PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Kangnam Jevisco rebounded in the second quarter of 2026 with its highest revenue and operating profit in five quarters, but full-year 2025 net income attributable to owners turned negative and quarterly earnings volatility remains substantial.
2025 consolidated revenue was KRW 598.6 billion with an operating margin of 1.4%, down from 3.2% a year earlier, while net income attributable to owners turned negative
Q2 2026 posted revenue of KRW 178.5 billion, operating profit of KRW 12.4 billion and owners' net income of KRW 5.5 billion, breaking a three-quarter losing streak
Battery CNT conductive-material unit KS Advanced Materials is building out production capacity at its Haman plant toward a 6,000-ton target
Operates three segments—coatings, synthetic resins, and composite molding materials—with the resin segment (via Kangnam Hwasung) cushioning volatility in the core coatings business
The debt ratio eased from 42.4% in 2023 to 37.4% in 2025, indicating a gradual stabilization of the balance sheet
Founded in 1945, Kangnam Jevisco is a KOSPI-listed chemical company that pioneered South Korea's paint industry and is widely known under its Jebipyo Paint brand. The company operates through three business segments: coatings, synthetic resins, and composite molding materials.
The coatings segment focuses on architectural, marine, automotive, and steel-pipe paints, serving construction, shipbuilding, automotive, and advanced-industry customers.
The synthetic resin segment, centered on subsidiary Kangnam Hwasung, produces phenolic resin and urethane, and has maintained relatively stable results by strengthening its market position in food-packaging adhesives and polyurea while expanding overseas.
The composite molding materials segment covers automotive parts and stationery products. As of 2024, Kangnam Jevisco's own consolidated revenue was the largest within the group, followed by Kangnam Hwasung, Kangnam Co., Kangnam KPI, and Kangnam Construction.
As a new growth initiative, the company jointly established KS Advanced Materials with Shina T&C to produce carbon nanotube (CNT)-based positive and negative electrode conductive materials for secondary batteries, building an initial production line at its Haman plant with a longer-term capacity target of 6,000 tons.
Mid-tier domestic paint makers—including Kangnam Jevisco, Chokwang Paint, Noroo Paint, and Samhwa Paint—broadly share a common trend of seeking new growth engines in battery- and semiconductor-related materials amid slower growth in the core business.
In periods when the standalone coatings business posted operating losses, subsidiaries such as Kangnam Hwasung have historically offset those losses at the consolidated level, suggesting the subsidiary portfolio partially cushions the cyclicality of the core paint business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩161.6B | ₩6.5B | 4.0% |
| 2025Q3 | ₩147.4B | ₩4.4B | 3.0% |
| 2025Q4 | ₩148.5B | -₩3.2B | −2.2% |
| 2026Q1 | ₩146.9B | ₩900M | 0.6% |
| 2026Q2 | ₩178.5B | ₩12.4B | 6.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩673.2B | ₩4.4B | ₩6.2B | 0.7% | 1.0% | 41.1% |
| 2023 | ₩638.8B | ₩23.2B | ₩16.5B | 3.6% | 2.7% | 42.4% |
| 2024 | ₩643.1B | ₩20.5B | ₩13.3B | 3.2% | 2.1% | 37.6% |
| 2025 | ₩598.6B | ₩8.3B | -₩2.7B | 1.4% | −0.4% | 37.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
Consolidated revenue for 2025 came to KRW 598.6 billion, down from KRW 643.1 billion in 2024, while operating profit fell sharply to KRW 8.3 billion (a 1.4% margin) from KRW 20.5 billion (3.2%) in 2024, and net income attributable to owners turned negative at KRW -2.7 billion.
Looking further back, 2023 revenue was KRW 638.8 billion with operating profit of KRW 23.2 billion (3.6% margin) and owners' net income of KRW 16.5 billion, while 2022 revenue was KRW 673.2 billion with operating profit of only KRW 4.4 billion (0.7% margin) and owners' net income of KRW 6.2 billion—together showing an operating margin that oscillated between 0.7%, 3.6%, 3.2%, and 1.4% without establishing a clear improving trend.
On a quarterly basis, after a solid second quarter of 2025 (revenue KRW 161.6 billion, operating profit KRW 6.5 billion, owners' net income KRW 3.9 billion), losses widened in the third quarter (revenue KRW 147.4 billion, operating profit KRW 4.4 billion, net loss KRW 0.3 billion) and fourth quarter (revenue KRW 148.5 billion, operating loss KRW 3.2 billion, net loss KRW 5.2 billion), partly reflecting seasonal off-peak effects.
The first quarter of 2026 remained weak, with revenue of KRW 146.9 billion and operating profit of only KRW 0.9 billion, leaving owners' net income at a loss of KRW 2.4 billion, before the second quarter of 2026 rebounded to revenue of KRW 178.5 billion, operating profit of KRW 12.4 billion, and owners' net income of KRW 5.5 billion—the strongest of the last five quarters.
As a result, the sum of owners' net income across the four quarters from Q3 2025 through Q2 2026 remained a loss of KRW 2.4 billion, meaning the Q2 2026 improvement alone did not fully offset the losses of the preceding three quarters.
According to a third-party corporate information service, first-quarter 2026 consolidated revenue rose 4.2% year-on-year and operating profit rose 23.3%, even as the net loss widened, a pattern attributed to cost-focused management and expense reductions amid energy and raw-material price pressure linked to Middle East geopolitical tensions.
Equity attributable to owners rose modestly from KRW 601.5 billion in 2022 to KRW 619.6 billion in 2025, while operating cash flow declined from KRW 65.8 billion in 2023 to KRW 38.6 billion in 2025, suggesting somewhat weaker cash generation.
The debt ratio, however, improved from 42.4% in 2023 to 37.4% in 2025, pointing to a more stable balance sheet on that particular metric.
The paint industry is a classically cyclical sector tied directly to downstream construction, shipbuilding, and automotive activity, and because a substantial portion of raw materials is imported, international commodity prices and exchange rates feed directly into production costs.
Analyses have repeatedly pointed to a combination of high oil prices, a weak currency, high interest rates, US-China trade tensions, and Middle East geopolitical risk as having weighed on cost structures across the industry in recent years.
Against this backdrop, mid-tier domestic paint makers have generally turned to new businesses to find growth amid a slow-growth core market.
Kangnam Jevisco is expanding into CNT conductive materials for secondary batteries, Chokwang Paint into thermal-interface materials for EV battery packs through subsidiary CK EM Solutions, and Noroo Paint into semiconductor back-end coatings and adhesives as well as silicon anode binders.
Kangnam Jevisco was cited as ranking near the top among four mid-tier paint companies in terms of assets and net assets as of the end of 2022, suggesting a comparatively solid asset base.
Even so, the profitability of the core coatings business remains sensitive to cost swings, and the direction of consolidated results continues to diverge across companies depending on the weight of subsidiaries and new businesses in the overall mix.
The company is working to stabilize production and secure customer qualification for KS Advanced Materials, its CNT conductive-material unit for secondary batteries; an independent research report from October 2025 suggested customer shipments were anticipated for that business.
Plans call for expanding production capacity from an initial 2,000 tons to a longer-term target of 6,000 tons.
In the core coatings business, the company continued brand marketing in July 2026 through its "2026 Jevisco Day" event, promoting its eco-friendly Pureunsol paint brand as part of an effort to strengthen its color and ESG positioning.
The synthetic resin segment, anchored by Kangnam Hwasung, appears to be continuing a trend of strengthening its market position in food-packaging adhesives and polyurea while expanding overseas.
That said, seasonal factors tied to winter cold, summer heat, and the monsoon season structurally contribute to quarterly earnings volatility in the paint and construction-linked business, as illustrated by the consecutive losses in the fourth quarter of 2025 and the first quarter of 2026.
Independent research firm Buffett Research Institute stated in an October 2025 report that Kangnam Jevisco's real-estate and other asset value, together with potential improvement in the core business, warranted attention—an assessment from that institute and not a view expressed by this report.
The current share price appears to trade at a substantial discount to net asset value, a level said to be broadly in line with the stock's average multiple band over the past five years.
The five-year average price-to-earnings multiple has been cited at around 17 times, but the recent swing to a net loss attributable to owners limits how meaningfully an earnings-based multiple can be interpreted in this period.
On the dividend side, the company appears to have maintained its cash dividend even as 2025 owners' net income turned negative, resulting in a payout ratio reported to be negative—suggesting dividend policy is being driven by considerations beyond current-period earnings.
Separately, external commentary has pointed to the company's real estate and other asset holdings as a reason it is sometimes described as an asset-backed stock.
Taken together, the discount to net asset value, quarter-to-quarter earnings volatility, and underlying asset value form the three threads most relevant to any valuation discussion of this stock.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-24
Second-quarter 2026 revenue of KRW 178.5 billion and operating profit of KRW 12.4 billion were the highest in five quarters, and owners' net income swung to a profit of KRW 5.5 billion. That marks a clear improvement versus the preceding three quarters (Q3 and Q4 2025, Q1 2026), which all posted net losses.
Whether this rebound reflects seasonal strength or a more durable improvement will require confirmation in coming quarters.
Subsidiary KS Advanced Materials produces CNT-based positive and negative electrode conductive materials for secondary batteries, with plans to expand its Haman plant's capacity toward a 6,000-ton target. An independent research report from October 2025 mentioned expectations for customer shipments from this business.
Given earlier assessments that no clear market leader had emerged in CNT conductive materials, tangible progress in this new business could establish a new revenue stream over time.
In years when the standalone coatings business posted operating losses, subsidiaries such as Kangnam Hwasung have historically helped offset those losses at the consolidated level.
The synthetic resin segment appears to have maintained relatively stable results by strengthening its position in food-packaging adhesives and polyurea while expanding overseas. This structure has functioned to partially cushion the cyclicality of the core coatings business at the group level.
Consolidated net income attributable to owners turned negative in 2025 at KRW -2.7 billion, and the operating margin fell to 1.4% from 3.6% in 2023 and 3.2% in 2024. Despite the second-quarter rebound, the sum of owners' net income across the four quarters from Q3 2025 through Q2 2026 remains a loss of KRW 2.4 billion. On an annual basis, a clear earnings recovery has not yet been confirmed.
Because a substantial share of raw materials for coatings is imported, international commodity prices and exchange rates directly affect both revenue and costs. Recently, Middle East geopolitical tensions have been cited as a source of energy-supply instability and rising oil prices adding to cost pressure.
These external variables are largely outside the company's control and contribute to quarter-to-quarter earnings volatility.
The coatings and synthetic resin businesses are influenced by construction-sector cycles and exhibit significant revenue swings tied to seasonal factors such as extreme cold, extreme heat, and the monsoon season.
The company indeed posted consecutive net losses in the fourth quarter of 2025 and the first quarter of 2026. A slowdown in the construction cycle could delay a recovery in core coatings profitability.
High reliance on imported raw materials means international oil and naphtha-linked material prices, along with the won-dollar exchange rate, feed directly into cost of goods sold. An escalation of geopolitical risk, including in the Middle East, could raise energy and material costs further. This is an external variable that cannot be fully controlled through the company's own measures alone.
Results over the past five quarters have alternated between profit and loss, with consecutive net losses in the fourth quarter of 2025 and the first quarter of 2026. Annual owners' net income has also shifted from a profit in 2022 to a loss in 2025.
Care is warranted in distinguishing whether an improvement in any given quarter reflects a sustainable trend or a seasonal, temporary rebound.
The CNT conductive-material business for secondary batteries is understood to still be undergoing customer evaluation and qualification, so the timing of stable mass production and revenue contribution may not proceed exactly as planned.
Competitors are pursuing similar new materials businesses tied to batteries and semiconductors, which could intensify competition for early market positioning. A delay in recovering returns relative to new-business investment could add to financial strain.
Preliminary third-quarter 2026 (July-September) results are due — worth checking whether the improving trend from the first half continues through the seasonally weaker third quarter, or whether results revert to a loss as in Q3 2025.
Fourth-quarter and full-year 2026 confirmed results, along with dividend-related disclosures, are expected — key points to watch are whether the company moves past the 2025 annual loss on a full-year basis and whether its dividend policy continues.
Progress on customer qualification and expanded mass-production volumes for KS Advanced Materials' CNT conductive material — worth tracking when and to what extent this new business begins contributing actual revenue.
Raw material price and exchange rate trends during the seasonally weak fourth and first quarters, and the resulting cost burden on the coatings segment — a period to watch for whether a loss pattern similar to Q4 2025 and Q1 2026 repeats.
Kangnam Jevisco operates within the structurally cyclical and seasonal nature of the core coatings business, and while second-quarter 2026 results showed a clear rebound, full-year 2025 net income attributable to owners turned negative.
The sum of owners' net income across the most recent four quarters (Q3 2025 through Q2 2026) also remains in a loss position, so whether the second-quarter improvement is sufficient to reverse the annual trend will require further confirmation in coming quarters.
The structure in which synthetic resin subsidiaries such as Kangnam Hwasung cushion volatility in the core coatings business remains intact, and balance-sheet metrics such as the debt ratio have improved gradually.
The CNT conductive-material business for secondary batteries (KS Advanced Materials) is reportedly still at the customer-qualification stage, so the timing of any meaningful revenue contribution remains to be confirmed.
Sensitivity to raw materials and currency, seasonal earnings volatility, and new-business execution risk are factors that warrant balanced consideration together.
Overall, the stock currently presents both bullish elements—a near-term earnings rebound and a medium-to-long-term new-business pipeline—alongside bearish elements, namely the swing to an annual net loss and structural earnings volatility.
Report written 2026-09-05 · Data as of 2026-09-04
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