KOSDAQChemicals101240

Cqv

₩3,315▼ 1.78%2026-10-02 close

Market Cap

₩38.3B

Turnover

₩8,587,735

Volume

2,580 shares

Shares out.

11.4M

PER

3.5×

PBR

0.3×

EPS

₩996

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Korea's Sole Pearlescent Pigment Maker Sees Profit Recovery

CQV Co., Ltd. is Korea's sole dedicated producer of pearlescent pigments, showing a gradual operating margin recovery since a 2023 trough, while its business is being reshaped following a 2023 change of controlling shareholder to a Hong Kong-listed China-linked firm.

1
The company produces pearlescent pigments for cosmetics, automotive, and industrial uses, and is ranked among the top three global players in automotive pearlescent pigments alongside Merck and BASF.
2
In 2023, an affiliate of Hong Kong-listed Global New Material International Holdings acquired the founders' stake and became the controlling shareholder.
3
2025 annual revenue declined slightly year-on-year, but the operating margin improved to 18.0%, and the second quarter of 2026 posted the highest quarterly margin in the recent window.
4
Diversifying and resilient growth in K-beauty finished product exports is creating a favorable demand backdrop for cosmetics-grade pigments.
5
A no-dividend policy remains in place, reflecting a capital allocation stance focused on reinvestment rather than shareholder returns.

Business structure

Founded in 2000 with its production base in Jincheon, North Chungcheong Province, CQV is Korea's sole dedicated producer of pearlescent pigments and listed on KOSDAQ in 2011.

Pearlescent pigments are functional materials made by uniformly coating mica surfaces with titanium dioxide and other substances to create pearl-like or metallic optical effects, used across cosmetics, industrial, and automotive applications.

According to one research note, the company's product revenue mix is led by cosmetics applications at about 41%, followed by automotive at about 38% and industrial at about 18%, with aluminum paste and other items making up the remainder.

CQV was the world's second company to develop synthetic platy alumina synthesis technology used as the substrate for pearlescent pigments, building a technical entry barrier, and it maintains an inventory-based, multi-product small-batch production system that allows quick response even to large orders.

In the automotive pearlescent pigment segment, the company is recognized as one of the top three global players alongside multinational firms Merck and BASF.

Cosmetics-grade products face barriers from stringent quality requirements and process know-how, while automotive-grade products require long-term quality track records, keeping both markets concentrated among a small number of players.

In 2023, Star Cheer Corporation, a special-purpose vehicle affiliated with Hong Kong-listed Global New Material International Holdings, acquired the founders' and related parties' stake at a large premium and became the controlling shareholder, aiming for synergies in raw material sourcing and expansion of sales channels in China.

More recently, the company has been developing new products such as Lidar-compatible functional pigments applicable to automotive wheel covers and exterior trim.

Earnings trend

Quarterly revenue · Operating profit

₩16B₩3.6B25Q2₩14B₩2.3B25Q3₩11.8B₩1.5B25Q4₩15.8B₩3B26Q1₩20.2B₩5.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩46.3B₩6.5B2022₩51.1B₩5B2023₩60.1B₩10.2B2024₩56.5B₩10.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩16B	₩3.6B	22.5%
2025Q3	₩14B	₩2.3B	16.3%
2025Q4	₩11.8B	₩1.5B	12.6%
2026Q1	₩15.8B	₩3B	19.2%
2026Q2	₩20.2B	₩5.5B	27.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩46.3B	₩6.5B	₩5.4B	14.1%	8.3%	33.2%
2023	₩51.1B	₩5B	₩3.4B	9.8%	4.4%	19.6%
2024	₩60.1B	₩10.2B	₩9.3B	17.0%	10.5%	30.9%
2025	₩56.5B	₩10.2B	₩9.5B	18.0%	8.2%	22.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

CQV's consolidated revenue rose from KRW 46.28 billion in 2022 to KRW 51.10 billion in 2023 and KRW 60.15 billion in 2024, before slipping slightly to KRW 56.52 billion in 2025.

Operating profit fell from KRW 6.51 billion in 2022 to KRW 5.03 billion in 2023, then more than doubled to KRW 10.21 billion in 2024 and held roughly steady at KRW 10.17 billion in 2025. The operating margin declined from 14.1% in 2022 to 9.8% in 2023 before recovering gradually to 17.0% in 2024 and 18.0% in 2025.

Net income attributable to controlling shareholders fell from KRW 5.38 billion in 2022 to KRW 3.43 billion in 2023, then recovered to KRW 9.26 billion in 2024 and KRW 9.45 billion in 2025.

On a quarterly basis, second-quarter 2025 revenue of KRW 15.99 billion and operating profit of KRW 3.60 billion (22.5% margin) were followed by sequential softening in the third quarter (KRW 14.05 billion revenue, KRW 2.29 billion operating profit, 16.3% margin) and fourth quarter (KRW 11.78 billion revenue, KRW 1.48 billion operating profit, 12.6% margin).

Momentum improved again in 2026, with first-quarter revenue of KRW 15.77 billion and operating profit of KRW 3.02 billion (19.2% margin), and second-quarter revenue of KRW 20.21 billion with operating profit of KRW 5.54 billion, lifting the quarterly operating margin to 27.4%, the highest among the recent five quarters.

As a result, net income attributable to controlling shareholders over the trailing four quarters from Q3 2025 through Q2 2026 totaled KRW 10.98 billion, exceeding full-year 2025 net income of KRW 9.45 billion, though the wide quarter-to-quarter swings warrant caution against extrapolating any single quarter into an annual trend.

Industry analysis

Pearlescent pigments are functional materials used broadly in cosmetics, automotive coatings, and industrial paints and building materials, with the market dominated by a small number of specialized players alongside global chemical majors such as Merck and BASF.

A Frost & Sullivan survey previously forecast the pearlescent pigment industry to grow at roughly 15% annually, driven largely by demand growth centered on China. However, that forecast dates to an earlier market recovery period, and recent growth rates may vary with end-market conditions.

Across the broader cosmetics ingredient industry, combined 2025 revenue for 14 listed Korean cosmetics ingredient companies was KRW 1.3852 trillion, down 0.7% year-on-year, while operating profit and net income fell 34.3% and 18.1% respectively, highlighting margin pressure across the ingredient segment.

In contrast, finished K-beauty product exports rose 12.2% year-on-year to USD 9.4 billion in the January–October 2025 period, with the United States overtaking China as the top export destination amid growing geographic diversification, suggesting the underlying end-demand base for ingredient makers has been improving.

China's cosmetics import market also showed signs of domestic recovery in 2025 as the pace of import declines narrowed sharply.

CQV's ranking among the top three global players in automotive pearlescent pigments means its results are also tied to automotive coating trends and the broader auto industry cycle, beyond cosmetics demand alone.

Outlook

As stated by Global New Material International Holdings, which became the controlling shareholder in 2023, CQV aims to secure new revenue momentum by activating sales in China for high-value alumina-based pearlescent pigments and aluminum-based metallic pearl pigments.

The company continues to expand its application scope through new product development, including patented Lidar-compatible functional pigments with enhanced aesthetics and functionality for automotive wheel covers and exterior trim.

In cosmetics, application is broadening into new formulations such as BB and CC creams, while in automotive, industry observers expect the use of effect pigments to expand from body coatings into areas such as tire wheel covers.

Continued diversification and resilient growth in K-beauty exports could provide a favorable backdrop for cosmetics pigment demand.

That said, the specific execution pace of synergies such as joint production or joint R&D following the change of controlling shareholder to a Hong Kong-listed, China-linked entity has not yet been fully disclosed to the market and warrants confirmation through future filings and IR communications.

No formal, numbers-based medium-to-long-term revenue or profit guidance from the company has been identified to date.

Valuation

PER

3.5×

PBR

0.3×

ROE

10.4%

EPS

₩996

BPS

₩11,213

Dividend per share

₩0

CQV has shown a gradual operating margin recovery since a 2023 trough, with recent quarters posting profitability levels above historical norms.

The stock has historically traded at both premiums and discounts to book value over multiple years, making it useful to compare its current positioning relative to book value against those past bands.

A continued no-dividend policy means the focus for capital allocation remains on whether earnings are reinvested rather than returned to shareholders.

As a small-cap KOSDAQ name, valuation metrics can swing considerably with trading volume and flows, and market assessment of the ownership and governance structure has also come into play since the controlling shareholder changed to a China-linked entity.

Given the recency of the earnings recovery and the size of quarter-to-quarter swings, it is more informative to track the trend across several quarters than to draw conclusions on valuation from any single quarter's 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 2026-08-23

Bull factors

Distinctive Technology Position

CQV developed the world's second synthetic platy alumina technology, creating a technical entry barrier, and its multi-product, small-batch production system flexibly serves diverse customer needs.

In the automotive pearlescent pigment segment, it is recognized as one of the top three global players alongside Merck and BASF, reflecting a market structure that is difficult for new entrants to penetrate.

Both cosmetics and automotive applications require lengthy quality validation and know-how, resulting in relatively high customer switching costs.

Potential Synergies from Controlling Shareholder

Global New Material International Holdings, which became the controlling shareholder in 2023, has stated goals of synergies through raw material sourcing and expanded China sales channels.

If activation of China sales for high-value alumina-based and aluminum-based metallic pearl pigments succeeds, the revenue base could expand. However, the specific execution pace and outcomes of these synergies have not yet been fully disclosed to the market.

Profitability Recovery Trend

The operating margin, which had fallen to 9.8% in 2023, improved to 17.0% and 18.0% in 2024 and 2025 respectively, and rose to 27.4% in the second quarter of 2026, the highest level among the recent five quarters.

Net income attributable to controlling shareholders over the trailing four quarters also exceeded full-year 2025 net income. Whether this recovery persists across multiple quarters going forward is a key point to watch.

Bear factors

Stalled Revenue Growth

Full-year 2025 revenue declined slightly year-on-year, and combined 2025 revenue for 14 listed Korean cosmetics ingredient companies also fell 0.7%, confirming a broader industry growth slowdown. There is a time lag and uncertainty in how strong finished-product export growth translates into ingredient makers' revenue. If revenue stagnation persists, it could also pressure the sustainability of the recent profit recovery.

No-Dividend Policy and Limited Liquidity

The company maintains a no-dividend policy, limiting its appeal from a shareholder return perspective. As a small-cap KOSDAQ stock, trading volume is relatively thin, which can amplify price volatility driven by supply and demand.

Because the controlling shareholder's stake is concentrated among related parties, the free float itself is also relatively limited.

Quarterly Earnings Volatility

Across the five quarters from Q2 2025 to Q2 2026, revenue and operating margins swung widely, from 22.5% down to 12.6% and back up to 27.4%. Such volatility reduces predictability and makes it difficult to simplify a strong single quarter into an annual trend.

The possibility of recurring quarter-to-quarter variance driven by raw material supply or order timing cannot be ruled out.

Risk factors

End-Market Cycle Risk

CQV's results are tied to demand cycles across multiple end-markets including cosmetics, automotive, and industrial coatings. Simultaneous weakness in automotive production and sales alongside a slowdown in cosmetics consumption could negatively affect performance. Given meaningful dependence on specific end-markets, ongoing monitoring of industry conditions is warranted.

Governance Risk

Since the 2023 change of controlling shareholder to a Hong Kong-listed, China-linked entity, there is a possibility of conflicts of interest between minority shareholders and related-party transactions or business direction decisions.

If the progress of synergy plans such as activating sales in China is not sufficiently disclosed, information asymmetry concerns could also arise. Ongoing monitoring of disclosures on controlling shareholder stake changes and related-party transactions is warranted.

Raw Material and Foreign Exchange Risk

Producing pearlescent pigments requires raw materials such as mica and titanium dioxide, and international price swings in these inputs directly affect costs. Given an export-oriented business structure, fluctuations in the won-dollar and won-yuan exchange rates can also affect results. Simultaneous deterioration in raw material prices and exchange rates could increase margin pressure.

What to watch next

Mid-November 2026
Check the Q3 2026 quarterly report to see whether the second quarter's elevated operating margin (27.4%) persists and whether the revenue recovery continues.
Q4 2026 to Q1 2027
Monthly cosmetics export statistics from Korea's trade ministry and trade association can serve as a leading indicator to check demand for cosmetics-grade pigments.
Around March 2027
The FY2026 annual report and annual general meeting should be checked for any change in dividend policy and disclosures on related-party transactions involving the controlling shareholder.
Second half of 2026 through early 2027
Ongoing monitoring is needed of disclosures on stake changes by the controlling shareholder (Global New Material) and the concrete progress of synergy projects such as China sales channels and new products including Lidar-compatible pigments.

Overall view

CQV is Korea's sole dedicated pearlescent pigment producer, operating across cosmetics, automotive, and industrial segments on the strength of its synthetic platy alumina technology and top-tier global position in the automotive pigment market.

Since a 2023 earnings trough, the operating margin has recovered gradually to 18.0% in 2025 and reached 27.4% in the second quarter of 2026, the highest level among the recent five quarters.

However, full-year 2025 revenue declined slightly year-on-year, and the wide swings in quarterly results call for caution in reading trends.

Since the 2023 change of controlling shareholder to a Hong Kong-listed, China-linked entity, synergies in raw material sourcing and China sales channel expansion are anticipated, but concrete execution outcomes have not yet been fully disclosed.

Strong K-beauty export growth is a favorable factor for cosmetics pigment demand, but the broader ingredient industry's margin pressure, the no-dividend policy, and governance-related uncertainty warrant balanced consideration.

Going forward, it will be important to track both the sustainability of the quarterly earnings recovery and the progress of synergies with the controlling shareholder.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.