Lotte Chilsung Beverage (005300) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Lotte Chilsung Beverage makes its money from drinks. Beverages such as Chilsung Cider, Pepsi-Cola and Icis water carry the largest weight, joined by liquor such as the soju 'Chum-Churum' and 'Saero', and an overseas axis in Pepsi-Cola Products Philippines, a 72.9%-owned subsidiary. Q1 preliminary results released on May 4 confirmed a 91% rise in operating profit; the company managed net debt of ₩1.5 trillion via an April bond issuance, and it kept a ₩3,400 per-share dividend (72% payout ratio) even in a year of lower profit. The notable point right now is that Pepsi Philippines has turned to profit and domestic beverages have improved margins through zero-calorie products, so the valuation on this year's recovered profit is low, with P/B of 0.62x and a 3.4% dividend providing support. On the other hand, interest costs on ₩1.5 trillion of net debt and weaker domestic consumption amid high inflation mean the recovery could slow if peak-season sales fall short of expectations.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Beverages” (Retail, Consumer Goods & Food · Food & Beverage), a type typically read first through P/E.
Beverages are a mature staple business, resting on consumer brands and repeat purchases with modest earnings volatility and steady profit. In such a stable profit structure, price-to-earnings (P/E) — the price against actual net profit — fits best.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 78.4%).
- Revenue fell 1.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.6% higher than a year earlier.
- ROE is 4.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.7%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2022-12-31
Largest shareholder Lotte Corporation 45% (corporate)
Controlling bloc incl. related parties 100%
With the controlling bloc holding 100%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Lotte Chilsung Beverage makes its money from drinks. It has three main legs. The first is beverages, which includes products such as Chilsung Cider, Pepsi-Cola, Icis water and zero-calorie sparkling drinks, and carries the largest weight in company revenue. The second is liquor, which includes the sojus 'Chum-Churum' and 'Saero', cheongju, and RTD (pre-mixed liquor sold in cans and bottles). The third is overseas, where 'Pepsi Philippines', a 72.9%-owned subsidiary, produces and sells carbonated drinks such as cola and Mountain Dew locally. In other words, on top of domestic beverages and soju there is one overseas axis in the Philippines.
The latest close is ₩101,500 and the market capitalization is ₩941.8 billion. The price sits above its 20-day moving average (₩100,015) and below its 60-day moving average (₩104,027). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.1, a neutral level. The one-month change is -0.1%, the three-month change is -15.6%, and the position relative to the 52-week high is -31.5%. Relative strength versus the KOSPI is 19 (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 19% of all stocks. Over the past three months it outpaced the index by 1.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Let me unpack the valuation metrics at a beginner's level. On last year's confirmed results, the P/E ratio (how many years of profit the price represents) is 19.94x, which looks high. But this figure is based on 2025, when profit was at bottom (net profit ₩47.2 billion, down 20% year-on-year), so there is a trap that makes it look more expensive than it really is. The P/B (how many times book net assets the price represents) is 0.62x, trading below net assets. ROE (how much is earned on equity in a year) is 3.1%, still low. Finances carry a fair amount of debt. The debt ratio (debt against equity) is 281.6%, and net debt (total borrowings minus cash) is ₩1.5 trillion. That said, cash-generating power is worth noting. The FCF yield (cash actually earned relative to market cap) is a high 12.9%, so even with heavy debt, ample cash comes in each year. EV/EBIT (enterprise value divided by operating profit, a debt-inclusive version of the P/E) is 14.6x. The dividend yield is 3.4% (₩3,400 per share), with some dividend appeal within the beverage sector.
The past three years were a stretch of retreating profit. Net profit fell from ₩165.9 billion in 2023 to ₩59.1 billion in 2024 and ₩47.2 billion in 2025. Revenue in 2025 fell 1.3% year-on-year to ₩3.97 trillion, the result of weaker domestic consumption combined with a slump at the overseas subsidiary. Then in Q1 2026 the picture changed. Q1 operating profit rose 91% year-on-year to ₩47.8 billion, and net profit surged 266% to ₩25.3 billion. The rebound rests on three axes: the beverage head office grew operating profit 62% by leading with zero-calorie products, liquor grew 9.6% on soju and RTD, and Pepsi Philippines - long a drag - turned to profit (operating profit ₩5.4 billion). Beverages are a seasonal business that sells most in summer, so Q2-Q3 are the peak. With the profit trajectory already turning up in Q1, this year's profit is seen recovering substantially from last year's bottom. Even if last year's P/E looks high, on this year's recovered profit the multiple is far lower.
Recent disclosures split between content supporting the earnings rebound and financial management. The Q1 preliminary results disclosure on May 4 confirmed a 91% rise in operating profit. In May the company held two investor presentations (IR) announcing the earnings rebound. In April several disclosures related to debt-security (corporate bond) issuance followed, best understood as fund-raising activity to manage the ₩1.5 trillion of net debt. In June it disclosed a corporate governance report. The dividend is ₩3,400 per share (a 72% payout ratio on last year's confirmed results), and it is notable that the dividend was maintained even in a year of lower profit.
The points to watch are clear. The strength is that the profit direction has turned up. As Pepsi Philippines turned to profit, the overseas business, once a burden, is starting to become a support. Domestic beverages have also improved margins through zero-calorie products. The share price has not yet reflected this rebound, so the valuation on this year's recovered profit is low. At a P/B of 0.62x it is cheaper than net assets, and a 3.4% dividend also provides support. There are cautions too. With heavy debt, interest costs on ₩1.5 trillion of net debt eat into profit. Domestic beverages and liquor are exposed to weaker consumption amid high inflation, so if peak-season sales fall short of expectations the recovery could slow. In sum, if the earnings rebound carries through the summer peak the undervaluation appeal comes to the fore, while if domestic consumption freezes again or interest burdens grow, the recovery is delayed.
🔎 Valuation vs peers Undervalued
Large domestic food and beverage companies. Selected as a peer set with a similar business mix (domestic-beverage and liquor centred, holding an overseas subsidiary).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Orion | 14.00x | 1.37x | 10.35% |
| Lotte Wellfood | 13.24x | 0.43x | 2.99% |
| CJ CheilJedang | — | 0.41x | -6.81% |
On last year's confirmed results a P/E of 19.9x looks expensive, but this is calculated on 2025 net profit (₩47.2 billion), a three-year low - a distortion common in profit-inflection stocks. Q1 operating profit jumped 91%, turning the profit direction up, and on this year's recovered profit reflecting that, the multiple falls sharply. The P/B of 0.62x is lower than Orion (1.44x) and similar to Lotte Wellfood (0.43x), a discount to net assets. Adding in cash-generating power at a 12.9% FCF yield and a 3.4% dividend, the valuation at the early stage of the recovery phase is judged to be in undervalued territory. That said, interest costs on ₩1.5 trillion of net debt and weaker domestic consumption are the variables governing the pace of recovery.
Price history Close · MA20 · MA60
The latest close is ₩101,500 and the market capitalization is ₩941.8 billion. The price sits above its 20-day moving average (₩100,015) and below its 60-day moving average (₩104,027). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.1, a neutral level. The one-month change is -0.1%, the three-month change is -15.6%, and the position relative to the 52-week high is -31.5%. Relative strength versus the KOSPI is 19 (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 19% of all stocks. Over the past three months it outpaced the index by 1.0%. 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 +1.04% / 6M -40.72% / 12M -59.98%
Key metrics Computed vs sector median
Valuation
The P/E of 19.94x is above the sector median (9.07x). The P/B of 0.62x is in line with the sector median (0.54x). 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.
Profitability & financials
Return on equity (ROE) is 4.4%, in line with the sector average (4.0%). The operating margin is 4.7%. The debt ratio is 174.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.3B | $2.8B | $2.8B | -1.33% ↓ slower |
| Operating profit | $148.0M | $129.9M | $117.4M | -9.61% ↑ faster |
| Net profit | $116.5M | $41.5M | $33.2M | -20.09% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2.0B | $2.3B | $2.8B | $2.8B |
| Operating profit | $128.0M | $156.6M | $148.0M | $129.9M | $117.4M |
| Net profit | $96.3M | $92.1M | $116.5M | $41.5M | $33.2M |
| Revenue CAGR | 4-yr avg 12.20% | ||||
Revenue fell 1.3% year over year (2023 ₩3.2 trillion → 2024 ₩4.0 trillion → 2025 ₩4.0 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 9.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.2%. The two-year revenue CAGR is 11.0%. In the most recent quarter (Q1 2026), revenue was 4.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.4%, is on the high side.
Points to watch
- Revenue fell 1.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-04EarningsQ1 2026 preliminary results disclosure. Consolidated operating profit ₩47.8 billion, up 91% year-on-year; net profit ₩25.3 billion, up 266%. A clear profit rebound after three years.Confirms profit hit bottom and turned up. A signal that resolves the distortion in valuation based on last year's low (medium-term positive). Source
- 2026-05-12IRInvestor presentation (IR) held. Explained the Q1 rebound results and business direction to the market.Communicates the rebound background (zero-calorie beverages, overseas turn to profit) directly to investors (draws short-term attention). Source
- 2026-04-17UpdateSecurities registration statement for debt-security (corporate bond) issuance. Fund-raising to manage ₩1.5 trillion of net debt.An activity that continues the borrowing structure; depending on interest-rate levels, interest costs affect profit (medium-term caution). Source
- 2026-06-01FilingCorporate governance report disclosure. Discloses governance status including the board and shareholder returns.Reference material for gauging the continuity of shareholder-return policy such as dividends (neutral). Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-06Disclosure
- 2026-05-04EarningsFair-disclosure notice
- 2026-04-28OwnershipLargest-shareholder ownership change report
- 2026-04-23Earnings disclosure
- 2026-04-23Disclosure
- 2026-04-22Disclosure
- 2026-04-17Disclosure
- 2026-04-17Amended filing
📖 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.