KOSPIChemicals002840

Miwon Commercial

₩135,100▲ 0.75%2026-10-02 close

Market Cap

₩604.4B

Turnover

₩100M

Volume

1,007 shares

Shares out.

4.5M

PER

11.2×

PBR

1.4×

EPS

₩11,631

Dividend Yield

1.85%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩2,400 per share · Prices as of the 2026-10-02 close

Report overview

Electronic Materials Expand as Margins Test a Rebound

Revenue has stayed range-bound for four years, but electronic materials have grown in mix and margins rebounded sharply in Q2 2026.

1
Annual operating margin fell for four straight years, from 17.6% in 2022 to 9.9% in 2025.
2
Q2 2026 operating margin rebounded to 15.6%, the highest level among recent quarters.
3
Electronic materials (display, semiconductor, and battery materials) accounted for 47% of revenue as of 2025.
4
Consolidated revenue stayed confined to a KRW 420-440 billion range between 2022 and 2025.
5
The debt ratio has stayed low at 18-22%, reflecting a stable financial structure.

Business structure

Miwon Commercial was founded in 1959 and has focused on fine chemicals for more than six decades as a KOSPI-listed company.

Built around several business lines including household chemical materials, display materials, semiconductor materials, functional materials, polymer additives, and lens monomers, it produces and supplies high-value-added specialty chemicals such as surfactants, photoresist materials, UV stabilizers, and antioxidants.

As of 2025, the electronic materials segment (display, semiconductor, and battery materials) accounted for 47% of revenue, becoming the company's largest revenue source.

In display materials, the company commercialized Korea's first domestically produced photoactive compound (PAC) and has since expanded into multifunctional acrylic binders and novolac resins.

In semiconductor materials, it supplies customized SOH, I-line, KrF and ArF polymers, and BARC polymers used in fine-pattern semiconductor processing to domestic and overseas customers.

The household chemicals segment has expanded its portfolio with amino-acid-based products in response to rising demand for low-irritant, eco-friendly surfactants.

In a 2021 comparison of cosmetic ingredient makers by revenue, the company ranked among the domestic leaders, competing with peers such as Hyundai Bioland and Daebong LS.

At the group level, affiliates including surfactant specialist Dongnam Hapsung, printed-electronics firm InkTec, tire adhesive specialist Taekwang Precision Chemical, and cosmetic ingredient/peptide firm BeadTech complement the overall business portfolio.

Earnings trend

Quarterly revenue · Operating profit

₩111.2B₩10.3B25Q2₩113.1B₩10.8B25Q3₩108.6B₩9B25Q4₩117.3B₩9.8B26Q1₩130.1B₩20.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩438.2B₩77B2022₩421.4B₩67.2B2023₩435.8B₩59.9B2024₩441.1B₩43.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩111.2B	₩10.3B	9.3%
2025Q3	₩113.1B	₩10.8B	9.5%
2025Q4	₩108.6B	₩9B	8.3%
2026Q1	₩117.3B	₩9.8B	8.4%
2026Q2	₩130.1B	₩20.3B	15.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩438.2B	₩77B	₩72.2B	17.6%	21.1%	21.6%
2023	₩421.4B	₩67.2B	₩61B	16.0%	16.1%	18.4%
2024	₩435.8B	₩59.9B	₩50.5B	13.8%	12.6%	19.5%
2025	₩441.1B	₩43.6B	₩43.5B	9.9%	10.5%	18.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue moved within a narrow KRW 420-440 billion range over four years: KRW 438.2 billion in 2022, KRW 421.4 billion in 2023, KRW 435.8 billion in 2024, and KRW 441.1 billion in 2025.

Operating profit, however, declined for four consecutive years, from KRW 77.0 billion in 2022 to KRW 67.2 billion in 2023, KRW 59.9 billion in 2024, and KRW 43.6 billion in 2025, with operating margin steadily falling from 17.6% to 16.0%, 13.8%, and 9.9% over the same period.

Net profit attributable to owners also fell from KRW 72.2 billion in 2022 to KRW 43.5 billion in 2025. The quarterly pattern, however, was uneven.

Operating profit fell from KRW 10.8 billion (9.5% margin) in Q3 2025 to KRW 9.0 billion (8.3%) in Q4 2025 and KRW 9.8 billion (8.4%) in Q1 2026, before rebounding sharply to KRW 20.3 billion (15.6% margin) on revenue of KRW 130.1 billion in Q2 2026.

This rebound coincided with a quarter-on-quarter revenue increase (from KRW 117.3 billion to KRW 130.1 billion), suggesting both volume and margin improved together.

Net profit attributable to owners diverged from operating profit in some quarters: in Q4 2025, net profit (KRW 12.8 billion) exceeded operating profit (KRW 9.0 billion), and a similar pattern occurred in Q1 2026 (operating profit KRW 9.8 billion versus net profit KRW 11.0 billion), pointing to a contribution from non-operating items.

Cash generation remained solid throughout, with operating cash flow of KRW 70.8 billion in 2022, KRW 97.6 billion in 2023, KRW 79.5 billion in 2024, and KRW 68.6 billion in 2025.

Industry analysis

In the display end-market, OLED penetration continues to expand, with market researcher OMDIA forecasting that OLED will approach 40% of the global display market by 2027.

In semiconductors, expanding AI memory investment is driving materials demand, and Samsung Electronics reported that its memory business posted record quarterly results in Q2 2026 on strong server-related demand.

In the household chemicals (surfactant) market, rising demand for low-irritant, eco-friendly products has increased interest in higher-function offerings such as amino-acid-based surfactants.

At the same time, consumer safety concerns about synthetic surfactants have spread through social media in some cases, creating pressure toward substitution with natural and bio-based surfactants.

In cosmetics and household chemical ingredients, competitors include Hyundai Bioland and Daebong LS, while in electronic materials the company competes with domestic and overseas specialty chemical and materials suppliers.

On the input side, exposure to international prices of coconut oil, dioxane, and alcohols has historically caused cost-of-sales ratios to move with raw material price cycles.

Within the semiconductor materials and equipment sector, quarterly earnings volatility tied to customer investment timing and inventory adjustments has also been observed among peers.

Outlook

While the company has not disclosed specific quantitative guidance, the simultaneous improvement in revenue and margin in Q2 2026 can be partly interpreted as a recovery in electronic materials demand.

In semiconductors, continued demand for AI-memory-related materials and equipment, including HBM, means the semiconductor materials business supplying SOH, ArF, KrF, and BARC polymers may be linked to this trend.

In displays, expanding OLED penetration is expected to sustain demand for related materials such as PAC photoresist and acrylic binders. In household chemicals, a shift toward low-irritant, eco-friendly surfactants continues, with a moderate trajectory expected in line with cosmetics and household product demand.

However, the fact that revenue has stayed range-bound without clear growth over the past four years suggests that securing new growth drivers remains a key point to watch going forward.

Raw material prices (coconut oil, dioxane, and others) and currency movements remain variables that will continue to affect margin direction.

Valuation

PER

11.2×

PBR

1.4×

ROE

12.6%

EPS

₩11,631

BPS

₩94,995

Dividend per share

₩2,400

Profitability measures that reflect the most recent four quarters capture both the margin decline seen through 2025 and the recovery that appeared in the latest quarter.

The share price trades at a level with only a modest premium to net asset value, suggesting neither a large discount nor a large premium relative to book value. Shareholder returns are centered on cash dividends, and the dividend yield is not notably high relative to the sector.

Because earnings direction has shifted from four consecutive years of decline to a recent quarterly rebound, valuation metrics going forward may depend on whether this trend continues.

Given its relatively small market capitalization as a mid-to-small-cap chemical stock, volatility related to trading volume and supply-demand factors should also be considered.

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 2026-09-04

Bull factors

Growing Electronic Materials Mix

As of 2025, the electronic materials segment (display, semiconductor, and battery materials) accounted for 47% of revenue, shifting the revenue mix away from household chemicals toward higher-value-added materials.

The company holds a range of localized products such as SOH, ArF, KrF, and BARC polymers used in fine semiconductor processes, giving it a supply base with domestic semiconductor and display customers. In Q2 2026, revenue and operating margin improved simultaneously, marking the highest margin among recent quarters.

Low Leverage and Steady Cash Generation

The debt ratio has stayed in the stable 18-22% range from 2022 to 2025. Operating cash flow remained solid at KRW 60-98 billion annually over the same period, reflecting consistent cash conversion of earnings. The low debt burden can serve as a financial buffer during periods of raw material price volatility.

Signs of Passing a Margin Trough

Annual operating margin declined for four straight years from 17.6% in 2022 to 9.9% in 2025, but jumped to 15.6% in Q2 2026. Revenue also rose quarter-on-quarter, with volume and margin improving together.

However, since this is a single-quarter result, further confirmation is needed to determine whether it marks a sustained trend.

Bear factors

Four Straight Years of Margin Decline

Operating margin fell every year, from 17.6% in 2022 to 16.0% in 2023, 13.8% in 2024, and 9.9% in 2025. The absolute size of operating profit nearly halved, from KRW 77.0 billion to KRW 43.6 billion. It remains too early to judge whether the Q2 2026 rebound is temporary or a trend reversal.

Stalled Top-Line Growth

Consolidated revenue barely moved over four years, from KRW 438.2 billion in 2022 to KRW 441.1 billion in 2025. During this period, revenue never broke out of the narrow KRW 420-440 billion range. Until new growth drivers are clearly confirmed, questions remain about the pace of top-line expansion.

Volatility from Non-Operating Items

In some quarters, net profit attributable to owners exceeded operating profit, as seen in Q4 2025 (operating profit KRW 9.0 billion versus net profit KRW 12.8 billion) and Q1 2026 (operating profit KRW 9.8 billion versus net profit KRW 11.0 billion).

This suggests non-operating factors, such as equity-method gains, have influenced results. Such volatility reduces the predictability of quarterly earnings.

Risk factors

Raw Material Price Volatility

Key raw materials for the surfactant business, such as coconut oil, dioxane, and alcohols, are linked to international commodity prices and directly affect the cost-of-sales ratio.

In the past, falling raw material prices have led to lower cost ratios and improved profitability, implying that rising prices could compress margins in the opposite direction. This represents a structural risk given the company's limited pricing power.

End-Market Cycle Risk

As semiconductor and display materials revenue has expanded, exposure to capital investment cycles in those industries has also increased. While the semiconductor industry is enjoying strong AI-memory-driven demand, materials and equipment peers have also shown significant quarterly earnings volatility.

If customer investment timing is delayed or inventory adjustments occur, demand for materials could be affected as well.

Consumer Perception and Regulatory Risk

Consumer safety concerns about synthetic surfactants have spread through social media in some instances, and such sentiment can affect demand and the regulatory environment for household chemical products.

If demand continues shifting toward eco-friendly and natural surfactants, the speed of portfolio transition could determine competitiveness. Tighter environmental regulations could also add cost pressure to production processes.

What to watch next

Mid-November 2026
Check the Q3 2026 quarterly report to see whether Q3 revenue and operating margin sustain the rebound seen in Q2.
During Q4 2026
Monitor trends in key raw material prices (coconut oil, dioxane) and the exchange rate to gauge the direction of the cost ratio.
Around March 2027
Review the FY2026 annual results and cash dividend decision disclosures to reconfirm the annual margin trend and shareholder return policy.
Q4 2026 through H1 2027
Track capital investment announcements related to HBM and OLED from major customers such as Samsung Electronics and SK hynix for demand signals in the semiconductor and display materials business.

Overall view

Miwon Commercial is a specialty chemical company built around two pillars, surfactants and electronic materials (semiconductor and display materials). In recent years, revenue has stagnated in the KRW 420-440 billion range while operating margin fell for four straight years, from 17.6% in 2022 to 9.9% in 2025.

However, Q2 2026 showed signs of recovery, with revenue of KRW 130.1 billion and operating margin of 15.6%, as volume and margin improved together. The expansion of electronic materials to 47% of revenue also means greater linkage to semiconductor and display investment cycles.

The financial structure remains stable with a debt ratio around 20%, and cash generation has been consistently maintained. However, in some quarters net profit exceeded operating profit due to non-operating volatility, which warrants caution when interpreting results.

Raw material prices, end-market investment cycles, and shifting consumer perceptions of surfactants remain variables that could continue to affect both earnings and the business environment going forward.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.