KOSPI · 014680 · Chemicals · ₩014680

Hansol Chemical한솔케미칼

014680 · KOSPI · ₩014680 · 한솔케미칼

₩211,500▼ ₩6,000 (2.76%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩127,431

vs the current price (₩211,500)

Enterprise value: ₩1.5T
Equity value: ₩1.4T
WACC: 8.1%

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 is 40% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩211,500, the model needs an operating margin of 26.4% every year (it uses 18.1%).
Or revenue growth +11.1 points a year higher than assumed in each of the 5 years.
Margins ranged from 16.1% to 25.7% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
Today's P/E is 14.8× against a typical 15.6× 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: ₩74,803; −64.6%
Base: ₩127,431; −39.7%
Bull: ₩212,029; +0.3%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (18.1%).

Revenue growth

Revenue growth, year 1-0.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin18.1%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation6.3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending14.8%
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).
Working capital16.2%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.8
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 0.7, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.51%
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): ₩932B
Net debt (borrowings and leases − cash and deposits): ₩153B
+ Stakes and investments: ₩89B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩100B
Shares: 10,794,036
Share price: ₩211,500
Market cap: ₩2.3T

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩772B	₩776B	₩884B	₩931B	₩937B	₩952B	₩972B	₩1T
Growth	−12.9%	0.6%	13.9%	−0.1%	0.7%	1.5%	2.2%	3.0%
EBIT	₩124B	₩129B	₩156B	₩169B	₩170B	₩172B	₩176B	₩181B
EBIT margin	16.1%	16.6%	17.7%	18.1%	18.1%	18.1%	18.1%	18.1%
After-tax EBIT	₩90B	₩93B	₩113B	₩122B	₩123B	₩125B	₩128B	₩131B
+ Depreciation	₩52B	₩49B	₩52B	₩59B	₩59B	₩60B	₩61B	₩63B
− Capital spending	₩159B	₩111B	₩84B	₩138B	₩139B	₩141B	₩144B	₩148B
− Working capital	−₩46B	₩21B	₩38B	−₩151M	₩1.1B	₩2.3B	₩3.4B	₩4.7B
Free cash flow	₩29B	₩11B	₩44B	₩43B	₩42B	₩42B	₩42B	₩42B
Discount factor	—	—	—	0.925	0.855	0.791	0.731	0.676
Present value	—	—	—	₩40B	₩36B	₩33B	₩30B	₩28B

Terminal value ₩2T, worth ₩1.4T today: 89% 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:

	Low	Typical	High
Price / book (book value ₩101,433 a share)Now 2.09×	₩144,8531.43×	₩258,5002.55×	₩350,0353.45×
Price / earnings (last 12 months: ₩14,311 a share)Now 14.8×	₩148,96410.4×	₩222,67315.6×	₩276,95519.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩19,039 a share)Now 11.1×	₩198,16710.4×	₩296,22315.6×	₩368,43519.4×

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%
7.1%	₩134,338	₩145,960	₩159,836	₩176,698	₩197,629
7.6%	₩121,213	₩130,839	₩142,165	₩155,688	₩172,121
8.1%	₩109,977	₩118,050	₩127,431	₩138,469	₩151,648
8.6%	₩100,256	₩107,099	₩114,967	₩124,110	₩134,868
9.1%	₩91,770	₩97,626	₩104,295	₩111,963	₩120,875

Now (TTM)

Market cap: ₩2.3T
Enterprise value: ₩2.4T
P/E: 14.8×
P/B: 2.1×
P/S: 2.4×
EV/EBITDA: 11.2×
Dividend yield: 1.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩227,500	₩97,000	₩227,000	₩185,500	₩305,500
Market cap	₩2.5T	₩1T	₩2.5T	₩2T	₩3.3T
P/E	16.7×	8.5×	23.3×	12.9×	22.2×
P/B	2.3×	1.1×	2.9×	2.6×	4.8×
P/S	2.8×	1.3×	3.2×	2.3×	4.3×
EV/EBITDA	12.4×	6.8×	14.3×	9.2×	14.7×
Dividend yield	1.1%	2.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hansol Chemical	14.8×	2.1×	2.4×	11.2×	1.2%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	5.9×	0.4×	0.1×	—	1.5%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.9×	0.0%
Kumho Petro Chemical	5.3×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.3×	0.4×	0.4×	8.9×	0.4%

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

Also known as: Hansol Chemical / 한솔케미칼 / 014680 / KRX:014680

Source: KRX statistical information