Nongshim Holdings: Low Multiples, Growing Revenue and a Model Estimate Above the Share Price

Thesis

The data supports a picture of a holding company with steadily growing revenue, rising net income and very low multiples compared with its own recent history and the peers listed. Trailing net income of ₩132.0B exceeds operating income of ₩102.9B, which suggests earnings include income beyond core operations; the data does not say what drives it. Foreign ownership rose from 3.6% to 4.2% over 60 days and foreign and institutional investors were net buyers over 20 days, while retail investors were net sellers. The data does not explain why the shares trade at 0.3x book value, and a persistent discount may reflect factors not visible here. Short balance data is not available. Recent filings show treasury share sale activity and changes in the largest shareholder's holdings, but the filing titles give no details on size or purpose.

Business overview

Nongshim Holdings is a KOSPI-listed holding company, founded on 2003-07-10 and listed on 2003-07-30, with 4,637,790 listed shares and a market capitalization of about ₩409.5B. Its CEO is listed as 황청용. Consolidated revenue grew from ₩641.5B in 2021 to ₩858.8B in 2025, and trailing revenue to H1 2026 is ₩1.01T. The data does not describe the individual businesses or subsidiaries beyond the sector classification.

Financial analysis

These figures come from filed financial statements. Revenue rose each year shown: 2022 +5.2%, 2023 +14.1%, 2024 +3.7% and 2025 +7.6%, to ₩858.8B. Operating income was ₩81.1B in 2025 (margin 9.4%), down from ₩86.6B in 2024 (10.9%). Net income was ₩114.6B in 2025, up from ₩74.8B in 2024 and ₩34.1B in 2022. Trailing figures to H1 2026: revenue ₩1.01T, operating income ₩102.9B (10.1% margin), net income ₩132.0B (13.0% margin) and ROE of 10.1%, up from 9.0% in 2025 and 3.2% in 2022. Liabilities are 44.6% of equity. Cash is ₩34.8B against borrowings of ₩56.9B, and trailing free cash flow is ₩25.6B.

Valuation

The stock trades at 3.1x earnings, 0.3x book value and 0.4x sales, with a dividend yield of 3.4% and an enterprise value of ₩431.5B. Year-end P/E was 3.7x in 2025, 3.9x in 2024 and 9.0x in 2022, while P/B stayed at 0.2x to 0.3x, so the current multiples sit at the low end of its own five-year range. The listed peers trade at P/E of 3.2x to 9.0x and P/B of 0.7x to 1.9x, all above Nongshim Holdings on book value. The valuation model uses a sum-of-the-parts (NAV) method and gives a base estimate of ₩120,006 per share, with a bear case of ₩80,004 and a bull case of ₩168,009, using a 40% rate input. This is a model estimate based on the assumptions shown, not a target. The base case is about 35.9% above the ₩88,300 close, and the bear case is slightly below it. EV/EBITDA is not available.

Catalysts

• The half-year report filed on 2026-08-14 showed trailing net income of ₩132.0B, and the next periodic report will show whether that level holds.
• A treasury share sale decision was amended on 2026-09-03, and its details could matter for the share count and ownership.
• Two 5%+ holding reports filed on 2026-09-22 and 2026-10-07 point to changes in significant shareholdings.
• Changes in the largest shareholder's holdings were filed on 2026-06-04, 06-05 and 06-09.
• Foreign ownership rising to 4.2% from 3.6% and net buying by foreign and institutional investors over 20 days could signal shifting demand.

Risks

• Net income exceeds operating income, so earnings quality depends on non-operating items that the data does not break down.
• Operating margin slipped from 10.9% in 2024 to 9.4% in 2025 before recovering to 10.1% on a trailing basis, showing some volatility.
• Trailing free cash flow of ₩25.6B is small relative to net income of ₩132.0B, and borrowings of ₩56.9B exceed cash of ₩34.8B.
• The model estimate is sensitive to its assumptions, as the bear-to-bull range of ₩80,004 to ₩168,009 is wide.
• The shares sit near 0.3x book value for years, and the data gives no sign of what would narrow that gap; shares are also down 4.0% over one year, with no news headlines available.

Closing view

The data shows a holding company with growing revenue, improving returns and valuation multiples well below its peers and its own earlier levels. The model's base estimate is above the current price, but the range is wide and the data does not explain the persistent discount to book value or the gap between net and operating income. Filings point to active changes in shareholdings and treasury shares, and details are not available here. This is a description of the evidence, not a recommendation.

Model estimate of fair value

Bear

₩80,004

-6%

Base

₩120,006

+41%

Bull

₩168,009

+97%

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

• 5%+ holding reportOct 7, 2026
• 5%+ holding reportSep 22, 2026
• Amended: Treasury share sale decisionSep 3, 2026
• Disclosure on Large Business Group Status [Quarterly Disclosure (For Individual Company)]Aug 24, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• Matters Concerning Payment Amounts by Payment Method and Payment Period, and Dispute Mediation BodiesAug 14, 2026
• Change in largest shareholder's holdingsJun 9, 2026
• Change in largest shareholder's holdingsJun 5, 2026
• Change in largest shareholder's holdingsJun 4, 2026
• Disclosure of Corporate Governance ReportMay 29, 2026
• Disclosure of Large Business Group Status [Annual Disclosure and Q1 Use (Individual Companies)]May 29, 2026
• Quarterly report (Mar 2026)May 15, 2026
• Daily prices up to 2026-10-16
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 18, 2026InitiationStart of coverage (reader request)Nongshim Holdings: Low Multiples, Growing Revenue and a Model Estimate Above the Share Price