PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Asia Cement returned to profitability in both Q1 and Q2 2026 after a Q4 2025 loss, even as domestic cement shipments have fallen to a 34-year low in a structurally contracting market.
2025 revenue fell to KRW 1,022.8bn (-7.9% YoY) and operating profit to KRW 77.1bn (-45.2%), a sharp slowdown
After a KRW -16.2bn net loss attributable to owners in Q4 2025, the company posted two consecutive profitable quarters: KRW 4.9bn in Q1 2026 and KRW 14.3bn in Q2 2026
According to the Korea Cement Association, 2025 domestic cement shipments fell to roughly 38.1 million tons, the first sub-40-million-ton level since 1991
The start of Phase 4 of Korea's Emissions Trading Scheme in 2026 cuts average allowable emissions by 16.4% versus Phase 3, raising carbon cost pressure
The company paid a total 2025 dividend of KRW 250 per share (KRW 50 interim, KRW 200 final) and has stated it plans to unveil a new shareholder return policy in the second half of 2026
Asia Cement is a building materials company centered on cement, ready-mix concrete, and dry mortar, having substantially expanded cement capacity through its subsidiary Hanla Cement.
Asia Cement's own plants and Hanla Cement have annual cement production capacities of 4.5 million tons and 7.6 million tons respectively, backed by a nationwide distribution network in ready-mix concrete and dry mortar.
Hanla Cement appears to be increasing its contribution through higher clinker output and an expanding share of the slag cement market. The consolidated entity also includes Woosin Venture Investment, a venture capital business, and Gyeongju World, a theme park operator, adding diversification to the group portfolio.
On the product side, the company is developing new items such as eco-friendly bio-loess cement and high-strength refractory concrete binders, alongside eco-blocks, loess blocks, and greening ecological blocks.
The cement industry has an oligopolistic structure dominated by a handful of producers that largely determine output and pricing, with domestic competitors including Ssangyong C&E, Hanil Cement, and Sampyo Cement.
Vertical integration, where some cement suppliers also produce ready-mix concrete, creates a competitive relationship with smaller independent ready-mix producers.
More recently, the company has sought to expand supply to large-scale SOC projects and develop eco-friendly technology to strengthen its response to environmental regulation.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩284.4B | ₩40.6B | 14.3% |
| 2025Q3 | ₩243.8B | ₩19B | 7.8% |
| 2025Q4 | ₩274.2B | ₩7.6B | 2.8% |
| 2026Q1 | ₩240.6B | ₩11.4B | 4.7% |
| 2026Q2 | ₩277.7B | ₩23.6B | 8.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1T | ₩118B | ₩63.5B | 11.3% | 6.6% | 108.4% |
| 2023 | ₩1.2T | ₩146.9B | ₩89.6B | 12.2% | 8.7% | 102.1% |
| 2024 | ₩1.1T | ₩140.8B | ₩81.4B | 12.7% | 7.4% | 98.4% |
| 2025 | ₩1T | ₩77.1B | ₩16.9B | 7.5% | 1.6% | 97.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
Confirmed annual results show revenue rising from KRW 1,040.1bn in 2022 to KRW 1,200.5bn in 2023, then contracting for two straight years to KRW 1,110.3bn in 2024 and KRW 1,022.8bn in 2025.
Operating margin improved from 11.3% in 2022 to 12.2% in 2023 and 12.7% in 2024, before dropping sharply to 7.5% in 2025, a significant deterioration in profitability.
Net income attributable to owners also fell sharply, from KRW 81.4bn in 2024 to KRW 16.9bn in 2025, reflecting the combined impact of lower revenue and rising cost pressure.
On a quarterly basis, solid results in Q2 2025 (revenue KRW 284.4bn, operating profit KRW 40.6bn, owners' net income KRW 23.5bn) softened to KRW 243.8bn, KRW 19.0bn, and KRW 8.7bn respectively in Q3, before Q4 saw revenue of KRW 274.2bn, operating profit shrink to KRW 7.6bn, and owners' net income turn negative at KRW -16.2bn.
The company then returned to profit in Q1 2026 with revenue of KRW 240.6bn, operating profit of KRW 11.4bn, and net income of KRW 4.9bn, and improved further in Q2 2026 to revenue of KRW 277.7bn, operating profit of KRW 23.6bn, and net income of KRW 14.3bn.
Cumulative owners' net income over the trailing four quarters (Q3 2025 through Q2 2026) stands at roughly KRW 11.8bn, well below full-year 2024 levels.
These quarterly swings illustrate the structural sensitivity of the cement business to shipment volume fluctuations tied to the construction cycle and to raw material and energy cost burdens flowing directly through to earnings.
On the cash flow side, operating cash flow declined more gradually than net income, from KRW 198.4bn in 2023 to KRW 168.3bn in 2024 and KRW 93.4bn in 2025, indicating relatively steadier cash generation.
Korea's cement industry is being hit directly by the prolonged construction downturn.
According to the Korea Cement Association, domestic cement shipments in 2025 fell to roughly 38.1 million tons, dropping below 40 million tons for the first time in 34 years since 1991, with concerns that 2026 shipments could fall further to around 36 million tons.
At the same time, cost pressures are intensifying: with electricity accounting for about 30% of manufacturing cost and fuel costs including coal at 20-25%, rising coal prices, a restructuring of time-of-day electricity rates, and the reintroduction of a safe trucking freight rate system are compounding logistics cost burdens.
From 2026, the start of Phase 4 of the Emissions Trading Scheme cuts average allowable emissions by 16.4% versus Phase 3, intensifying pressure for carbon-reduction investment.
Supply-demand signals are nonetheless mixed: according to Shinhan Investment, cumulative apartment construction starts through June this year rose 14% year-on-year, which could be read as a leading indicator for future cement demand recovery.
Industry experts view differentiation through specialty concrete, low-carbon cement, and expanded use of circular resources as factors that will determine survival going forward.
Competitively, Asia Cement maintains a leading position among Ssangyong C&E, Hanil Cement, and others, underpinned by Hanla Cement's large production capacity and its expanding share of the slag cement market.
Per the company's own disclosure commentary, the Q1 2026 earnings improvement was driven by increased clinker production at Hanla Cement, an expanding slag cement market share, and higher operating revenue at Woosin Venture Investment.
Even amid an ongoing construction downturn, tighter budget management and cost structure improvement efforts appear to be helping defend profitability.
Some brokerages have suggested that if the increase in apartment construction starts continues, the scale of earnings improvement across the cement industry could widen, with Shinhan Investment forecasting improved sector earnings ahead on the back of rising construction starts.
However, this remains a forecast that has not yet materialized and should be treated with caution.
The company has stated that, with its two-year shareholder return policy concluding this year, it plans to formulate a new shareholder return policy in the second half of 2026, making the direction of future dividend policy a key point to watch.
The scope and scale of capital investment in fuel and raw material conversion and waste heat recovery to address Phase 4 of the Emissions Trading Scheme is another variable that will affect the future cost structure.
Efforts to expand supply to large SOC projects and boost sales of eco-friendly products are ongoing, though specific order or revenue contribution figures have not yet been disclosed.
The price-to-book ratio trades at a substantial discount to net asset value, consistent with how the cement sector broadly is being valued amid the construction downturn.
By contrast, the earnings-based multiple has risen well above levels seen before the 2024 loss expansion, which can be read as reflecting a faster decline in profit than in share price.
On dividends, it is worth noting that the company has maintained shareholder-return momentum by meeting high-dividend company criteria and operating a policy targeting a payout ratio of 40% or more of standalone net income.
However, given the sharp decline in 2025 net income, the available dividend funding and the specific content of the new shareholder return policy flagged for the second half of 2026 remain variables that will shape the future direction of dividend yield.
As earnings turned from a Q4 2025 loss to profitability in the first half of 2026, the continuity of future quarterly results is likely to be an important reference point for interpreting valuation 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 2026-08-22
According to Shinhan Investment, cumulative apartment construction starts through June this year rose 14% year-on-year. Because construction starts translate into cement and ready-mix demand with a time lag, this could serve as a leading indicator for a future shipment recovery.
Government efforts to identify new housing sites and expand housing supply are also cited as factors supporting this trend.
After a KRW -16.2bn owners' net loss in Q4 2025, the company posted profits of KRW 4.9bn in Q1 2026 and KRW 14.3bn in Q2 2026.
Increased clinker production and an expanding slag cement market share at Hanla Cement have been cited as drivers of the improvement, though it is still too early to say results have recovered to 2024 annual levels.
The company paid a total 2025 dividend of KRW 250 per share, maintaining high-dividend company status, and stated it plans to announce a new shareholder return policy in the second half of 2026.
Activist fund VIP Asset Management, which had previously escalated engagement by expanding its stake, recently changed its stated investment purpose to simple investment and reduced its holdings, easing pressure. This appears to coincide with the company's own strengthening of shareholder-friendly measures.
Domestic cement shipments fell to roughly 38.1 million tons in 2025, a 34-year low, with forecasts suggesting a further decline to around 36 million tons in 2026.
While there are signals of increasing construction starts, there is a time lag before this translates into an actual shipment rebound, and the downturn could extend further if the broader construction recovery is delayed.
With electricity accounting for about 30% of manufacturing cost and fuel including coal at 20-25%, rising coal prices, a restructuring of time-of-day electricity rates, and the reintroduction of a safe trucking freight rate system are simultaneously increasing logistics cost burdens.
Because the cement production process requires continuous 24-hour operation, there is limited scope to reduce costs by adjusting the timing of power usage. If demand fails to keep pace with rising costs, margin pressure could persist.
Phase 4 of the Emissions Trading Scheme, starting in 2026, is designed to cut average allowable emissions by 16.4% compared to Phase 3.
Since the design assumes rising allowance prices, industry observers note it is difficult for a domestically focused industry to pass through the resulting cost increases, while the burden of reduction-related investment such as fuel and raw material conversion is also rising simultaneously.
Coal is entirely import-dependent, leaving the company fully exposed to international price and exchange rate fluctuations. Restructuring of the electricity rate system and reintroduction of the trucking freight rate system are driving up fixed-cost-like expenses.
Because it is difficult for this domestically focused industry to pass cost increases through to prices, margin volatility could increase.
Cement demand lags housing approvals and construction starts, so a delayed construction cycle recovery could also delay a rebound in shipment volumes.
As shown by the 34-year shipment low, confirming an industry trough may take time, and the timing and scale at which increased construction starts translate into actual cement consumption have not yet been confirmed by finalized figures.
With the start of Phase 4 of the Emissions Trading Scheme reducing allowable emissions, a larger-than-expected rise in allowance prices could create additional cost burdens.
The scale and timing of investment needed for low-carbon facility conversion could affect the future financial structure, and if the pace of regulatory tightening outpaces the industry's ability to respond, it could weigh on profitability.
Check the Q3 2026 earnings disclosure — whether the profitability seen in H1 2026 continues into Q3 will be a key point to watch.
Confirm whether the company announces the new shareholder return policy it has flagged, and the specifics of any dividend or share buyback/cancellation plans.
Monitor monthly domestic shipment statistics from the Korea Cement Association to check whether full-year 2026 shipments decline to the roughly 36 million ton level as feared.
This is the point to check whether rising apartment construction starts translate into an actual rebound in cement shipments, and how Phase 4 Emissions Trading Scheme cost burdens are reflected in earnings.
Asia Cement saw sharply weaker revenue and profit in 2025, then shifted direction from a Q4 2025 loss to profitability in both Q1 and Q2 2026.
The industry as a whole continues to face structural headwinds from a 34-year shipment low and expanding cost and carbon burdens, even as a recovery signal has emerged in the form of rising apartment construction starts—a mixed picture.
The company is defending profitability through an expanding slag cement market share and cost structure improvements, and has flagged a new shareholder return policy for the second half of 2026.
On valuation, contrasting signals are observed: a discount to net asset value alongside a relatively elevated earnings-based multiple. The key questions going forward are when rising construction starts will translate into an actual shipment rebound, and whether the return to profitability proves durable.
Readers should review upcoming quarterly results and industry shipment statistics together before forming any investment judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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