PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩500 per share · Prices as of the 2026-10-02 close
KD Chem maintains its dominant position in the domestic organic liquid PVC stabilizer market, but revenue has stayed flat in the KRW 60 billion range for four years while quarterly net income has swung sharply due to non-operating items.
Annual revenue has stayed range-bound between KRW 59.1bn and 62.9bn from 2022 to 2025, showing little top-line growth.
Operating margin has fluctuated between 9.2% (2022) and 12.0% (2024), easing slightly to 11.1% in 2025.
Quarterly net income has swung widely, from a net loss of KRW 1.12bn in 2025Q2 to a net profit of KRW 4.43bn in 2026Q2, driven largely by non-operating items rather than the operating trend.
The company is described as the sole domestic specialist maintaining over 50% market share in the organic liquid PVC stabilizer segment for several years.
In March 2025, the company added cosmetics ingredient distribution and export/import as a new business purpose, seeking diversification.
Founded in 1986, KD Chem manufactures and sells PVC stabilizers (plastic additives), operating its headquarters and a production plant in Boeun County, Chungcheongbuk-do, an additional plant in Ansan, and a sales subsidiary in Shandong, China.
Its core product is organic liquid stabilizer, supplemented by other stabilizer products and merchandise sales.
In the domestic market, roughly five companies including KD Chem compete, and the company is described as the sole domestic specialist in organic liquid stabilizers, having maintained over 50% market share for several years.
Customer concentration is low, with no single customer accounting for more than 10% of sales, spread across roughly 330 different accounts.
Its products are used across wallpaper, flooring, synthetic leather, automotive interiors, and window profiles, and are exported to more than 30 countries including China, the Americas, and Europe.
Globally, a small number of large overseas players such as Baerlocher and Adeka dominate the stabilizer market with high-quality product portfolios, positioning KD Chem's strategy around its regional strength in the organic liquid stabilizer niche.
At its March 2025 annual general meeting, the company added cosmetics ingredient distribution and export/import as a new business purpose, leveraging its existing industrial chemicals know-how, and is reportedly in early-stage discussions on exclusive distribution agreements with overseas cosmetics ingredient suppliers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩16.9B | ₩1.9B | 11.3% |
| 2025Q3 | ₩15.8B | ₩2B | 12.5% |
| 2025Q4 | ₩15.1B | ₩1.2B | 8.1% |
| 2026Q1 | ₩16.3B | ₩2B | 12.2% |
| 2026Q2 | ₩16.2B | ₩1.6B | 9.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩62.1B | ₩5.7B | ₩8.2B | 9.2% | 8.5% | 26.8% |
| 2023 | ₩59.1B | ₩6.3B | ₩5.3B | 10.6% | 5.3% | 24.0% |
| 2024 | ₩62.4B | ₩7.5B | ₩5.4B | 12.0% | 5.3% | 30.8% |
| 2025 | ₩62.9B | ₩7B | ₩3.5B | 11.1% | 3.4% | 24.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
KD Chem's consolidated revenue has been essentially flat across four years, at KRW 62.1bn (2022), KRW 59.1bn (2023), KRW 62.4bn (2024), and KRW 62.9bn (2025).
Operating profit improved from KRW 5.70bn (9.2% margin) in 2022 to KRW 6.25bn (10.6%) in 2023 and KRW 7.47bn (12.0%) in 2024, before easing to KRW 6.97bn (11.1%) in 2025.
Net income attributable to owners followed a different pattern, actually declining from KRW 8.16bn in 2022 (unusually high relative to the operating margin that year) to KRW 5.32bn in 2023, KRW 5.39bn in 2024, and KRW 3.51bn in 2025.
On a quarterly basis, 2025Q2 posted operating profit of KRW 1.91bn yet a net loss attributable to owners of KRW 1.12bn, suggesting a sizable non-operating loss that quarter.
Results then stabilized somewhat, with 2025Q3 operating profit of KRW 1.98bn and net profit of KRW 2.30bn, 2025Q4 operating profit of KRW 1.23bn and net profit of KRW 0.75bn, and 2026Q1 operating profit of KRW 1.98bn and net profit of KRW 0.93bn, before 2026Q2 saw operating profit ease to KRW 1.56bn while net profit jumped to KRW 4.43bn, again highlighting the outsized role of non-operating items.
Summing the most recent four quarters (2025Q3 through 2026Q2), operating profit totals roughly KRW 6.76bn while net income attributable to owners totals roughly KRW 8.42bn, with net income continuing to exceed operating profit.
This pattern indicates that the core stabilizer manufacturing and sales business maintains a relatively stable operating margin in the 9-12% range, while equity-method gains/losses and financial income/expense items are driving the direction of quarterly bottom-line results.
On the balance sheet, the debt ratio has stayed low, easing from 26.8% in 2022 to 24.8% in 2025, and operating cash flow improved from KRW 3.09bn in 2022 to KRW 6.51bn in 2025.
The global PVC stabilizer market is a mature industry with modest volume growth expected, from roughly 15,700 tonnes in 2025 to 16,100 tonnes in 2026 and 18,000 tonnes by 2031, implying a compound annual growth rate in the low single digits.
Currently, regulatory requirements rather than volume growth are the primary competitive driver, with the EU's REACH and RoHS directives accelerating a global shift away from lead-based additives.
KD Chem's focus on Ca/Zn-based non-toxic eco-friendly stabilizers positions it on the beneficiary side of this regulatory shift, though overcapacity in Asia-Pacific production has simultaneously pushed Southeast Asian import prices to their lowest level in 17 years, compressing stabilizer spreads.
The domestic market remains an oligopoly with roughly five competitors including KD Chem, and the company has maintained over 50% market share as the sole domestic specialist in organic liquid stabilizers.
Globally, large players such as Baerlocher and Adeka lead the market with high-quality product portfolios, positioning KD Chem to leverage its domestic dominance and niche expertise as it expands overseas.
That said, given the structural link between results and construction/housing demand for PVC, both volumes and margins can be affected by the cycle in downstream industries.
KD Chem took part in Manufacturing Expo 2026 (ME2026) held in Bangkok, Thailand from June 17 to 20, 2026, focusing on its Ca/Zn-based non-toxic eco-friendly stabilizers to expand touchpoints with Southeast Asian processors and buyers.
Thailand is cited as an ASEAN automotive production hub with steady demand for PVC materials used in automotive interiors, and the company appears to be extending its existing export footprint of more than 30 countries (centered on China, the Americas, and Europe) into Southeast Asia.
The cosmetics ingredient distribution and export/import business added as a new purpose in March 2025 is currently centered on distributing imported cosmetics ingredients, with discussions underway for exclusive distribution agreements with overseas suppliers at an early stage; the timing and scale of any contribution to results remain unconfirmed.
In the core stabilizer business, maintaining domestic market leadership alongside rising demand for non-toxic products driven by tightening overseas environmental regulation is a favorable factor, while oversupply-driven pricing pressure in Southeast Asia acts as an offsetting factor.
No specific quantitative revenue or profit guidance from the company was identified, and future results are likely to hinge on the pace of export expansion in the existing stabilizer business and how concretely the new cosmetics ingredient business develops.
KD Chem trades at a relatively low multiple of net asset value, with market capitalization sitting in a modest range relative to equity attributable to owners.
On the earnings side, the sum of the most recent four quarters' net income shows improvement versus the level implied by prior annual results, placing the earnings multiple in a relatively low range as well.
However, as noted in the earnings discussion, this improvement owes more to swings in non-operating items than to the operating profit trend, and the level of earnings could look different should similar non-operating items fail to recur going forward.
The company has maintained a policy of paying annual cash dividends, though the continuation and size of future dividends are subject to annual board and shareholder resolutions.
When assessing valuation, it is worth distinguishing between the core business, which has shown a relatively stable operating margin in the 9-12% range, and the more volatile non-operating income and expense items.
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
KD Chem is Korea's only specialized organic liquid stabilizer company, maintaining a stable dominant position in the market with a share of over 50% for several years. In a domestic oligopolistic structure where about 5 companies compete, the risk of losing market share to a specific large competitor is relatively low.
With sales spread across approximately 330 customers, the impact of losing any specific customer is also limited.
While revenue has stagnated for 4 consecutive years, operating margin improved from 9.2% in 2022 to 12.0% in 2024, and remained at 11.1% in 2025.
Even amid slow top-line growth, the fact that core business profitability has been maintained within a certain range through cost and expense management can be viewed positively.
The company is expanding its export reach into markets such as the Southeast Asian automotive interior materials sector through participation in ME2026 in Bangkok, Thailand in June 2026, and in March 2025 added cosmetics ingredient distribution and import/export as a new business purpose.
Attempts are underway to broaden its growth axis beyond its existing single-business structure centered on stabilizers.
Consolidated revenue showed almost no change over 4 years, from KRW 62.1 billion in 2022 to KRW 62.9 billion in 2025. With domestic market share already exceeding 50%, further top-line expansion is structurally dependent on export growth or new business performance.
In Q2 2025, the company recorded operating profit of KRW 1.91 billion but a net loss of KRW 1.12 billion, while in Q2 2026, despite lower operating profit of KRW 1.56 billion, net income surged to KRW 4.43 billion.
Non-operating items have determined the direction of quarterly results regardless of operating profit trends, reducing predictability.
There is market analysis suggesting that stabilizer spreads are narrowing as Southeast Asian import prices fall to their lowest level in 17 years due to overcapacity in the Asia-Pacific region. This is an environment where price competition could intensify in the very regions where KD Chem is pursuing export expansion.
Demand for PVC stabilizers is directly correlated with the business cycle of PVC processing industries such as construction, housing, and automobiles. A slowdown in domestic or overseas construction activity could simultaneously affect both stabilizer volume and price.
Fluctuations in raw material prices such as calcium and zinc, along with exchange rate movements tied to export share, can simultaneously impact costs and revenue. Spread compression due to regional oversupply in Asia-Pacific can also become a cost pressure factor.
A recurring pattern has emerged in recent quarterly results where net income fluctuates significantly regardless of operating profit. The uncertain nature and reproducibility of these non-operating items is a factor that lowers the reliability of future quarterly net income forecasts.
Check the 2026Q3 earnings disclosure to assess whether the non-operating income surge seen in Q2 was a one-off or a recurring factor.
The FY2026 business report will reveal progress on the new cosmetics ingredient business and the dividend decision for the year.
Track whether the contacts made at the ME2026 Bangkok expo translate into actual export contracts with Southeast Asian buyers.
Continue monitoring how Southeast Asian PVC stabilizer oversupply and pricing trends affect the company's export margins.
KD Chem is a niche-market-dominant company that has maintained over 50% market share in Korea's organic liquid stabilizer market for a long period, with core business operating margin relatively stably managed in the 9-12% range.
Meanwhile, consolidated revenue has stagnated in the range of KRW 59.0-63.0 billion for 4 consecutive years, and controlling shareholder net income has shown large quarterly swings due to non-operating items regardless of operating profit trends.
The Q2 2025 net loss and Q2 2026 net income surge are representative examples, and whether such non-operating factors recur going forward is likely to be a key variable in gauging the direction of future performance.
On the growth front, attempts to expand Southeast Asian exports through participation in the June 2026 Bangkok, Thailand exhibition and the new cosmetics ingredient distribution business added in March 2025 are cited as new growth axes, but specific contract achievements or revenue contribution timing have not yet been confirmed.
The global PVC stabilizer market is an environment where both expanding demand for non-toxic products driven by regulations and price pressure from regional oversupply in Southeast Asia exist simultaneously.
Overall, this is a stock that warrants examination of three axes together: stable core business profitability, stagnant top-line growth, and highly volatile non-operating earnings.
Report written 2026-09-05 · Data as of 2026-09-04
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