Major Estimate Revision • Aug 19
Consensus EPS estimates increase by 224% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from ₩2.68b to ₩2.93b. EPS estimate increased from ₩553 to ₩1,794 per share. Net income forecast to grow 663% next year vs 72% growth forecast for Chemicals industry in South Korea. Consensus price target down from ₩80,000 to ₩74,000. Share price rose 9.7% to ₩48,000 over the past week. Upcoming Dividend • Jul 30
Upcoming dividend of ₩400 per share Eligible shareholders must have bought the stock before 06 August 2026. Payment date: 21 August 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (4.7%). Higher than average of industry peers (1.9%). New Risk • May 21
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 292% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 292% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Major Estimate Revision • May 12
Consensus EPS estimates fall by 25% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ₩3,810 to ₩2,840 per share. Revenue forecast steady at ₩2.68b. Net income forecast to grow 16% next year vs 62% growth forecast for Chemicals industry in South Korea. Consensus price target down from ₩86,500 to ₩80,000. Share price fell 16% to ₩50,300 over the past week. Major Estimate Revision • Mar 23
Consensus EPS estimates fall by 20% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ₩4,779 to ₩3,810 per share. Revenue forecast steady at ₩2.69b. Net income forecast to grow 62% next year vs 58% growth forecast for Chemicals industry in South Korea. Consensus price target down from ₩94,000 to ₩86,500. Share price was steady at ₩55,300 over the past week. Price Target Changed • Mar 21
Price target decreased by 8.0% to ₩86,500 Down from ₩94,000, the current price target is an average from 2 analysts. New target price is 48% above last closing price of ₩58,600. Stock is up 38% over the past year. The company is forecast to post earnings per share of ₩3,810 for next year compared to ₩2,306 last year. Reported Earnings • Mar 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: ₩2,306 (up from ₩376 in FY 2024). Revenue: ₩2.37t (up 36% from FY 2024). Net income: ₩44.6b (up 405% from FY 2024). Profit margin: 1.9% (up from 0.5% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Ankündigung • Mar 07
SK Chemicals Co.,Ltd, Annual General Meeting, Mar 24, 2026 SK Chemicals Co.,Ltd, Annual General Meeting, Mar 24, 2026, at 09:00 Tokyo Standard Time. Location: g.rium hall, 310, pangyo-ro, bundang-gu, gyeonggi-do, seongnam South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩54,800, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩30,198 per share. Major Estimate Revision • Feb 13
Consensus EPS estimates fall by 36% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ₩2.70b to ₩2.66b. EPS estimate also fell from ₩7,431 per share to ₩4,779 per share. Net income forecast to grow 9.7% next year vs 52% growth forecast for Chemicals industry in South Korea. Consensus price target broadly unchanged at ₩94,000. Share price fell 2.9% to ₩62,900 over the past week. Reported Earnings • Nov 19
Third quarter 2025 earnings released: EPS: ₩2,220 (vs ₩178 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩2,220 (up from ₩178 loss in 3Q 2024). Revenue: ₩609.9b (up 43% from 3Q 2024). Net income: ₩42.9b (up ₩46.9b from 3Q 2024). Profit margin: 7.0% (up from net loss in 3Q 2024). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩68,800, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 12x in the Chemicals industry in South Korea. Total loss to shareholders of 15% over the past three years. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ₩725 (vs ₩590 in 2Q 2024) Second quarter 2025 results: EPS: ₩725 (up from ₩590 in 2Q 2024). Revenue: ₩596.9b (up 44% from 2Q 2024). Net income: ₩14.0b (up 62% from 2Q 2024). Profit margin: 2.3% (up from 2.1% in 2Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jul 31
Upcoming dividend of ₩400 per share Eligible shareholders must have bought the stock before 07 August 2025. Payment date: 21 August 2025. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.4%). Price Target Changed • Jul 16
Price target increased by 20% to ₩75,500 Up from ₩63,000, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of ₩73,000. Stock is up 50% over the past year. The company is forecast to post earnings per share of ₩4,092 for next year compared to ₩338 last year. New Risk • Jul 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.9% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩70,200, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total loss to shareholders of 22% over the past three years. Ankündigung • May 15
SK Chemicals Strengthens Position in Cosmetics Packaging with Circular Materials at China Beauty Expo SK chemicals is strengthening its foothold in the cosmetics container market with circular recycling materials optimized for packaging. On May 14, SK chemicals (CEO Ahn Jae-hyun) announced its participation in China Beauty Expo 2025, held from May 12 to 14 at the Shanghai New International Expo Center (SNIEC). Now in its 29th year, China Beauty Expo is the largest beauty trade show in Asia, drawing more than 400,000 visitors from over 80 countries. The event brings together global cosmetics brands and supply chain players--from R&D and manufacturing to packaging and logistics--to showcase cutting-edge trends, technologies, and products. This year's expo featured over 3,200 exhibitors and more than 10,000 brands. Holding the leading market share in China's copolyester sector, SK chemicals presented under the slogan "On-Hand Solution for a Sustainable Future," focusing on commercially available circular materials for cosmetics packaging. SK chemicals exhibited a range of premium skincare product containers developed and commercialized in collaboration with global cosmetic brands. The lineup, which received positive feedback from visitors, included products made from recycled materials and materials designed to enhance recyclability after use. Among the items on display were skin and lotion bottles, cream jars, compact cases, and various cosmetic caps manufactured with ECOTRIA CLARO, a copolyester that can be sorted and recycled within the PET (polyethylene terephthalate) stream. Also showcased were skin and lotion bottles and lotion bottles, fragrance caps, and cushion compact lids made with ECOTRIA CLarO-CR70, a "recycled and recyclable" material that incorporates post-consumer recycled (PCR) content designed to remain recyclable after use. These materials are not only compatible with a variety of container formats but also deliver the mechanical strength and aesthetic quality required for premium cosmetic packaging, which can be attributed to their high-performance copolyester base. Compared to conventional plastics such as PET, copolyester offers superior transparency, even in thick-walled containers, making it ideal for high-end applications where crystal-clear presentation is essential. CLARO-CR70, the aforementioned high-performance circular copolyester material introduced last year, contains up to 70% PCR content. CLARO CR70 uses recycled plastic as a raw material and can be recycled after use, making it an ideal material for establishing a closed-loop plastic recycling system. In addition, the company featured other sustainable materials tailored for beauty applications, including SKYPET CR, a circular PET suited for large-volume body care packaging, and ECOTRION, a 100% bio-based polyol derived from plants, used in cushion puffs and synthetic leather accessories. Major Estimate Revision • May 13
Consensus EPS estimates increase by 828% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ₩2.09b to ₩2.22b. EPS estimate increased from ₩445 to ₩4,125 per share. Net income forecast to grow 726% next year vs 27% growth forecast for Chemicals industry in South Korea. Consensus price target down from ₩63,000 to ₩59,000. Share price rose 24% to ₩50,300 over the past week. Ankündigung • Apr 14
SK Chemicals to Participate in CHINAPLAS 2025 Showcasing Real-World Sustainable Material Solutions SK chemicals will showcase its technological capabilities at CHINAPLAS, one of the world's top three plastics exhibitions. SK chemicals (CEO and President Ahn Jae-hyun) announced on the 13th that it will participate in CHINAPLAS 2025, to be held from April 15 for three days at the Shenzhen World Convention and Exhibition Center in Guangdong Province, China. At this year's exhibition, SK chemicals will present its sustainable specialty solutions under the slogan "On-hand solution for sustainable tomorrow." Rather than presenting future plans or technologies still under development, SK chemicals will focus on showcasing proven and commercially available products—such as the world's first chemically recycled materials—highlighting sustainable technologies and solutions that can be implemented immediately. In the field of circular recycled materials based on depolymerization technology, SK chemicals will showcase a lineup of recyclable materials designed with both pre- and post-use recyclability in mind. This includes: CLARO, a copolyester classified as post-consumer PET, applied to skincare and makeup products from L'Oréal and Estée Lauder SKYPET CR, a PET material used in Samdasoo water bottles and Coldplay's eco-friendly vinyl records ECOTRIA CR, a circular recycled copolyester used in interior tiles by CS Group. SK chemicals will also exhibit everyday consumer products that feature its flagship materials, including: ECOZEN, a high-heat-resistant bio-based copolyester used in various kitchen appliances, food storage containers, baby tableware, and sports bottles ? SKYGREEN, a high-performance PETG applied in cosmetic packaging and iced cups, valued for its exceptional transparency, chemical resistance, and processability. SK chemicals will also present ECOTRION, a 100% plant-based bio polyol used in spandex, synthetic leather, and urethane elastomers SKYPEL, a polyester-based elastomer that combines the properties of rubber and engineering plastics, used in automotive parts, industrial hoses, subsea cables, and breathable films, along with related application products. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Non-Executive Director Kwang-Hyun Jeon was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 22
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: ₩376 (down from ₩2,072 in FY 2023). Revenue: ₩1.74t (flat on FY 2023). Net income: ₩8.84b (down 78% from FY 2023). Profit margin: 0.5% (down from 2.3% in FY 2023). Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Ankündigung • Mar 05
SK Chemicals Co.,Ltd, Annual General Meeting, Mar 26, 2025 SK Chemicals Co.,Ltd, Annual General Meeting, Mar 26, 2025, at 13:00 Tokyo Standard Time. Location: g.rium hall, 310, pangyo-ro, bundang-gu, gyeonggi-do, seongnam South Korea Major Estimate Revision • Nov 07
Consensus EPS estimates increase by 46% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ₩670 to ₩979. Revenue forecast steady at ₩1.64b. Net income forecast to grow 43% next year vs 42% growth forecast for Chemicals industry in South Korea. Consensus price target of ₩68,000 unchanged from last update. Share price fell 7.2% to ₩46,400 over the past week. Ankündigung • Oct 16
SK Chemicals Launches ECOTRIA CLARO 300 with Improved Recyclability SK chemicals announced on the 16th the launch of 'ECOTRIA CLARO 300', a copolyester that expands recyclability and molding/processing versatility. The newly introduced material ECOTRIA CLARO 300 possesses the inherent properties of copolyester such as transparency and chemical resistance, while also being recyclable and suitable for Extrusion Blow Molding (EBM). The company explains that this material has a higher viscosity than existing copolyester products even under high-temperature molding conditions, making it suitable for EBM molding. The EBM method is suitable for molding large-sized containers. It creates desired container shapes by heating extruded plastic tubes and inflating them with air, similar to blowing a bubble with bubble gum. Therefore, it requires a high-viscosity material that maintains its shape without melting during the high-temperature molding process in manufacturing. Typical transparent materials like PET and copolyester lack the heat resistance and viscosity required for high-temperature EBM molding conditions, so opaque materials such as PP (polypropylene) and PE (polyethylene) have been mainly used for large-capacity container materials. The company anticipates that ECOTRIA CLARO 300, which can be processed with EBM molding and easily recycled as it's classified as PET, will quickly replace the large-capacity container market where transparency is required. SK chemicals' strategy is to actively target the large-capacity container market requiring transparency, such as large water bottles, juice, and beverages, aiming to expand copolyester sales in the EBM application market to about 30,000 tons. Ankündigung • Sep 23
SK Chemicals Co.,Ltd(KOSE:A285130) dropped from FTSE All-World Index (USD) SK Chemicals Co.,Ltd(KOSE:A285130) dropped from FTSE All-World Index (USD) Major Estimate Revision • Aug 14
Consensus EPS estimates increase by 1,301% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ₩1.64b to ₩1.70b. EPS estimate increased from ₩79.00 to ₩1,107 per share. Net income forecast to grow 163% next year vs 33% growth forecast for Chemicals industry in South Korea. Consensus price target of ₩66,000 unchanged from last update. Share price rose 3.1% to ₩49,300 over the past week. Upcoming Dividend • Aug 01
Upcoming dividend of ₩400 per share Eligible shareholders must have bought the stock before 08 August 2024. Payment date: 23 August 2024. Payout ratio is on the higher end at 78% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of South Korean dividend payers (3.6%). Lower than average of industry peers (1.7%). New Risk • Jul 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 14% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • May 19
First quarter 2024 earnings released: ₩214 loss per share (vs ₩816 profit in 1Q 2023) First quarter 2024 results: ₩214 loss per share (down from ₩816 profit in 1Q 2023). Revenue: ₩381.0b (up 4.5% from 1Q 2023). Net loss: ₩4.08b (down 126% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year whereas the company’s share price has fallen by 30% per year. Ankündigung • Apr 27
SK chemicals Unveils Blueprint for Circular Recycle™ and Solutions SK chemicals unveiled a new concept of a complete resource circulation system encompassing its entire business, from materials and production infrastructure based on Circular Recycle™ technology, which chemically decomposes discarded plastics into molecules and converts them back into raw materials, to solutions for recycling waste resources. The complete resource circulation system involves classifying, collecting, and reprocessing discarded post-consumer plastics, turning them back into plastic raw materials, which are converted into materials and products. Once these materialized products are discarded, they can be continuously recycled without generating waste by repeating the same process. The complete resource circulation system pursued by SK chemicals is based on the company's core competencies in Circular Recycle™1) technology and infrastructure. SK chemicals has previously secured the world's first commercial production capability for chemically recycled copolyester products. In March of last year, SK chemicals invested approximately 130 billion won to acquire the chemical recycling business division of "Shuye," a Chinese company specializing in green materials, and established the "SK Shantou" corporation. SK Shantou is a company that produces 70,000 tons of recycled raw material r-BHET and 50,000 tons of chemically recycled PET annually. SK chemicals is not stopping there but is pushing forward with new businesses to provide comprehensive solutions necessary for the process of turning discarded waste resources into products. Establishing a comprehensive recycling system requires the securing of waste plastics for use as raw materials and the development of an efficient waste resource management system. To this end, SK chemicals has signed an MOU with "Shanghai Yuekun Environmental Protection Technology," a Chinese company specializing in waste resources, for the joint development of a waste plastic recycling business. SK chemicals is expected to build a specialized complete resource circulation structure that takes into account the unique characteristics of each industry, going beyond the existing general collection systems for PET bottles and other items. SK chemicals, which holds the No. 1 position in the Chinese copolyester market, showcased a wide range of sustainable copolyester and polyester (PET) products that are already commercialized and used by various global owners worldwide. SK chemicals also presented a range of recycled materials, including the Circular Recycle™ copolyester "ECOTRIA CR" produced using chemical recycling technology, the copolyester "Claro" that can be classified and recycled after use, and the Circular Recycle™ PET "SKYPET CR." SK chemicals exhibited not only materials but also products that have already been commercialized using these materials. Cosmetics, home appliances, and household goods from various global brands that use ECOTRIA CR, Final products such as tire cords and Samdasu Reborn that use SKYPET CR, which have been successfully commercialized using actual Circular Recycle™ materials, attracted great interest among exhibition visitors. In the exhibition hall's designated Circular Recycle™ experience zone, materials made from petroleum and physically recycled materials were displayed alongside those applied with Circular Recycle™ technology, allowing industry officials to directly compare the color and texture of the materials, increasing visitor participation. A wall within the exhibition hall presented an interactive display illustrating the entire Value Chain process for visitors. The process began with the collection of plastic waste in the city, followed by categorization according to plastic type, and then proceeded through depolymerization, culminating in the transformation into a product. Through these complete circulation systems and materials that apply Circular Recycle™ technology, SK chemicals plans to establish itself as a company that provides total solutions covering the entire process to customers seeking to achieve zero waste. Ankündigung • Apr 19
SK Chemicals, Dongsung Chemical, and Black Yak Collaborate on Commercializing Sustainable Footwear SK chemicals (CEO Ahn Jae-hyun), Dongsung Chemical (Co-CEOs Baek Jin-woo and Lee Man-woo), and BYN Black Yak announced on the 18th that they've developed sustainable footwear materials using the naturally-derived material "ECOTRION" and applied them to Black Yak's "Trekking Shoes 343 MAX." Consumers are attracted to the trekking shoes, launched as a new product this spring, because they satisfy both the high functionality required for outdoor activities and the value consumption trend for eco-friendly materials that reduce greenhouse gases. The three companies introduced this product after a year of collaboration. SK chemicals is the supplier of 100% bio-based polyol "ECOTRION," while Dongsung Chemical develops the bio-polyurethane resin "NEOPAN®?" for footwear using this as a raw material. Utilizing this material, Black Yak produced the "Foot Pillow Cushioning Foam," which is applied to the heel support layer of the midsole to minimize loading on the ankle and knee joints. The midsole of trekking shoes is a key component that determines the footwear's weight and acts like a car's suspension to provide the level of function. Cushioning is important because the midsole must absorb the impact on the body and ensure safe strides, even on rough terrain. Dongsung Chemical's bio- polyurethane resin 'NEOPAN' for footwear maintains the high elasticity and flexibility of existing polyurethane resins while using bio-based raw materials, providing the shock absorption function of the " Foot Pillow CushioningFam." EOTRION, utilized in NEOPAN, is an eco-friendly material that uses raw materials that reduce greenhouse gas emissions by approximately 40% in comparison to conventional petrochemical raw materials. It is utilized in the production of spandex, artificial leather, and urethane elastic materials that are challenging to recycle. EOTRION has one less carbon atom in its chemical structure compared to petrochemical materials, which gives it a helical-shaped polymer structure that enables the production of products with high elastic resilience, similar to a spring. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: ₩2,072 (vs ₩9,910 in FY 2022) Full year 2023 results: EPS: ₩2,072 (down from ₩9,910 in FY 2022). Revenue: ₩1.75t (down 4.4% from FY 2022). Net income: ₩39.9b (down 79% from FY 2022). Profit margin: 2.3% (down from 11% in FY 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,100 per share at 2.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 29 April 2024. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.8%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩2,441 (vs ₩1,815 in 3Q 2022) Third quarter 2023 results: EPS: ₩2,441 (up from ₩1,815 in 3Q 2022). Revenue: ₩581.4b (up 34% from 3Q 2022). Net income: ₩46.9b (up 35% from 3Q 2022). Profit margin: 8.1% (up from 8.0% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 40% per year, which means it is significantly lagging earnings. Ankündigung • Sep 23
Glenwood Private Equity signed a memorandum of understanding to acquire the Pharmaceutical business of SK Chemicals Co.,Ltd (KOSE:A285130). Glenwood Private Equity signed a memorandum of understanding to acquire the Pharmaceutical business of SK Chemicals Co.,Ltd (KOSE:A285130) on September 21, 2023. The Pharmaceutical business generated annual sales of KRW 313.9 billion in 2022. New Risk • Aug 20
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.9% Last year net profit margin: 11% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (38% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (6.9% net profit margin). Upcoming Dividend • Jun 22
Upcoming dividend of ₩400 per share at 1.5% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 24 August 2023. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of South Korean dividend payers (3.2%). In line with average of industry peers (1.5%). Reported Earnings • May 20
First quarter 2023 earnings released: EPS: ₩816 (vs ₩1,881 in 1Q 2022) First quarter 2023 results: EPS: ₩816 (down from ₩1,881 in 1Q 2022). Revenue: ₩364.5b (down 13% from 1Q 2022). Net income: ₩15.7b (down 57% from 1Q 2022). Profit margin: 4.3% (down from 8.8% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 22
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: ₩9,910 (down from ₩13,788 in FY 2021). Revenue: ₩1.83t (down 13% from FY 2021). Net income: ₩191.3b (down 29% from FY 2021). Profit margin: 11% (down from 13% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 18%. Earnings per share (EPS) exceeded analyst estimates by 23%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to ₩130,000 Down from ₩310,000, the current price target is provided by 1 analyst. New target price is 27% above last closing price of ₩102,000. Stock is down 31% over the past year. The company is forecast to post earnings per share of ₩8,109 for next year compared to ₩13,795 last year. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improved over the past week After last week's 17% share price gain to ₩105,000, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Total returns to shareholders of 221% over the past three years. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩102,000, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total returns to shareholders of 172% over the past three years. Price Target Changed • Apr 27
Price target increased to ₩333,333 Up from ₩310,000, the current price target is provided by 1 analyst. New target price is 172% above last closing price of ₩122,500. Stock is down 35% over the past year. The company is forecast to post earnings per share of ₩17,953 for next year compared to ₩13,795 last year. Price Target Changed • Dec 23
Price target increased to ₩333,333 Up from ₩310,000, the current price target is an average from 3 analysts. New target price is 120% above last closing price of ₩151,500. Stock is down 40% over the past year. The company is forecast to post earnings per share of ₩16,717 next year compared to a net loss per share of ₩937 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,333 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 28 April 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩151,500, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 231% over the past three years. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improved over the past week After last week's 18% share price gain to ₩313,000, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Chemicals industry in South Korea. Total returns to shareholders of 352% over the past three years. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 21% share price gain to ₩329,500, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Chemicals industry in South Korea. Total returns to shareholders of 289% over the past three years. Reported Earnings • Mar 26
Full year 2020 earnings released: EPS ₩621 (vs ₩1,318 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩1.21t (up 9.1% from FY 2019). Net income: ₩8.13b (up ₩25.6b from FY 2019). Profit margin: 0.7% (up from net loss in FY 2019). Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩267,000, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 167% over the past three years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩315,500, the stock is trading at a trailing P/E ratio of 63x, down from the previous P/E ratio of 77x. This compares to an average P/E of 17x in the Chemicals industry in South Korea. Total returns to shareholders over the past three years are 195%. Is New 90 Day High Low • Mar 03
New 90-day low: ₩347,000 The company is down 15% from its price of ₩406,500 on 03 December 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩1,538,606 per share. Price Target Changed • Feb 19
Price target raised to ₩513,333 Up from ₩425,000, the current price target is an average from 4 analysts. The new target price is 39% above the current share price of ₩369,500. As of last close, the stock is up 440% over the past year. Is New 90 Day High Low • Feb 03
New 90-day high: ₩462,500 The company is up 19% from its price of ₩389,500 on 05 November 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 32% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩176,876 per share. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩450 Per Share Will be paid on the 24th of April to those who are registered shareholders by the 29th of December. The trailing yield of 0.1% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (0.9%). Major Estimate Revision • Dec 03
Analysts increase EPS estimates to ₩17,352 The 2020 consensus revenue estimate increased from ₩1.23b to ₩1.35b. The earnings per share estimate also received an upgrade from ₩15,309 to ₩17,352 for the same period. Net income is expected to grow by 223% next year compared to 48% growth forecast for the Chemicals industry in South Korea. The consensus price target increased from ₩425,000 to ₩437,500. Share price is down by 2.9% to ₩404,000 over the past week. Major Estimate Revision • Nov 11
Analysts update estimates The 2020 consensus revenue estimate increased from ₩1.18b to ₩1.23b. Earnings per share (EPS) estimate was lowered from ₩22,541 to ₩15,309 for the same period. Net income is expected to grow by 1,016% next year compared to 40% growth forecast for the Chemicals industry in South Korea. The consensus price target increased from ₩363,750 to ₩425,000. Share price is up 3.3% to ₩405,000 over the past week. Is New 90 Day High Low • Nov 09
New 90-day high: ₩449,500 The company is up 12% from its price of ₩401,000 on 11 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩239,389 per share.