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Lotte · 004990 · Holding companies

Lotte Holdings Files Corporate Value-Up Plan; Filing Details Not Available

Why this report

Written after:

Lotte Holdings filed a voluntary corporate value-up plan on 2026-10-22, a plan type used by companies aiming to improve their price-to-book ratio. No excerpt of the plan was provided, so we cannot say what it commits to, and it does not yet change our view of the numbers.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-22 the company disclosed a voluntary corporate value-up plan, labelled as one submitted by companies working to improve their price-to-book ratio. The filing text was not available to us, so targets, shareholder return commitments, timelines and amounts are unknown. The share price was ₩22,250 on 2026-10-21, down 8.8% over one month and 22.6% over one year, against a 52-week range of ₩21,150 to ₩39,600. Price-to-book is now 0.3 and the dividend yield is 5.6%. Over the last 20 days foreign investors were net sellers of about ₩8.3B, and foreign ownership is 9.5% versus 9.9% sixty days ago.

What it changes for the thesis

The previous report from 2026-10-13 tied the steep discount to book value to weak profitability: an operating margin of 1.6%, a latest-twelve-month net loss of ₩400.5B, ROE of -6.3% and meaningful leverage. A value-up plan addresses the discount, but without its contents we cannot tell whether it tackles those causes, such as earnings, leverage or capital allocation. The plan is a sign of management attention to the valuation gap, yet the thesis is unchanged until concrete measures are seen. The Shinhan acquisition of Lotte Insurance mentioned earlier remains without details on its effect on Lotte.

What it changes for the valuation

The previous report had no model estimate. The model now gives a net-asset-value-based estimate of ₩6,391 (bear), ₩9,587 (base) and ₩13,421 (bull) per share, using a 40.0% rate on TTM data to H1 2026. This is a model estimate based on the assumptions shown, not a price target. All three values are below the ₩22,250 share price. This reflects the model's assumptions and its high rate, and the filing adds no figures to change them. Price-to-earnings and EV/EBITDA remain unavailable because earnings are negative. Price-to-book of 0.3 compares with 0.7 to 1.9 for listed peers, an imperfect comparison.

Closing view

The filing is a notable governance signal, but with no details available it adds no measurable change to earnings, leverage or the model estimate. The evidence still shows thin margins, repeated net losses, borrowings of ₩8.6T against cash of ₩1.2T, and a share price near its 52-week low. The substance of the plan, especially any shareholder return or balance sheet commitments, is what would matter, and it is not available here.

Model estimate of fair value

Bear
₩6,391
-70%
Base
₩9,587
-55%
Bull
₩13,421
-36%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the sum-of-the-parts (net asset value) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 40%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 22, 2026Update noteBuyback / dividend / value-upLotte Holdings Files Corporate Value-Up Plan; Filing Details Not Available
  2. Oct 13, 2026InitiationLotte Holdings: Thin Margins, Net Losses and a Price Near the 52-Week Low

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information