TKG HuchemsTKG휴켐스

TKG Huchems shows thinner margins and a lower share price, while a ₩46.7B share purchase in a subsidiary is its latest major move.

TKG Huchems is a Korean specialty petrochemical maker whose trailing revenue to H1 2026 was ₩1.26T with a 6.3% operating margin. Earnings have fallen from their 2023 peak, and the shares are down 17.2% over one year, trading near the low end of their 52-week range. Recent filings show a share acquisition in TKG EM Chem and a supply contract being terminated.

What stands out

• Trailing operating income to H1 2026 was ₩79.0B, against ₩121.2B in 2023, and net income was ₩64.5B.
• Annual revenue fell 5.1% in 2025 to ₩1.13T, and operating margin eased from 11.5% in 2023 to 5.8% in 2025.
• Trailing cash of ₩123.3B exceeds borrowings of ₩79.0B, and free cash flow was ₩93.0B.
• Valuation metrics are low: P/E 9.5, P/B 0.7, and a 6.7% dividend yield, while the DCF base value is ₩28,601 against a close of ₩14,970.
• Foreign ownership slipped from 8.3% to 7.7% over about 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• The filings show a major supply contract terminated on 2026-09-29; the data does not say which customer or what the financial impact is.
• The ₩46.7B acquisition of additional TKG EM Chem shares, including whether it is completed and how it is funded.
• Next quarterly results and any update to margins, given that earnings have declined from 2023 levels.