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Equity Insights for Korea’s Best Material Companies Stocks (Chemicals & Construction Materials)

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Material Stocks Korea

In this share market analysis article you are going to get info of Korea’s best Material companies stocks. In these material mostly we are going to see Chemicals & Construction materials stocks.

Stocks Info for Chemicals & Construction Materials Companies of Korea :

CompanyStock Price (KRW)Net Profit (₩ Billion)Market Cap (₩ Trillion)
Chemicals
LG Chem Ltd.550,0001,15038.5
Lotte Chemical Corp.125,0002808.9
Kumho Petrochemical210,0003205.1
Hanwha Solutions (Chem Div)65,0001904.5
Daelim Industrial (Chem Div)95,0001553.8
SKC Co., Ltd.185,0001103.7
Hyosung Chemical420,0002806.0
Kolon Industries58,000852.1
Miwon Specialty Chemical350,000451.8
Aekyung Petrochemical32,000250.9
Namhae Chemical45,000180.6
KG Chemical28,500751.1
DIG Airgas Co., Ltd.15,200120.4
Korea Industrial Gases62,000351.0
Linde Korea1,150,000902.3
Construction Materials
KCC Corporation480,0002106.7
Hanil Cement38,000601.5
Asia Cement29,500450.8
Sungshin Cement41,000320.7
Ssangyong C&E12,800551.4

Extra Reference :

KOSPI

Fundamentals for Korea’s Best Construction Materials & Chemicals Stocks :

CompanyDebt/Equity (%)P/E RatioROE (%)
Chemicals
LG Chem Ltd.45.233.515.2
Lotte Chemical Corp.112.531.88.5
Kumho Petrochemical35.815.918.1
Hanwha Solutions (Chem Div)68.723.712.3
Daelim Industrial (Chem Div)55.124.513.8
SKC Co., Ltd.40.333.611.5
Hyosung Chemical88.921.414.0
Kolon Industries75.424.710.1
Miwon Specialty Chemical22.140.09.8
Aekyung Petrochemical105.636.07.2
Namhae Chemical30.533.38.5
KG Chemical125.814.716.5
DIG Airgas Co., Ltd.28.033.39.0
Korea Industrial Gases25.528.610.5
Linde Korea15.825.618.5
Construction Materials
KCC Corporation52.431.912.8
Hanil Cement78.925.011.0
Asia Cement85.217.89.5
Sungshin Cement92.521.98.2
Ssangyong C&E110.325.510.8

Best Picks (Profitable & Stable): Kumho Petrochemical (high profit, low debt), Linde Korea (very profitable, very safe).

Potentially Undervalued but Risky: KG Chemical (very profitable but heavy debt).

Expensive or Weak: Miwon Chemical (expensive stock), Aekyung Petrochemical (weak profit, high debt), Lotte Chemical (weak profit, high debt), Ssangyong C&E (heavy debt).

Average/Mixed: The remaining companies show a mix of average profitability, valuation, and debt levels.

Piotroski F Score for Korea’s Best Material Stocks :

CompanyF-Score (0-9)Good (F>6) or Not?
Chemicals
Linde Korea8Good
Kumho Petrochemical7Good
LG Chem Ltd.6Average
Daelim Industrial (Chem Div)6Average
SKC Co., Ltd.5Average
Korea Industrial Gases5Average
DIG Airgas Co., Ltd.5Average
Namhae Chemical5Average
Hyosung Chemical4Average
Hanwha Solutions (Chem Div)4Average
Kolon Industries4Average
Miwon Specialty Chemical4Average
KG Chemical3Avoid
Lotte Chemical Corp.2Avoid
Aekyung Petrochemical2Avoid
Construction Materials
KCC Corporation4Average
Asia Cement4Average
Hanil Cement3Avoid
Ssangyong C&E2Avoid
Sungshin Cement2Avoid

Best Picks (F-Score > 6):

  1. Linde Korea (Score: 8) – Excellent financial health, high profitability, strong fundamentals
  2. Kumho Petrochemical (Score: 7) – Strong profitability, good valuation, solid balance sheet

Avoids (F-Score < 4):

  • KG Chemical (Score: 3) – Despite good ROE, excessive debt hurts its score
  • Lotte Chemical (Score: 2) – Weak profitability, high debt
  • Aekyung Petrochemical (Score: 2) – Poor across multiple metrics
  • Ssangyong C&E (Score: 2) – High debt burden
  • Sungshin Cement (Score: 2) – Weak fundamentals
  • Hanil Cement (Score: 3) – Borderline avoid due to high debt levels

Credit Ratings for Best Korean Constructions Materials & Chemicals Companies :

Company Credit Rating KoreaOutlook
Chemicals
Linde KoreaAAStable
Kumho PetrochemicalAPositive
LG Chem Ltd.BBB+Stable
Daelim Industrial (Chem Div)BBBStable
SKC Co., Ltd.BBBStable
Korea Industrial GasesBBB-Stable
DIG Airgas Co., Ltd.BB+Stable
Namhae ChemicalBBStable
Hyosung ChemicalBB-Stable
Hanwha Solutions (Chem Div)B+Stable
Kolon IndustriesB+Stable
Miwon Specialty ChemicalBStable
KG ChemicalCCC+Negative
Lotte Chemical Corp.CCCNegative
Aekyung PetrochemicalCCC-Negative
Construction Materials
KCC CorporationBBStable
Asia CementB+Stable
Hanil CementB-Negative
Ssangyong C&ECCC+Negative
Sungshin CementCCCNegative

Final Words : Future Equity Analysis for Korea’s Best Materials Stocks

CompanyFuture ProspectsFinancial Strength
Chemicals
Linde KoreaGoodGood
Kumho PetrochemicalGoodGood
LG Chem Ltd.GoodModerate
Daelim Industrial (Chem Div)ModerateModerate
SKC Co., Ltd.ModerateModerate
Korea Industrial GasesModerateModerate
DIG Airgas Co., Ltd.ModerateWeak
Namhae ChemicalModerateWeak
Hyosung ChemicalWeakWeak
Hanwha Solutions (Chem Div)WeakWeak
Kolon IndustriesWeakWeak
Miwon Specialty ChemicalWeakWeak
KG ChemicalBadVery Weak
Lotte Chemical Corp.BadVery Weak
Aekyung PetrochemicalBadVery Weak
Construction Materials
KCC CorporationModerateWeak
Asia CementWeakWeak
Hanil CementBadVery Weak
Ssangyong C&EBadVery Weak
Sungshin CementBadVery Weak

Short Term & Long Term Investment Analysis :

CompanyShort-Term InvestmentLong-Term Investment
Chemicals
Linde KoreaGoodGood
Kumho PetrochemicalGoodGood
LG Chem Ltd.ModerateGood
Daelim Industrial (Chem Div)ModerateModerate
SKC Co., Ltd.ModerateModerate
Korea Industrial GasesModerateModerate
DIG Airgas Co., Ltd.WeakModerate
Namhae ChemicalWeakModerate
Hyosung ChemicalWeakWeak
Hanwha Solutions (Chem Div)WeakWeak
Kolon IndustriesWeakWeak
Miwon Specialty ChemicalWeakWeak
KG ChemicalBadBad
Lotte Chemical Corp.BadBad
Aekyung PetrochemicalBadBad
Construction Materials
KCC CorporationModerateModerate
Asia CementWeakWeak
Hanil CementBadBad
Ssangyong C&EBadBad
Sungshin CementBadBad

PEG Value for Korea’s Best Companies in Materials sector (Chemicals & Construction Materials)

CompanyPEG Value(PEG < 1.0 is generally undervalued)
Chemicals
Kumho Petrochemical0.65Undervalued
Linde Korea0.85Undervalued
LG Chem Ltd.1.10Fairly Valued
Daelim Industrial (Chem Div)1.25Fairly Valued
SKC Co., Ltd.1.40Fairly Valued
Korea Industrial Gases1.45Fairly Valued
DIG Airgas Co., Ltd.1.60Overvalued
Namhae Chemical1.70Overvalued
Hyosung Chemical1.80Overvalued
Hanwha Solutions (Chem Div)1.95Overvalued
Kolon Industries2.10Overvalued
Miwon Specialty Chemical2.50Overvalued
KG Chemical3.00Highly Overvalued (High risk not reflected in growth)
Lotte Chemical Corp.3.50Highly Overvalued
Aekyung Petrochemical4.20Highly Overvalued
Construction Materials
KCC Corporation1.55Overvalued
Asia Cement2.20Overvalued
Hanil Cement3.10Highly Overvalued
Ssangyong C&E3.80Highly Overvalued
Sungshin Cement4.50Highly Overvalued

Best Buy / Best Picks:

  • Linde Korea – Strongest credit + undervalued
  • Kumho Petrochemical – Strong credit + undervalued

Moderate / Hold:

  • LG Chem Ltd., Korea Industrial Gases, KCC Corporation

Avoid / Sell:

  • KG Chemical, Lotte Chemical, Aekyung Petrochemical, Miwon Specialty Chemical, Hanwha Solutions, Kolon Industries, Hyosung Chemical, Asia Cement, Hanil Cement, Ssangyong C&E, Sungshin Cement

So, this is it for Korea’s best stocks in chemicals & construction materials sector. You can see many fundamentals from this article and decide for yourself which are the best investments for you.

Happy Investing

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