Michang Oil Industry Co., Ltd. (003650) AI Stock Analysis

Michang Oil Industry Co., Ltd.

(Korea Exchange:003650)

Select Model

Rating:72Outperform

Price Target:KRW 129,648.00▲(11.86% Upside)

Action:initiatedcoverage

Date:10/28/26

The score is driven primarily by strong financial resilience (very low leverage and improved ROE) and very attractive valuation (P/E ~1.45 with ~3.0% dividend yield). These positives are meaningfully offset by weak recent cash flow conversion and a clear technical downtrend/oversold momentum (price below major moving averages with RSI ~28.9 and negative MACD).

Positive Factors

Conservative balance sheetVery low leverage gives Michang Oil Industry substantial financial flexibility and resilience if operating conditions weaken. A conservative capital structure can support continued investment in cooking-oil products, reduce financing pressure, and preserve options for dividends or other shareholder returns.

Negative Factors

Weak cash conversionOperating earnings are currently translating into cash at a weak rate, which reduces confidence in the quality and repeatability of reported profits. Persistently low conversion could constrain internally funded investment, dividends, and working-capital flexibility even while accounting earnings remain positive.

Michang Oil Industry Co., Ltd. (003650) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 175.35B
Dividend Yield: 3.02%
Average Volume (3M): 2,200
Price to Earnings (P/E): 1.4
Beta (1Y): 0.02
Revenue Growth: 4.97%
EPS Growth: 153.76%
Country: KR
Employees: 84
Sector: General
Sector Strength: 55
Industry: Oil & Gas Refining & Marketing

Michang Oil Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Michang Oil Industries Co., Ltd., a petrochemical enterprise based in South Korea, provides an extensive range of specialized oil products. Its offerings include various automotive lubricants, covering oils for motors, gasoline engines, diesel engine...

Michang Oil Industry Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is a major positive (very low leverage with ~0.02 debt-to-equity and improved ROE ~24.6% TTM). However, operating profitability is inconsistent (TTM negative operating/EBITDA margins versus positive in 2023–2025) and cash flow quality weakened materially (FCF down ~82.7% TTM and OCF only ~0.19x net income), tempering the overall financial score.

Income Statement

71Positive

Balance Sheet

88Very Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	437.33B	404.61B	431.94B	409.23B	418.79B	406.29B
Gross Profit	50.61B	47.93B	59.57B	61.55B	57.89B	49.87B
EBITDA	-3.01B	38.51B	72.85B	64.57B	30.09B	44.83B
Net Income	123.12B	68.87B	52.63B	47.65B	23.38B	33.14B
Balance Sheet
Total Assets	659.53B	533.96B	488.93B	416.24B	357.33B	347.60B
Cash, Cash Equivalents and Short-Term Investments	351.48B	255.87B	206.44B	141.03B	109.94B	117.17B
Total Debt	13.09B	12.80B	52.73B	13.48B	3.44B	2.47B
Total Liabilities	83.78B	54.55B	76.42B	51.38B	36.18B	45.62B
Stockholders Equity	575.75B	479.41B	412.51B	364.86B	321.14B	301.98B
Cash Flow
Free Cash Flow	6.51B	37.85B	18.85B	53.27B	14.17B	13.58B
Operating Cash Flow	9.25B	40.34B	23.71B	54.10B	15.32B	15.24B
Investing Cash Flow	4.70B	15.17B	-55.83B	-55.74B	-22.35B	-30.63B
Financing Cash Flow	-22.38B	-44.63B	35.55B	6.06B	-4.03B	-3.36B

Michang Oil Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price115900.00

Price Trends

50DMA129152.00Negative

100DMA132661.00Negative

200DMA127378.50Negative

Market Momentum

MACD-3341.18Negative

RSI31.82Neutral

STOCH24.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:003650, the sentiment is Negative. The current price of 115900.00 is below the 20-day moving average (MA) of 120365.00, below the 50-day MA of 129152.00, and below the 200-day MA of 127378.50, indicating a bearish trend. The MACD of -3341.18 indicates Negative momentum. The RSI at 31.82 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:003650.

Michang Oil Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:003650 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:134380	85Outperform	KRW 220.44B	7.49	―	4.40%	30.03%	83.76%
KR:003650	72Outperform	KRW 175.35B	1.44	―	3.02%	4.97%	153.76%
KR:025000	71Outperform	KRW 246.15B	2.49	―	7.01%	-8.64%	121.40%
KR:117580	66Neutral	KRW 188.46B	7.80	―	3.61%	-6.14%	-7.46%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:014530	54Neutral	KRW 108.25B	9.98	―	6.22%	4.16%	774.03%
KR:007160	45Neutral	KRW 203.96B	-1.99	―	0.49%	6.88%	-1246.67%

* General Sector Average

Performance Comparison

KR:003650 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:003650	Michang Oil Industry Co., Ltd.	115900.00	10865.98	10.35%
KR:007160	Sajo Industries Co., Ltd	40850.00	-6481.86	-13.69%
KR:014530	Kukdong Oil & Chemicals Co., Ltd	3215.00	170.10	5.59%
KR:025000	KPX Chemical Co., Ltd.	60600.00	19038.75	45.81%
KR:117580	Daesung Energy Co. Ltd.	6930.00	-1057.86	-13.24%
KR:134380	Miwon Chemicals Co., Ltd	11370.00	3099.07	37.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Michang Oil Industry Co., Ltd. AI Stock Analysis