PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Chinyang Poly Urethane saw earnings sharply weaken in 2025 amid a downturn in downstream demand, raised capital through a large rights offering, and posted a sharp operating profit rebound in the second quarter of 2026.
Full-year 2025 revenue fell 13.7% to KRW 46.6 billion and operating profit dropped 54.0% to KRW 1.83 billion amid downstream demand weakness
Q1 2026 operating profit slid to KRW 290 million before rebounding sharply to KRW 1.77 billion in Q2 2026
The company completed a 6.7 million-share rights offering, lifting total shares to about 16.7 million, with proceeds earmarked for new plant and foam equipment investment
The debt ratio jumped to 139.3% in 2025 from 75.4% a year earlier, increasing leverage burden
As a single-segment polyurethane foam producer, earnings are highly sensitive to cycles in automotive, construction, and furniture demand
Chinyang Poly (Chinyang Polyurethane) was founded in 1975 and listed on the KOSPI in 1989 as a specialized manufacturer of polyurethane foam (SLAB FOAM).
Its core product is flexible urethane slab foam, supplied as an intermediate material to automotive interiors, furniture, bedding, electronics, and apparel, used for cushioning, sound absorption, and insulation.
The company focuses on producing high-quality, high-value-added specialty foam and strengthening technological competitiveness through new product development and expanding applications.
The domestic polyurethane foam market has high entry barriers and features an oligopolistic structure with six competing domestic firms, in which the company maintains its market position. Revenue is generated entirely from the single polyurethane foam business segment, with no diversification into other segments.
Key raw materials PPG and TDI are procured through affiliate KPX Chemical, forming a vertically integrated supply relationship within the group.
The largest shareholder is Chinyang Holdings, the intermediate holding company of the KPX Group, holding roughly a 50.5% stake, and the company operates alongside group affiliates such as Chinyang Chemical (PVC artificial leather) and Chinyang Automotive (auto parts) as part of the KPX Group's chemicals and materials arm. Total revenue is understood to be predominantly domestic, with limited export exposure.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩11.2B | ₩500M | 4.0% |
| 2025Q3 | ₩11.8B | ₩600M | 5.2% |
| 2025Q4 | ₩11.9B | ₩400M | 3.7% |
| 2026Q1 | ₩12.4B | ₩300M | 2.3% |
| 2026Q2 | ₩14.9B | ₩1.8B | 11.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩52.7B | ₩3.3B | ₩3.5B | 6.2% | 11.4% | 50.1% |
| 2023 | ₩54.5B | ₩4B | ₩3.7B | 7.3% | 11.4% | 60.6% |
| 2024 | ₩54B | ₩4B | ₩3.2B | 7.3% | 9.7% | 75.4% |
| 2025 | ₩46.6B | ₩1.8B | ₩1.6B | 3.9% | 5.1% | 139.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual figures show revenue held stable in the KRW 52.7-54.0 billion range from 2022 to 2024 with operating margins holding between 6.2% and 7.3%, but 2025 revenue fell 13.7% year-on-year to KRW 46.6 billion and operating profit plunged 54.0% to KRW 1.83 billion, pushing the operating margin down to 3.9%.
Net income attributable to owners also nearly halved, from KRW 3.66 billion in 2023 and KRW 3.16 billion in 2024 to KRW 1.62 billion in 2025.
On a quarterly basis, operating profit fluctuated between KRW 452 million, 617 million, and 437 million across Q2-Q4 2025, then fell further to KRW 290 million (a 2.3% margin) on revenue of KRW 12.4 billion in Q1 2026, marking a profitability trough.
However, Q2 2026 revenue jumped to KRW 14.9 billion and operating profit surged to KRW 1.77 billion (roughly an 11.9% margin), the highest margin of the past five quarters.
The specific drivers behind this sharp margin improvement require verification against the underlying disclosure filings, and whether it reflects a one-off item (asset disposal, currency effect, cost stabilization) or a sustained trend cannot yet be confirmed.
On the cash flow side, operating cash flow declined from the KRW 4.9-5.2 billion range in 2022-2024 to KRW 3.1 billion in 2025, indicating cash generation capacity also contracted alongside earnings.
Notably, cumulative net income attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) reached about KRW 2.58 billion, recovering to a level above the full-year 2025 figure.
The global polyurethane market grew from roughly $87.5 billion in 2025 to $92.2 billion in 2026, with a projected 5.44% compound annual growth rate from 2026 through 2031.
By end-use, the construction sector accounted for about 27.9% of the market in 2025 and is expected to grow fastest at an 8.9% CAGR, while the automotive sector is adopting more polyurethane composites for lightweighting to meet CO2 emissions regulations.
However, the domestic polyurethane foam market where Chinyang Poly operates is a mature market that was directly hit by a downturn in construction, automotive, electrical, and electronics industries on a cumulative basis through the third quarter of 2025.
Six firms compete domestically in a market with high entry barriers, which also implies a structure where defending market share during downturns is relatively achievable.
Affiliate Chinyang Holdings reported Q1 2026 consolidated revenue up 4.4% and operating profit up 2.2% year-on-year with net income turning positive, attributing part of the group-wide improvement to subsidiary Chinyang Chemical's PVC artificial leather expanding into automotive interior applications on rising vegan leather demand and growing exports at Chinyang Automotive.
Group-level commentary also flagged expectations for improved polyurethane foam results on rising intermediate-material demand across industrial applications, though this reflects group-wide and other-affiliate performance and should be distinguished from Chinyang Poly's standalone figures.
In late November 2025, the company decided on a rights offering of 6.7 million common shares to raise facility funds; the initially planned issue price of KRW 2,860 was lowered to a first-round price of KRW 2,080 in January 2026, followed by existing-shareholder subscriptions on March 16-17 and a general public offering on March 19-20, with new shares listed in April.
Disclosures indicated the proceeds would be used for new plant construction costs and equipment purchases including foam machines and raw material tanks. This appears aimed at partly offsetting the borrowing burden that had built up from new plant investment while laying the groundwork for future capacity expansion.
The fact that largest shareholder Chinyang Holdings participated in the existing-shareholder subscription signals group-level support for the capital raise. The timing of the new plant's full ramp-up and the resulting changes in cost structure and utilization are likely to be key variables for future earnings.
Whether the sharp Q2 2026 profit surge stems from new-plant effects, one-off items, or a recovery in downstream demand will require further confirmation through Q3 and subsequent disclosures.
The current share price sits below the company's book value per share, meaning it trades at a discount to net asset value.
On the earnings side, after a sizable profit decline in 2025, quarterly volatility increased through the first half of 2026, with the trailing four-quarter net income sum recovering to a level above the full-year 2025 figure.
On the dividend side, the company has a track record of cash dividend payments based on the most recent fiscal year, at a level that can be assessed relative to other companies in the sector.
However, given that the 2026 rights offering substantially increased the total share count, future per-share metrics will need to be viewed alongside both the dilution effect and the pace of earnings recovery tied to the new plant ramp-up.
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 2026-09-05
Profitability, which had fallen to a 2.3% operating margin in Q1 2026, improved sharply to roughly 11.9% in Q2, the highest of the past five quarters. Trailing four-quarter net income attributable to owners also recovered to exceed the full-year 2025 figure.
If this trend is linked to new plant effects or a recovery in downstream demand, it could be read as a signal of an earnings turnaround.
The 6.7 million-share rights offering raised funds for new plant construction and equipment purchases including foam machines and raw material tanks, potentially easing some of the borrowing burden built up from plant investment.
Largest shareholder Chinyang Holdings' participation in the existing-shareholder subscription also signals group support. With the capital raise now completed, whether the balance sheet subsequently improves is a point to watch.
The global polyurethane market is projected to grow at a 5.44% CAGR from 2026 to 2031, with the construction sector expected to grow fastest at an 8.9% CAGR. The automotive sector also continues to expand adoption of lightweight composites to meet carbon emissions regulations.
This structural growth in end markets could present opportunities for application expansion even within the mature domestic market.
Revenue fell 13.7% year-on-year in 2025 and operating profit plunged 54.0%, pushing the operating margin down to 3.9%. Net income attributable to owners also fell to less than half its 2023 level, from KRW 3.66 billion to KRW 1.62 billion.
On a cumulative basis through Q3 2025, a slowdown in construction, automotive, electrical, and electronics industries was cited as the direct cause.
The debt ratio surged from 60.6% in 2023 and 75.4% in 2024 to 139.3% in 2025. Increased borrowing for new plant investment was the primary driver, and operating cash flow also declined to KRW 3.1 billion in 2025 from KRW 5.2 billion the prior year, indicating somewhat weakened financial flexibility.
While the rights offering may partly ease this, leverage pressure could persist depending on the pace of earnings recovery.
The 6.7 million-share rights offering increased total shares outstanding by roughly 67%, diluting existing shareholders.
In addition, since all revenue derives from the single polyurethane foam segment, earnings resilience may be limited during simultaneous downturns across automotive, construction, and furniture end markets. High domestic revenue dependence also constrains the ability to diversify risk through overseas demand.
Key raw materials PPG and TDI are procured through affiliates, and cost burdens can rise with fluctuations in global oil prices and petrochemical feedstock costs. If cost increases cannot be immediately passed through to product prices, margins may come under pressure. This is also a risk shared broadly across the industry.
Revenue is concentrated in cyclical downstream industries such as automotive, construction, and furniture/bedding, meaning a simultaneous slowdown in these sectors can materially hurt performance. The steep 2025 earnings decline illustrated this structural vulnerability. The domestically focused revenue base also limits the ability to offset weakness through overseas demand.
Largest shareholder Chinyang Holdings owns roughly a 50.5% stake, and raw material procurement runs through affiliate KPX Chemical, reflecting a high degree of intra-group transactions. While this can support supply stability, minority shareholders need to monitor the fairness of related-party transaction terms.
Future capital-raising decisions, such as rights offerings, may also depend on the holding company's willingness to provide support.
This is the statutory filing deadline for the Q3 report, providing the next data point to determine whether the unusual Q2 2026 profit surge was temporary or part of a sustained trend.
Watch for disclosures or IR materials on the completion and utilization rate of the new plant and foam equipment funded by the rights offering.
This is when full-year 2026 results and the associated dividend disclosure are likely to be released, allowing a check on whether dividend policy has changed given the enlarged share count following the rights offering.
Affiliate Chinyang Holdings' Q3 consolidated results release can also provide a group-level signal on demand recovery in downstream automotive and construction markets.
Chinyang Poly saw revenue and operating profit decline sharply in 2025 due to the direct impact of a downturn in downstream industries (automotive, construction, electrical/electronics), during which the debt ratio jumped substantially amid increased borrowing for new plant investment.
The company raised capital through a 6.7 million-share rights offering to fund new plant and foam equipment investment, with largest shareholder Chinyang Holdings signaling support by participating in the existing-shareholder subscription.
Following a profitability trough that persisted through Q1 2026, the operating margin improved sharply in Q2, though whether this stems from a one-off factor or a structural improvement tied to the new plant or demand recovery remains unclear.
Given the substantial increase in shares outstanding from the rights offering, future per-share metrics need to be interpreted with the dilution effect in mind.
The single-segment polyurethane foam structure and domestically dependent revenue base remain a vulnerability during simultaneous downstream slowdowns, while the structurally growing global polyurethane market outlook could support longer-term application expansion.
Upcoming quarterly results and disclosures related to the new plant's operation will likely be the key basis for gauging whether the recent rebound is a lasting trend.
Report written 2026-09-05 · Data as of 2026-09-04
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