# Huchems (069260.KO)

Canonical: https://gigainvestors.com/s/069260.KO

Analysis as of: 2026-10-16T07:47:28.518Z. Financial observations: FY2009–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 15,410.00 per share; close as of 2026-10-15.

Estimated value: low KRW 36,914.77 per share, central KRW 42,415.72 per share, high KRW 47,961.49 per share. Buy at or below the central value KRW 42,415.72 per share. Valuation as of 2026-10-16T07:47:28.518Z; scenarios are not confidence intervals.

Expected annual return: 39.2% at the stated quote. About 39.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.42×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.18×

- FY2019: 0.16×

- FY2020: 0.16×

- FY2021: 0.11×

- FY2022: 0.09×

- FY2023: 0.12×

- FY2024: 0.07×

- FY2025: 0.06×

- LTM to Jun 2026: 0.06×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.1%

- ROIC, second-lowest year: 9.7%

- Typical minus recent gross margin: 7.9 pp

- Typical gross margin (annual median): 18.7%

- Recent gross margin (lower of latest and 3-year median): 10.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 14.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.2%

- FY2017: 32.5%

- FY2018: 31.6%

- FY2019: 15.8%

- FY2020: 15.2%

- FY2021: 16.3%

- FY2022: 17.5%

- FY2023: 18.5%

- FY2024: 9.7%

- FY2025: 7.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 394B

- Net income, five-year total: KRW 430B

- Return on incremental invested capital: 18.4%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -3.6 pp

- Working capital / revenue, final three-year average: 6.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 0.98×

- FY2023: 0.33×

- FY2024: 1.15×

- FY2025: 1.69×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 31.6% vs 9.7%

- Per-share earnings: 2661.51 to 2024.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: KRW -110B

- Cumulative retained earnings: KRW 436B

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.8%

- Per-share value change: KRW -637.51

- Per-share value, starting three-year median: KRW 3K

- Per-share value, ending three-year median: KRW 2K

- Buybacks concentrated in cheaper years (correlation): -0.54

- Average buyback yield: 0.5%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 64B

- Cumulative net income, 10 years: KRW 812B

- ROIC, first three-year median: 31.6%

- ROIC, last three-year median: 9.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 1K

- FY2017: KRW 3K

- FY2018: KRW 3K

- FY2019: KRW 2K

- FY2020: KRW 1K

- FY2021: KRW 2K

- FY2022: KRW 2K

- FY2023: KRW 4K

- FY2024: KRW 2K

- FY2025: KRW 2K

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.71×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.7%

- FY2017: -4.8%

- FY2018: -1.4%

- FY2019: -4.0%

- FY2020: -4.7%

- FY2021: -0.9%

- FY2022: 4.0%

- FY2023: -7.9%

- FY2024: -0.1%

- FY2025: -3.6%

## Holders

## Price story

Down 42% since Oct 2021 · sales +11.8%

Story as of 2026-10-16T10:00:13.718Z; price observation 2026-10-15.

Price needs cash profits to shrink 18.8% a year for ten years

### Sales · FY2025–2026

sales +11.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 716B 

- FY2018: KRW 763B 

- FY2019: KRW 660B 

- FY2020: KRW 594B 

- FY2021: KRW 861B 

- FY2022: KRW 1.24T 

- FY2023: KRW 1.05T 

- FY2024: KRW 1.19T 

- FY2025: KRW 1.13T 

- FY2026: KRW 1.26T 

### Gross margin · FY2025

gross margin 10.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 21.8% 

- FY2017: 29.0% 

- FY2018: 23.1% 

- FY2019: 21.7% 

- FY2020: 21.8% 

- FY2021: 15.0% 

- FY2022: 12.7% 

- FY2023: 15.8% 

- FY2024: 10.8% 

- FY2025: 10.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in chemicals; annual sales are KRW 1.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2025: revenue 1127691137090; grossProfit 122081139930; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 069260.KO: TKG Huchems Co., Ltd. manufactures and sells fine chemical products in South Korea and internationally. It offers nitric acid, ammonium nitrate, mononitrobenzene, dinitrotoluene, and ammonia products. The company is also involved in the clean development mechanism business; and provision of urea solutions. The company was formerly known as Huchems Fine Chemical Corporation and changed its name to TKG Huchems Co.,Ltd. in March 2022. TKG Huchems Co.,Ltd. was founded in 2002 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 10.8% to 15.8% during 2023–25; it earns 16.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2023: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2024: grossProfit / revenue = 10.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2025: grossProfit / revenue = 10.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); 10-year return on capital observations [[2016,0.12186091197942144],[2017,0.3247893058513197],[2018,0.3156216469060711],[2019,0.1583390704802307],[2020,0.15231473405323137],[2021,0.16270169251374433],[2022,0.17488091226307123],[2023,0.18530859429618027],[2024,0.0966218868336487],[2025,0.0759931820454443]]; median 0.1605203814969875. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2016: growth capex 0; upkeep 17602421120; owner earnings 59709454540. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2017: growth capex 0; upkeep 19502390270; owner earnings 136878413590. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2018: growth capex 0; upkeep 24185149480; owner earnings 92446073190. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2019: growth capex 0; upkeep 35647673100; owner earnings 61982905150. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2020: growth capex 0; upkeep 20813307890; owner earnings 58418571460. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2021: growth capex 0; upkeep 24932600160; owner earnings 79055729630. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2022: growth capex 65013442100; upkeep 27158373200; owner earnings 80389124420. Growth capex / owner earnings = 0.8087342979422389.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2023: growth capex 0; upkeep 114251959000; owner earnings 43971358970. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2024: growth capex 0; upkeep 33738099340; owner earnings 89213722050. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); FY2025: growth capex 0; upkeep 11992895340; owner earnings 101018812190. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); Dividend observations: [[2016,19335155000],[2017,19287636000],[2018,57472777500],[2019,47115332400],[2020,38370877000],[2021,38370877000],[2022,38370877000],[2023,38370877000],[2024,38370877000],[2025,38370877000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 51.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 069260.KO SharesStats.PercentInsiders = 51.756 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 18.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:28.518Z); Ten-year compound average after fade. Initial solved rate -0.27219729517498126. Price 15410; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 23,650.00 per share

- 2016-11: KRW 23,300.00 per share

- 2016-12: KRW 21,700.00 per share

- 2017-01: KRW 20,800.00 per share

- 2017-02: KRW 22,950.00 per share

- 2017-03: KRW 23,700.00 per share

- 2017-04: KRW 23,200.00 per share

- 2017-05: KRW 25,450.00 per share

- 2017-06: KRW 26,750.00 per share

- 2017-07: KRW 24,950.00 per share

- 2017-08: KRW 23,950.00 per share

- 2017-09: KRW 23,950.00 per share

- 2017-10: KRW 23,550.00 per share

- 2017-11: KRW 24,000.00 per share

- 2017-12: KRW 24,550.00 per share

- 2018-01: KRW 25,400.00 per share

- 2018-02: KRW 26,850.00 per share

- 2018-03: KRW 24,600.00 per share

- 2018-04: KRW 26,600.00 per share

- 2018-05: KRW 30,250.00 per share

- 2018-06: KRW 29,250.00 per share

- 2018-07: KRW 31,700.00 per share

- 2018-08: KRW 25,350.00 per share

- 2018-09: KRW 24,950.00 per share

- 2018-10: KRW 21,800.00 per share

- 2018-11: KRW 26,200.00 per share

- 2018-12: KRW 24,100.00 per share

- 2019-01: KRW 23,050.00 per share

- 2019-02: KRW 21,950.00 per share

- 2019-03: KRW 22,300.00 per share

- 2019-04: KRW 21,900.00 per share

- 2019-05: KRW 20,600.00 per share

- 2019-06: KRW 22,000.00 per share

- 2019-07: KRW 22,700.00 per share

- 2019-08: KRW 21,300.00 per share

- 2019-09: KRW 21,400.00 per share

- 2019-10: KRW 22,100.00 per share

- 2019-11: KRW 21,500.00 per share

- 2019-12: KRW 21,150.00 per share

- 2020-01: KRW 19,500.00 per share

- 2020-02: KRW 18,400.00 per share

- 2020-03: KRW 14,750.00 per share

- 2020-04: KRW 17,500.00 per share

- 2020-05: KRW 16,900.00 per share

- 2020-06: KRW 15,900.00 per share

- 2020-07: KRW 16,650.00 per share

- 2020-08: KRW 18,050.00 per share

- 2020-09: KRW 20,600.00 per share

- 2020-10: KRW 22,900.00 per share

- 2020-11: KRW 24,350.00 per share

- 2020-12: KRW 25,650.00 per share

- 2021-01: KRW 21,400.00 per share

- 2021-02: KRW 22,900.00 per share

- 2021-03: KRW 21,800.00 per share

- 2021-04: KRW 21,750.00 per share

- 2021-05: KRW 21,950.00 per share

- 2021-06: KRW 23,300.00 per share

- 2021-07: KRW 24,500.00 per share

- 2021-08: KRW 26,750.00 per share

- 2021-09: KRW 29,000.00 per share

- 2021-10: KRW 26,350.00 per share

- 2021-11: KRW 21,600.00 per share

- 2021-12: KRW 23,150.00 per share

- 2022-01: KRW 21,000.00 per share

- 2022-02: KRW 22,100.00 per share

- 2022-03: KRW 22,600.00 per share

- 2022-04: KRW 22,400.00 per share

- 2022-05: KRW 25,000.00 per share

- 2022-06: KRW 19,750.00 per share

- 2022-07: KRW 20,100.00 per share

- 2022-08: KRW 21,300.00 per share

- 2022-09: KRW 18,900.00 per share

- 2022-10: KRW 20,850.00 per share

- 2022-11: KRW 21,500.00 per share

- 2022-12: KRW 20,000.00 per share

- 2023-01: KRW 19,630.00 per share

- 2023-02: KRW 20,200.00 per share

- 2023-03: KRW 21,800.00 per share

- 2023-04: KRW 22,750.00 per share

- 2023-05: KRW 22,550.00 per share

- 2023-06: KRW 22,100.00 per share

- 2023-07: KRW 22,200.00 per share

- 2023-08: KRW 22,150.00 per share

- 2023-09: KRW 21,100.00 per share

- 2023-10: KRW 21,850.00 per share

- 2023-11: KRW 21,250.00 per share

- 2023-12: KRW 21,500.00 per share

- 2024-01: KRW 20,750.00 per share

- 2024-02: KRW 20,050.00 per share

- 2024-03: KRW 19,910.00 per share

- 2024-04: KRW 19,810.00 per share

- 2024-05: KRW 19,750.00 per share

- 2024-06: KRW 19,920.00 per share

- 2024-07: KRW 19,050.00 per share

- 2024-08: KRW 18,800.00 per share

- 2024-09: KRW 19,240.00 per share

- 2024-10: KRW 19,870.00 per share

- 2024-11: KRW 18,490.00 per share

- 2024-12: KRW 17,050.00 per share

- 2025-01: KRW 16,950.00 per share

- 2025-02: KRW 16,160.00 per share

- 2025-03: KRW 15,700.00 per share

- 2025-04: KRW 16,070.00 per share

- 2025-05: KRW 16,270.00 per share

- 2025-06: KRW 16,800.00 per share

- 2025-07: KRW 17,650.00 per share

- 2025-08: KRW 17,600.00 per share

- 2025-09: KRW 17,700.00 per share

- 2025-10: KRW 17,880.00 per share

- 2025-11: KRW 18,640.00 per share

- 2025-12: KRW 18,940.00 per share

- 2026-01: KRW 20,000.00 per share

- 2026-02: KRW 18,970.00 per share

- 2026-03: KRW 17,970.00 per share

- 2026-04: KRW 18,890.00 per share

- 2026-05: KRW 16,580.00 per share

- 2026-06: KRW 15,200.00 per share

- 2026-07: KRW 14,890.00 per share

- 2026-08: KRW 16,430.00 per share

- 2026-09: KRW 15,750.00 per share

- 2026-10: KRW 15,620.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 19,410.74 per share, central KRW 21,467.07 per share, high KRW 24,204.48 per share

- FY2017: low KRW 29,119.49 per share, central KRW 31,848.88 per share, high KRW 35,482.28 per share

- FY2018: low KRW 31,269.34 per share, central KRW 34,191.95 per share, high KRW 38,082.57 per share

- FY2019: low KRW 26,586.33 per share, central KRW 29,172.70 per share, high KRW 32,615.72 per share

- FY2020: low KRW 24,939.72 per share, central KRW 27,266.35 per share, high KRW 30,363.58 per share

- FY2021: low KRW 32,826.49 per share, central KRW 36,155.78 per share, high KRW 40,587.78 per share

- FY2022: low KRW 44,427.29 per share, central KRW 56,982.22 per share, high KRW 65,662.67 per share

- FY2023: low KRW 41,266.86 per share, central KRW 55,936.77 per share, high KRW 64,479.08 per share

- FY2024: low KRW 33,025.63 per share, central KRW 39,486.95 per share, high KRW 45,135.02 per share

- FY2025: low KRW 30,482.31 per share, central KRW 33,807.11 per share, high KRW 38,233.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:53:25.952Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations