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JS · 194370 · Textiles & Apparel

JS Corporation: Low Multiples and Rising Margins, Alongside High Leverage and a Recent Share Price Pullback

Why this report

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JS Corporation (KOSPI, Textiles & Apparel) trades at about 4.0x earnings and 0.6x book value, with trailing operating margin of 11.9% and return on equity of 15.7%. The shares fell 12.2% over one month, and the balance sheet carries borrowings of ₩850.3B against cash of ₩66.0B.

Written Oct 29, 2026 · Data as of Oct 28, 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 picture of a company whose revenue and operating profit have grown over five years, whose operating margin rose from 6.2% in 2021 to 11.9% on a trailing basis, and whose multiples sit low against its own history and some peers. The dividend yield is 5.3%.

The data does not show why the shares have weakened recently, and no news headlines are available. Leverage is high, with liabilities at 226.3% of equity, and filings show several convertible bond and capital-type debt decisions in June and July 2026. Net income has been more volatile than revenue: it fell from ₩97.4B in 2024 to ₩76.6B in 2025 even as revenue rose 15.3%. Preliminary earnings were filed on 2026-10-29, after the data date, and their figures are not available here.

Business overview

JS Corporation was founded in 1988 and listed on 2016-02-04. It trades on KOSPI in the Textiles & Apparel sector, with 29,016,758 listed shares and a market capitalization of ₩326.4B. The CEO is listed as 홍재성.

Revenue was ₩987.0B in 2021, ₩975.1B in 2022 (-1.2%), ₩862.8B in 2023 (-11.5%), ₩1.12T in 2024 (+29.5%) and ₩1.29T in 2025 (+15.3%). Trailing revenue to H1 2026 is ₩1.44T. The data does not describe products or segments.

Financial analysis

Figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩1.44T, operating income ₩171.3B (11.9% margin), and net income ₩81.5B (5.7% margin). Return on equity is 15.7%.

Annual operating income rose from ₩61.0B in 2021 to ₩140.5B in 2025. Operating margin was 10.9% in both 2024 and 2025. Return on equity was 25.4% in 2024 and 15.3% in 2025, down from the 2022 level of 28.3%.

On the balance sheet, borrowings are ₩850.3B, cash is ₩66.0B, and liabilities to equity is 226.3%. Trailing free cash flow is ₩84.3B, positive but small relative to the debt. Enterprise value is ₩1.11T.

Valuation

At ₩11,250, the shares trade at a P/E of 4.0, P/B of 0.6, P/S of 0.2 and a dividend yield of 5.3%. EV/EBITDA is not available. Year-end P/E was 4.9 in 2025, 2.1 in 2024, 5.7 in 2023, 3.0 in 2022 and 6.4 in 2021, so the current level is within its own range. Year-end P/B ranged from 0.4 to 1.5.

Peers: F&F P/E 4.5 and P/B 1.1; LF 5.5 and 0.4; Chokwang Leather 43.6 and 0.7; Handsome 7.1 and 0.3; Hansae 9.4 and 0.4. JS has a lower P/E than most of them but a higher P/B than LF, Handsome and Hansae.

The discounted cash flow model gives a base estimate of ₩106,055 per share, with a bear case of ₩41,049 and a bull case of ₩252,635, using a 5.0% rate on trailing data to H1 2026. This is a model estimate based on the assumptions shown, not a target. The very wide range and the large gap to the ₩11,250 price show how sensitive the output is to its inputs, especially given the heavy debt load.

Catalysts

  • Preliminary consolidated earnings were filed on 2026-10-29 and will update the trailing figures.
  • A cash dividend decision on 2026-06-26 ties to the 5.3% dividend yield.
  • Convertible bond issue decisions on 2026-06-26, with results filed on 2026-07-06, could affect the share count and financing costs.
  • A decision on a debt guarantee to a third party was filed on 2026-10-22.
  • Two 5%+ holding reports (2026-07-16 and 2026-10-02) show changes in large shareholdings, and foreign ownership rose from 2.5% to 3.2% over 60 days.

Risks

  • Liabilities are 226.3% of equity and borrowings of ₩850.3B far exceed cash of ₩66.0B.
  • Convertible bonds and capital-type debt securities could dilute shareholders or raise financing costs.
  • The debt guarantee to a third party adds a possible contingent obligation, and its details are not in the data.
  • Net income fell in 2025 despite revenue growth, and revenue fell 11.5% in 2023, so results have been uneven.
  • The shares fell 12.2% in one month and foreign investors were net sellers over 20 days (about ₩1.1B), with no news in the data to explain the move.

Closing view

The filings show growing revenue, higher margins, a 15.7% return on equity and low multiples, including a 0.6x P/B and a 5.3% dividend yield. Against that, leverage is high, recent filings point to new convertible and debt financing, and net income has been less steady than revenue. The model estimate is far above the share price but has a wide bear-to-bull range and depends on its assumptions. The October earnings filing and the details of the financing and guarantee decisions would help clarify the picture, but they are not in the data provided.

Model estimate of fair value

Bear
₩41,049
+264%
Base
₩106,055
+839%
Bull
₩252,635
+2138%

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 5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 29, 2026InitiationStart of coverage (reader request)JS Corporation: Low Multiples and Rising Margins, Alongside High Leverage and a Recent Share Price Pullback

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