KOSDAQ · 225530 · Building materials · ₩225530

HC BoKwang IndustryHC보광산업

225530 · KOSDAQ · ₩225530 · HC보광산업

₩2,230▲ ₩15 (0.68%)End-of-day · Oct 28, 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

₩1,169

vs the current price (₩2,230)

Enterprise value: ₩63B
Equity value: ₩42B
WACC: 6.7%

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 48% 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 ₩2,230, the model needs an operating margin of 18.6% every year (it uses 11.1%).
Or revenue growth +15.4 points a year higher than assumed in each of the 5 years.
Margins ranged from −12.7% to 22.1% 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.
100% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 253.7× against a typical 16.0× 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: ₩636; −71.5%
Base: ₩1,169; −47.6%
Bull: ₩2,113; −5.2%

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 (11.1%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-23.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-23.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-23.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-23.9% 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 (-23.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.1%
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 & amortisation16.1%
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 spending4.7%
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 capital40%
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 rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
Beta0.6
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 -0.33, 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)5.61%
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): ₩43B
Net debt (borrowings and leases − cash and deposits): ₩22B
+ Stakes and investments: ₩1.5B; Associates, long-term financial assets and deposits (book value)
Shares: 36,338,727
Share price: ₩2,230
Market cap: ₩81B

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	₩85B	₩64B	₩38B	₩39B	₩36B	₩35B	₩35B	₩36B
Growth	−2.3%	−25.3%	−39.7%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩19B	₩8.9B	−₩4.9B	₩4.3B	₩4B	₩3.9B	₩3.9B	₩4B
EBIT margin	22.1%	13.9%	−12.7%	11.1%	11.1%	11.1%	11.1%	11.1%
After-tax EBIT	₩14B	₩6.4B	−₩3.5B	₩3.1B	₩2.9B	₩2.8B	₩2.8B	₩2.9B
+ Depreciation	₩9.2B	₩9.1B	₩8.9B	₩6.2B	₩5.8B	₩5.6B	₩5.6B	₩5.8B
− Capital spending	₩1.3B	₩4.6B	₩2B	₩1.8B	₩1.7B	₩1.6B	₩1.6B	₩1.7B
− Working capital	−₩2B	₩31B	−₩19B	−₩1.7B	−₩1B	−₩504M	−₩28M	₩416M
Free cash flow	₩24B	−₩20B	₩22B	₩9.2B	₩8B	₩7.3B	₩6.8B	₩6.5B
Discount factor	—	—	—	0.937	0.879	0.824	0.772	0.724
Present value	—	—	—	₩8.6B	₩7.1B	₩6B	₩5.2B	₩4.7B

Terminal value ₩44B, worth ₩32B today: 50% 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 ₩2,516 a share)Now 0.89×	₩2,7601.10×	₩5,0272.00×	₩7,4242.95×
Price / earnings (last 12 months: ₩9 a share)Now 253.7×	₩10211.6×	₩14016.0×	₩25228.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩307 a share)Now 7.26×	₩3,56111.6×	₩4,90316.0×	₩8,80728.7×

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%
5.7%	₩1,289	₩1,374	₩1,482	₩1,624	₩1,817
6.2%	₩1,163	₩1,228	₩1,308	₩1,409	₩1,541
6.7%	₩1,059	₩1,109	₩1,169	₩1,243	₩1,338
7.2%	₩970	₩1,009	₩1,056	₩1,112	₩1,181
7.7%	₩893	₩925	₩961	₩1,004	₩1,056

Now (TTM)

Market cap: ₩81B
Enterprise value: ₩95B
P/E: 253.7×
P/B: 0.9×
P/S: 1.9×
EV/EBITDA: 14.7×
Dividend yield: 2.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,915	₩4,705	₩5,420	₩5,680	₩6,660
Market cap	₩106B	₩171B	₩197B	₩206B	₩242B
P/E	—	32.6×	11.8×	17.1×	23.9×
P/B	1.2×	1.7×	2.1×	2.3×	2.9×
P/S	2.8×	2.7×	2.3×	2.4×	3.4×
EV/EBITDA	29.6×	10.7×	7.1×	8.3×	10.7×
Dividend yield	1.7%	3.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
HC BoKwang Industry	253.7×	0.9×	1.9×	14.7×	2.2%
Tokai Carbon Korea	31.7×	4.5×	7.2×	—	0.7%
Hanilcementco	11.9×	0.7×	0.9×	—	6.1%
Wonik QnC	14.8×	1.3×	0.7×	—	0.5%
Sampyo Cement	17.4×	0.8×	0.9×	6.1×	2.1%
Hanil Holdings	9.4×	0.3×	0.3×	—	6.0%
IS Dongseo	5.1×	0.3×	0.4×	—	3.5%
Similar companies (median)	13.4×	0.7×	0.8×	6.1×	2.8%

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

Also known as: HC BoKwang Industry / HC보광산업 / 225530 / KRX:225530

Source: KRX statistical information