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JONBUR Research · Initiation

CJ Freshway · 051500 · Retail & Trade

CJ Freshway: Thin Margins and Low Multiples, With a Wide Gap to the Model Estimate

Why this report

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

CJ Freshway closed at ₩22,450 on 2026-10-16, down 13.2% over one year, with a market cap of ₩266.5B and a trailing P/E of 5.5. Revenue has grown every year since 2021, but operating margins are low at 2.8% and leverage is high.

Written Oct 18, 2026 · Data as of Oct 16, 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 growing, low-margin distributor trading at low multiples. Revenue rose from ₩2.29T in 2021 to ₩3.48T in 2025, and trailing revenue to H1 2026 is ₩3.56T. Trailing ROE is 11.4%, while the P/B is 0.6 and the P/E is 5.5.

What the data does not support is a clear improvement in profitability. Operating margin fell from 3.6% in 2022 to 2.9% in 2025 and 2.8% on a trailing basis. Liabilities to equity are 319.4%. The share price is 38.3% below its 52-week high of ₩36,400, and the 1-year return is -13.2%. The data does not explain why the shares fell.

Business overview

CJ Freshway is listed on KOSDAQ in the Retail & Trade sector. It was founded in 1988 and listed in 2001, and has 11,871,586 listed shares. The CEO is listed as 이건일. Annual revenue grew 19.9% in 2022, 11.9% in 2023, 4.9% in 2024 and 7.9% in 2025, so growth has slowed from its 2022 pace. Recent news headlines mention a supply agreement with NH Nonghyup for domestic livestock products, a push into the B2C market, and partner cooperation programs. The filings list several transactions of goods and services with affiliated companies, but the data does not give their size. The data does not describe the business segments further.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩3.56T, operating income ₩98.2B and net income ₩48.3B. That gives an operating margin of 2.8% and a net margin of 1.4%.

For full-year 2025, revenue was ₩3.48T, operating income ₩101.7B and net income ₩50.1B. Net income was ₩59.7B in 2023 and ₩25.9B in 2024, so earnings have been uneven. ROE was 20.0% in 2023, 7.4% in 2024 and 11.5% in 2025.

On the balance sheet, cash is ₩71.5B and borrowings are ₩142.6B. Liabilities to equity are 319.4%. Trailing free cash flow is positive at ₩53.6B.

Valuation

The shares trade at a P/E of 5.5, a P/B of 0.6 and a P/S of 0.1, with a dividend yield of 2.2%. Enterprise value is ₩337.7B. EV/EBITDA is not available. Year-end P/E was 6.3 in 2025, 8.0 in 2024, 4.7 in 2023 and 11.0 in 2021, and year-end P/B ranged from 0.5 to 1.4. The current multiples are therefore within the company's own recent range, near the low end.

Among the listed peers, P/E ranges from 5.6 (Youngone) to 43.9 (ISC) and P/B from 0.4 (Samsung C&T) to 5.9 (ISC). CJ Freshway's P/E is at the low end and its P/B is near the lower end.

The model estimate is based on the assumptions shown, using a 5-year discounted cash flow at a 6.8% rate. It is ₩157,951 per share in the base case, ₩33,622 in the bear case and ₩388,886 in the bull case, against a share price of ₩22,450. Even the bear case is above the price, and the range between cases is very wide. This shows how sensitive the model is to its assumptions with thin margins. It is not a target or a reason to buy or sell.

Catalysts

  • The half-year report was filed on 2026-08-14, showing trailing net income of ₩48.3B and a trailing operating margin of 2.8%.
  • Preliminary consolidated earnings and IR events were filed in late July and early August 2026, which show management communicating with investors.
  • On 2026-10-15 CJ Freshway and NH Nonghyup signed an agreement to expand supply of domestic livestock products, according to Edaily.
  • Edaily reported on 2026-10-15 that CJ Freshway is expanding its B2C push beyond school meals.
  • Over the last 20 days foreigners were net buyers (₩280.6M) and institutions net sellers (₩350.5M), while foreign ownership stayed at 18.4%.

Risks

  • Operating margin of 2.8% leaves little room for cost increases, and it has drifted down from 3.6% in 2022.
  • Liabilities to equity of 319.4% and borrowings of ₩142.6B make the company sensitive to financing costs.
  • Net income has been volatile, falling to ₩25.9B in 2024 from ₩59.7B in 2023.
  • The share price is down 13.2% over one year, and the data does not explain the decline.
  • Short balance data is not available, and a DS Investment note on 2026-10-14 cut its target for CJ Foodville, a related name, citing weaker Q3 expectations, which may affect sentiment.

Closing view

The data shows a business with steady revenue growth, positive free cash flow and low valuation multiples, set against thin margins, heavy liabilities and uneven earnings. The model estimate is far above the current price, but its very wide range reflects large uncertainty and should be read with caution. Whether the low multiples reflect risk or an overlooked opportunity cannot be settled from this data alone.

Model estimate of fair value

Bear
₩33,622
+64%
Base
₩157,951
+670%
Bull
₩388,886
+1797%

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 6.8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 18, 2026InitiationStart of coverage (reader request)CJ Freshway: Thin Margins and Low Multiples, With a Wide Gap to the Model Estimate

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