PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩925 per share · Prices as of the 2026-10-02 close
Dongnam Chemical, a specialty chemical maker centered on surfactants, has seen revenue and operating profit improve for four consecutive quarters since bottoming out in the second quarter of 2025.
Q2 2026 revenue of KRW 62.02 billion and operating profit of KRW 5.35 billion mark the best quarterly result in the past five quarters
Revenue rose for three consecutive years from 2023 to 2025, with operating margin stabilizing around 4.8%
Surfactants account for over 97% of total sales, reflecting a highly concentrated business structure
The company is pursuing portfolio expansion into cosmetics/personal care and Oil & Gas end markets
A controlling shareholder group led by Miwon Holdings holds a majority stake, reflecting an owner-centered governance structure
Dongnam Chemical was founded in 1965 and listed on the KOSPI in 1996 as a specialized surfactant manufacturer.
Surfactants reduce interfacial tension between immiscible substances such as water and oil, enabling cleaning, disinfecting, penetrating, dispersing, and antistatic functions, and are used across detergent, textile, paper, metal, agrochemical, paint, and leather industries.
The company operates its headquarters and a production facility in Tancheon, Gongju, another manufacturing site in Seosan (Daesan), and a sales office in Incheon. In the first half of 2026, surfactants made up 97.1% of product sales, while byproducts such as fatty acids and fatty alcohols accounted for about 2.9%.
The company was the first in Korea to develop nonionic surfactants with a narrow ethoxylation distribution and remains the sole domestic supplier of that product line, maintaining a leading market position through an annual production system of roughly 170,000 tons.
The largest shareholder is Miwon Holdings, and the controlling shareholder group led by Miwon Holdings holds a 53.30% stake, underscoring the company's identity as a chemical affiliate of the Miwon Group.
More recently, the company has signaled intent to expand its portfolio beyond industrial surfactants into cosmetics/personal care and Oil & Gas applications.
Domestically it competes with peers such as Hannong Chemicals and Green Chemical, while globally it operates alongside larger specialty chemical players including BASF, Dow, Evonik, Clariant, and Croda.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩43.3B | ₩1B | 2.3% |
| 2025Q3 | ₩51.5B | ₩3.3B | 6.4% |
| 2025Q4 | ₩46.7B | ₩2.1B | 4.5% |
| 2026Q1 | ₩56.4B | ₩3.8B | 6.8% |
| 2026Q2 | ₩62B | ₩5.4B | 8.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩193.4B | ₩13.5B | ₩10.6B | 7.0% | 21.2% | 84.1% |
| 2023 | ₩166.7B | ₩8.1B | ₩6B | 4.8% | 11.5% | 88.3% |
| 2024 | ₩186.4B | ₩8.9B | ₩6.7B | 4.8% | 12.5% | 80.2% |
| 2025 | ₩194.3B | ₩9.4B | ₩7B | 4.8% | 12.8% | 74.5% |
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
Dongnam Chemical's annual results peaked in 2022 with revenue of KRW 193.4 billion, operating profit of KRW 13.46 billion (a 7.0% margin), and net profit of KRW 10.62 billion, before stepping down in 2023 to revenue of KRW 166.7 billion, operating profit of KRW 8.06 billion (4.8% margin), and net profit of KRW 5.95 billion.
Revenue then rose for three consecutive years — KRW 186.4 billion in 2024 with operating profit of KRW 8.93 billion and net profit of KRW 6.71 billion, followed by KRW 194.3 billion in 2025 with operating profit of KRW 9.37 billion and net profit of KRW 6.99 billion — while the operating margin held steady near 4.8%.
On a quarterly basis, results bottomed out in Q2 2025 with revenue of KRW 43.3 billion, operating profit of KRW 0.99 billion, and owner net profit of just KRW 0.06 billion.
A sharp rebound followed in Q3 2025 (revenue KRW 51.45 billion, operating profit KRW 3.29 billion, net profit KRW 2.71 billion), before easing slightly in Q4 2025 (revenue KRW 46.67 billion, operating profit KRW 2.10 billion, net profit KRW 1.90 billion).
Momentum then reaccelerated in Q1 2026 (revenue KRW 56.41 billion, operating profit KRW 3.81 billion, net profit KRW 3.16 billion) and Q2 2026 (revenue KRW 62.02 billion, operating profit KRW 5.35 billion, net profit KRW 4.11 billion), marking the strongest quarter in the recent five-quarter window.
Combined owner net profit for the four quarters from Q3 2025 through Q2 2026 reached KRW 11.87 billion, already well above the full-year 2025 figure of KRW 6.99 billion.
This pattern appears to reflect a combination of stabilized input costs and a recovery in volumes, though the precise contribution of each cost factor is not separately disclosed.
The global surfactants market continues to grow at a moderate pace, underpinned by industrial and institutional cleaning, household detergents, agrochemicals, and oilfield chemicals demand; one market research firm projected the market to expand from about USD 50.1 billion in 2025 to USD 83.1 billion by 2035, a 5.2% compound annual growth rate.
Population growth, urbanization, and rising sanitation investment are cited as structural demand drivers. Regionally, Asia-Pacific commanded roughly a 36% share of demand in 2024, making it the largest consuming region.
Within the industry, competition is increasingly centered on multifunctional, mild surfactants for premium personal care and a shift toward bio-based raw materials, while tightening PFAS regulations in the United States and Europe are placing reformulation pressure on a significant share of surfactant end uses.
At the same time, cyclical overcapacity in China and volatility in long-chain alcohol supply continue to drive price swings, leaving domestic producers to manage costs and compete against low-priced imports.
Against this backdrop, Dongnam Chemical maintains a stable supply base centered on general-purpose industrial surfactants while signaling efforts to expand into higher value-added applications such as cosmetics and personal care.
According to first-half 2026 disclosures, the average utilization rate at the Daesan and Tancheon plants was 63.4% (62.3% at Daesan and 60.5% at Tancheon), suggesting there may be room to absorb higher volumes without major additional capacity investment.
The company has indicated a direction toward expanding its business portfolio into cosmetics/personal care and Oil & Gas, though no specific disclosure on investment size or timing has been confirmed.
Whether the profit and revenue improvement seen over the past four quarters continues will depend on trends in input costs such as ethylene oxide and the durability of the recovery in end-market demand.
The company holds 168,402 treasury shares (a 4.81% stake), making any future decisions on cancellation or disposal worth monitoring as a shareholder-return signal.
Given the controlling shareholder structure centered on Miwon Holdings, any changes in group restructuring or dividend policy could also draw market attention.
That said, the facts confirmed in this material are limited to first-half results, utilization rates, and stated new-business direction; specific guidance for subsequent quarters has not yet been disclosed.
Dongnam Chemical's share price has moved in tandem with recent quarterly earnings trends, and periods of profit expansion have tended to coincide with shifts in the multiple at which the stock trades relative to net assets.
The stock has a history of sharp short-term swings in trading multiples around events such as special dividends or treasury share cancellations, making it difficult at times to interpret valuation purely through earnings-based multiples.
The owner-centered structure, with controlling shareholders holding more than half the stock, implies a relatively limited free float, which can be cited as a factor amplifying multiple volatility.
Since combined profit over the most recent four quarters already exceeds the prior full-year result, any formal valuation reassessment would naturally follow once the corresponding annual results are confirmed and disclosed.
On dividends, it is worth noting that the company has a history of expanding shareholder returns through special dividends on several past occasions; whether this policy continues will need to be confirmed through future dividend disclosures.
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
Revenue and operating profit have improved for four consecutive quarters since bottoming in Q2 2025, culminating in the strongest quarterly result in the recent five-quarter window in Q2 2026. If this trend continues, the scope for annual earnings recovery could widen.
This observation is based on confirmed past results, however, and continuation going forward remains to be verified.
Average utilization stood at 63.4% in the first half of 2026, leaving room to absorb higher volumes without major capacity additions. The company states it is pursuing diversification into cosmetics/personal care and Oil & Gas end markets.
Broadening applications beyond the traditional industrial surfactant base could serve as a factor diversifying the revenue mix.
The controlling shareholder group led by Miwon Holdings holds a 53.30% stake, providing a high degree of management stability. The company has a history of expanding shareholder returns through special and quarterly dividends on multiple past occasions. It also holds a 4.81% treasury stake, leaving room for further return measures such as cancellation.
Purchases of key raw materials such as ethylene oxide reached KRW 87.17 billion in the first half of 2026, representing a substantial cost burden relative to revenue. The ethylene oxide market is characterized by price swings tied to crude oil prices and logistics conditions. Any increase in raw material costs could constrain further improvement in the operating margin.
While a utilization rate in the 60% range can be read as available capacity, it can equally be interpreted as a sign that end-market demand has not fully recovered. In the global market, cyclical overcapacity in China and the inflow of low-priced imports are cited as factors intensifying price competition. This could constrain domestic producers' ability to expand both pricing and volume.
With the controlling shareholder group holding a 53.30% stake and treasury shares accounting for another 4.81%, the effective free float is limited. This can amplify price volatility during periods of thin trading volume.
Minority shareholders may also face concerns about information asymmetry given the owner-centered decision-making structure.
Prices of petrochemical-derived raw materials such as ethylene oxide fluctuate in line with international crude oil prices and logistics conditions. Raw material purchases of KRW 87.17 billion in the first half represent a substantial share of revenue, meaning a sharp price spike could immediately weigh on costs. This is a key factor behind quarter-to-quarter volatility in the operating margin.
Regulations targeting environmentally hazardous substances such as PFAS are tightening in the United States and Europe, placing reformulation pressure on a significant share of surfactant end uses. Ethylene oxide is classified as a carcinogen, and tightening worker exposure standards could generate compliance costs. Changes in the domestic regulatory environment could also affect production processes and cost structures.
In an owner-centered structure where the controlling shareholder group holds a 53.30% stake, the direction of dividend or treasury share policy can be heavily influenced by controlling shareholder decisions. With a limited free float, the potential for price distortion persists during periods of thin trading volume.
Should issues related to intra-group share restructuring or succession come to the fore, uncertainty from a minority shareholder perspective could increase.
The company has historically disclosed quarterly or special dividend decisions around October in past years, so it is worth checking whether a similar dividend-related disclosure occurs again this year.
The Q3 2026 quarterly report is due within 45 days of quarter-end, so confirmed third-quarter results should be disclosed around this time, allowing a check on whether the four-quarter profit improvement trend continues.
It will be worth checking whether specific investment or contract disclosures emerge regarding the stated expansion into cosmetics/personal care and Oil & Gas businesses.
Utilization rates at the Daesan and Tancheon plants and trends in ethylene oxide purchase costs should be tracked continuously through quarterly disclosures to monitor the direction of cost pressure and volume recovery.
It is worth checking for any disclosure on further cancellation or disposal of the 4.81% treasury share stake currently held.
Dongnam Chemical is a specialty chemical company concentrated in a single surfactant business, and it has posted four consecutive quarters of improving revenue and operating profit since bottoming in Q2 2025, culminating in its strongest recent quarterly result in Q2 2026.
On an annual basis, revenue increased for three consecutive years from 2023 to 2025, with the operating margin holding steady near 4.8%.
Utilization at the Daesan and Tancheon plants stood in the low-60% range, suggesting both room for volume expansion and a question mark over how completely end-market demand has recovered.
The company has signaled a direction toward broadening its portfolio into cosmetics/personal care and Oil & Gas, though specific investment plans have not yet been confirmed.
The owner-centered structure, with a controlling shareholder group holding a majority stake and a limited free float, remains a factor influencing both shareholder-return policy and trading characteristics.
Upcoming Q3 results and any follow-up disclosures on dividends or new business initiatives should provide further evidence on whether the recent recovery trend is structural or temporary.
Report written 2026-09-05 · Data as of 2026-09-04
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