Chosun Refractories조선내화

Chosun Refractories is profitable but barely so, and its shares have fallen about 24% over the past year.

Chosun Refractories, a Korean refractory maker that sells mainly to steel and heavy industry, reported trailing twelve-month revenue of ₩523B and operating income of ₩22B to H1 2026, with a thin 0.4% net margin. The share price closed at ₩10,890 on 30 October 2026, near its 52-week low of ₩10,740 and well below its high of ₩16,600.

What stands out

• Net income fell sharply from ₩5.8B in 2024 to ₩2.2B in 2025, and trailing net income of ₩2.2B gives an ROE of about 1%.
• Revenue grew 6.3% in 2025 to ₩532B, but operating margin slipped from 11.4% in 2023 to 4.5% in 2025 and 4.3% trailing.
• Liabilities are 123.7% of equity, with borrowings of ₩197B against cash of ₩56B.
• The company's trailing P/B of 0.6 is low against peers such as Tokai Carbon Korea at 3.9, but its trailing P/E of 58.7 is high relative to earnings, and the DCF base value of ₩62,580 is far above the current price, a model output rather than a forecast.
• Recent filings include two major sales or supply contracts on 6 October 2026, a cash dividend decision and a 1.8% dividend yield; news covers the Mokpo plant redevelopment into a cultural complex.

What to watch

• Upcoming quarterly or annual results, given that margins and net income have been declining.
• Whether the recently disclosed supply contracts and the Mokpo redevelopment translate into revenue or earnings; the data does not give their size.
• Foreign ownership has fallen from 0.7% to 0.4% over 60 days and foreign and institutional investors were net sellers over the last 20 days, so further flow changes are worth monitoring.