Muhak is a company based in Busan and South Gyeongsang that makes and sells liquor, including its lower-proof Joeunday line of soju; most of its revenue comes from liquor sales, but the valuation gains and losses on a substantial base of financial and investment assets swing quarterly net profit considerably. From December 2025 through March 2026 it filed a voluntary corporate-value-enhancement plan presenting stronger capital efficiency and shareholder returns and met the requirements to qualify as a high-dividend company, but its May Q1 report confirmed a swing to a net loss. What stands out recently is that a P/B of 0.34x, a dividend of about 6.7%, and a current ratio of 425% make its assets and dividend appealing, while the core soju revenue and operating profit have stagnated or declined for years and net profit is swung by investment-asset valuation gains and losses, moving between profit and loss quarter to quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 5.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.5% lower than a year earlier.
- ROE is 8.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Jae-ho 34.78% (individual)
Controlling bloc incl. related parties 61.45%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Muhak is a soju maker based in the Busan and South Gyeongsang region.
- Its flagship product is the lower-proof Joeunday line of soju, and it also makes and sells ordinary soju, fruit soju, and bottled water.
- Most of its revenue comes from liquor sales; it holds a high share in its regional market but competes with large players like HiteJinro at the national level.
- One clear characteristic is that the company holds a substantial amount of financial and investment assets (securities and the like), and the valuation gains and losses on these assets swing accounting net profit considerably from quarter to quarter.
- So when looking at this company, it is accurate to separate the operating profit the core business (soju) earns from the gains or losses the investment assets add or subtract.
- The latest close is ₩7,390 and the market cap is ₩210.6 billion.
- The price sits below both its 20-day line (₩7,567) and its 60-day line (₩8,110).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- Its RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 39.9, a neutral level.
- It is down 4.8% over one month and 15.2% over three months, and stands 28.9% below its 52-week high.
- Its relative strength versus the KOSPI is 19 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 81% of all stocks by strength.
- Over the past three months it lagged the index by 32.0%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Its P/B (how many times net assets the share price is) is 0.34x, meaning it trades at about a third of the net assets it holds.
- It is low even compared with peer beverage companies, so on asset value it is in a clear discount zone.
- Its P/E ratio (how many times one year's profit the share price is) of 4.19x looks very low, but this figure has a trap.
- A large part of last year's net profit of ₩50.3 billion came from investment and valuation gains rather than the core business, so operating profit that same year was only ₩10.2 billion.
- Reading the trailing P/E (based on past confirmed results), which was inflated by one-off gains, straight as the core business being cheap at 4x would be a misunderstanding.
- Stripping out the one-off effect, the P/E on a this-year (forward) basis is actually lower than HiteJinro (24x) or Lotte Chilsung (19x) on the same yardstick.
- In other words, it is neither unrealistically cheap at 4x nor suddenly expensive at 16x; on normalized earnings it is at a reasonable, slightly low level versus peers.
- On the balance sheet, a debt ratio of 117% is offset by a current ratio of 425% and an interest-coverage ratio of 5.5x, giving ample capacity to service debt, and a dividend yield of about 6.7% with a payout ratio of about 30% makes shareholder returns generous.
- Over the five-year trend, revenue has moved in a stagnant range between ₩127.0 billion and ₩152.0 billion, and last year revenue fell -5.4% and operating profit -39%, with core profitability visibly weakening.
- Net profit rose +3.9%, but that was the result of investment gains added on, not an improvement in operations.
- In Q1 2026, on top of revenue -4.5% and operating profit -78%, net profit swung to a loss of ₩11.6 billion, the effect of valuation losses on held assets overlapping a slowing core business.
- The key point is that net profit is dragged around by investment-asset prices, so to see the real strength of the core business you have to watch the operating-profit trend.
- The P/E on a this-year (forward) basis is calculated precisely on the premise of normalized earnings with these one-off swings stripped out.
- If large investment gains are added on as last year, the P/E comes down further; if valuation losses occur as in Q1 this year, net profit turns to a loss - either way, the point is that both are one-off.
- The core business itself is in a phase closer to defense than growth, and whether revenue and operating profit turn around on a trend basis is the point to watch.
- From December 2025 through March 2026 it filed a corporate-value-enhancement plan (voluntary disclosure) with DART, presenting improved capital efficiency, upgraded shareholder returns, and the globalization of K-LIQUOR as core strategies, and it also disclosed that it met the requirements to qualify as a high-dividend company under the Special Tax Treatment Control Act (₩566 per share for the 53rd term's quarter and year-end combined, with a total dividend of roughly ₩15.2 billion).
- In April, a change of CEO and a cash-dividend decision followed.
- That the same disclosures directly identified regulation, exchange rates, raw materials, and the real-estate market as risk factors reads as the company itself acknowledging the effect of non-core asset swings on results.
- In May the Q1 report (a swing to a net loss) and the corporate-governance report were released, providing material to check the implementation of the value-enhancement plan.
- The strengths are clear: a P/B of 0.34x asset discount, a high dividend yield of about 6.7%, a solid balance sheet with a current ratio of 425%, and the company's official commitment to improving shareholder returns and capital efficiency.
- The P/E of about 16x on a this-year basis stripped of one-off gains is also lower than large peers, so on normalized earnings this is not a place priced expensively.
- At the same time, what must be examined is the fact that the core business (soju) revenue and operating profit have stagnated or declined for years, and the volatility of net profit being swung by valuation gains and losses on held investment assets, moving between profit and loss quarter to quarter.
- In short, on the asset, dividend, and valuation fronts this reads as an undervalued name, and if a core-business recovery plus follow-through on shareholder returns is confirmed, the structure is strong.
- Conversely, if the operating slowdown drags on or investment losses recur, the volatility of net profit comes back into focus in a weak structure, and the picture splits depending on which signal one looks at.
🔎 Valuation vs peers Inconclusive
Compared with domestic listed liquor and beverage makers of similar business character. That said, because Muhak holds a large share of investment assets, a P/E based on net profit alone can distort the comparison, so P/B and dividend are considered together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HiteJinro | 26.03x | 0.96x | 3.70% |
| Lotte Chilsung Beverage | 19.51x | 0.61x | 3.10% |
Against peers HiteJinro and Lotte Chilsung, its P/B is clearly lower and its dividend clearly higher, so on the asset and returns view it is in a discount zone. But Muhak's trailing P/E of 4.4x is the result of a large one-off investment gain mixed into last year's net profit, so when profit inflects, the limits of the trailing P/E show through directly. On normalized earnings (operations-centered), the multiple is far higher, and when investment losses occur as in Q1 this year, net profit itself turns to a loss. Therefore, rather than declaring it cheap or expensive, it is left inconclusive, weighing both sides: asset value is undervalued while the core-business value is stagnant.
Price history Close · MA20 · MA60
The latest close is ₩7,390 and the market capitalization is ₩210.6 billion. The price sits below its 20-day moving average (₩7,567) and below its 60-day moving average (₩8,110). 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 39.9, a neutral level. The one-month change is -4.8%, the three-month change is -15.2%, and the position relative to the 52-week high is -28.9%. 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 lagged the index by 32.0%. 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 -31.98% / 6M -48.35% / 12M -61.11%
Key metrics vs whole-market median
Valuation
The P/E of 4.19x is below the whole-market median (13.81x). The P/B of 0.34x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 8.2%, above the whole-market average (5.0%). The operating margin is 7.1%. The debt ratio is 117.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $97.1M | $100.8M | $95.3M | -5.41% ↓ slower |
| Operating profit | $10.7M | $11.2M | $6.8M | -39.35% ↓ slower |
| Net profit | $43.4M | $32.1M | $33.4M | +3.92% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $84.1M | $101.3M | $97.1M | $100.8M | $95.3M |
| Operating profit | -$590,485 | $10.4M | $10.7M | $11.2M | $6.8M |
| Net profit | -$10.6M | -$8.8M | $43.4M | $32.1M | $33.4M |
| Revenue CAGR | 4-yr avg 3.17% | ||||
Revenue fell 5.4% year over year (2023 ₩146.6 billion → 2024 ₩152.1 billion → 2025 ₩143.8 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 39.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.2%. The two-year revenue CAGR is -0.9%. In the most recent quarter (Q1 2026), revenue was 4.5% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 7.0%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 5.4% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-27FilingCorporate-value-enhancement plan (voluntary disclosure) - presents strategies for improved capital efficiency, upgraded shareholder returns, and globalization, and notes meeting the requirements to qualify as a high-dividend company under the Special Tax Treatment Control ActOver the medium term, a signal that raises expectations of expanded shareholder returns such as dividends and treasury shares, but the concrete targets are contained in the attached plan, so there are limits to confirming them from the main text Source
- 2026-04-30DividendCash and in-kind dividend decision - a continued high-dividend policy through quarterly and year-end dividendsSupports a dividend yield in the 6% range and partly cushions the share price on the downside in the short term Source
- 2026-05-15EarningsQ1 2026 quarterly report - revenue of ₩35.7 billion (-4.5%), operating profit of ₩0.66 billion (-78%), net profit of -₩11.6 billion, a swing to a lossOn top of a core-business slowdown, valuation losses on held assets dragged net profit into the red, reconfirming quarterly earnings volatility Source
- 2026-05-28FilingCorporate-governance report disclosed - a regular public disclosure of the governance statusInformation on governance and shareholder-return transparency, and material for checking the implementation of the value-enhancement plan Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-28Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-30DividendCash/stock dividend decision
- 2026-04-23Disclosure
- 2026-04-23Shareholders' meeting notice
- 2026-04-09Disclosure
- 2026-04-08Shareholders' meeting notice
- 2026-04-07Amended filing
- 2026-03-27Amended filing
- 2026-03-27Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
📖 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.