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Grand Korea Leisure · 114090 · Hotels & Leisure

GKL: Profits Recovered Since 2022, but Shares Are Down 47.9% Over One Year

Why this report

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GKL's trailing revenue reached ₩443.2B with a 12.5% operating margin, yet the share price has fallen 47.9% over one year to ₩8,400, near its 52-week low of ₩8,200. A model estimate based on the assumptions shown sits above the current price, though the bear case is below it.

Written Oct 24, 2026 · Data as of Oct 23, 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 business that has returned to steady profitability. Operating income was ₩55.5B on a trailing basis, return on equity was 10.9%, and free cash flow was ₩101.8B. The balance sheet looks conservative, with liabilities at 40.1% of equity and cash of ₩198.4B.

The share price tells a different story. It is down 5.2% in one month, 11.7% in three months and 47.9% in one year. Foreign ownership slipped from 12.4% to 11.3% over 60 days. The data does not explain the decline, so the cause cannot be stated. Multiples are now below the company's own year-end history, which may reflect lower market expectations rather than a change in reported results.

Business overview

GKL is listed on KOSPI in the Hotels & Leisure sector, with 61,855,670 listed shares and a market cap of about ₩519.6B. It was founded in 2005 and listed in 2009. The CEO is listed as 윤두현.

The revenue history shows a sharp swing. Revenue was ₩85.1B in 2021, ₩262.1B in 2022, ₩396.7B in 2023, ₩396.4B in 2024 and ₩422.9B in 2025. Recent news headlines mention AI casino technology exchanges with Czech universities and companies, and comments by the CEO on tourism talent and on politics. Product and customer details are not available in the data.

Financial analysis

These figures come from filed financial statements. Revenue grew 6.7% in 2025 to ₩422.9B after being flat in 2024 (-0.1%). Operating income was ₩52.6B in 2025 (12.4% margin), up from ₩38.3B in 2024 (9.7%), and below ₩51.0B in 2023 (12.9%) only slightly in margin terms. Net income was ₩47.1B in 2025 versus ₩33.1B in 2024.

The company posted losses in 2021 (operating loss ₩145.8B) and 2022 (operating loss ₩13.9B). On a trailing basis to H1 2026, revenue was ₩443.2B, operating income ₩55.5B, net income ₩47.1B, net margin 10.6% and ROE 10.9%. Cash was ₩198.4B and free cash flow ₩101.8B. Borrowings are not available in the data.

Valuation

Current multiples are P/E 11.0, P/B 1.1, P/S 1.2 and EV/EBITDA 5.0, with a dividend yield of 4.9%. Year-end P/E was 19.7 in 2025, 20.7 in 2024 and 19.0 in 2023, and year-end P/B was 2.1, 1.7 and 2.0, so current multiples are well below the company's own recent history.

Among listed peers, Kangwon Land has P/E 9.2 and P/B 0.8, Paradise P/E 11.9 and P/B 0.5, and Seobu T&D P/E 7.7 and P/B 0.7. Ananti and Mona Yongpyong have no P/E available, with P/B of 0.5 and 0.3. GKL's P/B is higher than all of these peers.

The valuation model uses a 5-year discounted cash flow at a 7.4% rate, based on trailing data to H1 2026. It gives a model estimate of ₩11,770 per share in the base case, ₩7,338 in the bear case and ₩19,345 in the bull case, compared with the price of ₩8,400. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. The wide range shows how sensitive it is to assumptions.

Catalysts

  • The half-year report for June 2026 was filed on 2026-08-14, and preliminary earnings filings continued on 2026-09-03 and 2026-10-02, so further earnings updates may draw attention.
  • A cash dividend decision and record date were filed on 2026-08-11, and an amended record-date notice followed on 2026-09-16, which is relevant given the 4.9% dividend yield.
  • A new facility investment filing on 2026-08-11 may matter for future capacity and spending, though amounts are not in the data.
  • An extraordinary shareholders' meeting on 2026-07-06 included an independent director appointment report, which relates to board composition.
  • News on 2026-10-16 about AI casino technology exchanges with Czech partners points to technology activity, with no financial impact given.

Risks

  • The share price is down 47.9% over one year and sits near its 52-week low of ₩8,200, showing weak market sentiment.
  • Foreign investors were net sellers over 20 days (about ₩1.0B) and foreign ownership fell from 12.4% to 11.3% in 60 days.
  • Revenue growth slowed to 6.7% in 2025 after being flat in 2024, so the earlier post-recovery surge has faded.
  • The model's bear case of ₩7,338 is below the current price, and the bull-to-bear range is wide.
  • The company recorded large losses in 2021 and 2022, showing earnings can swing sharply; the data does not identify the causes.

Closing view

The filings show a profitable company with a solid balance sheet, strong free cash flow and a 4.9% dividend yield, while the share price has fallen sharply and multiples have compressed from earlier levels. The model estimate of ₩11,770 is above the ₩8,400 price, but the bear case is below it and the range is wide. Foreign selling and slowing revenue growth are counterweights. The data does not explain the price decline, so conclusions should stay cautious and are not a recommendation.

Model estimate of fair value

Bear
₩7,338
-9%
Base
₩11,770
+47%
Bull
₩19,345
+141%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)GKL: Profits Recovered Since 2022, but Shares Are Down 47.9% Over One Year

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