Suheung Co Ltd

Suheung Co Ltd maintains a debt-to-equity ratio of 1.09, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.98, suggesting limited short-term liquidity cushion. Free cash flow of 5.66 billion KRW supports operational flexibility, though capital expenditures of -8.6 billion KRW indicate active reinvestment in the business.

Profitability metrics show a return on equity of 1.18% and a return on assets of 0.51%, both below the industry median for specialty chemicals. Operating income of 12.14 billion KRW reflects a 7.3% margin, which is in line with the sector average but leaves room for improvement in cost control and pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of segmentation exposes Suheung to sector-specific volatility and limits visibility into growth drivers. No material geographic exposure is reported, though the absence of international revenue data suggests a domestic focus.

Suheung's revenue growth trajectory is mixed. Analysts estimate a 6.3% increase in FY revenue to 767.5 billion KRW, up from 722.3 billion KRW in the prior year. However, net income growth is expected to remain flat, with EPS estimates at 4,473 KRW versus actual 3,911 KRW. This suggests margin compression or increased operating costs could offset top-line gains.

The company faces moderate liquidity risk due to a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. No material adjustments were applied to valuation metrics, indicating clean financial reporting.

Recent filings and transcripts show no material changes in business strategy or capital structure. The company continues to focus on core chemical production, with no disclosed R&D initiatives or new product launches. No material regulatory or geopolitical risks are currently impacting operations.

Suheung Co Ltd (008490.KS) has been formally classified within the Chemicals activity and Basic Materials economic sector, marking a significant update to its corporate taxonomy. This classification provides a clearer framework for understanding the company's operational focus and industry positioning, which is essential for accurate peer comparison and sector-specific analysis. In terms of risk profile, the company now exhibits a low dilution risk, indicating a stable capital structure with minimal threat of share count expansion impacting existing equity value. This assessment suggests that management is likely maintaining discipline regarding equity issuance, which can be a positive signal for current shareholders concerned about ownership erosion. Conversely, the liquidity risk has been assessed as medium, highlighting potential constraints in the ease of trading the stock or accessing immediate capital. This moderate liquidity profile is consistent with the company's current market structure, which includes no index membership and no identified top holders, suggesting a less liquid trading environment compared to larger, more widely held peers. The company operates with a lean governance structure, featuring only two officers and coverage from a single analyst. This limited analyst presence and absence from major indices may contribute to the medium liquidity risk, as lower institutional visibility often correlates with reduced trading volume and broader market attention. Investors should monitor these structural factors alongside the new sector classification to gauge future market dynamics.

Net income surged 138% year-over-year to 43.5 billion KRW in FY2026, signaling a strong profitability recovery.

Free cash flow improved 68.6% to 34.7 billion KRW in FY2026, demonstrating enhanced cash generation capabilities.

Cash conversion ratio of 3.07 ranks in the top quartile of the 245-company Specialty Chemicals cohort.

Revenue grew 10.6% year-over-year to 722.3 billion KRW in FY2026, showing consistent top-line expansion.

Debt-to-equity ratio of 1.09 places the company in the bottom quartile of the 251-company Specialty Chemicals cohort.

The company faces high credit risk, posing significant financial stability concerns for investors and creditors.

Return on equity of 1.18% lags significantly behind the 3.93% median for the Specialty Chemicals peer group.

Net margin of 3.1% remains below the 4.5% cohort median, indicating weaker bottom-line performance relative to peers.

Long-term debt increased to 467.9 billion KRW in FY2024 before declining, reflecting a period of rising leverage.

Revenue KRW 166.40B, +12,0% YoY; Operating income +48,1% YoY.

• ▍Revenue KRW 166.40B, +12,0% YoY
• ▍Operating income +48,1% YoY
• ▍Net income +649,7% YoY
• ▍Free cash flow −124,2% YoY
• ▍Net margin 2.8%

Revenue KRW 185.05B, +11,1% YoY; Operating income +84,5% YoY.

• ▍Revenue KRW 185.05B, +11,1% YoY
• ▍Operating income +84,5% YoY
• ▍Net income −15,6% YoY
• ▍Free cash flow +2,9% YoY
• ▍Net margin 4.9%

Revenue KRW 190.02B, +10,0% YoY; Operating income +84,6% YoY.

• ▍Revenue KRW 190.02B, +10,0% YoY
• ▍Operating income +84,6% YoY
• ▍Net income +1 163,2% YoY
• ▍Free cash flow +502,5% YoY
• ▍Net margin 12.6%

Revenue KRW 180.84B, +9,4% YoY; Operating income −4,8% YoY.

• ▍Revenue KRW 180.84B, +9,4% YoY
• ▍Operating income −4,8% YoY
• ▍Net income +15,8% YoY
• ▍Free cash flow +9,7% YoY
• ▍Net margin 3.3%

Revenue KRW 148.57B; Operating income KRW 2.77B.

• ▍Revenue KRW 148.57B
• ▍Operating income KRW 2.77B
• ▍Net margin 0.4%

Revenue KRW 166.59B; Operating income KRW 7.43B.

• ▍Revenue KRW 166.59B
• ▍Operating income KRW 7.43B
• ▍Net margin 6.4%

Revenue KRW 172.77B; Operating income KRW 10.90B.

• ▍Revenue KRW 172.77B
• ▍Operating income KRW 10.90B
• ▍Net margin 1.1%

Revenue KRW 165.34B; Operating income KRW 12.14B.

• ▍Revenue KRW 165.34B
• ▍Operating income KRW 12.14B
• ▍Net margin 3.1%

Revenue KRW 722.31B, +10,6% YoY; Operating income +48,9% YoY.

• ▍Revenue KRW 722.31B, +10,6% YoY
• ▍Operating income +48,9% YoY
• ▍Net income +138,0% YoY
• ▍Free cash flow +68,6% YoY
• ▍Net margin 6.0%

Revenue KRW 653.26B, +9,9% YoY; Operating income −21,8% YoY.

• ▍Revenue KRW 653.26B, +9,9% YoY
• ▍Operating income −21,8% YoY
• ▍Net income +198,7% YoY
• ▍Free cash flow +309,7% YoY
• ▍Net margin 2.8%

Revenue KRW 594.57B, −6,4% YoY; Operating income −30,1% YoY.

• ▍Revenue KRW 594.57B, −6,4% YoY
• ▍Operating income −30,1% YoY
• ▍Net income −82,0% YoY
• ▍Free cash flow −256,3% YoY
• ▍Net margin 1.0%

Revenue KRW 634.97B, +6,4% YoY; Operating income −9,8% YoY.

• ▍Revenue KRW 634.97B, +6,4% YoY
• ▍Operating income −9,8% YoY
• ▍Net income −36,7% YoY
• ▍Free cash flow −87,9% YoY
• ▍Net margin 5.4%