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JONBUR Research · Initiation

Pureun Savings Bank · 007330 · Banks

Pureun Savings Bank: Low Price-to-Book, Uneven Earnings and a Model Estimate Below the Share Price

Why this report

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Pureun Savings Bank closed at ₩10,010 on 2026-10-21, a market value of about ₩151.0B, trading at 0.5x book value and 12.1x earnings. Earnings have been uneven across recent years, and the valuation model's base estimate of ₩6,889 per share sits below the current price.

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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Thesis

The data supports a picture of a small KOSDAQ bank trading well below book value, with a dividend yield of 7.7%. Its return on equity has moved between 2.3% and 6.3% over 2023-2025 and was 4.0% on a trailing basis to H1 2026, which is low against the 9.7% rate used in the valuation model. That gap helps explain why the shares trade below book value.

What the data does not support is a clear earnings trend. Net income was ₩15.8B in 2023, ₩7.0B in 2024 and ₩19.9B in 2025, and the trailing figure to H1 2026 is ₩12.5B. Operating income for the trailing period is ₩3.6B, well below net income, so profit has not come only from core operating income. Revenue is not available in the data, so growth and margins cannot be assessed. Share price moves have been small: -0.1% over one month, -0.3% over three months and -3.0% over one year.

Business overview

Pureun Savings Bank is listed on KOSDAQ in the banks sector. It was founded on 1971-06-29 and listed on 1993-12-07. It has 15,082,800 listed shares and is led by sole CEO 송명구. Market capitalisation is ₩150.98B and enterprise value is ₩122.5B. The 52-week high was ₩14,050; the 52-week low in the data is shown as zero, which looks like missing data, so it is not used here. Foreign ownership is small at 1.8%, down from 2.1% sixty days ago, and the short balance is 0.1%. Recent filings include routine insider shareholding reports, large business group status disclosures, a 5%+ holding report on 2026-07-07 and affiliated financial transaction disclosures.

Financial analysis

These figures come from filed financial statements. Revenue and borrowings are not available. Net income was ₩15.8B in 2023, ₩7.0B in 2024 and ₩19.9B in 2025. Operating income was ₩9.0B, ₩6.8B and ₩16.9B in the same years. Return on equity was 5.0%, 2.3% and 6.3%.

For the trailing period to H1 2026, net income is ₩12.5B, operating income is ₩3.6B and ROE is 4.0%. Liabilities to equity stand at 384.9%, which is typical of a deposit-funded lender. Cash is ₩28.4B and free cash flow is ₩18.1B, though cash flow for a bank is hard to read in the same way as for other companies.

Valuation

At ₩10,010 the shares trade at 12.1x earnings and 0.5x book value, with a 7.7% dividend yield. Year-end price-to-earnings was 8.2x in 2023, 18.2x in 2024 and 7.7x in 2025, so the current multiple is in the middle of that range. Year-end price-to-book was 0.4x to 0.5x, so the current 0.5x is in line with history. The EV/EBITDA figure of 25.0x is not very meaningful for a bank.

Among the peers shown, Industrial Bank of Korea trades at 6.0x earnings and 0.4x book, KakaoBank at 19.5x and 1.4x, Kbank at 30.0x and 0.9x, and Jeju Bank at 22.4x and 0.5x.

The valuation model uses the excess method, comparing price-to-book with ROE, at a 9.7% rate on trailing data to H1 2026. It gives a model estimate based on the assumptions shown of ₩6,889 per share in the base case, ₩1,219 in the bear case and ₩14,265 in the bull case. The base case is below the current price of ₩10,010, and the wide range shows high sensitivity to the assumptions. It is not a target or a reason to buy or sell.

Catalysts

  • The next periodic filing will show whether the improvement in ROE seen in 2025 carries through, after the half-year report filed on 2026-08-14.
  • A 5%+ holding report was filed on 2026-07-07, and further changes in large holders could matter for the shareholder base.
  • Trading plan reports for executives and major shareholders were filed on 2026-04-20 and 2026-09-30, and any resulting share transactions could draw attention.
  • Over the last 20 days institutions were net buyers of about ₩715M while retail and foreign investors were net sellers, a small shift in flows.
  • The 7.7% dividend yield may draw attention if payouts are maintained, though the data does not include dividend announcements.

Risks

  • Earnings have been volatile, with net income halving in 2024 and then nearly tripling in 2025, which makes the trend hard to judge.
  • Trailing operating income of ₩3.6B is much lower than net income of ₩12.5B, suggesting profit depends on items other than core operations.
  • Return on equity of 4.0% is below the 9.7% rate used in the model, and the model's base estimate is below the current share price.
  • Liabilities are 384.9% of equity, so the bank has limited cushion if asset quality weakens, and loan quality data is not in the data.
  • Foreign ownership is falling and is only 1.8%, and trading volumes appear small, so liquidity may be thin; no recent news headlines are available to add context.

Closing view

The data shows a small bank valued at half its book value with a high dividend yield, but with modest and uneven returns on equity and no revenue data to confirm the underlying trend. The model's base estimate of ₩6,889 is below the market price, while the bull case of ₩14,265 is well above it, so the outcome depends heavily on whether returns improve. The evidence is mixed and does not point clearly in either direction.

Model estimate of fair value

Bear
₩1,219
-88%
Base
₩6,889
-30%
Bull
₩14,265
+44%

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

Base case of the P/B vs ROE (excess return) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 22, 2026InitiationStart of coverage (reader request)Pureun Savings Bank: Low Price-to-Book, Uneven Earnings and a Model Estimate Below the Share Price

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