Chin Yang Industry진양산업

Chin Yang Industry is profitable and pays a high dividend, but its shares have fallen about 45% over the past year.

Chin Yang Industry makes polyurethane foam, mainly used in car interiors, footwear and bedding, and sells mostly in Korea with a Vietnam subsidiary. For the twelve months to H1 2026 it reported revenue of ₩89.7B, operating income of ₩7.0B and net income of ₩5.9B, all slightly below its 2025 full-year levels. At ₩4,350 the shares trade at about 9.5 times earnings and 0.9 times book value, with an 8.2% dividend yield.

What stands out

• Revenue has grown slowly, rising 2.8% in 2025 after 1.6% in 2024, while operating margin fell from 9.3% in 2025 to 7.8% on a trailing basis.
• Net income dropped from ₩10.0B in 2024 to ₩6.9B in 2025 and ₩5.9B on a trailing basis, so earnings are trending down.
• The company's own discounted cash flow model gives a base value of ₩8,283 against the ₩4,350 close, with a bear case of ₩4,709 and a bull case of ₩14,281; these are model outputs, not forecasts.
• Liabilities are 67.6% of equity, with cash of ₩3.2B against borrowings of ₩3.0B, and trailing free cash flow of ₩5.9B.
• Recent filings include a cash dividend decision, a half-year report and a corporate value-up plan, and a news item on 14 October 2026 listed the stock as a golden cross breakout candidate.

What to watch

• Next quarterly and annual results, to see whether margins stabilise after the decline from 9.3% to 7.8%.
• The size and sustainability of the dividend, given that the trailing earnings have fallen.
• Customer concentration on Kolon Industries and exposure to the automotive and footwear markets, which the profile names but the data does not quantify further.