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.
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 -1.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
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
- 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 ₩241,000 and the market cap is ₩3.6 trillion.
- The price sits above its 20-day line (₩237,850) but below its 60-day line (₩249,242).
- With the short- and medium-term trends diverging, the direction is best read separately for each.
- The RSI (a supplementary gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 49.3, a neutral level.
- The one-month change is +2.8%, the three-month change is +2.1%, and the price sits -28.9% below its 52-week high.
- Relative strength versus the KOSPI is 17 (on a 1-99 scale that weights recent performance versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 84% of all stocks by strength.
- Over the past three months it lagged the index by 21.4%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- 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 | 30.85x | 1.33x | 4.33% |
(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 ₩241,000 and the market capitalization is ₩3.6 trillion. The price sits above its 20-day moving average (₩237,850) and below its 60-day moving average (₩249,242). 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 49.3, a neutral level. The one-month change is +2.8%, the three-month change is +2.1%, and the position relative to the 52-week high is -28.9%. Relative strength versus the KOSPI is 17 (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 16% of all stocks. Over the past three months it lagged the index by 21.4%. 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 -21.42% / 6M -43.88% / 12M -68.50%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.68x is below the whole-market median (1.15x).
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 -1.8%, below the whole-market average (5.0%). The operating margin is 2.7%. The debt ratio is 23.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.5B | $4.5B | $4.2B | -6.70% ↓ slower |
| Operating profit | $322.8M | $304.2M | $113.1M | -62.82% ↓ slower |
| Net profit | $94.6M | $125.4M | -$66.3M | -152.92% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.4B | $4.8B | $4.5B | $4.5B | $4.2B |
| Operating profit | $854.7M | $471.3M | $322.8M | $304.2M | $113.1M |
| Net profit | $559.7M | $156.8M | $94.6M | $125.4M | -$66.3M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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.
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
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated net profit/loss | -₩100.1 billion | 2025 | Confirmed | link |
| Q1 2026 revenue and operating profit | revenue 1₩576.6 billion · operating profit ₩107.8 billion | IR approx. 1 | Confirmed | link |
| 2026 net profit (full-year estimate) | approx. ₩235.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 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.