Namyang Dairy Products남양유업

Namyang Dairy is back to thin profits after years of losses, but its shares are down sharply and governance allegations are mounting.

Namyang Dairy's trailing twelve-month revenue is about ₩949.7B with a small operating profit of ₩6.0B and net income of ₩12.9B as of H1 2026, a sharp swing from large losses in 2021 to 2023. Free cash flow is negative at about -₩16.4B, and the shares trade near ₩39,500, roughly 28.7% lower over one year. Recent filings and news centre on lawsuits and allegations of breach of trust involving the former owner family.

What stands out

• Revenue fell 4.1% in 2025 and the operating margin is thin at about 0.6%, so profitability remains fragile.
• Net income of ₩7.1B in 2025 and ₩12.9B on a trailing basis is well above operating income, so the result depends on non-operating items the data does not explain.
• Valuation looks low on the numbers given (P/E 17.4, P/B 0.2, dividend yield 3.6%), but the data does not provide a fair value estimate.
• Balance sheet: borrowings of ₩24.8B against cash of ₩21.4B, with liabilities at 17% of equity.
• Filings since August 2026 include several lawsuit notices and an amended filing on a suspected embezzlement or breach of trust matter, and news reports on donation allegations were raised at a parliamentary audit on 20 October 2026.
• Recent news is mostly product marketing, such as the Take Fit range, which news reports say grew sales 76%.

What to watch

• Outcome and further filings on the breach of trust and embezzlement suspicion and the related lawsuits, which the data does not resolve.
• Full-year 2026 results and whether operating profit and free cash flow stay positive, since free cash flow is currently negative.
• Share price movement near the 52-week low of ₩39,200, and continued foreign selling in recent 20-day flows.