grown modestly since 2024.
• Net income was ₩93B on a trailing basis, but net margin is only 0.9%, so profits are thin relative to sales.
• Liabilities are 127% of equity, and borrowings are large relative to cash, which the data highlights as a leverage point.
• Valuation metrics are low: P/E about 2.8, P/B about 0.2, and a 3.9% dividend yield, though the data's fair value model outputs range from ₩3,154 to ₩542,944, a very wide spread that makes it hard to interpret.
• Recent filings are mostly insider shareholding reports and a largest-shareholder holding change, plus a treasury share disposal report; no news headlines were included in the data.

What to watch

• Upcoming half-year or annual results, to see whether operating margin and free cash flow recover from their current levels.
• Further changes in the largest shareholder's holdings and insider filings, as these were frequent in September and October 2026.
• Debt levels against cash, since borrowings are large relative to the company's cash balance and the data does not describe repayment plans.