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JONBUR Research · Initiation

Paradise · 034230 · Hotels & Leisure

Paradise: Shares Near 52-Week Low as Profits Recover but Returns Stay Modest

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Paradise closed at ₩9,600 on 2026-10-23, down 49.1% over one year and close to its 52-week low of ₩9,160. Filed statements show revenue and profit well above 2021-2022 levels, but returns on equity remain low and free cash flow is negative.

Written Oct 24, 2026 · Data as of Oct 23, 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 business that has recovered from losses in 2021 to positive profits, with trailing revenue of ₩1.19T and an operating margin of 10.8%. Valuation multiples are low, with P/E of 11.9 and P/B of 0.5, and the model estimate sits above the share price. However, the operating margin is below the 13.6% of 2025, ROE is only 4.4%, borrowings of ₩1.03T are far above cash of ₩281.7B, and free cash flow is negative at ₩160.2B. The share price has fallen sharply over the year and the data does not explain why. Foreign investors have been net sellers over the last 20 days, while institutions were net buyers.

Business overview

Paradise is a KOSPI-listed company in the Hotels & Leisure sector, founded in 1972 and listed on 2024-06-24. It has 92,629,382 listed shares and a market capitalization of ₩889.2B. It is led by co-CEOs 최종환 and 임준신. Recent news headlines mention a spa wellness event, a Busan hotel cocktail collection, a role as headquarters hotel for the Busan International Film Festival, a concert at Paradise City and a chef event. The data does not give a revenue breakdown by segment.

Financial analysis

These figures come from filed financial statements. Revenue rose from ₩414.5B in 2021 to ₩587.6B in 2022, ₩994.2B in 2023, ₩1.07T in 2024 and ₩1.15T in 2025, with growth of 7.3% in 2025. Operating income was ₩155.8B in 2025 (13.6% margin) versus ₩136.1B in 2024 (12.7%). Net income was ₩94.4B in 2025, and ROE was 5.6%. For the trailing twelve months to H1 2026, revenue was ₩1.19T, operating income ₩128.5B (10.8% margin), net income ₩74.6B (6.2% margin) and ROE 4.4%. Liabilities to equity were 87.5%. Cash was ₩281.7B against borrowings of ₩1.03T. Free cash flow was negative ₩160.2B.

Valuation

At the current price, P/E is 11.9, P/B is 0.5, P/S is 0.7 and the dividend yield is 1.6%. EV/EBITDA is not available. Year-end P/E was 16.2 in 2025 and 11.8 in 2024, while year-end P/B was 0.9 in 2025 and 0.5 in 2024. Peers show P/E of 9.2 for Kangwon Land, 7.7 for Seobu T&D and 11.0 for Grand Korea Leisure, and P/B of 0.5 to 1.1 for those with data (Ananti 0.5, Mona Yongpyong 0.3). The valuation model, a 5-year discounted cash flow at a 6.2% rate, gives a base estimate of ₩25,264 per share, with a bear case of ₩9,184 and a bull case of ₩54,885. This is a model estimate based on the assumptions shown, not a target. The wide range shows how sensitive the result is to those assumptions, and the bear case is close to the current price of ₩9,600.

Catalysts

  • Several securities registration, prospectus and issuance results filings were made between 2026-09-30 and 2026-10-14, and the details of that issuance are not in the data.
  • Preliminary consolidated earnings were filed on 2026-09-02 and 2026-10-02, which investors can compare with the next full results.
  • Two 5%+ holding reports were filed on 2026-10-02 and 2026-10-16, which point to changes in major shareholdings.
  • Events at Paradise City and Paradise Hotel Busan, including a concert for 20,000 people and the film festival role, appear in October news.
  • Institutions were net buyers of about ₩8.3B over 20 days, which offsets part of the foreign selling.

Risks

  • Borrowings of ₩1.03T are well above cash of ₩281.7B, which leaves the balance sheet exposed to financing costs.
  • Free cash flow was negative ₩160.2B in the trailing period, which limits internal funding.
  • Operating margin slipped from 13.6% in 2025 to 10.8% in the trailing period, and ROE of 4.4% is low.
  • The share price is down 49.1% over one year, and foreign ownership fell from 8.1% to 7.6% in 60 days, with net foreign selling of about ₩4.0B over 20 days.
  • The recent securities issuance could change the share count or the debt level, and the filings summarized here do not give those details.

Closing view

The data shows a recovered but not yet high-return business: revenue has grown for several years and profits are positive, while margins have softened, cash flow is negative and debt is large. Low multiples and a base model estimate above the share price are set against a bear case near the current price and a large one-year decline. The evidence is mixed, and the unexplained issuance filings and the cash flow trend are the main items to watch in coming reports.

Model estimate of fair value

Bear
₩9,184
-2%
Base
₩25,264
+168%
Bull
₩54,885
+483%

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

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)Paradise: Shares Near 52-Week Low as Profits Recover but Returns Stay Modest

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