Risk factor
Meaningful price volatility
Profitability factor
Greatly undervalued vs peers
About
Korea Petrochemical Ind. Co., Ltd. operates as a global manufacturer and supplier of diverse petrochemical products, serving both the South Korean and international markets. The company's extensive offerings include various olefins such as ethylene, propylene, mixed C4, 1-butene, n-butane, isobutane, C4 and C3 LPG, H2, and Raw C5. It also produces a comprehensive range of aromatics, including benzene, toluene, mixed xylene, TPG, hexane (MH), C9+, and H-RPG+. Furthermore, its portfolio features EO/EG derivatives like MEG, DEG, TEG, PEG, and EO. The company is also a key producer of polypropylene (PP) products, utilized in injection molding, yarn, film, fiber, pipe, sheet, wire and cable, and LiBS separators, alongside high-density polyethylene (HDPE) products for applications such as injection molding, blow molding, yarn, film, pipe, wire and cable, steel pipe coating, adhesives, UHMWPE, and LiBS separators. Established in 1970, the company's main operations are directed from its headquarters in Seoul, South Korea.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT
Target Price
The average target price of 006650.KS is 182561 and suggests 127% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation t