PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩60 per share · Prices as of the 2026-10-02 close
KBG, described as the sole domestic producer of certain functional silicone intermediates, maintains a low debt ratio and solid cash generation, but its swing to an operating loss in the second quarter of 2026 has widened quarterly earnings volatility.
2025 consolidated revenue was KRW 23.92 billion with operating profit of KRW 2.33 billion (9.7% margin), a margin decline from the prior year.
Second-quarter 2026 revenue rose to KRW 6.31 billion, but operating profit turned negative at KRW -0.28 billion and net profit attributable to owners fell to KRW -0.18 billion.
The debt ratio stood at 11.6% in 2025, remaining low across the past four fiscal years and pointing to a stable balance sheet.
Beyond its core silicone chemicals business, the company is developing next-generation battery materials such as silicon anode materials and solid electrolytes, a theme linked to next-generation battery roadmaps at cell makers such as LG Energy Solution.
Net profit attributable to owners summed over the most recent four quarters (Q3 2025-Q2 2026) came to KRW 1.59 billion, below the 2024 and 2025 full-year levels.
KBG, founded in 2001 and headquartered in Cheonan, South Chungcheong Province, is a specialty chemicals and silicone materials company listed in the KOSDAQ chemicals sector.
The company produces and supplies silicone chemical products including functional organosilanes, functional silicone polymers, silicone resins and intermediates, silicone pressure sensitive adhesives, and silicone materials for electronics.
It has expanded into specialty chemicals such as polymerization inhibitors, food additives, and silicon-based inorganic, organic, and bio-materials. Its end markets span electric and electronics, automobile, construction, food and pharmaceutical, and petrochemical industries.
The company has been described as the sole domestic producer of certain functional silicone intermediates that were previously entirely import-dependent, and was reported to have once supplied a large share of its sales to global silicone majors including Dow, Wacker, KCC, Elkem, and LG Chem.
The company changed its name from Korea Bio-Gen Co., Ltd. to KBG, a move it described as intended to refresh its corporate image.
More recently it has been developing next-generation materials applicable to secondary batteries, including silicon anode materials, polymer and solid-state electrolytes, thermal management materials for electric vehicles, and automotive sealants, running its legacy silicone chemicals business alongside this battery-materials pipeline. The company has a small workforce in the low seventies, consistent with its status as a small-cap KOSDAQ issue.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6.2B | ₩1.1B | 18.0% |
| 2025Q3 | ₩4.7B | ₩300M | 7.2% |
| 2025Q4 | ₩6.9B | ₩300M | 5.0% |
| 2026Q1 | ₩5.4B | ₩700M | 13.4% |
| 2026Q2 | ₩6.3B | -₩300M | −4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩24.3B | ₩4.1B | ₩3.3B | 16.9% | 9.3% | 23.3% |
| 2023 | ₩21.6B | ₩4.3B | ₩4.6B | 20.0% | 10.9% | 9.3% |
| 2024 | ₩24.9B | ₩3.2B | ₩3.8B | 12.7% | 8.4% | 15.0% |
| 2025 | ₩23.9B | ₩2.3B | ₩2.6B | 9.7% | 5.5% | 11.6% |
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
Consolidated revenue in 2025 was KRW 23.92 billion, down slightly from KRW 24.92 billion in 2024, while operating profit fell to KRW 2.33 billion from KRW 3.16 billion, pulling the operating margin down from 12.7% to 9.7%.
Net profit attributable to owners also declined from KRW 3.77 billion in 2024 to KRW 2.59 billion in 2025.
Over the past four fiscal years (2022-2025), revenue fell from KRW 24.35 billion in 2022 to KRW 21.59 billion in 2023, rebounded to KRW 24.92 billion in 2024, and then slipped back to KRW 23.92 billion in 2025, moving without a clear directional trend, while the operating margin peaked at 20.0% in 2023 before declining for three consecutive years to 12.7% in 2024 and 9.7% in 2025.
On a quarterly basis, second-quarter 2025 revenue of KRW 6.24 billion and operating profit of KRW 1.12 billion (roughly an 18% margin) marked a strong period, but revenue fell to KRW 4.71 billion in the third quarter with operating profit sharply lower at KRW 0.34 billion.
Fourth-quarter revenue recovered to KRW 6.89 billion, yet operating profit remained only KRW 0.34 billion, meaning the revenue rebound did not translate into a profitability improvement, while net profit attributable to owners of KRW 0.62 billion exceeded operating profit, suggesting non-operating items played a role.
First-quarter 2026 showed improvement with revenue of KRW 5.36 billion and operating profit of KRW 0.72 billion (about a 13.4% margin), but the second quarter saw revenue rise to KRW 6.31 billion even as operating profit swung to a loss of KRW -0.28 billion and net profit attributable to owners fell to KRW -0.18 billion, underscoring elevated volatility in recent quarterly results.
As a result, net profit attributable to owners summed over the most recent four quarters from the third quarter of 2025 through the second quarter of 2026 came to KRW 1.59 billion, below the full-year levels recorded in 2024 and 2025.
On the balance sheet, the debt ratio stayed low, moving from 23.3% in 2022 to 9.3% in 2023, 15.0% in 2024, and 11.6% in 2025, and 2025 operating cash flow of KRW 7.34 billion comfortably exceeded that year's net profit of KRW 2.59 billion, pointing to solid underlying cash generation.
The functional silicone intermediate materials market in which KBG operates depends on demand from diverse end markets including electric and electronics, automotive, construction, and food and pharmaceutical industries, and application expansion into secondary battery materials has recently emerged as a new growth axis.
The global market is led by large chemical companies such as Dow, Wacker, Elkem, LG Chem, and KCC, prompting smaller specialized players like KBG to pursue technical advantages in specific niche materials.
According to industry commentary, there have been periods in which the company's silicone segment revenue showed recovery amid gradually recovering customer demand, steady sales efforts, and collaboration with overseas partners.
In the battery materials space, China's graphite export controls and domestic policy efforts to strengthen the battery materials supply chain have been cited as factors that could accelerate silicon anode material development, contributing to structural interest in silicon anode materials as a graphite alternative.
LG Energy Solution has reportedly been developing both polymer-type and sulfide-type solid-state batteries, and this kind of next-generation battery roadmap at cell makers has been linked to expected benefits for related materials suppliers such as silicone solid electrolyte developers.
However, these new material businesses remain at a pre-commercialization research and development stage, and the timing and scale of any actual revenue contribution depend heavily on adoption decisions by automakers and battery cell makers.
The traditional silicone chemicals market has the character of a mature market subject to recurring swings tied to end-market cycles, and the company's results appear to be significantly influenced by this cyclicality.
The company has stated it is researching and developing next-generation growth drivers applicable to secondary batteries, including silicon anode materials, polymer and solid-state electrolyte materials, thermal management materials for electric vehicles, and automotive sealants.
An external catalyst worth monitoring is the polymer-type solid-state battery commercialization timeline that LG Energy Solution has targeted, since progress on this kind of cell-maker roadmap has been linked to expected benefits for related materials suppliers.
However, it has not been specifically confirmed whether this new-materials pipeline has translated into actual mass-production supply contracts or revenue, so for now it is reasonable to treat it as a research-stage potential opportunity rather than a confirmed business line.
The core silicone chemicals business showed some signs of gradually recovering customer demand around early 2024, but given that operating losses resurfaced in the second quarter of 2026, whether that recovery is a sustained trend needs to be confirmed through subsequent quarterly results.
On the financing side, the low debt ratio and the fact that operating cash flow has exceeded net profit in several past years can be viewed as a favorable factor for funding new business investment or maintaining dividend continuity.
Overall, the company's near-term earnings path appears to hinge on two factors: the pace of demand recovery in the legacy silicone materials business, and the progress of the pre-commercialization battery materials pipeline.
The current share price appears to trade at a discount to the company's most recently reported net asset value attributable to owners.
Historical market data show that this stock's price-earnings ratio has, at different year-end points in the past, ranged broadly from roughly the 10-times area to roughly the 20-times area, reflecting how earnings volatility has driven wide swings in valuation multiples over time.
The fact that net profit summed over the most recent four quarters has moved below the full-year levels seen in 2024 and 2025 warrants caution when interpreting earnings-based valuation metrics.
On the dividend side, the company has a history of paying an annual cash dividend, which can serve as a reference point for assessing shareholder-return continuity among small-cap chemical names.
That said, any valuation assessment depends heavily on whether upcoming quarterly results recover from the second-quarter 2026 operating loss or whether that weakness proves to be a continuing trend, making a definitive read difficult at this stage.
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 debt ratio declined from 23.3% in 2022 to 11.6% in 2025, keeping the balance sheet on a conservative footing. 2025 operating cash flow of KRW 7.34 billion comfortably exceeded that year's net profit of KRW 2.59 billion, indicating a resilient cash base even in a year of lower earnings. This suggests financial flexibility to fund new business investment or absorb unexpected demand slowdowns.
The company has been described as the sole domestic producer of certain functional silicone intermediates that were previously entirely import-dependent, using proprietary technology.
Its end markets are diversified across electric and electronics, automotive, construction, food and pharmaceutical, and petrochemical industries, spreading exposure across multiple demand cycles.
Trading and co-development relationships with global silicone majors such as Dow, Wacker, KCC, Elkem, and LG Chem have also been cited as evidence of technical credibility.
The company is researching silicon anode materials, polymer and solid-state electrolytes, EV thermal management materials, and automotive sealants as future growth drivers.
The polymer-type and sulfide-type solid-state battery roadmaps pursued by cell makers such as LG Energy Solution have been linked to expectations for related materials suppliers.
However, this remains at a research and development stage, and actual adoption and revenue contribution need to be confirmed through future disclosures.
Operating profit plunged from KRW 1.12 billion in the second quarter of 2025 to KRW 0.34 billion in the third quarter, and in the second quarter of 2026 operating profit turned into a loss of KRW -0.28 billion even as revenue rose to KRW 6.31 billion.
A recurring pattern in which revenue recovery does not immediately translate into profit recovery leaves quarterly results with low predictability. Net profit summed over the most recent four quarters also runs below the full-year levels seen in 2024 and 2025.
The operating margin fell for three consecutive years, from 20.0% in 2023 to 12.7% in 2024 and 9.7% in 2025. Over the same period revenue moved without a clear direction, so the persistent margin decline points to a need to examine structural factors such as cost structure or product mix changes. Whether the margin can recover remains something to track in upcoming quarterly results.
Past news flow shows this stock has repeatedly moved sharply in the short term in response to news related to secondary batteries, solid-state batteries, and silicon anode materials.
Such theme-driven trading can move out of sync with the actual confirmation of sales or orders, meaning the stock's price reaction may not always align with the real progress of the new materials business. As a small-cap KOSDAQ stock, trading volume and price volatility can also run relatively high.
There is structural vulnerability in the cost and demand structure that can produce an operating loss even when revenue rises, as seen in the second quarter of 2026. If the business is heavily dependent on a limited number of large customers, changes in demand from those customers can directly affect results. Whether margins recover needs to be monitored continuously in upcoming quarterly reports.
Competing against large global chemical companies such as Dow, Wacker, Elkem, LG Chem, and KCC requires the company to continuously sustain a technical edge as a smaller specialized player.
The timing and scale of commercialization for new materials such as silicon anode materials and solid electrolytes depend heavily on the roadmaps and adoption decisions of cell makers and automakers. If those roadmaps are delayed or displaced by competing materials, anticipated benefits could be postponed or reduced.
As a small-cap KOSDAQ stock, short-term price volatility tied to news and thematic sentiment can be relatively pronounced. With limited earnings visibility, the basis for investor judgment can be constrained, and liquidity risk can increase depending on trading volume fluctuations. It should be noted that such volatility can occur independently of actual business progress.
Disclosure of third-quarter 2026 results (quarterly report). This will be key to confirming whether the second-quarter operating loss was a one-off factor or part of a continuing trend.
Progress on the polymer-type solid-state battery commercialization timeline targeted by LG Energy Solution, and any further disclosures or news regarding KBG's related silicone material supply, should be monitored.
Whether disclosures emerge regarding mass-production supply contracts or revenue contribution from the new materials pipeline, including silicon anode materials and solid electrolytes, should be checked.
Whether the company presents or exhibits related new materials at major secondary-battery industry events such as InterBattery can help gauge technical progress.
Disclosures regarding whether the fiscal year 2026 dividend policy continues, and the size of any dividend, should be checked.
KBG holds strengths in financial stability, including its position as the sole domestic producer of certain functional silicone intermediates, a low debt ratio (11.6% in 2025), and operating cash flow that has comfortably exceeded net profit (KRW 7.34 billion in 2025).
On the other hand, the operating margin declined for three consecutive years from 20.0% in 2023 to 9.7% in 2025, and quarterly earnings volatility has increased, with the second quarter of 2026 turning into an operating loss despite higher revenue.
The silicon anode material and solid electrolyte pipeline represents a potential growth avenue linked to next-generation battery roadmaps at cell makers such as LG Energy Solution, but it remains at a research and development stage with no confirmed timeline for actual revenue contribution.
The fact that net profit summed over the most recent four quarters (KRW 1.59 billion) falls below the full-year levels of 2024 and 2025 leaves questions about the durability of any earnings recovery.
Investment judgment should take into account whether operating losses recur in coming quarters and whether the new materials business advances into concrete supply contracts. This report is intended for informational purposes only and does not include 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.