KOSPIChemicals005420

Cosmochemicalco

₩11,210▲ 6.36%2026-10-02 close

Market Cap

₩429.8B

Turnover

₩1.7B

Volume

160K

Shares out.

38.4M

PER

—

PBR

1.7×

EPS

-₩506

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

TiO2 Turnaround Amid Battery Materials Expansion

Cosmo Chemical is a chemicals-and-materials company built on Korea's sole titanium dioxide production base, now adding battery materials such as cobalt sulfate and waste battery recycling, and it returned to operating profit for two consecutive quarters in 2026 after a stretch of declining revenue and operating losses through 2025.

1
Consolidated operating profit turned positive for two straight quarters in 2026, a shift from the loss pattern seen through 2024 and 2025.
2
The core titanium dioxide business has reportedly been recovering profitability through production normalization from facility improvements and expanded sales of specialty-grade products.
3
The cobalt sulfate and nickel sulfate battery materials segment has been broadening its sales base through a supply contract with Ecopro EM and an MOU with an Indonesian precursor producer.
4
On a full-year 2025 basis, revenue declined year over year and both operating and net losses persisted, standing in contrast to the recent quarterly improvement trend.
5
Non-controlling interests (including the minority stake in Cosmo Advanced Materials) are comparable to or larger than owners' equity on the consolidated balance sheet, creating a gap between profit attributable to owners and total consolidated profit.

Business structure

Founded in 1968, Cosmo Chemical is Korea's sole domestic producer of titanium dioxide (TiO2) and has expanded into battery materials such as cobalt sulfate and nickel sulfate, waste battery recycling, and catalysts.

Its operations are organized into four segments: cobalt sulfate, titanium dioxide, new materials (battery materials and recycling), and catalysts.

Titanium dioxide, sold under the COTIOX KA-100 and KA-300 brands, is supplied to a wide range of industries including rubber, paper, paint, brick, electronic components, multilayer ceramic capacitors, and catalysts, and the company has recently been upgrading its product mix toward specialty-grade, high-purity products for food, cosmetics, and MLCC applications.

In battery materials, building on technology that first commercialized cobalt sulfate domestically, the company produces liquid and solid cobalt sulfate, nickel sulfate, and electrolytic copper through both ore smelting and recovery of valuable metals (lithium, nickel, cobalt) from spent batteries, supplying major domestic cathode material makers such as L&F and Ecopro EM.

In June 2026 the company disclosed a cobalt sulfate supply contract with Ecopro EM for secondary battery cathode raw materials, reportedly valued at roughly 2% of 2025 consolidated revenue.

In February of the same year, it signed an MOU with an Indonesia-based precursor producer described as the world's largest, to discuss supplying roughly 2,000 tons per year of nickel and cobalt sulfate from 2026 through 2030.

As a consolidated subsidiary, Cosmo Chemical also controls cathode active material maker Cosmo Advanced Materials, forming a group-level vertically integrated chain from raw materials (Cosmo Chemical) to precursors and cathode materials (Cosmo Advanced Materials).

The largest shareholder is holding company Cosmo & Company, with a stake of roughly 27%, which is reportedly wholly owned by Chairman Huh Kyung-soo.

Earnings trend

Quarterly revenue · Operating profit

₩177.1B-₩4.7B25Q2₩152B-₩4.9B25Q3₩173.5B-₩7.3B25Q4₩183.5B₩6B26Q1₩206.1B₩7.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩718.2B₩41.4B2022₩799B₩3B2023₩749.3B-₩2B2024₩664.2B-₩16B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩177.1B	-₩4.7B	−2.7%
2025Q3	₩152B	-₩4.9B	−3.2%
2025Q4	₩173.5B	-₩7.3B	−4.2%
2026Q1	₩183.5B	₩6B	3.3%
2026Q2	₩206.1B	₩7.6B	3.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩718.2B	₩41.4B	₩11.2B	5.8%	5.3%	102.6%
2023	₩799B	₩3B	-₩26.8B	0.4%	−9.1%	69.3%
2024	₩749.3B	-₩2B	-₩64.7B	−0.3%	−28.2%	103.9%
2025	₩664.2B	-₩16B	-₩30.3B	−2.4%	−13.8%	100.0%

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

On a consolidated basis, revenue rose from 664.2 billion won in 2022 to 799.0 billion won in 2023, then declined for two straight years to 749.3 billion won in 2024 and 664.2 billion won in 2025.

Operating profit was positive at 41.4 billion won in 2022 and 3.0 billion won in 2023, but turned negative for two consecutive years at -2.0 billion won in 2024 and -16.0 billion won in 2025, while net income attributable to owners swung from a 11.2 billion won profit in 2022 to losses of -26.8 billion won in 2023, -64.7 billion won in 2024, and -30.3 billion won in 2025.

By quarter, revenue was 177.1 billion won in Q2 2025 with an operating loss of 4.7 billion won, 152.0 billion won in Q3 2025 with a 4.9 billion won loss, and 173.5 billion won in Q4 2025 with a 7.3 billion won loss, showing a widening loss pattern through late 2025.

The trend reversed in Q1 2026, with revenue of 183.5 billion won and operating profit of 6.0 billion won, followed by a second consecutive profitable quarter in Q2 2026 with revenue of 206.1 billion won and operating profit of 7.6 billion won.

Net income attributable to owners also returned to positive territory, at 2.6 billion won in Q1 2026 and 0.7 billion won in Q2 2026.

Note that the standalone (non-consolidated) preliminary figures the company disclosed for Q2 2026 (revenue of 67.9 billion won, operating profit of 2.9 billion won) differ in scale from the consolidated figures above, reflecting the fact that consolidated results incorporate subsidiary Cosmo Advanced Materials.

Media reports attribute the improvement to simultaneous production normalization and expanded specialty-grade product sales in the titanium dioxide business, alongside higher sales volumes in the battery materials segment.

The sequential decline in Q2 2026 operating profit from Q1 has been explained as a reduction in a temporary lagging effect, whereby lower-cost inventory purchased before a sharp rise in nickel and cobalt prices had boosted Q1 margins.

Industry analysis

Titanium dioxide serves a broad range of end markets including paints, plastics, paper, and cosmetics, giving it a relatively stable demand base, but expanding exports of low-priced Chinese products have made price competition in the commodity-grade segment a persistent variable.

In response, Cosmo Chemical has reportedly been pursuing a strategy of increasing the share of specialty and high-purity grades to differentiate from commodity-grade competition.

The battery materials segment operates within a secondary battery industry that, in recent years, has passed through a so-called 'chasm' phase of slowing electric vehicle demand growth, during which cathode and precursor makers saw reduced utilization and orders.

However, industry observers note that if the EV market re-enters a growth phase, companies with established production capacity and raw material supply networks could be better positioned, and the Cosmo Group has continued capacity expansion and vertical integration investments in anticipation of such a scenario.

Cosmo Chemical is described as effectively the only domestic company producing cobalt sulfate and nickel sulfate through both ore smelting and waste battery recycling, a position seen as differentiated within a domestic battery materials supply chain that otherwise relies heavily on China.

In terms of competitive dynamics, because raw material prices for cobalt and nickel are tied to international markets, price volatility has a direct impact on earnings, making diversification of raw material sourcing and expansion of the recycled-material share key competitive variables.

Outlook

The company has reportedly indicated it will continue pursuing earnings improvement in the second half of 2026 around two pillars: profitability recovery in titanium dioxide and expanded battery materials sales.

Specifically, it has been reported that Cosmo Chemical aims to raise the production share of specialty-grade titanium dioxide from roughly 45% in 2025 to 60-70% in 2026, while increasing annual sales volume by about 50% year over year.

The company has also been reported to be pushing through titanium dioxide price increases starting in the third quarter in response to rising sulfuric acid raw material costs, a factor that could affect margins in upcoming quarters.

In battery materials, the company is working to expand its sales base based on the 2026 supply contract with Ecopro EM and ongoing discussions with an Indonesian precursor producer over nickel and cobalt sulfate supply of roughly 2,000 tons per year from 2026 through 2030.

On the capacity side, the company has disclosed plans to expand nickel production capacity by about 2,000 tons by the end of 2026, along with a separate roughly 70 billion won expansion of waste battery recycling capacity targeted for completion by the end of 2027.

However, the precise timing of these expansions and the final commercial terms of the Indonesian MOU remain items that still require confirmation.

Valuation

PER

—

PBR

1.7×

ROE

-8.6%

EPS

-₩506

BPS

₩6,101

Dividend per share

₩0

The current share price trades at a certain premium to net asset value on the books, which could be read as partly reflecting the recent streak of quarterly operating profit the company has achieved since early 2026.

However, because net losses persisted on a full-year basis through 2025, conventional price-to-earnings style measures cannot be meaningfully calculated in their standard form.

On the dividend front, the company has not paid a cash dividend through its most recent fiscal year, making dividend-yield-based valuation assessments inapplicable.

Looking at several years of results, operating profit has swung between gains and losses, and the consecutive profitable quarters in the first half of 2026 can be seen as a signal that the company has entered a phase of earnings recovery within that volatile pattern.

Whether this trend translates into stabilized annual profitability going forward will likely depend on how much of the titanium dioxide price increase is passed through and on the trajectory of battery materials raw material costs.

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

Titanium Dioxide Business Turns Profitable

Helped by production normalization following facility improvements and expanded sales of specialty high-purity grades, the titanium dioxide segment has reportedly turned from loss to profit.

The company has set targets to substantially raise the share of specialty-grade output and expand annual sales volume, pursuing a strategy to move away from commodity-grade price competition. In the second half, price increases to pass through higher raw material costs are also being pursued to help defend margins.

Battery Materials Vertical Integration and Supply Network Expansion

Building on technology that first commercialized cobalt sulfate domestically, the company has an effectively unique domestic business structure combining ore smelting with waste battery recycling.

It has been broadening its customer base through a supply contract with Ecopro EM and supply discussions with an Indonesian precursor producer over nickel and cobalt sulfate, while the raw material-to-precursor-to-cathode material vertical integration chain extending to subsidiary Cosmo Advanced Materials is cited as a group-level competitive factor.

Consecutive Quarterly Profit Turnaround in 2026

In contrast to four consecutive quarters of operating losses through 2025, consolidated operating profit turned positive for two straight quarters in Q1 and Q2 2026.

Revenue also continued rising sequentially, reaching 183.5 billion won in Q1 2026 and 206.1 billion won in Q2 2026, confirming simultaneous improvement across both the titanium dioxide and battery materials businesses.

Bear factors

Multi-Year Annual Losses

Consolidated operating profit was negative for two straight years in 2024 and 2025, and net income attributable to owners posted losses for three consecutive years from 2023 through 2025.

Revenue in 2025 also declined to 664.2 billion won from 749.3 billion won the prior year, meaning that despite recent quarterly improvement, annual-level weakness has accumulated and warrants attention.

Cost Structure Exposed to Raw Material Price Volatility

Sulfuric acid prices, a key titanium dioxide raw material, have risen amid international conditions, increasing cost pressure, while the battery materials segment's results are also tied to international nickel and cobalt prices.

The sequential decline in Q2 2026 operating profit from Q1 has been attributed to a fading temporary cost-to-price lagging effect, suggesting quarter-to-quarter volatility driven by raw material price movements could continue.

Downstream EV Demand Slowdown Risk

A prolonged 'chasm' phase of slowing EV demand growth has, at times, reduced cathode and precursor orders, which is a factor that could affect the battery materials segment's sales volume and utilization rate.

Because subsidiary Cosmo Advanced Materials' results flow into the consolidated financial statements, a slower-than-expected recovery in downstream demand could also weigh on consolidated results.

Risk factors

Raw Material and Currency Volatility

Prices of key raw materials such as sulfuric acid, nickel, and cobalt can swing significantly with international markets and geopolitical factors, which can translate into quarter-to-quarter margin volatility due to the time lag in passing costs through to prices.

Given the business's reliance on imported raw materials, currency fluctuations are also a variable affecting costs.

Downstream Demand Fluctuation

If the secondary battery industry's chasm phase is prolonged or deepens again, it could negatively affect sales volume and utilization in the battery materials segment. Titanium dioxide is also exposed to the possibility of intensified commodity-grade price competition from expanding low-priced Chinese exports.

Consolidation Structure and Capital-Raising Risk

The large share of non-controlling interests on the consolidated balance sheet means that changes in subsidiary Cosmo Advanced Materials' results and capital raises (such as convertible bonds or rights offerings) can affect the consolidated capital structure and profit allocation.

As group-level expansion investment continues, the possibility of further capital raising leading to dilution or changes in financial structure also warrants monitoring.

What to watch next

Around mid-November 2026
Check the Q3 2026 earnings disclosure — the key points to confirm are whether the titanium dioxide price increase pursued since Q3 is actually reflected in margins, and whether the profitable streak extends to a third consecutive quarter.
Q4 2026 through year-end
Check whether annual specialty-grade titanium dioxide sales volume reached the targeted roughly 50% year-over-year increase, and whether the specialty-grade production share rose to the targeted 60-70% level.
End of December 2026
This is the point to confirm completion and startup of the disclosed nickel production capacity expansion of roughly 2,000 tons.
Q4 2026 through H1 2027
Follow-up disclosures should be checked to see whether the MOU with the Indonesian precursor producer for nickel and cobalt sulfate supply is finalized into a concrete commercial contract covering volume, price, and duration.

Overall view

Cosmo Chemical combines Korea's sole domestic titanium dioxide production base with battery materials businesses such as cobalt sulfate and waste battery recycling, and it posted consolidated operating profit for two consecutive quarters in Q1 and Q2 2026, moving away from the loss pattern seen through 2024 and 2025.

However, given that revenue declines and operating and net losses persisted on a full-year basis for roughly three years through 2025, it remains to be confirmed whether the recent quarterly improvement will translate into stable annual profitability.

The titanium dioxide business is pursuing profitability recovery through an expanded specialty-grade product mix and price increases, while the battery materials business is broadening its sales base through the Ecopro EM supply contract and discussions with an Indonesian precursor producer.

At the same time, variables to continue monitoring include volatility in raw material prices for sulfuric acid, nickel, and cobalt, the demand cycle in the downstream secondary battery industry, and the effect of subsidiary Cosmo Advanced Materials' results on the consolidated financial statements.

Investors will want to track upcoming quarterly earnings releases and the concretization of capacity expansions and supply contracts to assess whether the recent turnaround to profitability represents a sustainable trend.

Sources

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

Show 18 more articles and sources

Report written 2026-10-01 · Data as of 2026-09-30

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.