LG H&H (051900) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LG H&H earns money from three businesses: a beauty arm built around premium cosmetics such as The History of Whoo, Su:m and O HUI (roughly ₩2.35 trillion in 2025 revenue); a home & daily-care (HDB) arm covering toothpaste, shampoo and detergents; and a beverage arm that produces and sells Coca-Cola, Sprite and other drinks in Korea (about ₩1.77 trillion in revenue and ₩142.0 billion in operating profit in 2025). This structure lets the steadier beverage and daily-care operations cushion the more cyclical cosmetics business. On April 30, 2026, first-quarter provisional results showed a return to net profit, the first clear sign of recovery, and the company decided the same day to cancel treasury shares as a gesture toward shareholder value, alongside routine filings such as the annual general meeting and the quarterly report. What stands out lately is that beverages and daily-care support an earnings floor while a 24% debt ratio, a 0.66x P/B and a 0.57x P/S, together with the Q1 return to profit and North American growth, underpin the case for undervaluation; still, revenue in China and Japan, beauty's largest markets, keeps shrinking, so this remains an early-recovery phase in which North American and non-China channels must keep filling that gap.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Cosmetics Brands” (Retail, Consumer Goods & Food · Cosmetics), a type typically read first through forward P/E.
Cosmetics brands are growth-oriented consumer names whose sales and profits can shift quickly with new products, channel expansion, and overseas rollouts. Because future growth explains the price better than past results, forward P/E, based on expected earnings, is the first lens.
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
- The most recent full-year net result was a loss.
- Revenue fell 6.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.1% lower than a year earlier.
- ROE is -2.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.2%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder LG Corp. 34.74% (corporate)
Controlling bloc incl. related parties 34.75%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis Reading
LG H&H makes money from three businesses. The first is beauty (cosmetics), centered on premium brands such as The History of Whoo, Su:m and O HUI, which generated about ₩2.35 trillion in 2025 revenue, a little over a third of company-wide sales. The second is HDB (home & daily-care), everyday essentials such as toothpaste, shampoo and detergents, and the third is Refreshment (beverages), a bottling business that produces and sells Coca-Cola, Sprite, Monster and other drinks in Korea. The beverage arm posted about ₩1.77 trillion in revenue and ₩142.0 billion in operating profit in 2025, the most stable profit contributor of the three. In short, the mix blends more cyclical cosmetics with steady daily-care and beverages, so even when the cosmetics cycle turns down, beverages and daily-care hold up the earnings floor.
The latest close is ₩324,000 and the market capitalization is ₩4.9 trillion. The price sits above its 20-day moving average (₩261,750) and above its 60-day moving average (₩250,967). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 79.6, near overbought territory. The one-month change is +25.6%, the three-month change is +21.1%, and the position relative to the 52-week high is -0.9%. Relative strength versus the KOSPI is 55 (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 55% of all stocks. Over the past three months it outpaced the index by 40.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
In 2025 the company posted ₩6.3555 trillion in revenue, ₩170.7 billion in operating profit (-62.8% year over year) and a consolidated net loss of about ₩100.1 billion. The net loss stemmed mainly from weakness in the beauty arm and one-off impairment charges, so a P/E ratio based on last year's earnings cannot be calculated. This trailing figure carries a one-off loss and does not fully reflect the company's normal earning power. By contrast, asset-based measures are solid. The P/B is 0.68x, meaning the price trades below book net asset value (₩356,378 per share), and the P/S is a low 0.57x. The debt ratio (debt relative to equity) is very low at 23.8%, with an interest coverage ratio of 4.4x and a current ratio of 279%, so financial safety is firm. The dividend is ₩2,000 per share (a yield of about 0.85%).
Over five years the top line has gradually shrunk. Revenue fell from ₩8.0919 trillion in 2021 to ₩6.3555 trillion in 2025, and operating profit slid from ₩1.2896 trillion to ₩170.7 billion over the same span, with weak Chinese cosmetics demand and soft duty-free channels weighing on the beauty arm for a long time. The recent quarterly trend, however, is turning. In the first quarter of 2026, operating profit was ₩107.8 billion and net profit ₩88.8 billion, a swing back to profit from the prior quarter (an operating loss in Q4 2025). By region, China (-14.4%) and Japan (-13.0%) still declined, but a 35% rise in North American revenue offset them, and the beauty arm itself returned to profit with ₩38.6 billion in Q1 operating profit. This year, with last year's one-off loss not repeating and the beverage summer peak plus North American growth added on, annual net profit is expected to normalize toward the mid ₩200 billion range. Last year's loss makes the shares look expensive on a trailing basis, but measured against this year's recovering earnings the valuation burden is not heavy.
Two threads dominate recent filings. One is the first-quarter provisional results announced on April 30, 2026, which confirmed a return to net profit and served as the first sign of recovery. The other is the treasury-share cancellation decided the same day, an event that signaled the company's intent to enhance shareholder value. Beyond these came the March annual general meeting results, the routine quarterly report in May, and a May clarification filing addressing rumors and media reports. Given the nature of a consumer-goods company, there are no large order announcements; the narrative centers on shareholder returns such as earnings, dividends and treasury shares, together with routine earnings disclosures.
The strengths are clear: a stable business structure in which beverages and daily-care hold up the earnings floor, firm finances with a 24% debt ratio, a low asset- and revenue-based valuation at 0.66x P/B and 0.57x P/S, and recovery signals in the form of a Q1 2026 return to net profit and North American growth. Because last year's loss was heavily laden with one-off impairments, on normalized earnings this year the shares sit in an undervalued zone relative to asset value and recovering profit. On the caution side, the recovery is still early. Revenue in China and Japan, beauty's largest markets, keeps shrinking, so North American and non-China channels must keep filling that gap, and it is too soon to declare that the five-year top-line contraction has firmly stopped. In other words, the key question is whether the company can reduce reliance on China and revive earnings power through North America and premium; if that shift persists the undervaluation case can play out, while a renewed downturn in the cosmetics cycle could slow the pace of recovery.
🔎 Valuation vs peers Undervalued
The primary peer is Amorepacific, the listed Korean cosmetics name most similar in business scale and premium-brand structure, though LG H&H differs in that beverages and daily-care form a large profit pillar, giving it lower earnings volatility than a pure cosmetics play.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AmorePacific | 34.20x | 1.47x | 4.20% |
(a) Peer Amorepacific trades at a 1.22x P/B, whereas LG H&H sits at 0.66x, below its book net asset value, with a low 0.57x P/S. (b) A P/E based on last year's earnings cannot be calculated because of the one-off loss, but that actually shows how the trailing figure distorts the company's normal earning power. (c) On a forward basis, with this year's earnings normalizing (returning to profit), the price-to-earnings burden is on the low side versus peers. Taking asset value (0.66x P/B) together with recovering earnings, the shares look to be in an undervalued zone, though the premise for that to play out is whether beauty's structural top-line contraction has fully stopped.
Price history Close · MA20 · MA60
The latest close is ₩324,000 and the market capitalization is ₩4.9 trillion. The price sits above its 20-day moving average (₩261,750) and above its 60-day moving average (₩250,967). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 79.6, near overbought territory. The one-month change is +25.6%, the three-month change is +21.1%, and the position relative to the 52-week high is -0.9%. Relative strength versus the KOSPI is 55 (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 55% of all stocks. Over the past three months it outpaced the index by 40.2%. 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 +40.15% / 6M -0.89% / 12M -47.91%
Key metrics Computed vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.87x is in line with the whole-market median (0.84x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
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 -2.1%, below the whole-market average (3.0%). The operating margin is 2.2%. The debt ratio is 25.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.8B | $4.8B | $4.5B | -6.70% ↓ slower |
| Operating profit | $342.1M | $322.5M | $119.9M | -62.82% ↓ slower |
| Net profit | $100.3M | $132.9M | -$70.3M | -152.92% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.7B | $5.0B | $4.8B | $4.8B | $4.5B |
| Operating profit | $906.0M | $499.6M | $342.1M | $322.5M | $119.9M |
| Net profit | $593.3M | $166.2M | $100.3M | $132.9M | -$70.3M |
| Revenue CAGR | 4-yr avg -5.86% | ||||
Revenue fell 6.7% year over year (2023 ₩6.8 trillion → 2024 ₩6.8 trillion → 2025 ₩6.4 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 62.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.9%. The two-year revenue CAGR is -3.4%. In the most recent quarter (Q1 2026), revenue was 7.1% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 6.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
- The price is near its 52-week high, so chasing it warrants caution around volatility.
Recent news & events searched · sourced
- 2026-04-30EarningsQ1 2026 consolidated provisional results (fair disclosure) - revenue ₩1.5766 trillion, operating profit ₩107.8 billion, net profit ₩88.8 billion, a swing back to profit from the prior quarter's loss.Short term: a signal of entering a recovery phase, confirming earnings normalization after the Q4 2025 loss. Medium term: the starting point of a full-year return to net profit. Source
- 2026-04-30DividendDecision to cancel treasury shares - retiring held treasury stock to enhance shareholder value.Short term: improves per-share value as the share count falls. Medium term: confirms a commitment to shareholder returns. Source
- 2026-05-15FilingQ1 2026 quarterly report (routine filing) - detailed results by segment (beauty, daily-care, beverages) and by region disclosed.Short term: puts figures on the regional portfolio shift, such as North American growth and Chinese decline. Source
- 2026-03-24FilingAnnual general meeting results - approval of financial statements, election of directors and other routine agenda items processed.Medium term: finalizes shareholder items such as governance and dividend policy. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-16EarningsEarnings disclosure
- 2026-04-16Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-24OwnershipOwnership-change 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.