PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,000 per share · Prices as of the 2026-10-02 close
Samjung Pulp maintains a conservative balance sheet centered on tissue base paper, but its 2025 operating loss and mounting pulp cost and currency pressure in 2026 have delayed a recovery in core profitability.
2025 consolidated revenue was KRW 148.6bn with an operating loss of KRW 1.44bn, marking a shift to loss amid a third straight year of declining sales
Owners' net profit stood at a solid KRW 31.39bn in 2025, but shrank to around KRW 15.2bn over the most recent four quarters
Quarterly results swung sharply from a net loss of KRW 15.97bn in Q1 2026 to net income of KRW 13.54bn in Q2 2026
Debt ratio has stayed low at roughly 8-16%, while total equity has risen steadily from KRW 213bn in 2022 to KRW 287bn in 2025
International pulp prices (SBHK) have surged in 2026 alongside a weak won, putting the broader domestic paper industry under cost pressure
Founded in 1974 and listed on the KOSPI in 2006, Samjung Pulp is a specialized sanitary paper manufacturer whose core business is producing and selling tissue base paper, toilet paper rolls, and facial tissue.
As of the first quarter of 2026, revenue mix is estimated at roughly 56% base paper, about 40% kitchen towels and wet wipes, around 3% finished goods, and about 1% building rental income.
Base paper is an intermediate product used by finished-goods makers, giving the segment a largely B2B character supplying converters and distribution networks. In the domestic sanitary paper market, Yuhan-Kimberly and Kleannara are cited as major competitors.
The company holds Samjung Pulp Vietnam, a sanitary paper products distributor in Vietnam, as a consolidated subsidiary, giving it some distribution presence in Southeast Asia.
The company states it is pursuing eco-friendly product development, e-commerce market responsiveness, and new product launches to deliver resource-circulation value.
While tissue paper is a daily necessity, rising income levels and more upscale bathroom culture mean premium products are rapidly displacing existing offerings, which can pressure pricing for a base-paper-centric business. Capacity expansions by competitors have also been cited as a factor pushing selling prices lower.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩38.9B | ₩1B | 2.6% |
| 2025Q3 | ₩38.6B | -₩200M | −0.5% |
| 2025Q4 | ₩31.3B | -₩2.7B | −8.5% |
| 2026Q1 | ₩26.9B | -₩1.1B | −3.9% |
| 2026Q2 | ₩29.6B | -₩10,366,921 | −0.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩174.5B | ₩4.7B | -₩1B | 2.7% | −0.4% | 9.2% |
| 2023 | ₩178.3B | ₩7.4B | ₩14B | 4.1% | 6.2% | 8.3% |
| 2024 | ₩163.9B | ₩4.9B | ₩38B | 3.0% | 14.7% | 15.5% |
| 2025 | ₩148.6B | -₩1.4B | ₩31.4B | −1.0% | 10.9% | 12.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue peaked at KRW 174.5bn in 2022 and KRW 178.3bn in 2023, then declined for three straight years to KRW 163.9bn in 2024 and KRW 148.6bn in 2025.
Operating profit held at KRW 4.7bn (2.7% margin) in 2022, KRW 7.4bn (4.1%) in 2023, and KRW 4.9bn (3.0%) in 2024 before swinging to an operating loss of KRW 1.44bn in 2025.
By contrast, owners' net profit moved in the opposite direction, rising from a loss of KRW 0.96bn in 2022 to KRW 14.0bn in 2023 and KRW 38.0bn in 2024, and remaining positive at KRW 31.4bn in 2025 despite the operating loss, suggesting non-operating items had a meaningful influence on the bottom line.
On a quarterly basis, operating profit was KRW 1.0bn in Q2 2025, then turned negative at KRW -0.19bn in Q3, widened to KRW -2.67bn in Q4, and continued at KRW -1.06bn in Q1 2026 before narrowing to roughly break-even at KRW -0.01bn in Q2 2026.
Net profit swung even more dramatically, from a net loss of KRW 15.97bn in Q1 2026 to net income of KRW 13.54bn in Q2 2026, a far larger swing than the operating-profit range of roughly plus or minus KRW 1bn, underscoring the outsized role of non-operating factors.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative revenue was KRW 126.5bn, the operating loss widened to KRW 3.93bn, and owners' net profit narrowed to KRW 15.2bn versus the full-year 2025 figures.
Operating cash flow also fell sharply, from KRW 21.3bn in 2024 to KRW 5.8bn in 2025, reflecting a weaker cash-generating core business alongside the operating loss.
The domestic paper industry has faced cost pressure as the international pulp price rally that began in the second half of 2025 continued into 2026.
According to Ministry of Trade, Industry and Energy raw material price data, international bleached hardwood kraft pulp (SBHK) prices rose past USD 700 per ton in early 2026 and kept climbing, up more than 20% from a year earlier at certain points.
Contributing factors cited include restricted supply of Russian softwood pulp, weather-related disruptions to South American wood chip production, oil price and freight cost increases tied to the conflict in Iran, and a weak won trading around KRW 1,500 to the dollar.
Domestic papermakers typically operate on operating margins of around 3%, a structural vulnerability where a 10% rise in raw material costs can effectively flip the business into a loss.
Major papermakers including Hansol Paper, Moorim P&P, Moorim Paper, Hankuk Paper, and Kleannara all reported sharply weaker 2025 results, and Korea's Fair Trade Commission fined six papermakers a combined KRW 338.3bn for alleged price collusion on printing paper between 2021 and 2024 (Samjung Pulp was not named among the sanctioned firms).
Samjung Pulp, which splits its business across base paper, finished goods, and wet wipes while maintaining a low, near debt-free balance sheet, has relatively more financial cushion, but its reliance on imported pulp is structurally similar to peers, leaving it exposed to the same industry-wide cost inflation.
The company has cited ongoing eco-friendly product development, e-commerce responsiveness, and new product launches as its business direction, while maintaining a Southeast Asian distribution channel through its Vietnamese subsidiary.
However, no specific capacity expansion plans or quantified earnings guidance were identified in public disclosures, meaning the earnings trajectory will likely remain heavily dependent on external variables such as pulp prices and the exchange rate.
Industry observers have suggested that cost pressure could reach a breaking point in the second half of 2026, potentially triggering price increases for consumer paper products such as cups and shipping boxes, and it remains to be seen whether similar pass-through dynamics extend to base paper and finished-goods pricing.
Given the large non-operating swings seen between the Q1 2026 net loss and the Q2 2026 net profit rebound, future quarterly results could fluctuate significantly based on the direction of non-operating items such as investment valuation gains or losses, independent of any improvement in the core operating business.
The company's low debt ratio and steadily growing equity base could serve as a buffer against external shocks.
Since base paper pricing faces oversupply pressure from competitor capacity additions, the speed at which cost increases can be passed through to selling prices is likely to be a key variable for any operating-profit recovery in the second half.
For reference, this stock's five-year average trading multiples have historically been around 8 times earnings and roughly 0.3 times book value.
Recent results show operating profit remaining in loss territory while net profit has fluctuated widely due to non-operating items, a dynamic worth considering when interpreting the relationship between the share price and earnings metrics.
In terms of price-to-book, the shares appear to trade at a discount to net asset value, a pattern that contrasts with the steadily growing equity base. On the dividend front, the recent dividend yield appears to sit below the sector average.
Over a multi-year view, the company's net profit swung from loss to profit and has remained positive since, while operating profit turned negative in 2025, indicating a delayed recovery in core profitability.
This divergence between operating and net results, combined with quarter-to-quarter volatility, is a factor that can complicate simple valuation comparisons.
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 2026-08-23
The debt ratio has stayed consistently low, from 9.2% in 2022 to 12.3% in 2025, while total equity has grown every year, from KRW 213bn in 2022 to KRW 287bn in 2025. Even in 2025, when an operating loss occurred, equity still increased, illustrating a buffer against external shocks.
This suggests that short-term earnings weakness tied to raw material and currency swings is unlikely to threaten overall financial stability.
The company's core business of manufacturing and selling tissue base paper, toilet paper rolls, and facial tissue positions it as one of the established players in the domestic sanitary paper market alongside competitors such as Yuhan-Kimberly and Kleannara.
Its Vietnamese subsidiary, Samjung Pulp Vietnam, provides a distribution channel that could serve as an alternative outlet if domestic demand slows. Expansion into finished goods and wet wipes has also somewhat diversified the company away from sole reliance on base paper.
Despite the 2025 operating loss, owners' net profit remained solid at KRW 31.4bn, and the company has posted positive net income for three straight years from 2023 through 2025.
This indicates non-operating factors have played a significant role in cushioning results, illustrated by Q2 2026 when operating profit was roughly break-even but net income rebounded to KRW 13.5bn.
That said, the sustainability of this non-operating contribution may hinge on the mark-to-market value of investment assets.
Revenue peaked at KRW 178.3bn in 2023 and has fallen for two straight years to KRW 163.9bn in 2024 and KRW 148.6bn in 2025, with the trailing four quarters (Q3 2025-Q2 2026) posting cumulative revenue of just KRW 126.5bn, below the full-year 2025 level.
Operating profit swung from KRW 4.9bn in 2024 to a loss of KRW 1.4bn in 2025, and the trailing four-quarter operating loss has widened further to KRW 3.9bn. Neither revenue nor operating profit shows a clear improvement signal.
In 2026, international bleached hardwood kraft pulp (SBHK) prices have kept climbing, the won-dollar rate has repeatedly breached KRW 1,500, and freight and oil costs have also risen amid the conflict in Iran, creating a triple cost burden across the paper industry.
Industry commentary notes that with typical operating margins around 3%, a 10% rise in raw material costs can push papermakers into loss territory. Samjung Pulp, which also relies on imported pulp, is not insulated from this dynamic.
The sharp swing from a net loss of KRW 15.97bn in Q1 2026 to net income of KRW 13.54bn in Q2 2026 far exceeds the range of operating-profit movement (roughly plus or minus KRW 1bn), suggesting net income is being driven far more by non-operating items than by core business performance.
This structure makes it difficult to judge fundamental improvement from any single quarter's net result. The trailing four-quarter owners' net profit of KRW 15.2bn, well below the full-year 2025 figure of KRW 31.4bn, further underscores this volatility.
Because the company relies on imported pulp, a simultaneous rise in international SBHK pulp prices and won depreciation doubles the cost burden. Both factors have worsened together through 2026, and any delay in passing costs through to selling prices could prolong margin pressure. Rising freight costs add a further cost layer.
Increased supply from competitor capacity additions and inflows of low-priced imported products have been cited as factors pressuring selling prices lower. As the market shifts toward premium products, a base-paper-centric business structure may be relatively more exposed to price competition. Continued softness in domestic consumption could add further pressure on volumes.
Net income has repeatedly been driven more by non-operating items than by operating results, meaning future quarterly earnings could swing significantly depending on the direction of investment valuation gains or losses. This adds uncertainty to earnings estimation and valuation interpretation.
The specific nature and scale of these non-operating items warrant continued monitoring through regular disclosures.
Check the Q3 2026 preliminary earnings disclosure to see whether operating results improved from the near break-even level in Q2 and whether cost increases have been passed through to selling prices.
Track the Ministry of Trade, Industry and Energy's monthly raw material price data (international SBHK pulp price) to see whether the cost inflation trend continues or eases in the second half.
Monitor whether the won-dollar exchange rate stabilizes around the KRW 1,500 level or weakens further, as this directly affects imported pulp costs and earnings.
Watch for follow-up disclosures or news on whether the Fair Trade Commission's investigation and sanctions over printing paper price collusion in the paper industry could extend to additional companies.
Samjung Pulp has a stable financial base marked by a low debt ratio and steadily growing equity, but revenue has declined for two consecutive years since 2023, operating profit turned negative in 2025, and the operating loss has actually widened over the trailing four quarters.
Owners' net profit, by contrast, has moved independently of operating results and stayed positive for three straight years from 2023 to 2025, though the large net loss in Q1 2026 followed by a sharp rebound in Q2 illustrates how heavily non-operating items drive quarter-to-quarter volatility.
On the industry side, rising international pulp prices, a weaker won, and higher freight costs have combined in 2026 to squeeze the broader domestic paper industry, and the company is not exempt from these pressures.
Its base-paper-centric business is also exposed to pricing pressure from competitor capacity additions and low-cost imports.
The future earnings trajectory will likely hinge on how quickly cost increases can be passed through to prices and how non-operating items evolve, both of which warrant continued monitoring through upcoming quarterly disclosures.
Report written 2026-09-05 · Data as of 2026-09-04
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