Great Rich TechnologiesGRT

Great Rich Technologies reported lower 2025 profit on higher revenue, and its shares trade at a very high earnings multiple after a sharp one-month fall.

The company is a holding company whose operating subsidiary makes packaging and optical protective films. For FY 2025 revenue rose 8.1% to ₩4.9T, while operating income fell to ₩708B and net income to ₩378B, with a 14.3% operating margin. The shares closed at ₩2,945 on 2026-10-23, down 13% over one month but up 14.1% over three months.

What stands out

• Revenue has grown in most years shown, but operating income and net income have declined since 2024 (operating income ₩798B and net income ₩486B in 2024).
• Free cash flow for FY 2025 was negative at about -₩163B, and borrowings of ₩2.6T are well above cash of ₩424B.
• Valuation is very high: the trailing P/E is about 723 and P/B about 61, against a DCF-based fair value model that ranges from ₩3 to ₩143 per share with a base case of ₩54, far below the current price.
• Foreign ownership rose from 68.1% to 70.7% over 60 days, while foreign investors were net sellers of about ₩1.7B over the last 20 days and retail investors were net buyers of about ₩1.8B.
• Recent filings include the annual general meeting results, a rights offering (paid-in capital increase) decision, and a subsidiary collateral decision; no recent news headlines were provided.

What to watch

• Details of the rights offering (paid-in capital increase) and its effect on share count and funding, as the filing amendment was made in September 2026.
• Whether operating income and free cash flow recover, given the declines in 2025 and negative free cash flow.
• The shares' large gap from the DCF fair value range and the 52-week price range of ₩2,120 to ₩7,490 suggests high volatility; the data does not explain the drivers of this.