PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Hyosung O&B, a leading domestic organic fertilizer maker, shows earnings heavily concentrated in the third quarter, and in 2025 kept its operating margin in double digits through cost control even as revenue declined.
2025 consolidated revenue was KRW 24.39 billion with operating profit of KRW 3.47 billion, an operating margin of 14.2%.
On a quarterly basis, the third quarter of 2025 alone contributed revenue of KRW 14.14 billion and operating profit of KRW 3.30 billion, driving the full-year result.
2025 operating cash flow rose sharply to about KRW 9.3 billion, versus roughly KRW 1.19 billion in the prior year.
In an August 2026 preliminary disclosure, the company reported a sharp year-on-year decline in net income, attributing it to valuation losses on financial assets and foreign-exchange effects.
The government moved up the 2026 organic fertilizer subsidy application window by five months versus the prior year, which could shift demand timing.
Founded in 1984 and headquartered in Asan, South Chungcheong Province, Hyosung O&B is an organic fertilizer and growing-media manufacturer affiliated with the Hyosung O&B group. Its core product lineup spans mixed oil-cake pellet fertilizer, composted organic fertilizer, and mixed organic fertilizer for export.
The company's sales structure is understood to rely heavily on the NH Nonghyup (Korean agricultural cooperative) distribution network, which provides a degree of stability in settlement and collection.
According to FnGuide, demand for premium organic fertilizer is expanding, and the company is reinforcing its market position through technology-driven differentiated products and its leading position within the Nonghyup supply channel.
Korea's organic fertilizer market is led by a handful of top producers, with competitors reportedly including Daeyou, Namhae Chemical, and Chobi. Raw materials are largely agricultural and livestock byproducts such as oil cake and rice bran, making earnings sensitive to input-cost swings.
Sales carry strong seasonality, tending to concentrate in specific quarters tied to planting and fertilization timing as well as the government subsidy application and disbursement schedule.
The company has also expanded its stated business scope to include smart-farm-related greenhouse construction, suggesting an attempt to diversify beyond traditional fertilizer manufacturing.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2024Q4 | ₩4.9B | ₩56,501,090 | 1.2% |
| 2025Q1 | ₩3B | -₩300M | −9.1% |
| 2025Q2 | ₩4.2B | ₩200M | 4.7% |
| 2025Q3 | ₩14.1B | ₩3.3B | 23.3% |
| 2025Q4 | ₩3B | ₩200M | 8.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩34B | ₩4.3B | ₩3.9B | 12.5% | 5.4% | 16.1% |
| 2023 | ₩29.7B | ₩700M | ₩1.3B | 2.4% | 1.7% | 19.2% |
| 2024 | ₩28.1B | ₩4.3B | ₩4.5B | 15.2% | 5.8% | 17.3% |
| 2025 | ₩24.4B | ₩3.5B | ₩2.8B | 14.2% | 3.6% | 14.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-18
2025 consolidated revenue came to KRW 24.39 billion (24,387,108,990 won), declining for a fourth straight year from KRW 28.06 billion in 2024, KRW 29.66 billion in 2023, and KRW 34.03 billion in 2022.
Operating margin, however, mostly held in double digits at 14.2% in 2025, 15.2% in 2024, and 12.5% in 2022, dipping to 2.4% in 2023 under cost pressure before recovering.
Quarterly, the first quarter of 2025 posted revenue of KRW 3.05 billion with an operating loss of KRW 277 million, while the second quarter saw only a marginal operating profit of KRW 197 million on revenue of KRW 4.22 billion.
The third quarter, by contrast, saw revenue jump to KRW 14.14 billion, generating operating profit of KRW 3.30 billion and owners' net profit of KRW 3.83 billion, effectively producing most of the year's result in a single quarter.
The fourth quarter then contracted again to revenue of KRW 2.99 billion and operating profit of KRW 249 million, ending in an owners' net loss of KRW 548 million.
This quarter-to-quarter variability appears tied to the seasonal shipment pattern typical of organic fertilizer along with the timing of subsidy program execution.
Consolidated net profit attributable to owners fell to KRW 2.81 billion in 2025 from KRW 4.49 billion in 2024, as losses in the first, second, and fourth quarters offset a large part of the strong third-quarter result.
On balance-sheet health, the debt ratio eased to 14.5% in 2025 from a 16.1%-19.2% range in 2022-2024, while operating cash flow rose sharply to roughly KRW 9.3 billion in 2025 from about KRW 1.19 billion in 2024, pointing to an improvement in earnings quality.
Korea's fertilizer industry is broadly split between chemical (mineral) fertilizer and organic/byproduct (compost) fertilizer, and Hyosung O&B is understood to hold a leading position within the organic fertilizer segment.
Its heavy reliance on the Nonghyup cooperative distribution channel brings stable collection but also ties results to Nonghyup and government subsidy program policy.
Recently, the government moved up the application window for the 2026 organic fertilizer subsidy program by five months and lengthened the acceptance period, while also introducing online applications and diversifying bulk supply formats. This could shift farmer demand earlier or spread it more evenly across the year.
Separately, in the mineral fertilizer segment, a surge in international urea prices and a weaker won prompted the government to fund price subsidies through a supplementary budget; while this sits in a separate budget line from organic fertilizer support, it forms part of the broader backdrop affecting farmers' overall fertilizer purchasing capacity and substitution choices.
On the competitive front, multiple players participate in the organic and byproduct fertilizer markets, making premium product development and cost competitiveness an ongoing challenge.
FnGuide noted that raw-material price stabilization and production-efficiency gains contributed to maintaining profitability in the company's recent results.
The company is credited with defending profitability amid falling revenue in 2025 through raw-material price stabilization and production-efficiency gains.
For 2026, a key observation point is how the earlier and extended application window for the government's organic fertilizer subsidy program affects second-half sales flow.
However, in an August 2026 preliminary disclosure the company reported a sharp year-on-year decline in net income, citing valuation losses on financial assets and foreign-exchange effects as causes, suggesting non-operating factors may have weighed on the bottom line.
As this figure precedes confirmation in a regular periodic filing, it warrants verification in subsequent disclosures. If the trend of expanding demand for premium organic fertilizer continues, it could support margin defense through an improved product mix.
Should the seasonal pattern of results concentrating in the third quarter repeat, a large share of the annual result is likely to again hinge on second-half peak-season sales.
Whether the smart-farm and greenhouse-construction business expansion mentioned by the company translates into actual revenue is also a point to monitor over the medium term.
The price-to-book ratio sits below 1x, meaning the share price trades at less than the company's book net-asset value. Results over recent years have alternated between near break-even and double-digit operating-margin years, with earnings recovering from a 2023 low point.
No dividend has been paid based on the most recent fiscal year, so dividend-related metrics are not currently applicable. Given the large quarter-to-quarter swings in results, interpreting valuation multiples from any single period's earnings requires viewing the full annual pattern and seasonality together.
As a small-cap name with limited market capitalization, price-based metrics can also be sensitive to trading volume and liquidity.
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 2026-09-18
The third quarter of 2025 alone generated revenue of KRW 14.14 billion and operating profit of KRW 3.30 billion, producing most of the annual result. If peak-season sales execute normally, this can act as a floor supporting full-year performance. The earlier subsidy application schedule is also a variable that could affect the timing of peak-season sales.
Even as revenue fell for a fourth straight year, the 2025 operating margin stayed in double digits at 14.2%. FnGuide attributed the maintained profitability to raw-material price stabilization and production-efficiency gains. Continued growth in premium organic fertilizer demand could add further product-mix benefits.
2025 operating cash flow rose to roughly KRW 9.3 billion from about KRW 1.19 billion in 2024. Over the same period, the debt ratio eased to 14.5% from a 16.1%-19.2% range in 2022-2024. Lower leverage combined with improved cash flow can reduce reliance on external financing.
Consolidated revenue fell for a fourth straight year, from KRW 34.03 billion in 2022 to KRW 24.39 billion in 2025. In a sales structure heavily dependent on peak-season timing, continued decline could make it harder to defend profitability through cost cuts alone. Without a revenue recovery, growth in absolute profit is difficult to expect.
In 2025, first- and fourth-quarter owners' net profit came in weak at KRW 7.8 million and negative KRW 548 million respectively, while the second quarter also posted a loss of KRW 472 million. Losses in three of the four quarters, excluding the third, have repeatedly eaten into a large portion of annual net profit. This seasonal volatility reduces predictability.
In an August 2026 preliminary disclosure, the company reported a sharp year-on-year decline in net income, citing valuation losses on financial assets and foreign-exchange effects.
This illustrates how factors outside core operations can affect results, and it should be noted this figure remains preliminary, pending confirmation in a regular periodic filing. Future disclosures will need to clarify whether this non-operating drag is a one-off or a recurring item.
Organic fertilizer sales are substantially tied to government and Nonghyup subsidy program budgets and execution timing.
In the adjacent mineral fertilizer segment, related budgets have not been included in the government's main budget since 2024 and have instead been repeatedly supplemented through extra budgets, illustrating that fertilizer-related subsidy budgets broadly can be variable depending on annual parliamentary review outcomes.
If the organic fertilizer support program's own budget size or subsidy rate were reduced, it could affect farmers' purchasing power.
Fluctuations in raw-material prices for agricultural and livestock byproducts such as oil cake and rice bran directly affect cost ratios. The drop in operating margin to 2.4% in 2023 illustrates how cost pressure can weigh on profitability.
The foreign-exchange loss mentioned in the August 2026 preliminary disclosure suggests that gains and losses tied to foreign-currency assets, liabilities, or transactions can add to earnings volatility.
As a small-cap stock, limited trading volume can amplify share-price volatility. The seasonal structure in which results concentrate in a specific quarter (the third) can create misleading impressions if annual trends are judged from single-quarter figures alone.
This structural characteristic underscores the need for a comprehensive, full-year review when assessing the business.
Check whether the net-income decline drivers flagged in the August preliminary disclosure (financial-asset valuation losses, FX effects) persist in the confirmed Q3 results, and gauge the level of peak-season revenue recovery.
Monitor how the 2027 organic fertilizer subsidy program's budget size and support rate are finalized through parliamentary review, as changes in support levels directly affect farmers' purchasing power.
Use the confirmed 2026 annual results to comprehensively check whether the revenue decline continued, whether the third-quarter-concentrated earnings pattern repeated, and how the August preliminary figures were ultimately finalized.
Track related disclosures and news on how the government's earlier organic fertilizer subsidy application and disbursement schedule actually shifts farmer purchase timing and the company's shipment volumes.
Hyosung O&B has maintained its standing in the organic fertilizer market, keeping a double-digit operating margin in 2025 through cost control even as revenue declined for a fourth consecutive year.
However, results continue to concentrate overwhelmingly in the third-quarter peak season, with losses in the first, second, and fourth quarters repeatedly offsetting a large portion of annual net profit.
An August 2026 preliminary disclosure reported a sharp year-on-year decline in net income due to financial-asset valuation losses and foreign-exchange effects, a figure that remains unconfirmed pending a regular periodic filing and warrants re-verification.
Policy variables such as changes to the organic fertilizer subsidy application schedule or budget review outcomes, along with raw-material and currency volatility, remain factors that could continue to shape the company's earnings trajectory.
On the balance-sheet side, positive signals also emerged, including a lower debt ratio and improved operating cash flow.
Overall, the company sits at a juncture where a strongly seasonal revenue structure and its ability to manage costs and currency exposure will largely determine the direction of results, making it worth tracking through upcoming periodic filings and policy schedules.
Report written 2026-09-19 · Data as of 2026-09-18
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