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IT'S Hanbul · 226320 · Cosmetics

IT'S Hanbul: Profits Recover While Shares Trade Above a Model Estimate

Why this report

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IT'S Hanbul's trailing revenue reached ₩172.2B with a 13.9% operating margin, a sharp improvement from losses in 2021 and 2022. The share price of ₩10,920 sits well above the valuation model's base estimate of ₩6,803 per share, even though the stock trades at 0.6x book value.

Written Oct 26, 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 clear earnings recovery. Operating income rose from ₩0.8B in 2021 to ₩19.2B in 2025, and the trailing twelve months to H1 2026 show ₩23.9B. The balance sheet is very conservative, with liabilities at 5.9% of equity and cash of ₩43.5B against borrowings of ₩3.8B.

What the data does not fully support is a re-rating. Return on equity is only 8.5% on a trailing basis and was 4.3% in 2025, which fits the low price-to-book of 0.6. Trailing net income of ₩33.3B is higher than operating income of ₩23.9B, which suggests non-operating gains contributed. The data does not say what they are, so the P/E of 7.2 should be read with care. The shares rose 19.0% over three months but are down 8.9% over one year.

Business overview

IT'S Hanbul is a cosmetics company listed on the KOSPI since December 2015 and founded in 2006. It has 21,929,315 listed shares and a market capitalization of about ₩239.5B, which is small next to the peers listed: APR at ₩10.7T, Amorepacific at ₩7.5T, LG H&H at ₩3.9T, Cosmax at ₩3.1T and Kolmar Korea at ₩2.9T. Revenue has moved from ₩140.2B in 2021 to ₩153.4B in 2025, with a dip to ₩130.7B in 2022. The data provides no breakdown by product or region.

Financial analysis

These figures come from filed financial statements. Revenue grew 7.7% in 2025 to ₩153.4B, after 2.3% in 2024 and 6.5% in 2023. Operating margin rose from 0.5% in 2021 to 12.5% in 2025, and 13.9% on a trailing basis. Net income went from a ₩17.4B loss in 2021 and a ₩6.8B loss in 2022 to ₩16.7B in 2025. Trailing net income is ₩33.3B, a net margin of 19.4%.

Return on equity was 8.5% on a trailing basis. Free cash flow was ₩19.6B. Cash of ₩43.5B exceeds borrowings of ₩3.8B, and liabilities are 5.9% of equity.

Valuation

At ₩10,920 the shares trade at 7.2x trailing earnings, 0.6x book value, 1.4x sales and a 2.5% dividend yield. Enterprise value is ₩181.2B. Year-end P/E was 14.6 in 2025 and 14.2 in 2024, so the current P/E is below recent history, while P/B has stayed at 0.6 to 0.7 since 2023. Peers show P/E of 15.6 to 26.3 where available and P/B from 0.7 to 16.4, so IT'S Hanbul is at the low end of the group on both.

The valuation model uses a 5-year discounted cash flow at a 7.4% rate. It gives a base estimate of ₩6,803 per share, with a bear case of ₩3,203 and a bull case of ₩13,128. This is a model estimate based on the assumptions shown, not a target. The current price is above the base case and below the bull case. The gap between the multiples and the model suggests the model assumes lower cash flows than the recent trailing figures imply.

Catalysts

  • The half-year report filed on 2026-08-14 showed trailing operating income of ₩23.9B, and the next quarterly filing will show whether margins hold.
  • The corporate value-up plan filed on 2026-03-27 may matter for how the company approaches shareholder returns and its low price-to-book.
  • A cash dividend decision was filed on 2026-03-12, and the yield is currently 2.5%.
  • Foreign ownership rose from 0.9% to 1.8% over 60 days, with net foreign buying of about ₩1.2B over the last 20 days.
  • An amended annual report for 2025 was filed on 2026-08-14, and the data does not say what changed.

Risks

  • Trailing net income exceeds operating income, so part of the profit may come from non-operating items that may not recur.
  • Return on equity of 8.5% is modest, which may explain why the shares trade at 0.6x book.
  • The share price is above the model's base estimate of ₩6,803, and the bear case is ₩3,203.
  • The company is small next to its peers and no segment or geographic detail is available in the data.
  • Shares are down 8.9% over one year and sit between a 52-week low of ₩8,200 and high of ₩14,200, and recent institutional and retail flows were net negative.

Closing view

The data shows a real operating recovery and a strong balance sheet, with low multiples compared with the company's own history and peers. It also shows modest returns on equity, profit that appears to include non-operating gains, and a share price above the model's base estimate. The evidence is mixed: the earnings improvement is documented, but whether it is durable is not answered by the data. No recommendation is made.

Model estimate of fair value

Bear
₩3,203
-70%
Base
₩6,803
-36%
Bull
₩13,128
+24%

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 26, 2026InitiationStart of coverage (reader request)IT'S Hanbul: Profits Recover While Shares Trade 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