PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩700 per share · Prices as of the 2026-10-02 close
Kyungnong has posted three consecutive years of growth in owner net income, but heavy reliance on the NongHyup distribution channel and pronounced seasonal earnings swings persist side by side.
2025 revenue reached KRW 339.2 billion and operating profit KRW 28.7 billion, both up year-on-year, lifting the operating margin to 8.5%.
In Q1 2026, revenue hit KRW 153.5 billion and owner net income KRW 22.9 billion, reflecting a strong peak season.
The off-season quarters of 2025Q3 and 2025Q4 both recorded operating losses, underscoring wide intra-year earnings swings.
More than half of crop protection sales flow through the NongHyup channel, so changes in NongHyup's procurement system can affect margins.
The company is diversifying its portfolio into smart farm solutions, controlled-release fertilizer, and greenhouse construction businesses.
Kyungnong was established in 1957 and listed on the KOSPI in 1977 as a specialized crop protection product maker, and it belongs to the Dongoh Group. Its core business is manufacturing and selling crop protection products, and through subsidiary Jobi it also runs a fertilizer manufacturing and sales business.
The company produces 216 crop protection product items, of which sales through NongHyup account for 53.39%, while the fertilizer business covers roughly 280 items with a 9.4% market share. Its affiliates include Jobi, Global Agro, Topfresh, Dongoh Seed, and Jongoh Yukmyo (seedling nursery).
In response to growing negative perceptions of chemical crop protection products, the company is focusing on developing eco-friendly crop protection agents and high-value-added functional fertilizers.
Through the smart farm brand SIGNIT and the farming record platform Farming Note, it also offers integrated smart agriculture solutions linking environmental control, data management, and nutrient management.
Korea's crop protection market is an oligopoly led by a small number of major players including Farm Hannong, Syngenta Korea, Bayer CropScience, Dongbang Agro, Hankook Samkong, and NongHyup Chemical.
Within this structure, Kyungnong has maintained a stable sales base by relying on the NongHyup distribution network as its core channel.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩114.3B | ₩14.5B | 12.7% |
| 2025Q3 | ₩45.5B | -₩4.4B | −9.7% |
| 2025Q4 | ₩42.8B | -₩15B | −35.1% |
| 2026Q1 | ₩153.5B | ₩32.3B | 21.1% |
| 2026Q2 | ₩122B | ₩13.5B | 11.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩361.6B | ₩41B | — | 11.3% | — | 72.2% |
| 2023 | ₩347.4B | ₩25.2B | ₩15.1B | 7.3% | 6.3% | 67.1% |
| 2024 | ₩325.2B | ₩26.7B | ₩17.2B | 8.2% | 6.8% | 75.5% |
| 2025 | ₩339.2B | ₩28.7B | ₩18.6B | 8.5% | 7.1% | 68.7% |
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
Annual revenue declined from KRW 361.6 billion in 2022 to KRW 347.4 billion in 2023 and KRW 325.2 billion in 2024, before recovering to KRW 339.2 billion in 2025. The operating margin fell sharply from 11.3% in 2022 to 7.3% in 2023, then gradually recovered to 8.2% in 2024 and 8.5% in 2025.
Owner net income rose for three straight years, from KRW 15.1 billion in 2023 to KRW 17.2 billion in 2024 and KRW 18.6 billion in 2025. According to FnGuide, 2025 consolidated revenue rose 4.3% year-on-year, operating profit rose 7.4%, and net income rose 8.4%.
However, operating cash flow turned negative at KRW -7.7 billion in 2025, a sharp reversal from the positive KRW 27.0 billion recorded in 2024, warranting attention to working-capital items such as inventory and receivables.
Quarterly results show clear seasonality: in Q2 2025 revenue reached KRW 114.3 billion with operating profit of KRW 14.5 billion during the peak season, while both Q3 (KRW -4.4 billion) and Q4 (KRW -15.0 billion) of 2025 recorded operating losses.
In Q1 2026, the company posted a notably strong quarter with revenue of KRW 153.5 billion, operating profit of KRW 32.3 billion, and owner net income of KRW 22.9 billion, while Q2 2026 revenue rose to KRW 122.0 billion versus KRW 114.3 billion a year earlier, even as operating profit (KRW 13.5 billion) and owner net income (KRW 8.4 billion) slipped slightly from the prior-year quarter's KRW 14.5 billion and KRW 9.2 billion.
Owner net income over the most recent four quarters (Q3 2025 through Q2 2026) totaled approximately KRW 15.0 billion.
The crop protection industry is inherently seasonal, with demand concentrated in the March-to-June farming season, and demand forecasting is difficult due to the unpredictable nature of weather and pest outbreaks.
Korea's domestic market is an oligopoly led by a small number of players including Farm Hannong, Syngenta Korea, Bayer CropScience, Kyungnong, Dongbang Agro, Hankook Samkong, and NongHyup Chemical.
NongHyup Economic Holdings has recently been pushing to introduce a 'competitive bidding system' to strengthen its purchasing power for system-distributed agrochemicals, aiming to lower prices and increase transparency.
NongHyup's system agrochemical business results for 2025 came in at KRW 936.3 billion, falling short of its original target of KRW 1.05 trillion, and for 2026 it is again targeting KRW 1 trillion through supply from 1,704 items across 14 manufacturers including Farm Hannong, NongHyup Chemical, Kyungnong, Dongbang Agro, Hankook Samkong, and Syngenta.
This year, five minor (generic) manufacturers that had not previously participated in system purchasing are reportedly signing system supply contracts with NongHyup for the first time, which is expected to alter the competitive landscape.
Meanwhile, rising demand for eco-friendly agricultural produce is giving rise to a new eco-friendly crop protection product market, and declining and aging rural populations are also expanding demand for functional fertilizers such as controlled-release products.
Kyungnong participated in the 2026 Smart Farm Korea exhibition, showcasing an integrated smart agriculture solution centered on the SIGNIT smart farm brand's integrated environmental control unit, combined with the Farming Note record-keeping platform and Jobi's controlled-release fertilizers.
Subsidiary Jobi newly launched the biodegradable controlled-release fertilizer brand GREENUS and announced plans to expand supply both domestically and overseas.
The company launched a new greenhouse construction business division earlier this year, offering one-stop service from design to construction, while its existing soil disinfectant product Paladin, which reduces soil salt accumulation and pest density, has also drawn market attention.
According to Rural Development Administration data and industry surveys, Kyungnong is planned to launch seven new crop protection product items in 2026.
First-half 2026 results showed revenue up 9.7% year-on-year, while operating profit and net income fell 4.6% and 10.3%, respectively, reflecting pressure on profitability from currency fluctuations tied to imported raw materials and intensified bidding competition through NongHyup.
If NongHyup's reform of its system agrochemical procurement continues into the second half, strengthened bargaining power on the distribution side could remain a margin variable.
The fact that owner net income has grown for three consecutive years since 2023 provides context for valuation, reflecting an ongoing earnings recovery trend. The share price has often traded below book value per share, with the historical five-year average price-to-book ratio reported at around 0.87 times.
The historical five-year average price-to-earnings ratio has been cited at around 11 times, making it useful to consider where the currently traded multiple sits relative to that band.
On the dividend side, the historical five-year average dividend yield has been reported at around 4.8%, suggesting a degree of consistency in dividend policy. That said, such figures can vary depending on the timing and calculation basis used, and should be treated as reference points only.
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
Owner net income rose steadily from KRW 15.1 billion in 2023 to KRW 17.2 billion in 2024 and KRW 18.6 billion in 2025. The operating margin also recovered from a low of 7.3% in 2023 to 8.5% in 2025. This multi-year direction of earnings improvement can be viewed as a factor supporting business stability.
The company is broadening its portfolio through the SIGNIT smart farm brand, the Farming Note record-keeping platform, Jobi's biodegradable controlled-release fertilizer GREENUS, and a new greenhouse construction division.
This represents an expansion beyond traditional agrochemical and fertilizer sales into higher-value-added agricultural solution areas. If diversification meaningfully contributes to revenue, it could also help mitigate the business's seasonal swings.
With 53.39% of crop protection sales flowing through NongHyup, the company has a stable sales foundation.
NongHyup's own system agrochemical business is itself a market with room to grow, targeting an annual scale of KRW 1 trillion, and Kyungnong has maintained a position as a major distributor alongside Farm Hannong and Dongbang Agro. This channel standing can serve as a competitive advantage relative to new entrants.
Both Q3 and Q4 of 2025 recorded operating losses, with profit concentrated in the peak Q1-Q2 season. Full-year 2025 operating cash flow also turned negative at KRW -7.7 billion, reversing the positive flow of the prior year. This seasonality and cash flow variability warrant caution when interpreting quarterly results.
NongHyup Economic Holdings is pushing to introduce a competitive bidding system aimed at strengthening its purchasing power, a policy directed at lowering prices. In the first half of 2026, intensified bidding competition through NongHyup was already cited as a factor limiting profitability. Expanded system entry by minor manufacturers could also heighten competitive intensity.
Agrochemical active ingredients, which account for most of the cost of crop protection products, are largely imported from multinational suppliers. Currency fluctuations were cited as a factor behind the profitability slowdown in the first half of 2026.
Given this raw material sourcing structure, the company faces persistent exposure to exchange rate and commodity price movements.
Demand for crop protection products is heavily influenced by unpredictable factors such as climate variation and pest outbreaks, making forecasting difficult.
Given that sales are concentrated in the March-to-June farming season, abnormal weather or changes in planting plans can have an outsized effect on annual results. This is a structural risk inherent to the industry as a whole.
With more than half of crop protection sales concentrated in the NongHyup channel, changes in NongHyup's purchasing policy can directly affect results.
NongHyup Economic Holdings' push to introduce a competitive bidding system and reset its system agrochemical sales targets are variables that could shift the bargaining power dynamic. High dependence on a single channel carries the risk of weakened negotiating leverage.
The company relies mostly on imported active ingredients for its agrochemicals, so currency fluctuations directly affect costs. In the first half of 2026, exchange rate movements were already cited as a factor limiting profitability. Simultaneous swings in raw material prices and exchange rates can increase the difficulty of margin management.
The Q3 report filing deadline (November 16) will show the 2026 third-quarter off-season results and the size of any operating loss.
The progress of NongHyup Economic Holdings' reform of its system agrochemical procurement (introduction of competitive bidding) and its impact on pricing and margins should be monitored.
This is the period to check for Jobi's overseas supply contracts for the biodegradable fertilizer GREENUS and the initial revenue contribution from the greenhouse construction division.
The 2026 annual business report and dividend disclosure will confirm finalized full-year results and whether the dividend policy continues.
Kyungnong is a leading domestic agricultural materials company centered on crop protection products and fertilizers, and has shown a recovery trend with owner net income rising for three consecutive years since 2023.
However, its earnings structure is seasonal, concentrated in the March-to-June farming season, with repeated operating losses in the third and fourth quarters, and in 2025 operating cash flow turned negative even as net income rose.
With more than half of sales dependent on the NongHyup channel, NongHyup Economic Holdings' push to reform its system agrochemical procurement, including the introduction of competitive bidding, remains a key variable that could affect pricing and margins going forward.
Diversification into smart farm solutions, controlled-release fertilizer, and greenhouse construction is underway, but its revenue contribution has not yet been clearly confirmed. Reliance on imported raw materials and currency exposure are also factors that warrant ongoing observation.
Investors will want to watch upcoming quarterly results, changes in NongHyup's procurement policy, and the revenue contribution of new businesses going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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