PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩3,750 per share · Prices as of the 2026-10-02 close
KPX Chemical saw both revenue and operating profit decline in 2025 versus the prior year, but operating and net profit rebounded sharply in the second quarter of 2026 on improved feedstock spreads.
Q2 2026 revenue reached KRW 244.96 billion and operating profit KRW 23.04 billion, both sharply higher than the prior quarter's KRW 197.69 billion and KRW 5.44 billion.
Q4 2025 posted an operating loss of KRW 4.63 billion, yet net profit attributable to owners was still positive at KRW 9.52 billion, implying non-operating items offset the operating loss.
Full-year 2025 revenue of KRW 808.35 billion and operating profit of KRW 27.40 billion both contracted from 2024's KRW 913.37 billion and KRW 45.43 billion, with operating margin slipping from 5.0% to 3.4%.
Following prolonged disruption at the Strait of Hormuz that pushed up naphtha and propylene oxide costs, KPX Chemical raised PPG supply prices from mid-March 2026.
The company has partnered with Germany's H&S Anlagentechnik to enter the recycled polyol business, building a plant at affiliate Jinyang Polyurethane's Eumseong site targeting commercial operation by June 2027.
KPX Chemical's core business is producing polypropylene glycol (PPG), a key raw material for polyurethane, alongside PU resin, chemicals such as LCD and semiconductor cleaning agents, and CMP pads used in semiconductor processes.
The company is regarded as holding a leading position in domestic PPG production capacity and technology. PPG is made from propylene oxide (PO), which the company has historically sourced from SKC and Japanese suppliers.
Polyurethane made from PPG is used across a wide range of downstream industries including furniture and bedding, automotive interiors, construction insulation, footwear, and textiles.
As a member of the KPX Holdings group, the company operates a vertically integrated structure with affiliates such as Jinyang Polyurethane, exchanging raw materials and products within the group.
More recently, the company secured exclusive Korean rights to patented technology from Germany's H&S Anlagentechnik to convert flexible polyurethane foam scrap into recycled polyol, entering a circular-economy-oriented new business line.
This recycled polyol plant is being built at Jinyang Polyurethane's new site in the Yongsan industrial complex in Eumseong, Chungcheongbuk-do, targeting commercial operation by June 2027.
On the competitive front, the domestic polyol and polyurethane raw material market includes players such as Kumho Petrochemical, PU Core, and BASF Korea (TDI), making cost competitiveness and distribution networks key differentiators for earnings.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩212.6B | ₩9.8B | 4.6% |
| 2025Q3 | ₩214.2B | ₩11.9B | 5.6% |
| 2025Q4 | ₩160.2B | -₩4.6B | −2.9% |
| 2026Q1 | ₩197.7B | ₩5.4B | 2.8% |
| 2026Q2 | ₩245B | ₩23B | 9.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩983.6B | ₩46.5B | ₩28.6B | 4.7% | 4.9% | 30.5% |
| 2023 | ₩911.1B | ₩58.4B | ₩64.9B | 6.4% | 10.2% | 27.2% |
| 2024 | ₩913.4B | ₩45.4B | ₩64.2B | 5.0% | 9.3% | 25.6% |
| 2025 | ₩808.4B | ₩27.4B | ₩50.6B | 3.4% | 7.7% | 31.6% |
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
Consolidated revenue in 2025 came to KRW 808.35 billion, down from KRW 913.37 billion in 2024, while operating profit fell to KRW 27.40 billion from KRW 45.43 billion, pushing the operating margin down from 5.0% to 3.4%.
Net profit attributable to owners also declined, from KRW 64.22 billion in 2024 to KRW 50.64 billion in 2025.
On a quarterly basis, Q3 2025 was solid with revenue of KRW 214.23 billion and operating profit of KRW 11.94 billion, but Q4 saw revenue drop sharply to KRW 160.22 billion with an operating loss of KRW 4.63 billion, reflecting seasonal and demand-related weakness.
Despite the operating loss, Q4 net profit attributable to owners remained positive at KRW 9.52 billion, suggesting non-operating items more than offset the operating shortfall.
In Q1 2026, revenue was KRW 197.69 billion with operating profit of KRW 5.44 billion, showing a gradual recovery, before Q2 2026 posted a marked rebound with revenue of KRW 244.96 billion and operating profit of KRW 23.04 billion.
Notably, Q2 net profit attributable to owners reached KRW 60.99 billion, far exceeding what operating profit alone would suggest, indicating additional non-operating gains beyond core operations.
Comparing 2022 and 2023 further illustrates this pattern: 2022 operating profit (KRW 46.51 billion) was lower than 2023's (KRW 58.39 billion), yet owners' net profit swung from KRW 28.60 billion in 2022 to KRW 64.88 billion in 2023, underscoring how non-operating volatility has meaningfully influenced reported earnings over time.
Taken together, operating profit across the trailing four quarters (Q3 2025 through Q2 2026) swung widely from a loss of KRW 4.63 billion to a gain of KRW 23.04 billion, reflecting a business highly sensitive to shifts in the feedstock-to-product spread.
The domestic polyurethane raw materials industry is heavily exposed to cost swings along the naphtha-to-propylene oxide (PO) petrochemical supply chain.
In 2026, prolonged blockage of the Strait of Hormuz disrupted Middle Eastern crude and naphtha supply—which accounts for a large share of Korea's naphtha imports—driving up feedstock costs and forcing upstream disruptions such as LG Chem halting its Yeosu No. 2 plant and Yeochun NCC suspending some processes.
In response to this cost pressure, Kumho Petrochemical raised PPG and POP (polymer polyol) prices, KPX Chemical and PU Core also increased supply prices, and BASF Korea signaled a TDI price hike as well.
KPX Chemical is reported to have maintained a leading share of the domestic PPG market for an extended period, which may afford it relatively greater pricing power during periods of cost inflation.
However, given a meaningful export exposure, passing on price increases is understood to be more difficult in overseas markets than domestically. Demand cycles in downstream sectors such as construction, furniture, and automotive directly affect polyol sales volumes.
Industry-wide, geopolitical risk to feedstock supply could recur, leaving the direction of the feedstock-to-product spread as a key variable for earnings.
The company appears to be defending margins by raising product prices amid the feedstock cost spike, a dynamic supported by the Q2 2026 earnings rebound. Over the medium to long term, the recycled polyol business developed with Germany's H&S Anlagentechnik has been positioned as a new growth pillar.
The plant is designed to complete a group-wide resource-circulation loop, converting waste foam scrap from Jinyang Polyurethane into recycled polyol at KPX Chemical, targeting commercial operation in June 2027.
According to the company, the recycled polyol produced can substitute a significant portion of virgin polyol used in flexible foam manufacturing. As the first adopter of this recycling process technology in Asia, the company may benefit from a first-mover position in the domestic recycled polyol market.
That said, meaningful revenue contribution from the new business is expected only after commercial launch in the second half of 2027 at the earliest, limiting its near-term earnings impact.
Going forward, earnings direction is likely to hinge on feedstock cost trends for naphtha and PO, the pace of downstream demand recovery, and progress on the new recycled polyol business.
The current share price appears to trade at a meaningful discount to book value, sitting in a range where the premium over net assets is low. Based on profitability metrics reflecting the trailing four quarters, the stock appears to trade closer to the lower end of its historical valuation range.
On the dividend front, the company has consistently paid a year-end dividend, and its dividend yield relative to price is reported to run above the sector average.
That said, given considerable quarter-to-quarter volatility—including an operating loss in Q4 2025 and reduced profit in Q1 2026—caution is warranted in reading valuation metrics from any single quarter's results.
How the market assesses valuation going forward will likely depend on whether the earnings rebound seen in Q2 2026 continues or feedstock cost pressure returns to weigh on results.
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
Q2 2026 operating profit reached KRW 23.04 billion, sharply up from KRW 5.44 billion in the prior quarter. This is interpreted as a result of the company defending margins through product price increases amid rising feedstock costs.
Its long-standing position of strength in the domestic PPG market may have supported its ability to exercise pricing power.
The company has consistently paid a year-end dividend, with the 2025 year-end dividend also approved by the board.
The continuity of dividend policy despite quarter-to-quarter earnings volatility is a notable point from a shareholder-return perspective, though future dividend levels could be adjusted depending on the earnings trajectory.
Through its partnership with Germany's H&S Anlagentechnik, the company has become the first in Asia to adopt flexible polyurethane recycling technology, securing exclusive rights in Korea.
It is building a circular-economy model that converts waste into raw material by leveraging vertical integration with Jinyang Polyurethane. With commercial operation targeted for June 2027, successful execution could position the company as an early mover in the domestic recycled polyol market.
Full-year 2025 revenue and operating profit both declined from 2024, with operating margin falling from 5.0% to 3.4%. Net profit attributable to owners also decreased year-over-year, reflecting a combination of spread deterioration and softer downstream demand.
Operating results swung widely over the trailing four quarters, from an operating loss of KRW 4.63 billion in Q4 2025 to operating profit of KRW 23.04 billion in Q2 2026. Given a business structure highly sensitive to the feedstock-to-product spread, similar volatility could recur going forward.
As seen with the 2026 Strait of Hormuz blockage, geopolitical events can disrupt supply of core feedstocks such as naphtha and PO. If cost spikes are not fully offset by price increases, margin pressure could recur. Given some export exposure, passing on price hikes is reportedly more difficult in overseas markets.
Profitability of the PPG business is heavily dependent on the spread between PO feedstock cost and product prices.
Sharp swings in naphtha and PO prices triggered by geopolitical issues can cause large operating profit fluctuations, as evidenced by the swing between an operating loss in Q4 2025 and a strong profit in Q2 2026.
Since polyurethane is used across diverse downstream industries such as construction, furniture, and automotive, a slowdown in these sectors can directly reduce sales volume. The 2025 revenue decline is partly interpreted as reflecting such downstream demand softness.
The recycled polyol business targets commercial operation by June 2027, but construction of new facilities and technology stabilization could face schedule delays or ramp-up cost burdens. The timing and scale of profit contribution from this new business remain unverified.
Watch for the Q3 2026 earnings disclosure to see whether the Q2 profit rebound continues into Q3 or feedstock cost pressure resurfaces.
Continue monitoring the Strait of Hormuz situation and international naphtha/PO price trends, as feedstock price stabilization will determine the direction of spreads and margins.
Check progress on construction of the recycled polyol plant at Jinyang Polyurethane's Eumseong site and whether the June 2027 commercial operation target is met.
Check for the board resolution and disclosure on the 2026 year-end dividend. In the prior cycle, the board approved the year-end dividend on February 12, 2026, so a disclosure around a similar timeframe is expected.
KPX Chemical is a chemical materials company that has long held a leading position in the domestic PPG market, a core polyurethane feedstock; in 2025, both revenue and operating profit contracted from the prior year, with operating margin declining.
However, in 2026, following a modest recovery in Q1, operating and net profit rebounded sharply in Q2, reaffirming a business structure highly sensitive to shifts in the feedstock-to-product spread.
Notably, non-operating volatility appears significant as well, as evidenced by net profit remaining positive even when an operating loss was posted in Q4 2025.
Over the medium to long term, the recycled polyol business developed with Germany's H&S Anlagentechnik is being pursued with a target commercial launch in June 2027, positioning it as a potential future growth driver.
On dividends, the company has maintained a consistent year-end payout, though future dividend levels could be tied to the earnings trajectory. Investors may want to track feedstock spread trends, the pace of downstream demand recovery, and progress on the new business together.
Report written 2026-09-05 · Data as of 2026-09-04
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