Lotte롯데지주

Lotte Holdings is loss-making on a trailing basis, trades near 0.3x book value, and its shares are down about 29% over the past year.

Lotte Holdings, a holding company for retail, food, chemicals and other subsidiaries, reported trailing revenue of ₩15.6T to H1 2026 but a net loss of ₩400B, with a thin 1.6% operating margin. Borrowings of ₩8.6T are large relative to cash of ₩1.2T, and liabilities are 139% of equity. The filings and headlines point to active portfolio moves, including a pending sale of Lotte Insurance to Shinhan and new debt issuance.

What stands out

• Net income was negative in 2023, 2024 and 2025, with a 2025 net loss of ₩648B on revenue of ₩15.5T, so the shares trade on book value rather than earnings.
• The fair value model shows a base of ₩8,743 per share against a close of ₩21,100, with bear and bull cases of ₩5,828 and ₩12,240; this is a model output, not a forecast.
• The data shows a dividend yield of 5.9% and a stated shareholder return target of 35% or more through 2029, though the data does not state the payout amount behind this yield.
• Foreign ownership fell from 9.9% to 9.4% over about 60 days, and 20-day flows were net foreign selling of about ₩8B, with retail net buying of about ₩4.7B.
• Recent filings include a corporate value-up plan, several debt guarantees for subsidiaries and a share acquisition in another company, and the news covers a ₩693.3B Shinhan deal for Lotte Insurance.

What to watch

• Upcoming results and whether operating margin and net income move back toward profit, given the trailing loss and high leverage.
• Progress on the Shinhan sale of Lotte Insurance and the profitability and capital hurdles reported for that deal.
• Subsidiary debt guarantees and debt issuance, since borrowings are large relative to cash; the data does not give the schedule for repayments.