Youngone: Strong Profit Recovery and Low Multiples, Alongside a Share Price Pullback and a New Buyback

Thesis

The data supports a picture of improving profitability. Operating margin rose from 9.0% in 2024 to 12.7% in 2025 and 13.4% on a trailing basis, and net income of ₩590.8B is the highest in the five-year series shown. The balance sheet looks conservative, with cash of ₩720.0B against borrowings of ₩158.0B.

The share price tells a more mixed story. The close of ₩72,700 is 29.6% below the 52-week high of ₩103,200 but 28.0% above the low of ₩56,800. The stock is down 14.1% over three months yet up 17.1% over one year. Margins are still below the 2022 peak of 21.0%, so the data does not show a full return to earlier profitability. Investor flow, foreign ownership and short balance data are not available, so we cannot say who has been selling.

Business overview

Youngone is listed on KOSPI in the Retail & Trade sector. It was founded on 2009-07-02 and listed on 2009-07-30, with 44,311,468 listed shares. Market capitalization is about ₩3.2T. The CEO is listed as 성기학.

Revenue was ₩2.8T in 2021, ₩3.9T in 2022, ₩3.6T in 2023, ₩3.5T in 2024 and ₩4.1T in 2025. The data does not describe products or customers, so we do not comment on the business mix beyond the numbers. One news headline mentions Arc'teryx orders rising, but the data gives no further detail.

Financial analysis

These figures come from filed financial statements (DART). Revenue grew 15.5% in 2025 to ₩4.06T after declines of 2.4% in 2024 and 7.8% in 2023. Trailing revenue as of H1 2026 is ₩4.34T.

Operating income was ₩514.4B in 2025, up from ₩315.6B in 2024. Trailing operating income is ₩582.4B, a 13.4% margin. Trailing net income is ₩590.8B, a 13.6% margin, slightly above the operating margin, which suggests meaningful non-operating income, though the data does not break it down.

Return on equity was 12.7% in 2025 and is 14.4% on a trailing basis, versus 26.8% in 2022. Liabilities to equity is 37.3%. Trailing free cash flow is ₩316.7B. Enterprise value is ₩2.66T.

Valuation

The current price-to-earnings ratio is 5.5x, down from 7.4x at the end of 2025. Price-to-book is 0.7x versus 0.9x at the 2025 year-end. Price-to-sales is 0.7x and the dividend yield is 2.8%. EV/EBITDA is not available. Year-end multiples for earlier years are not available.

Peers in the data are mixed. Samsung C&T trades at 19.1x earnings and 0.5x book, POSCO International at 11.6x and 1.4x, ISC at 52.3x and 7.0x, and Shinsegae at 17.3x and 0.5x. Lotte Shopping has no multiples available. Youngone's earnings multiple is below every peer with data, while its book multiple falls within the peer range.

Catalysts

• A buyback trust contract was signed on 2026-10-06, and news reports describe a ₩50B treasury share purchase aimed at countering the share price decline.
• The company filed corporate value-up plans on 2026-07-31 and 2026-08-11, which relate to shareholder return and valuation efforts.
• A cash dividend decision and record date were announced on 2026-08-11, in line with the current 2.8% dividend yield.
• Insider shareholding reports were filed on 2026-07-02 and 2026-10-06, which investors may watch for insider activity.
• The half-year report for June 2026 was filed on 2026-08-14, and the next financial statements will update the trailing figures.

Risks

• The share price fell 14.1% in three months and sits 29.6% below its 52-week high, showing volatility in sentiment.
• One headline says shares fell about 30% even as Arc'teryx orders rose, suggesting positive operating news has not always supported the stock.
• Operating margin of 13.4% remains well below the 21.0% reached in 2022, and revenue fell in both 2023 and 2024.
• Net income exceeds operating income, so part of profit may come from non-operating items that the data does not explain.
• Investor flow, foreign ownership and short interest data are unavailable, which limits visibility into market positioning.

Closing view

The filed numbers show a clear earnings recovery, low leverage and net cash, while the market has priced the shares at low multiples relative to peers and to the company's own year-end 2025 levels. The new buyback and value-up filings show management responding to the share price decline. Against that, margins remain below prior peaks, the share price has been weak recently, and key flow and positioning data are missing. The evidence is mixed on whether the low multiples reflect caution about earnings durability or temporary pressure, and this report draws no conclusion on that.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationYoungone: Strong Profit Recovery and Low Multiples, Alongside a Share Price Pullback and a New Buyback