Risk factor
Good trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Established in 1970 and headquartered in Seoul, South Korea, Kumho Petrochemical is a global enterprise specializing in the production and distribution of a wide array of chemical and material products. Its comprehensive portfolio spans synthetic rubber, resins, specialty chemicals, advanced nanocarbon materials, and building solutions, alongside energy provision. The company manufactures various synthetic rubbers, including polybutadiene rubber, styrene butadiene rubber (SBR), acrylonitrile butadiene rubber (NBR), and styrene butadiene styrene (SBS), which are essential components for diverse industrial applications such as golf balls, medical devices, footwear, and asphalt modification. Its synthetic resin offerings encompass acrylonitrile butadiene styrene (ABS), engineering plastics, and expandable polystyrene (EPS), commonly utilized in automotive components, electronic devices, food packaging, and construction. Kumho Petrochemical also develops specialty chemicals like antioxidants, vulcanization accelerators, and paint additives, vital for products ranging from tires and rubber belts to shoes. Their advanced materials segment includes carbon nanotubes, while their building materials division offers a range of window systems (ABS, PVC, AL) and specialized gold foam insulators. Beyond manufacturing, the company operates a cogeneration power plant, supplying electricity, steam, and purified water to residential, commercial, and industrial clients.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD
Target Price
The average target price of 011780.KS is 167395 and suggests 40% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to