PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close
PKC is in a transition phase, diversifying from its stable chlor-alkali (CA) cash-generating base into semiconductor specialty gases and secondary battery electrolyte materials, with 2025 results showing a recovery from the prior year's weakness.
2025 consolidated revenue reached KRW 272.1 billion with operating profit of KRW 12.15 billion and net income of KRW 10.1 billion, marking a clear profit recovery from the prior year.
Owner net income swung to a loss of KRW 2.47 billion in Q1 2026 due to convertible bond valuation losses, before turning to a KRW 3.95 billion profit in Q2 2026.
The Saemangeum Plant 1 has begun operations and shipped its first batch of phosphorus trichloride (PCl3), a key secondary battery electrolyte material.
A roughly 50% capacity expansion for high-purity chlorine used in semiconductors is underway, reportedly linked to expanding demand from Samsung Electronics.
The Saemangeum Plant 2 (semiconductor/display materials) has seen its land ownership transfer delayed to August, with a construction start date still unconfirmed.
PKC is a basic chemical materials company founded in 1954, and in 2025 it changed its corporate name from Baekwang Industrial (Paik Kwang Industrial) to PKC, declaring a transformation into an advanced materials company.
Its business structure consists of the chemical business (CA, materials, food additives) and other businesses, with the vast majority of revenue generated from the chemical business.
On a cumulative basis through Q3 2025, revenue mix was roughly 70% from CA, 14% from new materials (specialty gases), and 13% from food additives, with the new materials share gradually expanding.
The CA business produces caustic soda (NaOH), liquid chlorine (Cl2), hydrochloric acid (HCl), and sodium hypochlorite—basic and intermediate raw materials used across industry—supported by a stable revenue structure based on long-term supply contracts.
The materials business manufactures ultra-high-purity specialty gases (5N grade and above) and high-purity chemical materials for semiconductor and display processes (high-purity chlorine, high-purity hydrogen chloride, nitrous oxide), supplied to domestic semiconductor makers, with sales rising alongside AI data center and HBM chip demand.
The food additives business produces sorbitol, maltitol, and polyglycitol syrup for the food industry.
More recently, the company has built PCl3 and PCl5 production facilities at the Saemangeum national industrial complex—key raw materials for secondary battery electrolyte—aiming to localize supply previously dependent on Chinese imports, with follow-on production of phosphorus oxychloride (POCl3) also in preparation.
The largest shareholder is CEO Kim Sung-hoon and related parties, holding a 42.71% stake as of a May 2026 disclosure.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩66.2B | ₩2.2B | 3.3% |
| 2025Q3 | ₩69.8B | ₩3.2B | 4.6% |
| 2025Q4 | ₩71.5B | ₩3.4B | 4.8% |
| 2026Q1 | ₩70.2B | ₩5B | 7.1% |
| 2026Q2 | ₩71.6B | ₩5.4B | 7.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩232.7B | ₩28.3B | ₩22.7B | 12.1% | 10.8% | 92.8% |
| 2023 | ₩233.5B | ₩17.7B | ₩7.7B | 7.6% | 3.6% | 99.8% |
| 2024 | ₩245.2B | ₩9.7B | ₩3.6B | 4.0% | 1.7% | 117.5% |
| 2025 | ₩272.1B | ₩12.2B | ₩10.1B | 4.5% | 4.5% | 171.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
PKC's annual results peaked in 2022, softened through 2023-2024, and then recovered in 2025. In 2022, the company posted revenue of KRW 232.7 billion, operating profit of KRW 28.27 billion (12.1% margin), and net income of KRW 22.70 billion.
Profitability then declined progressively, with 2023 revenue of KRW 233.5 billion, operating profit of KRW 17.74 billion (7.6%), and net income of KRW 7.73 billion, followed by 2024 revenue of KRW 245.2 billion, operating profit of KRW 9.75 billion (4.0%), and net income of KRW 3.60 billion.
This reflected rising power tariffs and higher import costs for raw material sodium chloride directly affecting CA business costs, which the company addressed by passing power cost increases through to product prices.
In 2025, revenue rebounded to KRW 272.1 billion with operating profit of KRW 12.15 billion (4.5%) and net income of KRW 10.10 billion.
On a quarterly basis, revenue and operating profit improved sequentially from KRW 66.21 billion and KRW 2.18 billion in Q2 2025 to KRW 69.83 billion and KRW 3.24 billion in Q3, and KRW 71.53 billion and KRW 3.41 billion in Q4.
In Q1 2026, revenue reached KRW 70.23 billion with operating profit of KRW 5.00 billion, pushing the operating margin above 7%, but an approximately KRW 5.8 billion convertible bond valuation loss recorded as non-operating expense drove owner net income to a loss of KRW 2.47 billion—a non-cash accounting item with no direct cash flow impact.
In Q2 2026, revenue of KRW 71.58 billion and operating profit of KRW 5.45 billion continued the improving trend, with net income turning positive again at KRW 3.95 billion.
During this period, materials segment revenue rose 37.5% year-on-year to KRW 11.3 billion, with the expanding share of higher-margin products cited as a contributor to overall margin improvement.
South Korea's overall chemical industry cycle remains weak, but the specific segments PKC operates in are tied to growth industries like semiconductors and secondary batteries, distinguishing them from general commodity chemicals.
The chlor-alkali industry has a highly power-dependent cost structure, and rising power tariffs since the second half of 2024 have become a shared cost burden across the industry.
In contrast, the semiconductor specialty gas segment is benefiting structurally from increased usage of etching-process specialty gases driven by growing demand for AI-server high-bandwidth memory (HBM) and advanced NAND flash.
In the secondary battery materials segment, key raw materials for lithium salt (LiPF6) production such as PCl3 and PCl5 have historically depended on Chinese imports due to the absence of domestic producers, creating a structural localization demand opportunity.
Competitively, PKC has a track record of pioneering domestic production of high-purity chlorine and hydrogen chloride, and semiconductor materials require over two years of quality testing, meaning that once a supplier is adopted, switching becomes difficult—acting as an entry barrier for latecomers.
That said, the pace of recovery in the battery materials market remains a variable affecting the timing of demand realization.
PKC's near-term outlook hinges heavily on progress at its two new Saemangeum plants.
Saemangeum Plant 1 (battery materials) has begun operations and shipped its first batch of PCl3, with the company planning to move from customer quality verification toward full-volume supply and pursue new domestic and overseas battery materials and chemical company customers.
Production of a follow-on product, phosphorus oxychloride (POCl3), is also being prepared, with the goal of building a product portfolio spanning PCl3, PCl5, and POCl3.
Saemangeum Plant 2 (semiconductor/display materials) has seen its land ownership transfer delayed from late June to late August, and a specific construction start date has not yet been disclosed following the transfer.
Given that the original 2024 investment agreement had targeted a Q1 2025 construction start, actual progress is running behind the initial schedule.
In the semiconductor segment, an approximately 50% capacity expansion for high-purity chlorine at the Gunsan plant is underway, reportedly linked to growing demand for high-purity hydrogen chloride tied to Samsung Electronics' expanding NAND and foundry processes.
The company has set a mid-to-long-term goal of growing semiconductor specialty gas revenue to KRW 100 billion and secondary battery revenue to KRW 200 billion by 2030, raising the share of advanced materials to more than half of total revenue.
Heungkuk Securities, in a May 26, 2026 report, maintained a "Buy" rating citing benefits from the semiconductor industry upcycle and the ramp-up of new businesses, and raised its target price from KRW 7,000 to KRW 7,700.
PKC's net income fell sharply from a high base in 2022 to a low point in 2024 before recovering in 2025, and in 2026 quarterly net income has shown increased volatility driven by non-operating factors such as convertible bond valuation gains and losses.
This earnings volatility can also influence the valuation multiples the market assigns to the stock. The price-to-book ratio tends to trade near net asset value, a zone that does not reflect a wide premium or discount relative to book value.
On dividends, the company pays a year-end cash dividend, but the dividend yield on market price is relatively low, which appears related to the company's policy of prioritizing capital allocation toward large-scale facility investments such as the new Saemangeum plants.
Whether the earnings recovery continues, and how quickly new business (semiconductor materials and battery materials) revenue contribution expands, are likely to be the key variables shaping future valuation assessment.
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 2026-08-21
Sales of specialty gases such as high-purity chlorine, hydrogen chloride, and nitrous oxide are rising with growing AI data center and HBM chip demand. A roughly 50% capacity expansion for high-purity chlorine at the Gunsan plant is underway to meet Samsung Electronics' expanding NAND and foundry processes.
Semiconductor materials are difficult to switch suppliers once adopted, which can provide a stable revenue base after entry.
Saemangeum Plant 1 has begun operations and shipped its first batch of PCl3, targeting localization demand for lithium salt raw materials previously dependent on China. Production of phosphorus oxychloride is also being prepared as a follow-on product, expected to expand the product portfolio.
Progress in securing new domestic and overseas customers could further raise the share of new materials revenue.
The CA business, spanning caustic soda and liquid chlorine, maintains a stable revenue structure based on long-term supply contracts, and annual operating cash flow reached KRW 25.23 billion in 2025. This can serve as a funding source supporting large-scale investments such as the new Saemangeum plants.
The CA industry has a highly power-dependent cost structure, and rising power tariffs beginning in the second half of 2024 have directly impacted costs.
Higher import costs for sodium chloride due to a weak currency have also weighed on cost of goods sold, which was part of the reason operating margins fell sharply in 2023-2024 versus 2022.
In Q1 2026, an approximately KRW 5.8 billion convertible bond valuation loss recorded as non-operating expense drove owner net income to a loss of KRW 2.47 billion. Though non-cash and without cash flow impact, this can continue to amplify quarterly net income volatility.
Saemangeum Plant 2 (semiconductor/display materials), originally slated to break ground in Q1 2025, has seen its land ownership transfer delayed again to August, with a construction start date still undisclosed.
As a large investment project of roughly KRW 750 billion, repeated schedule delays could push back the timing of achieving target revenue.
The debt-to-equity ratio rose sharply from 92.8% in 2022 to 171.6% in 2025, reflecting expanded borrowing tied to large-scale facility investments such as the new Saemangeum plants. If investment continues, financial burden could increase further.
Semiconductor and battery materials require lengthy, rigorous customer qualification, with quality testing alone taking over two years. Saemangeum Plant 1's PCl3 and PCl5 are still at the customer quality verification stage, and the shift to full-volume supply could be delayed relative to plan.
The pace of secondary battery industry recovery is cited as a variable affecting the timing of battery materials revenue realization. Semiconductor specialty gas demand is also tied to the AI and memory chip cycle, so a slowdown in that industry could slow new business growth relative to expectations.
Q3 2026 earnings release should be checked for the revenue contribution of new materials (semiconductor/battery) versus CA business, and net income volatility from CB valuation gains/losses.
Following the scheduled August land ownership transfer, it should be confirmed whether a specific groundbreaking schedule for Saemangeum Plant 2 is disclosed.
Watch for disclosures on the completion of customer quality certification and formal supply contracts for Saemangeum Plant 1's PCl3 and PCl5.
Check the completion timing of the roughly 50% high-purity chlorine capacity expansion at the Gunsan plant and whether Samsung Electronics-related volume is reflected in results.
PKC is a company in transition, diversifying from the stable cash generation of its traditional CA business into semiconductor specialty gases and secondary battery electrolyte materials. 2025 results moved past 2024's weakness, with revenue, operating profit, and net income all improving, and 2026 has seen core profitability gains, with quarterly operating margin rising above 7%.
However, net income volatility from convertible bond valuation, delays in Saemangeum Plant 2's groundbreaking, and ongoing power and raw material cost burdens remain variables worth monitoring.
The first PCl3 shipment from Saemangeum Plant 1 and the high-purity chlorine capacity expansion for semiconductors can be viewed as early results of the new business transition, but progress to the next stage—full-volume supply contracts and the Plant 2 groundbreaking—will likely be key variables shaping the future earnings trajectory.
On the financial structure side, the sharp rise in the debt ratio over recent years also warrants attention. Investment judgment may vary depending on how one weighs the pace of this business transition against the financial burden involved.
Report written 2026-09-05 · Data as of 2026-09-04
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