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Chinyang Poly Urethane

010640 · KOSPI · ₩010640 · 진양폴리

₩2,685▲ ₩280 (11.64%)End-of-day · Oct 29, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

With these assumptions the model gives no positive value.

Enterprise value
₩31B
Equity value
−₩18B
WACC
5.6%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,685, the model needs an operating margin of 13.4% every year (it uses 6.8%).
  • Or revenue growth +27.1 points a year higher than assumed in each of the 5 years.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
  • Today's P/E is 15.4× against a typical 23.5× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
—
Base
—
Bull
₩1,949
−27.4%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (6.8%).

Revenue growth

  • -2.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-2.5% a year, annual reports), fading to 3% by year 5.

  • -1.1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-2.5% a year, annual reports), fading to 3% by year 5.

  • 0.3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-2.5% a year, annual reports), fading to 3% by year 5.

  • 1.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-2.5% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-2.5% a year, annual reports), fading to 3% by year 5.

Business

  • 6.8%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 19.3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 24.2%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 9.1%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.08%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta -0.13, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.58%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩51B
Net debt (borrowings and leases − cash and deposits)
₩49B
+ Stakes and investments
₩50M
Associates, long-term financial assets and deposits (book value)
Shares
16,700,000
Share price
₩2,685
Market cap
₩45B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩51B₩54B₩47B₩50B₩49B₩49B₩50B₩52B
Growth2.3%5.1%−13.7%−2.5%−1.1%0.3%1.6%3.0%
EBIT₩3.8B₩4B₩1.8B₩3.4B₩3.3B₩3.4B₩3.4B₩3.5B
EBIT margin7.4%7.3%3.9%6.8%6.8%6.8%6.8%6.8%
After-tax EBIT₩2.8B₩2.9B₩1.3B₩2.5B₩2.4B₩2.4B₩2.5B₩2.5B
+ Depreciation———₩9.6B₩9.5B₩9.5B₩9.7B₩10B
− Capital spending₩6.3B₩8.8B₩21B₩12B₩12B₩12B₩12B₩13B
− Working capital₩167M−₩53M₩136M−₩116M−₩50M₩13M₩72M₩137M
Free cash flow———₩131M₩65M₩1.4M−₩57M−₩121M
Discount factor———0.9470.8960.8480.8030.760
Present value———₩124M₩58M₩1.2M−₩46M−₩92M

Terminal value ₩41B, worth ₩31B today: 100% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩2,729 a share)Now 0.98×₩3,4081.25×₩6,8672.52×₩9,0123.30×
Price / earnings (last 12 months: ₩175 a share)Now 15.4×₩2,56514.7×₩4,10623.5×₩6,25935.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩312 a share)Now 8.62×₩4,57414.7×₩7,32123.5×₩11,16135.8×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
4.6%———₩342₩1,294
5.1%————₩228
5.6%—————
6.1%—————
6.6%—————

Now (TTM)

Market cap
₩45B
Enterprise value
₩94B
P/E
15.4×
P/B
1.0×
P/S
0.9×
EV/EBITDA
—
Dividend yield
4.8%

Over time (at each year end)

20252024202320222021
Price₩3,023₩5,661₩5,491₩3,769₩5,789
Market cap₩50B₩95B₩92B₩63B₩97B
P/E31.1×29.9×25.9×18.4×25.9×
P/B1.6×2.9×2.9×2.1×3.3×
P/S1.1×1.7×1.8×1.3×1.9×
EV/EBITDA—————
Dividend yield4.2%3.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Chinyang Poly Urethane15.4×1.0×0.9×—4.8%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea19.8×2.5×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.6×0.3×0.2×—3.5%
PI Advanced Materials12.4×1.2×1.7×5.0×2.3%
Similar companies (median)7.7×0.6×0.4×5.4×2.6%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Chinyang Poly Urethane / 진양폴리 / 010640 / KRX:010640

Source: KRX statistical information