KOSDAQChemicals126600

BGFecomaterials

₩3,205▲ 1.58%2026-10-02 close

Market Cap

₩200.9B

Turnover

₩200M

Volume

60,000 shares

Shares out.

62.8M

PER

11.6×

PBR

0.4×

EPS

₩256

Dividend Yield

1.69%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close

Report overview

Expanding Into Semiconductor and Bioplastic Materials Amid Earnings Swings

As BGF Ecomaterials expands from engineering-plastics-centered chemical operations into semiconductor specialty gases and biodegradable bioplastics, rising investment-driven financial burden and quarter-to-quarter operating profit volatility are both becoming visible.

1
In 2025, revenue reached KRW 397.9 billion and operating profit KRW 17.3 billion, both up year on year, with the operating margin improving from 3.8% to 4.4%.
2
Second-quarter 2026 operating profit fell sharply to KRW 1.2 billion from KRW 3.2 billion in the prior quarter and KRW 6.1 billion a year earlier, yet net profit attributable to owners rose to KRW 4.4 billion, pointing to a large non-operating swing.
3
The company is investing roughly KRW 150 billion to build a 50,000-ton annual capacity for domestically produced anhydrous hydrofluoric acid used in semiconductor cleaning and etching, while affiliate BGF Ecosolution became a wholly owned subsidiary in August 2026.
4
The debt ratio rose from 30.6% in 2023 to 56.4% in 2025, reflecting growing financial burden from investment in new semiconductor and bioplastic businesses.
5
The share price trades below the company's self-calculated book value per share, and market capitalization places it among small/mid-cap KOSDAQ chemical names.

Business structure

BGF Ecomaterials operates engineering plastics and chemical materials, electronic component materials, automotive parts materials (interior), and semiconductor materials businesses.

Founded in 1997 to manufacture and sell high-performance polymer chips, the company entered the materials industry through the 2019 acquisition of BGF Ecosolution (formerly KBF) and took its current form in 2022 through the merger of BGF Ecobio and Kopla.

In the automotive segment, demand for high-performance polymers has grown alongside lightweighting and carbon-reduction requirements, and the company participates in alternative-material research from the early stages of new vehicle development with automakers; it strengthened this business further by acquiring automotive materials company Daewon Chemical in 2024.

The semiconductor materials segment produces specialty gases including high-purity F2 gas through KNW, acquired in 2023, and its subsidiary Fluorine Korea, and is investing about KRW 150 billion to build 50,000 tons of annual capacity for domestically produced anhydrous hydrofluoric acid used in cleaning and etching.

The white bio segment, through BGF Ecosolution and BGF Ecocycle, directly researches, develops, and supplies biodegradable plastic (PLA) and recycled plastic (PCR) feedstock within the group.

This PLA material is applied to convenience-food packaging such as sandwich trays and lunch-box containers at affiliate CU convenience stores, securing a consumer-facing channel.

The company continues to broaden its product portfolio to meet growing demand for eco-friendly products through new material R&D and expansion of the bio materials business.

Earnings trend

Quarterly revenue · Operating profit

₩103.7B₩6.1B25Q2₩100.8B₩5.8B25Q3₩94.3B₩600M25Q4₩92.8B₩3.2B26Q1₩102.7B₩1.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩263.3B₩15.9B2022₩285.7B₩17.2B2023₩364.3B₩14B2024₩397.9B₩17.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩103.7B	₩6.1B	5.9%
2025Q3	₩100.8B	₩5.8B	5.7%
2025Q4	₩94.3B	₩600M	0.7%
2026Q1	₩92.8B	₩3.2B	3.5%
2026Q2	₩102.7B	₩1.2B	1.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩263.3B	₩15.9B	₩28.9B	6.0%	14.5%	74.4%
2023	₩285.7B	₩17.2B	-₩9.8B	6.0%	−2.8%	30.6%
2024	₩364.3B	₩14B	₩15.5B	3.8%	3.9%	44.8%
2025	₩397.9B	₩17.3B	₩14B	4.4%	3.4%	56.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue in 2025 reached KRW 397.9 billion, up from KRW 364.3 billion in 2024, and operating profit rose from KRW 14.0 billion to KRW 17.3 billion, lifting the operating margin from 3.8% to 4.4%.

Net profit attributable to owners, however, slipped slightly from KRW 15.5 billion in 2024 to KRW 14.0 billion in 2025; total net profit (KRW 10.0 billion) was smaller than the owners' portion, implying that minority-owned subsidiaries recorded a loss that year.

Owners' net profit swung sharply over the past four years, from KRW 28.9 billion in 2022 to a loss of KRW 9.8 billion in 2023, before turning profitable again at KRW 15.5 billion in 2024 and KRW 14.0 billion in 2025.

The debt ratio fell from 74.4% in 2022 to 30.6% in 2023 before rising again to 44.8% in 2024 and 56.4% in 2025, while operating cash flow recovered steadily from negative KRW 10.1 billion in 2022 to KRW 24.3 billion, KRW 12.5 billion, and KRW 26.9 billion in 2023, 2024, and 2025 respectively.

On a quarterly basis, operating profit was solid at KRW 6.1 billion in the second quarter of 2025 and KRW 5.8 billion in the third quarter, but fell to KRW 0.6 billion in the fourth quarter, recovered somewhat to KRW 3.2 billion in the first quarter of 2026, then contracted again to KRW 1.2 billion in the second quarter, showing pronounced quarter-to-quarter volatility.

Net profit attributable to owners, however, actually rose from KRW 3.9 billion in the first quarter of 2026 to KRW 4.4 billion in the second quarter, diverging from the operating profit trend.

Owners' net profit summed over the most recent four quarters (Q3 2025 through Q2 2026) reached KRW 17.6 billion, exceeding the full-year 2025 figure of KRW 14.0 billion, suggesting the recent trailing period has performed better than the prior fiscal year.

Industry analysis

The engineering plastics and chemical materials industry continues to seek differentiation through high-performance, specialty materials amid oversupply in commodity petrochemicals and intensifying competition from China.

In the automotive segment, demand for high-performance polymers is structurally increasing as lightweighting and carbon-reduction requirements tighten.

In semiconductor materials, anhydrous hydrofluoric acid is known to be more than 90% dependent on Chinese supply and is classified as a strategic resource for localization, while the government's 'Industrial Supply Chain 3050 Strategy' aims to lower reliance on countries with high supply-chain dependence to below 50% by 2030, providing policy support for expanding domestic production.

The biodegradable plastics (white bio) market is seeing rising demand as consumer concern over microplastics and endocrine disruptors grows, and the scarcity of domestic PLA raw material producers makes localization and compounding technology a barrier to entry.

BGF Ecomaterials, through vertical integration with its convenience-store and retail affiliates, sources and applies white bio materials internally within the group, differentiating it in supply-chain terms from competitors dependent on external procurement.

Still, the biodegradable materials market remains at an early stage that has not fully opened up, an industry assessed as needing time to achieve economies of scale.

Outlook

In the semiconductor materials segment, the company aims to complete a 50,000-ton annual capacity anhydrous hydrofluoric acid facility by around 2026 with an investment of roughly KRW 150 billion, seeking to stabilize the domestic supply chain and secure the feedstock for high-purity F2 gas.

BGF Vice Chairman Hong Jung-kook stated at the annual shareholders' meeting that the investment decision on the anhydrous hydrofluoric acid facility contributed to stabilizing Korea's semiconductor supply chain, reaffirming the company's intention to continue investing in the materials segment.

In the white bio segment, the company disclosed in August 2026 a decision to acquire the remaining stake in subsidiary BGF Ecosolution through a put-option exercise, raising its ownership to 100%.

This is interpreted as strengthening control over the group's biodegradable plastics business and broadening the scope of consolidated results. The automotive materials segment is diversifying through Daewon Chemical, acquired in 2024, expanding supply of lightweight materials to automakers.

However, given the sharp quarter-on-quarter decline in operating profit in the second quarter of 2026, it remains a phase where investors need to confirm whether investment in the semiconductor and white bio new businesses actually translates into improved profit and loss in coming quarters.

Valuation

PER

11.6×

PBR

0.4×

ROE

4.3%

EPS

₩256

BPS

₩6,775

Dividend per share

₩50

The current share price sits below the company's self-calculated book value per share, meaning it trades at a discount to net asset value. Net profit attributable to owners turned from a loss in 2023 to a profit in 2024 and remained profitable in 2025, with the trailing four-quarter sum also showing a profit.

However, with a quarter such as the second quarter of 2026 showing a sharply reduced operating profit mixed in, the quality of the earnings base underlying the price-to-earnings ratio still carries variability.

Dividends are paid annually, but the dividend yield itself is not large, suggesting market interest in this name leans more toward the semiconductor and bio new-business growth story than toward income.

Valuation judgments here appear to hinge on how much, and how soon, the new-business investments translate into improved results going forward.

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 2026-09-04

Bull factors

Beneficiary of Semiconductor Material Localization

Anhydrous hydrofluoric acid is a key material for semiconductor cleaning and etching that is more than 90% dependent on Chinese supply, aligning the company with the government's supply-chain localization policy.

The company is investing about KRW 150 billion to build a 50,000-ton annual anhydrous hydrofluoric acid production system, which could stabilize feedstock for specialty gases such as high-purity F2 gas produced by subsidiary Fluorine Korea.

Given steady demand for specialty gases in semiconductor processes, successful localization could establish a new revenue base.

Vertically Integrated White Bio Materials

The BGF Group directly researches, develops, and supplies biodegradable plastic (PLA) and recycled plastic (PCR) feedstock within the group through materials affiliate BGF Ecomaterials and its subsidiaries BGF Ecosolution and BGF Ecocycle.

Unlike competing retailers that source eco-friendly packaging externally, the group performs the entire process in-house, from raw material sourcing to compound development and applied product development.

Demand for biodegradable materials is trending upward as consumer concern over microplastics and endocrine disruptors grows, and the August 2026 move to make BGF Ecosolution a wholly owned subsidiary can be read as strengthening control over this segment.

Revenue Growth and Improving Operating Margin Trend

Revenue reached KRW 397.9 billion in 2025, up from KRW 364.3 billion in 2024, while the operating margin improved from 3.8% to 4.4%. Operating cash flow has also recovered steadily, from negative KRW 10.1 billion in 2022 to KRW 24.3 billion, KRW 12.5 billion, and KRW 26.9 billion in 2023, 2024, and 2025 respectively. Top-line growth has continued as newly acquired subsidiaries begin contributing more fully to results.

Bear factors

Sharp Operating Profit Contraction in H1 2026

Operating profit in the second quarter of 2026 fell to KRW 1.2 billion, down 62.8% from the prior quarter's KRW 3.2 billion and more than 80% from KRW 6.1 billion a year earlier. Operating profit had also dropped to KRW 0.6 billion in the fourth quarter of 2025, indicating heightened volatility in recent quarters.

In contrast, net profit attributable to owners rose from KRW 3.9 billion in the first quarter of 2026 to KRW 4.4 billion in the second quarter, a recurring pattern in which non-operating items drive the direction of net profit, warranting scrutiny of earnings quality.

Rising Financial Burden from Expanding Investment

The debt ratio rose each year, from 30.6% in 2023 to 44.8% in 2024 and 56.4% in 2025.

Funding needs have grown with continued affiliate acquisitions and facility investment, including the roughly KRW 150 billion anhydrous hydrofluoric acid facility and the KRW 38.4 billion move to make BGF Ecosolution a wholly owned subsidiary. Financial structure pressure could persist until these new-business investments generate returns.

Governance Concerns Over Intra-Group Capital Allocation

At a shareholders' meeting, minority shareholders raised concerns that holding company BGF uses BGF Retail as a cash cow to concentrate funding on affiliate BGF Ecomaterials. Conversely, others noted that funding new businesses at affiliates is a natural feature of an investment-style holding company structure.

Market assessment of this capital allocation approach may remain a point of debate until the new businesses' performance becomes clearer.

Risk factors

Raw Material and FX Volatility

Prices of petrochemical base materials for engineering plastics and agricultural inputs such as corn and sugarcane for PLA are volatile depending on global market conditions and exchange rates.

The semiconductor specialty gas segment is also affected by supply conditions for fluorine-based raw materials such as fluorite (CaF2). If rising raw material costs are not fully passed through to prices, the recent operating margin improvement could be disrupted again.

Delays in New Facility Ramp-Up and Customer Qualification

The anhydrous hydrofluoric acid facility is a new business involving large-scale investment, and delays in ramp-up timing or customer quality qualification could lengthen the investment payback period.

Semiconductor customer qualification procedures are typically demanding and time-consuming, so early revenue contribution could be later than planned.

Limits in Biodegradable Plastic Certification and Disposal Infrastructure

Most biodegradable plastics decompose effectively only under specific conditions such as industrial composting facilities, differing from the perception that they break down automatically in ordinary environments.

If such disposal infrastructure is not sufficiently developed domestically, the gap between consumer and regulatory perceptions of eco-friendliness and the actual disposal reality could constrain business expansion.

What to watch next

Around November 2026
Expected timing of the 2026 third-quarter earnings disclosure; watch whether the operating margin, which fell sharply in the second quarter, recovers.
Second half of 2026
Check whether the anhydrous hydrofluoric acid facility (50,000 tons per year capacity, about KRW 150 billion total investment) begins operation and initial shipments.
Q4 2026 through early 2027
Check how the results of BGF Ecosolution, which became a wholly owned subsidiary in August 2026, are reflected in consolidated financials and how much the white bio segment contributes to profit.
Upon future disclosure
Continue monitoring for disclosures on expanded customer qualification or new supply contracts for semiconductor specialty gases from KNW and Fluorine Korea.

Overall view

BGF Ecomaterials is a KOSDAQ chemical company that has grown beyond its core engineering plastics business through successive acquisitions and investments in semiconductor specialty gases and white bio (biodegradable plastics).

In 2025, both revenue and operating profit rose year on year with an improved operating margin, but net profit attributable to owners declined slightly, and operating profit showed sharp quarter-to-quarter volatility in the first half of 2026.

Expansion into localized anhydrous hydrofluoric acid production and the full consolidation of BGF Ecosolution ride tailwinds from semiconductor supply-chain policy and biodegradable material regulation, but they also come with a rising debt ratio and continued market attention to intra-group capital allocation.

The share price trades below the company's self-calculated book value per share, sitting at a discount to net assets, while the dividend yield remains modest. The key point to watch going forward is how much, and how soon, these new-business investments translate into actual quarterly profit improvement.

Sources

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

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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.