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
JC Chemical, which has vertically integrated biodiesel and bio-heavy oil production with an Indonesian palm plantation, posted a net loss in 2025 but showed a revenue and profit recovery in the first half of 2026, even as commodity prices and policy shifts remain key variables.
Owners' net loss of about KRW 4.0bn in 2025 turned into consecutive profits in Q1-Q2 2026.
Dual policy momentum from Korea's push to raise the RFS blending mandate and Indonesia's early adoption of B50.
The Indonesian palm estate has entered its peak-yield 'golden age,' expanding the plantation segment's profit contribution.
Product portfolio diversification is underway through new biofuels such as PTU (pre-treated used cooking oil) and BMF (bio marine fuel).
Large refiners' entry into biodiesel production and commodity price volatility remain factors to monitor closely.
JC Chemical was established in 2006 to produce and sell biodiesel, listed on KOSDAQ in 2011, and completed its vertical integration by acquiring an Indonesian oil palm plantation in 2012.
Its core products are biodiesel (BD100), blended into diesel, and bio-heavy oil used for power generation, and these two products account for more than 80% of revenue, with the remainder coming from crude palm oil (CPO) and related items.
The company has broadened its lineup by producing PTU and BMF to expand its product portfolio.
Its Ulsan plant has an annual biodiesel production capacity of 165,000 kiloliters, while the Ulsan Sinhang plant has converted facilities to supply PTU to global markets and is collaborating with refiners on the commercialization of bio marine fuel.
On the feedstock side, the company acquired Indonesian palm plantation subsidiaries PT Niagamas Gemilang and PT Sukses Bina Alam in 2012 and 2013, completing vertical integration from raw material production to biofuel manufacturing.
In 2024 it acquired an additional palm estate (PT PPP), and now operates an Indonesian palm plantation roughly 30 times the size of Yeouido, while expanding its CPO Mill to raise fresh fruit bunch (FFB) processing capacity to 60 tons per hour.
The largest shareholder is Seoul Petroleum, a petroleum wholesaler holding a 40.26% stake.
Korea's biodiesel industry has traditionally been contested by seven producers including SK Ecoprime and Danseok Industry, but the competitive landscape is shifting as GS Caltex expands its biodiesel plant and HD Hyundai Oil Bank prepares to enter the market, with large refiners moving directly into production.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩92.2B | ₩4B | 4.3% |
| 2025Q3 | ₩110.8B | ₩1.8B | 1.7% |
| 2025Q4 | ₩86.2B | -₩400M | −0.4% |
| 2026Q1 | ₩121.2B | ₩1.6B | 1.3% |
| 2026Q2 | ₩142.8B | ₩11.5B | 8.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩511.7B | ₩42.6B | ₩20.4B | 8.3% | 13.8% | 115.2% |
| 2023 | ₩439.2B | ₩32.3B | ₩20.8B | 7.4% | 12.6% | 86.7% |
| 2024 | ₩367.3B | ₩10.7B | ₩6.1B | 2.9% | 3.7% | 109.3% |
| 2025 | ₩367.5B | ₩7.7B | -₩4B | 2.1% | −2.7% | 164.7% |
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
Annual revenue fell for three straight years from KRW 511.7bn in 2022 to KRW 439.2bn in 2023 and KRW 367.3bn in 2024, before staying essentially flat at KRW 367.5bn in 2025. The operating margin steadily declined from 8.3% in 2022 to 7.4% in 2023, 2.9% in 2024, and 2.1% in 2025.
Owners' net profit also fell from KRW 20.4bn in 2022 and KRW 20.8bn in 2023 to KRW 6.1bn in 2024, before turning into a net loss of KRW 4.0bn in 2025 despite an operating profit of KRW 7.7bn, suggesting the loss was largely driven by non-operating items.
On a quarterly basis, operating profit slid to about KRW 1.8bn and net profit to near breakeven in Q3 2025, before deteriorating further into an operating loss of KRW 0.4bn and a net loss of KRW 3.2bn in Q4 2025.
Performance recovered from Q1 2026, when revenue rose to KRW 121.2bn with operating profit of KRW 1.6bn and net profit of KRW 1.4bn, and accelerated in Q2 2026 with revenue of KRW 142.8bn, operating profit of KRW 11.5bn, and owners' net profit of KRW 8.8bn.
As a result, the combined owners' net profit over the four quarters from Q3 2025 to Q2 2026 reached about KRW 7.0bn, an improvement over the preceding four-quarter period.
The company attributed the improvement to cost savings from using lower-priced feedstock and better domestic biofuel sales margins, while noting that the palm plantation business posted first-half revenue up about 45% year-on-year and operating profit up about 86%, marking a record high.
Korea's biodiesel market operates under the Renewable Fuel Standard (RFS), which requires refiners to blend biodiesel into diesel, and the government is pursuing a plan to raise the mandatory blending ratio from the current level in the 3% range to 8% by 2030.
However, blending ratios above 5% face technical limits such as winter start-up issues, so next-generation biodiesel (HBD), made by hydrogenating animal and plant fats, is being considered to fill the remaining gap.
The government had previously set targets of introducing bio marine fuel domestically by 2025 and bio jet fuel by 2026. On the feedstock side, Korea's biodiesel feedstock is about 70% dependent on imports, making earnings highly sensitive to international palm oil and soybean oil price swings.
Indonesia, the largest feedstock supplier, recently moved up its B50 policy, raising the palm oil blending ratio in biodiesel to 50% amid Middle East-related energy security concerns, a move expected to increase annual palm oil demand by about 28.6%.
On the competitive front, GS Caltex has expanded its biodiesel plant and HD Hyundai Oil Bank is preparing to enter the market, as large refiners move directly into production, creating tension with existing specialized producers over market roles.
Meanwhile, the European Union has classified palm oil and soybean oil as high-risk feedstocks since 2021 and is phasing them out of transport biofuels, so the international regulatory environment for palm-based biodiesel varies by region.
The company has set a target of achieving KRW 1 trillion in revenue and KRW 100 billion in operating profit within five years, and stated it will expand into next-generation biofuels such as sustainable aviation fuel (SAF) and HVO.
In its first-half 2026 results, the company noted that BD sales volume rose 18% year-on-year while export volume increased roughly fivefold, and that PTU sales volume more than doubled and BMF sales volume increased roughly fourfold.
Regarding the Indonesian palm plantation, the company said its palm trees have entered their peak-yield 'golden age,' driving a sharp rise in plantation segment operating profit.
It also stated plans to further boost plantation profitability by developing the additional palm estate (PT PPP) acquired in 2024 and strengthening the competitiveness of its milling facilities.
Domestically, the conversion of the Ulsan Sinhang plant to expand PTU supply and collaboration with refiners on bio marine fuel commercialization continues.
These targets and plans, however, represent the company's stated direction, and actual progress may vary depending on international feedstock prices and the pace of policy implementation at home and abroad.
Given the sharp swings between profit and loss in recent years, the stock's valuation multiples have also moved across a wide range that reflects this earnings cycle. Whether the recent turn from loss to profit persists will determine where valuation settles relative to its historical trading range in coming quarters.
The share price relative to net asset value has, at different points, traded at a discount to or close to book value, and how much of the earnings recovery feeds through to equity remains a point to watch.
On dividends, the company has a history of cash distributions, but given the industry's earnings volatility, the consistency of dividend policy is likely to depend on future earnings trends.
Korea Investment & Securities, in a June 22, 2026 report, described JC Chemical as a 'specialized biofuel producer,' citing its 165,000-kiloliter annual biodiesel capacity and stable demand supported by the blending mandate system.
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
The Korean government is pursuing a plan to raise the domestic biodiesel blending mandate to 8% by 2030, while Indonesia has moved up its B50 policy to boost palm oil demand. Policy direction in both countries provides a supportive backdrop for the company's core biodiesel and palm oil-related businesses. That said, the pace and details of implementation could still be adjusted.
The Indonesian palm estate has entered its peak-yield 'golden age,' driving sharp growth in plantation segment operating profit. First-half 2026 plantation operating profit rose about 86% year-on-year to a record high.
The vertically integrated structure spanning raw material production to biofuel manufacturing could support cost management during periods of rising palm oil prices.
Beyond biodiesel and bio-heavy oil, PTU sales volume more than doubled and BMF sales volume increased roughly fourfold year-on-year. The company has also announced plans to expand into next-generation biofuels such as SAF and HVO. Should this diversification continue, it could reduce reliance on any single product or market.
Korea's biodiesel feedstock is about 70% dependent on imports, so swings in international palm oil and soybean oil prices directly affect earnings. The operating margin has indeed declined from 8.3% in 2022 to 2.1% in 2025. Given the industry's heavy reliance on imported feedstock, this volatility could recur in the future.
There is industry concern that GS Caltex's plant expansion and HD Hyundai Oil Bank's anticipated market entry, as large refiners move directly into production, could pressure the market position of existing specialized producers. This could weigh on the pricing power of smaller biofuel companies.
In 2025, despite an operating profit of KRW 7.7bn, owners' net profit turned into a loss of KRW 4.0bn, and Q4 2025 even recorded an operating loss, illustrating large quarter-to-quarter swings. Such volatility appears to reflect the simultaneous influence of commodity prices, foreign exchange, and non-operating items. Similar volatility cannot be ruled out going forward.
Revenue from the Indonesian palm plantation is exposed to the rupiah exchange rate and international palm oil prices, and domestic biodiesel feedstock is about 70% import-dependent, leaving procurement costs vulnerable to swings. A sharp drop in commodity prices or unfavorable currency moves could weaken the company's cost advantage.
The company's core demand drivers—Korea's plan to raise the RFS blending mandate and Indonesia's B50 policy—are policy variables subject to government adjustment.
Regions such as the European Union have classified palm-based biofuels as high-risk feedstock and restricted their use, highlighting differences in regulatory environments across regions.
The largest shareholder, petroleum wholesaler Seoul Petroleum, holds a 40.26% stake, resulting in a decision-making structure centered on the controlling shareholder. Such concentrated ownership could give rise to issues in balancing interests with minority shareholders.
Preliminary Q3 2026 (July-September) operating results are expected to be disclosed — worth checking whether the revenue and profit recovery seen in Q2 continues.
The actual pace of Indonesia's B50 implementation and international palm oil price trends warrant monitoring, as they directly affect plantation segment profitability.
Progress on Korea's next-generation biodiesel (HBD)-related legislative amendments and the blending mandate roadmap should be monitored.
It is worth checking progress against the company's five-year target of KRW 1 trillion in revenue and KRW 100 billion in operating profit, and whether SAF/HVO new business plans become more concrete.
JC Chemical is a green energy company that has vertically integrated domestic biodiesel and bio-heavy oil production with an Indonesian palm plantation.
Revenue and operating margin both declined from 2022 through 2024, and owners' net profit turned into a loss in 2025, but a recovery emerged with revenue and profit both rising in Q1 and Q2 2026.
Korea's push to raise the RFS blending mandate and Indonesia's early adoption of B50 provide a favorable policy backdrop for the company's core businesses.
At the same time, fluctuations in palm oil and soybean oil prices, the entry of large refiners into the market, and quarter-to-quarter earnings volatility remain factors that warrant continued attention.
The company is broadening its portfolio with new biofuels such as PTU, BMF, and SAF, and has set a target of reaching KRW 1 trillion in revenue within five years.
The sustainability of this trajectory will likely depend on quarterly results from Q3 2026 onward and the actual pace of palm oil and biofuel policy implementation. This report is for informational purposes only and does not constitute a buy or sell recommendation.
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.