PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,150 per share · Prices as of the 2026-10-02 close
Price hikes in copolyester and the ramp-up of the SK Multi Utility power plant are driving a recovery in the core business, but quarter-to-quarter earnings volatility and continued weakness at subsidiary SK bioscience remain the key swing factors for overall results.
Consolidated revenue rose sharply to about KRW 2.37 trillion in 2025 from KRW 1.74 trillion in 2024, while net income attributable to owners expanded from about KRW 8.8 billion to about KRW 44.6 billion.
Quarterly results have swung sharply, with operating profit of about KRW 15.6 billion in Q3 2025 and KRW 32.3 billion in Q2 2026, versus operating losses of about KRW 39.1 billion in Q4 2025 and KRW 18.9 billion in Q1 2026.
LS Securities noted in September 2026 that the core Copolyester and pharmaceutical businesses remain solid while growth from recycled/functional materials and SK Multi Utility (MU) is becoming visible.
SK Multi Utility's 300MW LNG/LPG cogeneration plant in Ulsan entered stable commercial operation in February 2026, marking the start of a new profit contribution.
The stock trades at a discount to book value, while the multiple relative to the small net income booked over the most recent four quarters is elevated.
SK Chemicals runs two core businesses, Green Chemicals (copolyester, monomer, and recycled materials) and Life Science (prescription and over-the-counter pharmaceuticals), and consolidates results from subsidiary SK bioscience (vaccines) and affiliate SK Multi Utility (power generation and energy).
Based on an earlier sustainability report, Green Chemicals materials such as copolyester and adhesives accounted for roughly 70% of sales, with Life Science making up about 30%.
Copolyester is a high-value specialty material used in cosmetics and household product packaging as well as automotive interiors, sold under brands such as Ecozen and Skybon, and the company has recently expanded into chemically recycled copolyester (CR) and the thermoplastic polyester elastomer (TPEE) product SKYPEL.
The Life Science segment covers prescription drugs across musculoskeletal, urological, and cardiovascular categories as well as OTC products, and has expanded through joint-development and contract manufacturing (CMO) agreements with global pharmaceutical companies.
Subsidiary SK bioscience handles vaccine R&D, manufacturing, and distribution, with SK Chemicals as the majority owner holding a stake of roughly 66%.
Affiliate SK Multi Utility operates a cogeneration business supplying power and steam within Ulsan's Mipo National Industrial Complex, with electricity and steam supplied to companies including SK Chemicals, Toray Advanced Materials, and KET.
In terms of competitive positioning, U.S.-based Eastman is a key rival in copolyester, while GC Biopharma and other domestic players compete in the vaccine segment.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩596.9B | -₩1B | −0.2% |
| 2025Q3 | ₩609.9B | ₩15.6B | 2.6% |
| 2025Q4 | ₩621.8B | -₩39.1B | −6.3% |
| 2026Q1 | ₩655.9B | -₩18.9B | −2.9% |
| 2026Q2 | ₩745.1B | ₩32.3B | 4.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.8T | ₩230.5B | ₩191.3B | 12.6% | 8.9% | 45.7% |
| 2023 | ₩1.7T | ₩83.3B | ₩39.9B | 4.8% | 1.9% | 55.4% |
| 2024 | ₩1.7T | -₩45.2B | ₩8.8B | −2.6% | 0.4% | 77.0% |
| 2025 | ₩2.4T | -₩200M | ₩44.6B | 0.0% | 2.0% | 93.8% |
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
Consolidated revenue was roughly flat between 2022 (about KRW 1.83 trillion) and 2024 (about KRW 1.74 trillion) before rising sharply to about KRW 2.37 trillion in 2025.
Operating profit fell from a high of about KRW 230.5 billion in 2022 to about KRW 83.3 billion in 2023, turned into a loss of about KRW 45.2 billion in 2024, and narrowed to a near-breakeven loss of about KRW 0.2 billion in 2025.
Net income attributable to owners similarly declined from about KRW 191.3 billion in 2022 to KRW 39.9 billion in 2023 and KRW 8.8 billion in 2024, before rebounding to about KRW 44.6 billion in 2025.
By quarter, operating profit was a small loss of about KRW 1.0 billion in Q2 2025 but turned to a profit of about KRW 15.6 billion in Q3 2025, with net income attributable to owners rising sharply to about KRW 42.9 billion.
However, Q4 2025 posted a large operating loss of about KRW 39.1 billion and a net loss of about KRW 32.2 billion, attributed to slower copolyester demand and one-off costs.
The loss continued into Q1 2026 with an operating loss of about KRW 18.9 billion and a net loss of about KRW 12.1 billion, as the standalone copolyester and pharmaceutical businesses held profitability through price increases while an operating loss in Life Science dragged down overall profitability.
Operating profit turned positive again in Q2 2026 at about KRW 32.3 billion, but net income attributable to owners was only about KRW 8.8 billion, a smaller improvement than the operating-profit gain, suggesting the allocation of earnings to non-controlling interests affected the net income trend.
Net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) totaled about KRW 7.4 billion, and given the wide quarter-to-quarter swings, it is still early to confirm a stable annualized earnings trend.
The copolyester market is generally viewed as difficult to enter given its reliance on DMT (dimethyl terephthalate)-based feedstock, downstream vertical integration, and specialized equipment and process technology.
Some analysis notes that global DMT capacity additions have been scarce since the 2010s, with recent European facility closures actually reducing supply. There is also commentary that SK Chemicals' sales exposure to China has been increasing as competitor Eastman scales back its China revenue.
LS Securities assessed in September 2026 that the copolyester segment defended profitability through average selling price (ASP) increases that outpaced cost inflation, with additional price hikes on high-value-added products implemented in early Q3.
On the energy side, Ulsan's designation as a distributed-energy special zone and SK Multi Utility's selection as a distributed-energy operator have created conditions for expanding power sales within the industrial complex.
In Europe, the phased implementation of the Packaging and Packaging Waste Regulation (PPWR) starting in August 2026 is expected by some observers to expand demand for recycled plastics (rPET).
The vaccine business, handled by subsidiary SK bioscience, continues to see slow revenue recovery after the end of pandemic-related demand, which remains a drag on consolidated results.
The 300MW LNG/LPG cogeneration plant operated by SK Multi Utility in Ulsan broke ground in July 2022 and, after roughly 40 months of construction, completed efficiency verification and stabilization in February 2026.
The plant can supply about 2,412,000 MWh of electricity and 1.82 million tons of steam annually, serving customers within Ulsan's Mipo National Industrial Complex including SK Chemicals and Toray Advanced Materials.
Samsung Securities estimated in January 2026 that the new plant's contribution would account for a substantial portion of that year's profit growth and projected SK Multi Utility would turn profitable after seven consecutive loss-making quarters; this was a forecast at the time and may differ from actual results.
In copolyester, the company is understood to have signed a European distribution agreement with global distributor Omya for its thermoplastic polyester elastomer (TPEE) material SKYPEL.
In Life Science, a 21-valent pneumococcal vaccine being co-developed with Sanofi is confirmed to have entered global Phase 3 clinical trials.
On the financing side, the company is understood to have raised funds to repay maturing loans and public bonds partly through issuing exchangeable bonds backed by its SK bioscience shares, and discussions around monetizing a minority stake in SK Multi Utility are reported to be ongoing.
The stock trades below its book-value net asset level, placing the price-to-book ratio under 1x. Narrowing the window to the most recent four quarters, however, net income attributable to owners is small, so the price multiple relative to earnings sits well above the upper end of its historical trading range.
This largely reflects the consecutive losses in Q4 2025 and Q1 2026 pulling down recent earnings, and the multiple needs to be interpreted with caution during a period of alternating quarterly profits and losses.
On dividends, the company is understood to have maintained its consolidated payout ratio at a certain level, though dividend appeal should be considered alongside the pace of earnings recovery rather than in absolute terms.
Ultimately, how steadily the core copolyester business and the new power-generation contribution from SK Multi Utility continue to add to earnings will remain the key factor shaping how the stock's valuation relative to asset value is read 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
The copolyester market is seen as having limited room for new entrants given its DMT-based feedstock system, vertical integration, and specialized equipment requirements. Some analysis points to SK Chemicals gaining China sales share as competitor Eastman scales back its China revenue.
LS Securities assessed in September 2026 that the copolyester segment defended profitability through price increases that outpaced cost inflation.
SK Multi Utility's Ulsan cogeneration plant entered stable commercial operation in February 2026, adding a new source of revenue and profit.
Samsung Securities estimated in January 2026 that the new plant would account for a substantial portion of that year's profit growth, though this was a forecast that may differ from actual results. The designation of a distributed-energy special zone also leaves room for expanding sales outlets.
SK Chemicals is understood to have maintained its dividend despite weakness at subsidiary SK bioscience, recording a consolidated payout ratio of 50.1%.
Some forecasts suggest that monetizing a stake in SK Multi Utility could further strengthen the balance sheet and shareholder return policy, though this remains contingent on future execution.
Vaccine subsidiary SK bioscience has seen a slow revenue recovery since the end of the pandemic, remaining an ongoing drag on consolidated results. In Q1 2026, an operating loss in the Life Science segment offset profitability gains in copolyester, resulting in a consolidated operating loss.
Uncertainty over when the subsidiary's earnings will recover remains a swing factor for the consolidated outlook.
Operating profit over the last five quarters swung widely, moving from about -KRW 1.0 billion to KRW 15.6 billion, then to losses of KRW 39.1 billion and KRW 18.9 billion, before rebounding to KRW 32.3 billion.
Net income attributable to owners has similarly flipped sign frequently, meaning more time may be needed to confirm a stable annualized earnings trend. One-off costs, inventory adjustments, and raw material price swings are cited as factors amplifying quarterly variance.
Key copolyester feedstocks such as PTA, MEG, and oil prices are subject to significant volatility tied to global events, and cost pressure increased during a period of geopolitical tension in early 2026. Changes in U.S. tariff policy are cited as a factor that could affect export volumes and price competitiveness.
While price hikes are seen as having passed through a substantial share of cost increases, whether this pass-through power holds equally in every environment remains to be seen.
SK Chemicals is understood to have funded repayment of maturing loans and public bonds partly through issuing exchangeable bonds backed by its SK bioscience shares.
This structure means financing conditions can vary with SK bioscience's share price, leaving the parent's financial flexibility partly tied to the subsidiary's equity value. Maturity schedule management and changes in borrowing terms are factors that warrant ongoing monitoring.
The EU's Packaging and Packaging Waste Regulation (PPWR) is being phased in from August 2026 and is evolving toward mandating recycled-content use in packaging. This could be an opportunity for the recycled copolyester (rPET) business, but fluid details and implementation timelines add uncertainty to business planning.
Changes in tariff policy in major export markets such as the United States are also a factor that could affect sales strategy.
A significant portion of consolidated results depends on the vaccine business performance of subsidiary SK bioscience.
With vaccine demand having declined sharply since the end of the pandemic, the timing and scale of commercialization for new pipeline candidates such as the 21-valent pneumococcal vaccine co-developed with Sanofi remain uncertain. Prolonged weakness at the subsidiary could slow the pace of consolidated earnings recovery.
Timing of the (preliminary) Q3 2026 earnings release, when the earnings impact of copolyester pricing/volume and SK Multi Utility's power generation revenue can be checked.
Progress and terms of discussions around monetizing a minority stake in SK Multi Utility should be checked.
Progress and disclosures regarding the global Phase 3 trial of the 21-valent pneumococcal vaccine co-developed with Sanofi should be tracked.
A point to check early sales performance under the Omya TPEE SKYPEL distribution agreement in Europe against the stated goal of doubling sales volume by 2028.
SK Chemicals showed improvement in both scale and profitability in 2025, with consolidated revenue rising sharply and net income attributable to owners expanding from about KRW 8.8 billion to about KRW 44.6 billion.
However, the earnings trajectory has not yet fully stabilized, with consecutive losses in Q4 2025 and Q1 2026 followed by a return to profit in Q2 2026.
The core copolyester business is maintaining its position in a high-barrier specialty market through expanded China sales and price increases, while the new SK Multi Utility power plant is emerging as a new profit source.
On the other hand, weakness in subsidiary SK bioscience's vaccine business remains an ongoing drag on consolidated results, and feedstock, tariff, and geopolitical variables persist.
The stock trades at a discount to book value while, relative to the small recent earnings base, its earnings multiple is elevated—two metrics pointing in different directions.
Investors will need to monitor upcoming quarterly earnings releases, progress on the SK Multi Utility stake monetization, and vaccine trial developments to gauge the stability of the earnings trend going forward.
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.