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Able C&C · 078520 · Cosmetics

Able C&C: Margins Recover and Dividends Continue, While the Share Price Sits Above a Model Estimate

Why this report

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Able C&C's trailing operating margin reached 10.5% in H1 2026 after revenue fell for two straight years, and the shares closed at ₩9,960. The model estimate of ₩7,332 per share is below the current price, while the P/E of 16.7 sits within the range of its peers.

Written Oct 30, 2026 · Data as of Oct 29, 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 story of profit recovery on a shrinking sales base. Revenue fell 3.5% in 2024 and 8.3% in 2025, yet operating margin rose from 4.0% in 2022 to 7.4% in 2025 and 10.5% on a trailing basis. Return on equity is 17.8%, and the dividend yield is 4.4%.

What the data does not show is whether sales are stabilizing. Trailing revenue of ₩240.6B is only slightly below 2025's ₩242.0B, but no quarterly growth figures are given. The share price is down 8.5% over one month and sits well below its 52-week high of ₩16,790. Foreign ownership fell from 10.2% to 8.9% over 60 days, while institutions were net buyers over 20 days. Filings point to shareholder-return activity, including dividend decisions, a share cancellation decision and the termination of an own-share trust.

Business overview

Able C&C is a KOSPI-listed cosmetics company founded in 2000 and listed in 2011. It has 24,963,426 listed shares and a market capitalization of about ₩248.6B, which is small next to peers such as APR (₩10.6T) and Amorepacific (₩7.3T). Revenue was ₩262.9B in 2021, ₩247.9B in 2022, ₩273.6B in 2023, ₩264.0B in 2024 and ₩242.0B in 2025. The company reported a net loss of ₩43.3B in 2021. The latest headline in the data, from Money Today on October 28, 2026, concerns a lip makeup line combined with skincare. The data gives no further detail on products or channels.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩240.6B, operating income ₩25.4B (10.5% margin) and net income ₩14.9B (6.2% margin). Annual operating income was ₩10.0B in 2022, ₩11.4B in 2023, ₩19.7B in 2024 and ₩18.0B in 2025. Net income was ₩14.1B in 2025 and ₩14.5B in 2024. ROE was 15.9% in 2025 and 17.8% on a trailing basis.

The balance sheet shows liabilities at 110.8% of equity, cash of ₩27.5B and borrowings of ₩11.2B. Trailing free cash flow is ₩33.9B, which is higher than trailing net income.

Valuation

The shares trade at a P/E of 16.7, a P/B of 3.3 and a P/S of 1.0, with a dividend yield of 4.4%. EV/EBITDA is not available. Year-end P/E was 18.5 in 2025, 12.0 in 2024 and 27.5 in 2023, and year-end P/B was 3.0 in 2025 and 1.9 in 2024, so the current P/B is above recent history.

Among peers, P/E is 24.5 for APR, 25.4 for Amorepacific, 15.3 for Cosmax and 14.7 for Kolmar Korea, while LG H&H has no P/E available. Peer P/B ranges from 0.7 to 16.3.

The valuation model, a 5-year discounted cash flow at a 7.3% rate, gives a model estimate based on the assumptions shown of ₩7,332 per share in the base case, ₩3,631 in the bear case and ₩13,803 in the bull case. The ₩9,960 close is above the base case and within the bear-to-bull range. The estimate is not a target and depends heavily on the assumptions used.

Catalysts

  • A 5%+ holding report was filed on October 29, 2026, which may signal a change in a major shareholder's position.
  • A cash dividend decision was filed on October 15, 2026, following earlier dividend decisions in July and May.
  • A share cancellation decision and the termination of the own-share acquisition trust, both filed in August 2026, relate to capital returns.
  • The half-year report for June 2026 showed the trailing margin at 10.5%, and the next filings will show whether it holds.
  • Institutions were net buyers of about ₩9.2B over 20 days, while foreign and retail investors were net sellers.

Risks

  • Revenue has declined in 2022, 2024 and 2025, and trailing revenue is still below the 2023 level of ₩273.6B.
  • The share price is above the model's base estimate of ₩7,332, and the bear case of ₩3,631 is far lower.
  • Foreign ownership fell from 10.2% to 8.9% in 60 days, and foreigners were net sellers of about ₩4.5B over 20 days.
  • Profit has been volatile, with an operating loss of ₩22.4B in 2021 and net income of just ₩0.9B in 2022.
  • Liabilities of 110.8% of equity and a P/B of 3.3 leave less room for error if margins slip.

Closing view

The filings show a clear earnings recovery, with higher margins, ROE of 17.8%, solid free cash flow and ongoing dividends. Against that, sales have shrunk, the shares trade above the model's base estimate, and foreign holding has fallen. The evidence is mixed: profitability has improved but growth is not yet visible, and the valuation depends on whether current margins can be sustained.

Model estimate of fair value

Bear
₩3,631
-62%
Base
₩7,332
-24%
Bull
₩13,803
+43%

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 7.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 30, 2026InitiationStart of coverage (reader request)Able C&C: Margins Recover and Dividends Continue, While the Share Price Sits Above a 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