Hyosung TNC Corp

Hyosung TNC Corp maintains a capital structure characterized by significant leverage and tight liquidity. The company reports total assets of 5.74 trillion KRW against total liabilities of 4.17 trillion KRW, resulting in a debt-to-equity ratio of 1.43. With long-term debt standing at 2.24 trillion KRW and cash and equivalents at only 77.6 billion KRW, the firm carries a substantial net debt position. The current ratio of 0.77 indicates that current liabilities exceed current assets, signaling medium liquidity risk as flagged in the risk assessment. Despite generating 456.1 billion KRW in operating cash flow, the company’s free cash flow is negative at -161.7 billion KRW, driven by heavy capital expenditures of 463.1 billion KRW.

Profitability metrics reveal thin margins relative to the scale of operations. The company generated 7.69 trillion KRW in revenue but reported a net income of only 10.8 billion KRW, yielding a return on equity (ROE) of 1.87% and a return on assets (ROA) of 0.51%. The gross profit of 629.3 billion KRW suggests a gross margin of approximately 8.2%, while operating income of 251.5 billion KRW indicates an operating margin of roughly 3.3%. These returns are modest, reflecting the capital-intensive nature of the chemicals industry and the pressure from high interest expenses associated with its debt load.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s valuation reflects its low profitability and high leverage, trading at a price-to-book ratio of 0.75 and an EV/EBITDA of 12.79. The price-to-earnings ratio of 39.89 appears elevated relative to the low net income, suggesting that earnings are currently depressed or volatile.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the company’s historical growth rate or momentum. The current financial snapshot shows a large revenue base, but the lack of historical context prevents a determination of whether this represents expansion, contraction, or stability.

Risk factors are dominated by liquidity and leverage concerns. The risk assessment flags medium liquidity risk and low dilution risk, with a key note that net cash is negative after subtracting total debt. The high debt-to-equity ratio of 1.43 and current ratio below 1.0 expose the company to refinancing risks and interest rate sensitivity. The negative free cash flow further constrains the company’s ability to self-fund debt reduction or dividends without external financing.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is 500,000 KRW, with a median of 510,000 KRW, implying significant upside from the current market price of 272,000 KRW. The mean recommendation is 1.29, driven by five strong-buy ratings and two buy ratings, with no hold or sell ratings recorded. This bullish consensus suggests analysts expect a turnaround in profitability or a re-rating of the stock despite the current financial headwinds.

Analysts project 56.5% upside to a mean price target of 500,000 KRW, reflecting strong buy consensus.

Operating income improved to 270.7 billion KRW in FY2025, signaling potential stabilization after previous declines.

Gross profit reached 620.4 billion KRW in FY2025, indicating maintained top-line efficiency despite revenue fluctuations.

Cash conversion ratio of 15.58 ranks as best-in-class compared to the cohort median of 1.2.

Long-term debt decreased to 1.31 trillion KRW in FY2024, showing prior deleveraging efforts before recent increases.

Long-term debt surged to 2.24 trillion KRW in FY2026, significantly increasing leverage and credit risk.

Net margin of 0.37% falls into the bottom quartile compared to the cohort median of 5.27%.

Debt-to-equity ratio of 1.43 is in the bottom quartile, far exceeding the cohort median of 0.4.

Revenue KRW 2.09T, +7,2% YoY; Operating income +11,4% YoY.

• ▍Revenue KRW 2.09T, +7,2% YoY
• ▍Operating income +11,4% YoY
• ▍Net income +89,9% YoY
• ▍Free cash flow +175,8% YoY
• ▍Net margin 1.9%

Revenue KRW 1.84T, −6,8% YoY; Operating income +5,5% YoY.

• ▍Revenue KRW 1.84T, −6,8% YoY
• ▍Operating income +5,5% YoY
• ▍Net income −227,8% YoY
• ▍Free cash flow −123,4% YoY
• ▍Net margin -1.6%

Revenue KRW 2.01T, +3,8% YoY; Operating income −17,1% YoY.

• ▍Revenue KRW 2.01T, +3,8% YoY
• ▍Operating income −17,1% YoY
• ▍Net income −64,5% YoY
• ▍Free cash flow −14,0% YoY
• ▍Net margin 0.4%

Revenue KRW 1.89T, −4,7% YoY; Operating income −13,4% YoY.

• ▍Revenue KRW 1.89T, −4,7% YoY
• ▍Operating income −13,4% YoY
• ▍Net income −71,4% YoY
• ▍Free cash flow +9,8% YoY
• ▍Net margin 0.6%

Revenue KRW 1.95T; Operating income KRW 77.39B.

• ▍Revenue KRW 1.95T
• ▍Operating income KRW 77.39B
• ▍Net margin 1.1%

Revenue KRW 1.98T; Operating income KRW 42.42B.

• ▍Revenue KRW 1.98T
• ▍Operating income KRW 42.42B
• ▍Net margin 1.2%

Revenue KRW 1.94T; Operating income KRW 67.61B.

• ▍Revenue KRW 1.94T
• ▍Operating income KRW 67.61B
• ▍Net margin 1.2%

Revenue KRW 1.98T; Operating income KRW 84.65B.

• ▍Revenue KRW 1.98T
• ▍Operating income KRW 84.65B
• ▍Net margin 2.2%

Revenue KRW 7.69T, −1,0% YoY; Operating income −7,1% YoY.

• ▍Revenue KRW 7.69T, −1,0% YoY
• ▍Operating income −7,1% YoY
• ▍Net income −92,0% YoY
• ▍Free cash flow −349,3% YoY
• ▍Net margin 0.1%

Revenue KRW 7.78T, +3,3% YoY; Operating income +26,9% YoY.

• ▍Revenue KRW 7.78T, +3,3% YoY
• ▍Operating income +26,9% YoY
• ▍Net income +44,4% YoY
• ▍Free cash flow +948,2% YoY
• ▍Net margin 1.7%

Revenue KRW 7.53T, −15,3% YoY; Operating income +72,7% YoY.

• ▍Revenue KRW 7.53T, −15,3% YoY
• ▍Operating income +72,7% YoY
• ▍Net income +704,0% YoY
• ▍Free cash flow +101,4% YoY
• ▍Net margin 1.2%

Revenue KRW 8.88T, +3,3% YoY; Operating income −91,3% YoY.

• ▍Revenue KRW 8.88T, +3,3% YoY
• ▍Operating income −91,3% YoY
• ▍Net income −98,5% YoY
• ▍Free cash flow −155,7% YoY
• ▍Net margin 0.1%