Suheung서흥

Suheung's trailing profit is down from its 2021 peak and the shares have fallen sharply over the past year, though the balance sheet and valuation multiples look modest on the data given.

Suheung makes hard capsules, contract-manufactures pharmaceuticals and health foods, and sells gelatin and collagen, with plants in Korea, the United States and Vietnam. For the twelve months to H1 2026 it reported revenue of ₩766B, operating income of ₩62B and net income of ₩39B, and the 2025 full year showed revenue of ₩722B. The shares closed at ₩17,950 on 2026-10-26, down 26.7% over one year and about 42% below the 52-week high of ₩30,800.

What stands out

• Revenue has grown in each year since 2023, but operating margin has fallen from 11.7% in 2021 to 8.1% on a trailing basis, and net income is well below 2021's ₩54B.
• Trailing net income of ₩39B equates to a P/E of about 5.3 and P/B of 0.4, and the data shows a 2.8% dividend yield.
• Borrowings of ₩436B are well above cash of ₩62B, with liabilities at 91.8% of equity, although trailing free cash flow was positive at ₩34B.
• The discounted cash flow model in the data gives a wide range (bear ₩10,616, base ₩62,201, bull ₩178,911), which shows how sensitive the outcome is to assumptions and should not be read as a target.
• Recent filings are routine (half-year report, quarterly report, 5%+ holding reports); no news headlines were included in the data, and foreign ownership is 6.4%, roughly unchanged over 60 days.

What to watch

• Upcoming quarterly results and whether operating margin recovers from the trailing 8.1%.
• Progress on reducing the ₩436B of borrowings relative to cash and free cash flow.
• Further 5%+ holding reports or shareholder changes, given recent investor flows show net selling by institutions and foreigners over the past 20 days.