PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩350 per share · Prices as of the 2026-10-02 close
Youngbo Chemical, the domestic leader in cross-linked foamed polyolefin foam, saw net income adjust downward in 2025 after a sharp 2024 surge, highlighting earnings volatility across its automotive and industrial materials segments.
The company is the domestic leader in cross-linked foamed polyolefin foam, with automotive interior materials forming the core of revenue.
2025 revenue reached KRW 120.1 billion and operating profit KRW 19.3 billion, similar to the prior year, but owners' net income fell 25.4%.
In 2026, quarterly operating margin moved from 11.0% in Q1 back up to 15.9% in Q2.
The company continues to pursue overseas sales expansion through its China-based subsidiaries.
The company has maintained a payout ratio in the 40% range, continuing a stable shareholder-return policy.
Founded in 1979 and listed on the KOSPI market in 1997, Youngbo Chemical is a leading domestic manufacturer of cross-linked foamed polyolefin foam and operates subsidiaries in China.
Its core business centers on automotive interior materials such as headliners and door cushioning, alongside industrial materials including IT device cushioning and packaging products. The bulk of revenue comes from automotive-grade polyolefin foam, followed by general-purpose material sales.
By revenue type, manufactured products account for about 94.55% versus 5.45% from merchandise goods, reflecting an overwhelmingly in-house production base.
Its Chinese subsidiaries, including Yingbo Gaoxin New Materials and Dishui Yingbo Gaoxin New Materials, support a strategy of expanding sales through aggressive local sales activity alongside quality improvements in automotive materials.
The customer base is diversified across domestic and overseas automakers and parts suppliers, IT and electronics manufacturers, and packaging demand companies.
The company holds a leading position in the domestic cross-linked foamed polyolefin foam market, though it continues to face price competition from Chinese local producers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩28.6B | ₩4.7B | 16.5% |
| 2025Q3 | ₩31.2B | ₩4.8B | 15.5% |
| 2025Q4 | ₩34B | ₩6.3B | 18.6% |
| 2026Q1 | ₩28.3B | ₩3.1B | 11.0% |
| 2026Q2 | ₩31.8B | ₩5.1B | 15.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩83B | ₩5B | ₩6.7B | 6.0% | 4.2% | 13.9% |
| 2023 | ₩90.3B | ₩7B | ₩6B | 7.7% | 3.6% | 9.3% |
| 2024 | ₩117.6B | ₩19.4B | ₩22.6B | 16.5% | 12.3% | 10.8% |
| 2025 | ₩120.1B | ₩19.3B | ₩16.8B | 16.1% | 8.8% | 10.2% |
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
2025 consolidated revenue reached KRW 120.1 billion, up 2.2% from KRW 117.6 billion in 2024, a sharp deceleration from 2024's 30.2% growth rate. Operating profit stayed nearly flat at KRW 19.3 billion versus KRW 19.4 billion the prior year, yielding an operating margin of 16.1%.
Owners' net income, however, fell 25.4% to KRW 16.8 billion from KRW 22.6 billion, creating a clear divergence between operating profit and net income.
This marks a shift from 2024, when net income (KRW 22.6 billion) exceeded operating profit (KRW 19.4 billion), to 2025, when net income (KRW 16.8 billion) fell short of operating profit (KRW 19.3 billion).
On a quarterly basis, revenue rose from KRW 31.2 billion with KRW 4.8 billion operating profit in Q3 2025 to KRW 34.0 billion revenue and KRW 6.3 billion operating profit (18.6% margin) in Q4 2025, reflecting seasonal strength.
In Q1 2026, however, revenue was KRW 28.3 billion with operating profit of KRW 3.1 billion, pushing the operating margin down to 11.0%; analysis attributes this to declining sales of high-value-added products such as ultra-thin IT-use foam, which offset growth in the automotive segment and pressured gross and operating margins year on year.
By Q2 2026, revenue recovered to KRW 31.8 billion with operating profit of KRW 5.1 billion and net income of KRW 4.5 billion, restoring the operating margin to 15.9%.
Summed owners' net income across the most recent four quarters (Q3 2025-Q2 2026) reached about KRW 18.3 billion, while 2025 operating cash flow of KRW 15.4 billion stayed close to net income of KRW 16.8 billion, indicating relatively solid earnings quality.
The cross-linked foamed polyolefin foam industry that Youngbo Chemical operates in serves diverse end markets—automotive interiors, construction insulation, and IT/electronics cushioning—which spreads out dependence on any single sector.
In the automotive segment, finished vehicle production volumes and the trend toward premium interior materials drive demand, and the company has stated it expects demand expansion from an automotive market recovery supported by oil price stability and interior premiumization.
High-value-added products such as ultra-thin IT-use foam are closely tied to the electronics cycle, so declines in related sales, as seen in Q1 2026, immediately affect overall margins.
Petrochemical feedstocks such as polyolefin are linked to global crude oil and naphtha prices, making them a primary source of cost volatility.
In the domestic market, the company maintains a leading position in cross-linked foamed polyolefin foam and continues a strategy of expanding overseas sales networks through its Chinese subsidiaries.
However, low-price competition from local Chinese producers and tightening environmental regulations are cited as factors raising cost burdens across the industry.
The market for construction noise-cushioning materials is building a medium-to-long-term demand base amid domestic housing policy and stricter noise regulation trends.
The company has stated it expects demand expansion from oil price stability and premiumization trends in automotive interiors, and plans to pursue profitability improvement through growth in high-value-added foam product sales.
Its stated core strategies include developing alternative materials and new products through technological innovation, along with strengthening sales activity at its Chinese subsidiaries.
The rebound in operating margin to 15.9% in Q2 2026 following the Q1 2026 margin decline may offer a clue as to whether the high-value-added product mix is recovering. On the dividend front, the company maintained a payout ratio in the 40% range based on 2025 results, continuing a stable shareholder-return policy.
Its dividend schedule has followed a recurring pattern of setting a record date near the end of December each year with payment the following April. Future performance is expected to hinge on the pace of automotive market recovery and whether demand for high-value-added IT and electronics products rebounds.
Upcoming disclosures such as the Q3 report will be important to confirm whether cost pressures ease and margin recovery continues.
Over the past five years, Youngbo Chemical has generally traded at a price-to-earnings ratio (PER) of around 11 times and a price-to-book ratio (PBR) of under 0.5 times on average. With 2025 net income declining from the prior year, earnings-based valuation metrics reflect that adjustment.
Relative to net assets, the stock has tended to trade at a discounted multiple, a pattern common among low-growth, high-dividend small-cap names in the chemical sector. Its dividend policy, maintaining a payout ratio in the 40% range, has reportedly resulted in a dividend yield above the sector average.
That said, given the recent divergence between operating profit and net income, interpreting earnings-based metrics also requires attention to non-operating factors that vary by quarter.
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
Operating margin fell to 11.0% in Q1 2026 before rebounding to 15.9% in Q2, suggesting a possible recovery in the high-value-added product mix. Summed owners' net income across the most recent four quarters held at about KRW 18.3 billion, indicating no severe earnings deterioration. Whether this recovery continues in coming quarters will be a key point to watch.
The company maintained a payout ratio in the 40% range for fiscal 2025 and has followed a consistent pattern of setting a record date near year-end December with payment the following April. 2025 operating cash flow of KRW 15.4 billion stayed close to net income, supporting the cash basis for dividends.
This dividend consistency helps underpin confidence in shareholder returns even during periods of earnings volatility.
The company has stated it expects demand expansion from an automotive market recovery driven by oil price stability and interior premiumization trends. Automotive segment revenue continued to grow in Q1 2026, driving overall revenue growth.
If the premiumization trend in finished vehicle interiors continues, the demand base for related products could broaden.
In 2024, net income exceeded operating profit, but in 2025 the structure flipped so that net income fell short of operating profit, indicating a growing influence of non-operating factors. This divergence makes it harder to forecast net income purely from operating profit trends. Quarterly net income has repeatedly moved differently from revenue and operating profit trends.
The Q1 2026 earnings slowdown was primarily attributed to declining sales of high-value-added products such as ultra-thin IT-use foam. This shows the margin structure is sensitive to sales volumes in a subset of high-value-added items. Demand for these items is linked to the electronics cycle, exposing the company to external swings.
Revenue growth slowed sharply to 2.2% in 2025 from 30.2% in 2024. This suggests the strong 2024 growth may have stemmed partly from specific factors, with no guarantee of a repeat at similar rates going forward.
Given the company's relatively small revenue base, stalling growth could also constrain earnings leverage expansion.
Petrochemical feedstocks such as polyolefin are tied to global crude oil and naphtha prices, making them a primary source of cost volatility. The company is also exposed to KRW/CNY exchange rate movements through its Chinese subsidiary operations.
A sharp rise in raw material prices could pressure near-term margins due to lags in passing costs through to product prices.
A substantial portion of revenue comes from automotive-grade polyolefin foam sales, making the company directly exposed to the finished vehicle production cycle. A slowdown in global auto demand or adjustments to automakers' production plans would inevitably affect revenue.
The ongoing structural shift toward electric vehicles and its impact on interior material demand also warrants continued monitoring.
The company pursues overseas sales growth through its China-based subsidiaries, but faces persistent price competition from local producers there. Tightening environmental regulations or policy changes in China could affect the subsidiaries' operations and cost structure.
External variables such as shifts in trade conditions or tariff issues also add uncertainty to the China business.
The statutory deadline for the Q3 2026 quarterly report falls due, at which point Q3 2026 results will be disclosed. This will help confirm whether the Q2 margin recovery trend continues.
Based on the historical pattern of setting a dividend record date near year-end December, this will be a point to check whether the record date and dividend policy are maintained.
The 2026 annual business report and confirmed full-year results will be disclosed, allowing confirmation of how much the automotive market recovery was actually reflected in revenue and margins.
Tracking international crude oil and naphtha prices along with KRW/USD and KRW/CNY exchange rate trends is needed to assess how cost pressures affect margins.
As the domestic leader in cross-linked foamed polyolefin foam, Youngbo Chemical has a stable business base centered on automotive interior materials, but 2025 net income fell 25.4% from the prior year, revealing a divergence between operating profit and net income.
Entering 2026, quarterly operating margin has oscillated between 11.0% and 15.9%, showing sensitivity to shifts in the share of high-value-added product sales.
Expectations for an automotive market recovery and a stable dividend policy stand as positive factors, while raw material and currency volatility along with intensifying competition in the China business remain concurrent negative factors.
Valuation has tended to trade at a discount to net asset value relative to historical averages, a pattern typical of low-growth, high-dividend small-cap chemical stocks.
Going forward, it will be important to track the Q3 results disclosure, the dividend record date, and the annual business report to assess whether margin recovery is sustained and how much the automotive market recovery is actually reflected. Readers should weigh these facts together to form their own investment judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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