Crown Confectionery크라운제과

Crown Confectionery's profits have shrunk for three years, and the shares sit near their 52-week low despite a low valuation.

Crown Confectionery makes snack foods in Korea, sold through discount stores, convenience stores and other retail channels. Revenue has held near ₩440B a year, but operating income has fallen from ₩28.4B in 2023 to ₩12.0B on a trailing basis to H1 2026, with a 2.7% operating margin. The shares closed at ₩7,330, close to the 52-week low of ₩7,310 and down 18.7% over one year.

What stands out

• Trailing revenue is about ₩439.9B and operating income about ₩12.0B, so margins are thin at 2.7%, down from 6.5% in 2023.
• Net income of ₩11.8B on a trailing basis is roughly in line with operating income, and free cash flow is about ₩13.2B.
• The stock trades at 7.8x earnings and 0.4x book, and the data shows a 3.8% dividend yield.
• The company's DCF fair value model gives a base of ₩14,919, a bear case of ₩4,244 and a bull case of ₩34,067; these are model outputs, not forecasts.
• Foreign ownership fell from 3.1% to 2.7% over about 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• The next quarterly or half-year results, to see whether operating margins keep falling from the 2025 level of 3.4%.
• Any further filings on the cash dividend or shareholder returns, given the dividend yield is a key part of the stock's appeal.
• Continued foreign selling, and whether the share price holds above the 52-week low of ₩7,310.