Namyang Dairy Products is a dairy and food company that makes and sells white fluid milk such as drinking milk and fermented milk, along with infant formula, its 'French Cafe' cup coffee, and the 'Take:Fit' protein drink. Because the business model is to buy raw milk, process it, and sell it at a markup, profitability hinges on raw-milk prices, promotional spending, and distribution channels. The company is now treating export growth in infant formula, cup coffee, and protein drinks to ASEAN, Mongolia, and other markets as a new growth axis. In February 2026 a disclosure of a profit-structure change of more than 30% signaled its first return to profit in five years, and in March it announced cash and in-kind dividends, a treasury-share trust contract, and a corporate value-up plan. However, a late-March disclosure of alleged embezzlement and breach of trust showed that remnants of past governance issues have not been fully cleared. What stands out lately is that the thick asset value (a P/B of 0.26x, roughly a quarter of net asset value) and the combination of a return to profit and shareholder returns are powerful when they feed through to core-business margin improvement, but the still-thin operating margin, the residual governance issues, and the small free float (the largest shareholder holds 63%) all deserve equal consideration.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 4.1% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 4.4% higher than a year earlier.
- ROE is 0.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hahn & Co. Dairy Holdings 63.2% (corporate)
Controlling bloc incl. related parties 63.2%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Namyang Dairy Products is a dairy and food company that makes and sells white fluid milk such as drinking milk and fermented milk, along with infant formula, its 'French Cafe' cup coffee, and the 'Take:Fit' protein drink.
- The main revenue stream is still milk and formula sold domestically, on top of which processed beverages such as cup coffee and functional drinks are layered.
- As a classic food manufacturer that buys raw milk, processes it, and sells it at a markup, its profitability is driven by raw-milk prices, promotional spending, and distribution channels.
- Recently it has treated export expansion as a new growth axis, shipping infant formula to ASEAN markets such as Cambodia and to Vietnam, and cup coffee and protein drinks to Mongolia, Hong Kong, and Kazakhstan.
- The latest close is ₩41,050 and market capitalization is ₩246.3 billion.
- The price sits below its 20-day moving average (₩42,418) and below its 60-day average (₩47,012).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 39.6, a neutral level.
- The one-month change is -2.3%, the three-month change is -18.7%, and the position versus the 52-week high is -38.9%.
- Relative strength versus the KOSPI is 8 (1-99, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 93% of all stocks by strength.
- Over the past three months it lagged the index by 34.8%.
- It is best to read the chart alongside trading volume and disclosure dates.
- This company's asset value and its profitability paint different pictures.
- First, the P/B (how many times net asset value per share the stock trades at) is 0.26x; against a book value per share (BPS) of ₩158,178, the stock trades at about a quarter of that.
- Compared with dairy and food peers (Maeil Dairies at 0.38x, Binggrae at 0.79x, Nongshim at 0.71x), it is conspicuously lower, a clear undervalued zone where the asset value on the books is not fully reflected in the price.
- The finances are also solid, with a debt ratio (debt versus equity) of 115%, a current ratio (cash-like assets versus debt due within a year) of 369%, and an interest coverage ratio of 9.99x.
- Profitability, meanwhile, is still thin as it is early in the recovery.
- ROE (how much is earned per year on shareholders' equity) is 0.75% and the operating margin is 0.57%, so profit is small relative to the equity base.
- As a result, the P/E calculated on last year's confirmed profit (how many times one year's profit the stock trades at) prints high at 34.65x, but this is an optical illusion created by a small denominator in the first year of a return to profit.
- Measured on this year's estimated profit as earnings recover, the forward P/E at the same price is already a good deal lower.
- In short, it is a stock at an earnings inflection point, where it is hard to conclude 'expensive' from a single P/E figure.
- Sales and earnings moved in different directions.
- Revenue went from ₩996.8 billion in 2023 to ₩952.8 billion in 2024 to ₩914.1 billion in 2025, down 4.1% last year and a gentle three-year decline.
- Earnings, by contrast, turned clearly around.
- Operating profit went from -₩71.5 billion in 2023 and -₩9.8 billion in 2024 to +₩5.2 billion in 2025, a return to profit for the first time in five years, and net profit went from -₩66.2 billion in 2023 to +₩7.1 billion in 2025.
- After narrowing the losses step by step, it has climbed into profitable territory.
- The quarterly trend runs the same way: in Q1 2026 revenue was ₩225.1 billion (+4.4%), operating profit ₩520 million (+572% year over year), and net profit ₩6.31 billion (+419%), with revenue growing again and profit improving sharply.
- The fact that this year's forward P/E, at 21.1x, is lower than last year's confirmed figure (34.1x) reflects the expectation that this recovery continues.
- Because the improvement was engineered under new controlling ownership by reworking the cost ratio and SG&A, it is hard to view as a one-off confined to a single year, and export is being added as a new growth axis.
- That said, whether revenue itself is on a re-growth trend and whether core-business margin improvement continues quarter after quarter remain points to keep watching.
- Recent disclosures can be summarized as 'earnings normalization + shareholder returns + residual risk.' In February 2026 a disclosure of a profit-structure change of more than 30% announced the return to profit, and in March, alongside the business report, the company firmed up its shareholder-return intent with a cash and in-kind dividend decision and a treasury-share trust contract.
- In June a disclosure confirmed that treasury-share buying under that trust contract was actually being executed.
- Also in March it released a corporate value-up plan (voluntary disclosure), formalizing its direction on profitability, capital efficiency, and returns.
- Meanwhile, a late-March disclosure of alleged embezzlement and breach of trust (correction filing) served as a cautionary signal that remnants of past governance issues have not been fully cleared.
- This is a stock with clear strengths.
- The thick asset value, trading at about a quarter of net asset value (a P/B of 0.26x), is low even relative to peers, and on finances that carry manageable debt, liquidity, and interest coverage, operating profit turned positive for the first time in five years.
- Shareholder returns have already begun with dividends and treasury-share buying, and with a corporate value-up plan added on top, there is now a rationale for unwinding the discount.
- As earnings recover, this year's forward P/E has come down, and the picture is much better than when only last year's numbers were in view.
- There are also points to examine.
- The operating margin is still thin, so the absolute size of profit is small; residual governance-related issues remain, as the embezzlement and breach-of-trust disclosure shows; and with the largest shareholder holding 63%, the small free float can translate into price volatility.
- In sum, this is a stock that is strong when the thick asset value and the recovery into profit feed through to core-business margin improvement, and that can wobble if the revenue decline lengthens again or governance issues flare up.
🔎 Valuation vs peers Inconclusive
A peer set of domestic dairy and food manufacturers whose milk, fermented-milk, and processed-beverage business mixes overlap with Namyang's.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Maeil Dairies | 4.52x | 0.40x | 8.90% |
| Binggrae | 10.91x | 0.82x | 7.47% |
| Nongshim | 12.50x | 0.75x | 6.01% |
Compared with peers Maeil Dairies, Binggrae, and Nongshim, Namyang is the cheapest on asset value (P/B) but the weakest on return on equity (ROE). Its P/B of 0.27x is a deeper discount than Maeil Dairies (0.40) or Binggrae (0.85), showing that its thick net assets are not fully reflected in the price, which can be seen as the result of past losses and low margins weighing on it. The P/E of 36.5x, by contrast, is an optical illusion created by small profit right after the return to profit, so it is hard to compare directly with peers (Maeil at 4.55, Binggrae at 11.3, Nongshim at 13.0). A P/E based on last year's confirmed results has major limits at an earnings inflection point, and on a forward basis that assumes this year's recovery continues, there is room for the multiple to come down. With the conflicting signals of undervalued assets and inadequate profitability coexisting, it is hard to conclude one way or the other.
Price history Close · MA20 · MA60
The latest close is ₩41,050 and the market capitalization is ₩246.3 billion. The price sits below its 20-day moving average (₩42,418) and below its 60-day moving average (₩47,012). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.6, a neutral level. The one-month change is -2.3%, the three-month change is -18.7%, and the position relative to the 52-week high is -38.9%. Relative strength versus the KOSPI is 8 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 7% of all stocks. Over the past three months it lagged the index by 34.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -34.80% / 6M -49.15% / 12M -73.09%
Key metrics vs sector median
Valuation
The P/E of 34.65x is above the sector median (8.80x). The P/B of 0.26x is below the sector median (0.51x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 0.8%, below the sector average (4.0%). The operating margin is 0.6%. The debt ratio is 115.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $660.6M | $631.5M | $605.9M | -4.06% ↑ faster |
| Operating profit | -$47.4M | -$6.5M | $3.4M | — |
| Net profit | -$43.9M | $165,680 | $4.7M | +2743.41% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $633.7M | $639.4M | $660.6M | $631.5M | $605.9M |
| Operating profit | -$51.6M | -$57.5M | -$47.4M | -$6.5M | $3.4M |
| Net profit | -$39.0M | -$52.0M | -$43.9M | $165,680 | $4.7M |
| Revenue CAGR | 4-yr avg -1.12% | ||||
Revenue fell 4.1% year over year (2023 ₩996.8 billion → 2024 ₩952.8 billion → 2025 ₩914.1 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.1%. The two-year revenue CAGR is -4.2%. In the most recent quarter (Q1 2026), revenue was 4.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 4.1% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-12EarningsA disclosure of a profit-structure change of more than 30% announced that 2025 operating profit turned positive (from an operating loss the prior year to +₩5.2 billion) and that net profit improved.Confirming an exit from five years of losses, this is the starting point of earnings normalization. Over the medium term, whether the earnings power is sustainable is the re-valuation variable. Source
- 2026-03-12DividendA decision on cash and in-kind dividends and on a treasury-share trust contract firmed up the shareholder-return policy.Dividends and treasury-share buying are favorable for near-term supply-demand and show intent to improve capital efficiency. However, with the return scale large relative to last year's profit, its sustainability needs confirmation. Source
- 2026-03-30FilingThrough a corporate value-up plan (voluntary disclosure), the company formalized its direction on value improvement across profitability, capital efficiency, and shareholder returns.It sets out a mid-to-long-term policy direction. It can serve as a rationale for resolving the discount to asset value, but whether the specific figures are delivered is the key question. Source
- 2026-03-31UpdateA disclosure of alleged embezzlement and breach of trust (correction filing) flagged that residual governance-related legal issues exist.A cautionary factor that can weigh on near-term investor sentiment. It is read as a remnant of past owner risk and, depending on how the matter develops, is a source of volatility. Source
- 2026-06-12FilingA report on the status of treasury-share acquisition under the trust contract confirmed that shareholder returns (treasury-share buying) are actually being executed.It proves the announced return policy is at the execution stage. Reducing outstanding shares is favorable for supply-demand and per-share value. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating profit (return to profit) | +51.7(operating margin 0.57%) | — | Confirmed | link |
| 2025 revenue (top line) | ₩914.1 billion | (2025.12) revenue | Confirmed | link |
| Shareholder returns (treasury-share trust execution) | approx. | approx. (2026-06-12) | Confirmed | link |
| Forward P/E on this year's estimated earnings | 22.6 | — | Unverified | link |
Recent filings
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-22OwnershipOwnership-change filing
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.