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Chokwang Leather Co., Ltd. (004700) AI Stock Analysis

KR:004700

Chokwang Leather Co., Ltd.

(Korea Exchange:004700)

Select Model
Rating:70.7Outperform
Price Target:KRW 71,728.00â–²(9.51% Upside)
Action:initiatedcoverage
Date:10/28/26

The score is driven primarily by strong financial fundamentals—especially a very low-debt balance sheet and currently solid cash conversion—supporting resilience. This is tempered by weaker technicals (price below key moving averages and negative MACD) and a middling valuation (P/E ~23 with no dividend yield data).

Positive Factors
Very low financial leverageMinimal leverage gives Chokwang Leather substantial financial flexibility and reduces exposure to interest costs or refinancing pressure. This conservative funding structure can help the company withstand weaker demand while preserving capacity to invest in operations and maintain balance-sheet stability.
Negative Factors
Softening revenueDeclining TTM revenue indicates weaker recent demand or reduced business activity in the company’s leather-materials operations. If the contraction persists, it could reduce operating leverage, limit growth in earnings, and make it harder to absorb fixed costs across downstream customer applications.

Chokwang Leather Co., Ltd. (004700) vs. SPDR S&P 500 ETF (SPY)

-10%-5%0%5%10%15%20%25%30%KR:004700+2.83%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
KRW 232.72B
Dividend Yield
―
Average Volume (3M)
4,356
Price to Earnings (P/E)
23.3
Beta (1Y)
0.14
Revenue Growth
-6.79%
EPS Growth
-4.49%
Country
KR
Employees
151
Sector
General
Sector Strength
55
Industry
Auto - Parts

Chokwang Leather Co., Ltd. Business Overview & Revenue Model

Company Description

Operating from South Korea, Chokwang Leather Co.,Ltd. specializes in the production and distribution of leather goods. The company, which originated in 1936, has its principal corporate base situated in Cheongju, South Korea.

Chokwang Leather Co., Ltd. Financial Statement Overview

Summary

Overall financial quality is above average, led by an exceptionally strong balance sheet (very low debt and growing assets/equity) and currently supportive cash generation (positive FCF with FCF slightly exceeding net income). The key offsets are softening revenue (about -5.5% TTM) and uneven operating profitability/cash-flow volatility across periods.

Income Statement

67Positive

Balance Sheet

92Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue87.87B97.88B90.25B126.57B122.01B104.25B
Gross Profit16.21B20.58B16.34B18.79B9.78B22.50B
EBITDA1.87B10.22B17.09B13.55B6.69B17.12B
Net Income9.97B11.54B12.60B9.05B6.06B11.20B
Balance Sheet
Total Assets706.15B662.00B618.76B504.50B442.03B440.91B
Cash, Cash Equivalents and Short-Term Investments52.09B51.59B55.28B36.93B24.17B10.70B
Total Debt34.32M33.67M35.97M22.60B23.55B21.52B
Total Liabilities94.01B84.13B75.37B69.79B63.99B63.93B
Stockholders Equity612.14B577.86B543.39B434.71B378.04B376.98B
Cash Flow
Free Cash Flow14.86B13.93B27.79B5.42B13.30B-75.19B
Operating Cash Flow14.43B14.25B32.75B10.26B15.67B-18.51B
Investing Cash Flow-18.60B-17.94B6.24B3.76B575.12M-48.33B
Financing Cash Flow-5.58M-5.58M-20.94B-1.33B-469.25M20.57B

Chokwang Leather Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price65500.00

Price Trends

50DMA65682.00Negative
100DMA64036.00Positive
200DMA66017.50Negative

Market Momentum

MACD-354.82Positive
RSI49.23Neutral
STOCH27.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:004700, the sentiment is Positive. The current price of 65500.00 is below the 20-day moving average (MA) of 66105.00, below the 50-day MA of 65682.00, and below the 200-day MA of 66017.50, indicating a bearish trend. The MACD of -354.82 indicates Positive momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KR:004700.

Chokwang Leather Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

KR:004700 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
KR:009900KR:00990073OutperformKRW 402.45B4.52―1.30%15.44%2.90%
KR:004700KR:00470071OutperformKRW 232.72B23.34――-6.79%-4.49%
KR:007860KR:00786063NeutralKRW 150.21B1.66―3.61%5.12%6.93%
KR:015750KR:01575060NeutralKRW 415.16B3.99―3.53%1.70%29.50%
KR:010690KR:01069059NeutralKRW 219.26B3.02―2.69%9.30%85.60%
KR:200880KR:20088057NeutralKRW 272.66B2.14―2.48%7.90%59.56%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-25%0%25%50%75%KR:004700KR:007860KR:009900KR:010690KR:015750KR:200880Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
KR:004700 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
KR:004700Chokwang Leather Co., Ltd.65500.00400.000.61%
KR:007860SEOYON CO. LTD6920.00-2160.24-23.79%
KR:009900Myoung Shin Industry Co., Ltd.7670.00-1422.96-15.65%
KR:010690Hwashin Co., Ltd6310.00-2038.57-24.42%
KR:015750Sungwoo Hitech Co., Ltd5190.00-1254.42-19.47%
KR:200880SEOYON E-HWA Co., Ltd.10090.00-2481.16-19.74%
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