Ask Warren

JONBUR Research · Initiation

You're reading an earlier report from Oct 18, 2026. See the latest report

Lotte Wellfood · 280360 · Food & Beverage

Lotte Wellfood: Thin margins and low book multiple, with a wide gap to the model estimate

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Lotte Wellfood closed at ₩121,100 on 2026-10-16, down 7.1% over one month but up 19.9% over three months, with a market value of about ₩1.1T. Trailing revenue is ₩4.4T with a 3.7% operating margin, and shares trade at 0.5x book value.

Written Oct 18, 2026 · Data as of Oct 16, 2026 · 0 views

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

XfWATGr/in@

Thesis

The data supports a picture of a large food company with growing sales but low profitability. Trailing operating margin of 3.7% is above 2025's 2.6% but below 2023's 4.4% and 2021's 5.1%. ROE is 3.9%, which helps explain the 0.5x price-to-book multiple.

The data does not show why margins moved, so the drivers are not available here. Foreign ownership fell from 14.8% to 13.7% over 60 days, and foreigners were net sellers over the last 20 days (about ₩14.4B) while institutions were net buyers (about ₩28.4B). The share price is 21.9% below its 52-week high of ₩155,000 and 34.6% above its low of ₩90,000.

Business overview

Lotte Wellfood is listed on KOSPI in the Food & Beverage sector. It was founded on 2017-10-01 and listed on 2017-10-30, with 9,204,574 listed shares. Market value is about ₩1.1T and enterprise value about ₩1.1T.

Revenue grew from ₩2.1T in 2021 to ₩4.2T in 2025. Recent news headlines concern product launches and promotions, including Pepero Day items, a Stray Kids collaboration, a Mont Blanc and Castella limited edition, and a xylitol pop-up. The headlines do not include financial information.

Every earlier JONBUR Research report and update note on Lotte Wellfood, with Pro.

Unlock with Pro

Model estimate of fair value

Bear
₩46,085
-61%
Base
₩219,794
+85%
Bull
₩527,610
+345%

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 21, 2026Update noteModel fair value changeLotte Wellfood: Model fair value estimate cut 36% to ₩141,395 per share
  2. Oct 18, 2026InitiationStart of coverage (300 largest)Lotte Wellfood: Thin margins and low book multiple, with a wide gap to the 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