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JONBUR Research · Update note

ISC · 095340 · Retail & Trade

ISC Q3 Preliminary Results: Operating Profit Up 25.4% Year on Year to ₩21.8B

Why this report

Written after:

ISC reported preliminary Q3 2026 consolidated operating profit of ₩21.8B, up 25.4% from a year earlier, while net income fell 8.2%. The result supports the operating recovery described in the previous report, but the model estimate remains well below the current share price.

Written Oct 27, 2026 · Data as of Oct 26, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-27, ISC filed preliminary consolidated results for the July–September 2026 quarter. The figures are provisional and may differ from final numbers.

Revenue was ₩71.8B, up 11.2% year on year but down 1.6% from the prior quarter (₩72.9B). Operating profit was ₩21.8B, up 25.4% from ₩17.4B a year earlier and up 2.4% from ₩21.3B in Q2. That implies an operating margin of about 30.4% (calculated from the filed figures).

Pre-tax profit from continuing operations was ₩20.4B, up 3.3% year on year but down 17.3% from Q2. Net income was ₩14.9B, down 8.2% year on year and down 23.3% from Q2. Net income attributable to owners was ₩14.8B, down 7.9% year on year.

For the first nine months, revenue was ₩213.0B (up 44.0%), operating profit ₩66.8B (up 75.2%) and net income ₩54.9B (up 58.6%). The filing does not explain why pre-tax and net profit lagged operating profit this quarter.

What it changes for the thesis

The previous report (2026-10-13) argued that the data supported a strong operating recovery, with trailing operating margin of 30.3%. This quarter is consistent with that: the Q3 margin of about 30.4% is in line with the trailing level, and nine-month operating profit is up 75.2%.

Two points add nuance. Revenue slipped 1.6% from Q2, so sequential growth paused. Net income fell both year on year and from Q2, so the gain below the operating line was weaker than at the operating level. The reason is not given in the data. The previous report's caution that results can change quickly still applies.

What it changes for the valuation

The previous report had no fair value estimate. The model now gives a range of ₩47,992 (bear), ₩60,954 (base) and ₩80,844 (bull) per share, a model estimate based on the assumptions shown (DCF, 8.4% discount rate, trailing results to H1 2026). It does not yet include these Q3 figures.

The share price was ₩140,600 on 2026-10-26, above even the bull value of the model range. The shares have fallen 33.8% over one month but are up 75.1% over one year, and sit below the 52-week high of ₩292,500.

On the data pack, the P/E is now 38.4x (52.3x in the previous report) and P/B is 5.1x (previously 7.0x), mainly because of the lower share price. These multiples remain well above the listed peers, which show P/E of 5.1x to 18.8x, though the peers differ in scale. Foreign ownership fell from 31.3% to 27.3% over 60 days, and foreign and institutional investors were net sellers over the last 20 days.

Closing view

The Q3 filing confirms that operating profit and margins remain near the strong levels that underpinned the previous report, while net income softened. The market price sits well above the model estimate, meaning it assumes more growth or durability than the model's assumptions capture. The model is a single estimate and is sensitive to its inputs, and the Q3 figures are provisional. This note offers context on the results and valuation, not a view on the stock's direction.

Model estimate of fair value

Bear
₩47,992
-68%
Base
₩60,954
-60%
Bull
₩80,844
-47%

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 8.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 27, 2026Update noteEarningsISC Q3 Preliminary Results: Operating Profit Up 25.4% Year on Year to ₩21.8B
  2. Oct 13, 2026InitiationISC: Sharp Profit Rebound and a 137.3% One-Year Share Price Gain, Now at 52.3x Earnings

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