Lotte Himart (071840) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Lotte Himart is a consumer-electronics retailer that, under the 'HIMART' banner, sources large home appliances and electronics for its nationwide stores and online mall and earns from the sales margin plus installation, delivery, and warranty services. Q1 2026 was a seasonal slow period, with revenue of ₩496.9 billion, operating profit of -₩14.8 billion, and net profit of -₩20.4 billion, but on an annual basis operating profit turned positive and the net loss all but disappeared, narrowing from -₩305.3 billion to -₩2.4 billion, showing the core business normalizing after the large 2024 loss. What stands out lately is that if the operating-profit turnaround continues and the revenue decline halts, lifting net profit into the black, there is ample room for the discount and high dividend — a P/B of 0.15x and a 5.1% yield — to be properly recognized; but if appliance spending cools further, prolonging the top-line decline and quarterly losses and highlighting a tight 96.3% current ratio, the recovery could be pushed back.
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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 “Distribution & Wholesale/Retail” (Retail, Consumer Goods & Food), a type typically read first through P/E.
Retail and wholesale businesses run on relatively simple buy-and-sell margins, with sales and profits flowing steadily along with consumer demand. That makes price-to-earnings (P/E) — the share price against the profits the company earns — the natural 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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 91.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 2.4% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 6.1% lower than a year earlier.
- ROE is -0.3% (total-net basis). It is below the sector average.
- Operating margin is 0.4%.
- 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 Lotte Shopping 65.25% (corporate)
Controlling bloc incl. related parties 65.26%
With the controlling bloc holding 65%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Lotte Himart is a consumer-electronics retailer that, under the 'HIMART' banner, operates stores nationwide selling large home appliances such as TVs, refrigerators, washing machines, and air conditioners, along with electronics like laptops and smartphones. The offline channel — buying after seeing the product in-store — is the center of gravity, with sales through its own online mall taking place alongside it. The way it makes money is simple: it sources products from manufacturers, sells them to consumers, and keeps the difference (the sales margin), with services such as installation, delivery, and extended warranties adding to revenue. Appliances are items sensitive to the economy and to housing and moving demand, so sales volume and margins tend to rise and fall with consumer conditions.
The latest close is ₩6,320 and the market capitalization is ₩149.2 billion. The price sits above its 20-day moving average (₩6,245) and below its 60-day moving average (₩6,508). 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 50.0, a neutral level. The one-month change is -0.2%, the three-month change is -19.0%, and the position relative to the 52-week high is -31.1%. 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 outpaced the index by 1.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Recent annual (2025) revenue was ₩2.3 trillion, with operating profit of ₩9.6 billion and net profit of -₩2.4 billion. The standout point is the price relative to assets. Book value per share (BPS) is about ₩39,941 while the price is ₩5,900, putting the P/B (how many times book value the price represents) at just 0.15x. That means it trades at about 15% of book value — very low compared not only to the peer set but to the broader market. The P/S (how many times a year's revenue the price represents) is also 0.07x, with a company generating ₩2.3 trillion in revenue carrying a market cap of just ₩139.3 billion. Because net profit is a slight loss, the P/E (how many times a year's earnings the price represents) is not calculable, but this is not because it is 'expensive' — it is a case where earnings sit near breakeven, making the calculation difficult. The dividend yield is high at 5.1% (₩300 per share). The debt-to-equity ratio (borrowings relative to equity) is not heavy at 89.9%, but a 96.3% current ratio and interest coverage below 1x signal tight short-term liquidity and interest capacity — a point to watch together.
The top line is in a declining trend. Revenue went ₩2.61 trillion in 2023 → ₩2.36 trillion in 2024 → ₩2.30 trillion in 2025, with the year-over-year decline easing from -9.7% to -2.4%. The more important change is on the earnings side. Operating profit recovered from ₩1.7 billion in 2024 to ₩9.6 billion in 2025, and net profit shrank from a large -₩305.3 billion loss in 2024 to -₩2.4 billion in 2025, nearly erasing the deficit. The large 2024 loss appears to have carried heavy one-off costs such as asset write-downs, and as that burden lifts, the core P&L is returning to a normal track. The latest quarter (Q1 2026) came in at revenue of ₩496.9 billion and operating profit of -₩14.8 billion, which should be read with the fact that appliance retail peaks in Q2–Q3 (when moving, wedding, and cooling demand cluster) while Q1 is seasonally weak. In sum, this year's key point to watch is whether the flow of an easing revenue decline and an operating-profit turnaround continues.
Recent disclosures show both the company's direction and its results. On October 31, 2025, it issued the implementation status of its corporate value-up plan (voluntary disclosure), stating its intent to enhance shareholder value; planning material the company presents itself serves as a primary reference for gauging the path ahead. Following the April 30, 2026 earnings-disclosure preview, the fair-disclosure of preliminary results on May 7 finalized and publicized Q1 results (revenue ₩496.9 billion, operating profit -₩14.8 billion, net profit -₩20.4 billion). These quarterly figures should be read together with the context of a seasonal slow period and with whether the annual trend keeps its recovery direction or carries any one-off factors.
The strengths are clear. The stock trades at 15% of book value (P/B 0.15x) and 7% of revenue (P/S 0.07x) — a strong asset discount — and the 5.1% dividend yield provides thick cash flow while held. On top of this, operating profit turning from loss to profit and the net loss nearly resolving from -₩305.3 billion to -₩2.4 billion show the core business normalizing after the large 2024 loss. In other words, it reads as a 'cheap and recovering' asset-and-dividend name. But the cautions must be weighed too. Revenue is still declining, net profit has not firmly moved into the black, and with a 96.3% current ratio and interest coverage below 1x, short-term liquidity and interest capacity are tight. In sum, if the operating-profit turnaround continues and the revenue decline halts, lifting net profit into the black, there is ample room for the low P/B and high dividend to be properly recognized. Conversely, if appliance spending cools further and the top-line decline and quarterly losses drag on, the recovery could be pushed back — a stock whose outcome hinges on the pace of recovery.
🔎 Valuation vs peers Undervalued
A comparison set of retail and distribution names with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AU Brands | 30.95x | 3.55x | 15.09% |
| Daesung Industrial | — | 0.30x | -9.51% |
| Kyungbang | 5.02x | 0.29x | 7.68% |
We looked first at a public-data comparison set of retail and distribution names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is not available, and the P/B (how many times book value the price represents) is 0.16x. That said, smaller-cap names are heavily swayed by earnings volatility and financing disclosures, so we did not draw firm conclusions from metrics based solely on last year's finalized results. The outlook box is based on DART disclosures.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩2 | ₩300 | — |
| Next quarter | Q2 2026 | ₩551.5 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩6,320 and the market capitalization is ₩149.2 billion. The price sits above its 20-day moving average (₩6,245) and below its 60-day moving average (₩6,508). 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 50.0, a neutral level. The one-month change is -0.2%, the three-month change is -19.0%, and the position relative to the 52-week high is -31.1%. 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 outpaced the index by 1.3%. 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 +1.32% / 6M -31.09% / 12M -63.70%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.16x is below the sector median (0.47x).
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 -0.3%, below the sector average (1.0%). The operating margin is 0.4%. The debt ratio is 102.0%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.8B | $1.7B | $1.6B | -2.40% ↑ faster |
| Operating profit | $5.8M | $1.2M | $6.8M | +460.15% ↑ faster |
| Net profit | -$24.8M | -$214.5M | -$1.7M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.7B | $2.3B | $1.8B | $1.7B | $1.6B |
| Operating profit | $75.1M | -$36.5M | $5.8M | $1.2M | $6.8M |
| Net profit | -$40.4M | -$370.8M | -$24.8M | -$214.5M | -$1.7M |
| Revenue CAGR | 4-yr avg -12.20% | ||||
Revenue fell 2.4% year over year (2023 ₩2.6 trillion → 2024 ₩2.4 trillion → 2025 ₩2.3 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 460.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -12.2%. The two-year revenue CAGR is -6.1%. In the most recent quarter (Q1 2026), revenue was 6.1% lower 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 4.8%, is on the high side.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 91.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 2.4% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2025-10-31UpdateCorporate value-up plan (voluntary disclosure) ((2025 implementation status)): revenue ₩2 · operating profit ₩300Planning material the company itself laid out. If it contains numbers, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-05-07EarningsOperating (preliminary) results (fair disclosure): Q1 2026 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billionRecently finalized or preliminary results. Check alongside whether they point the same way as the annual trend and whether any one-off factors are present. Source
- 2026-04-30EarningsEarnings-disclosure preview (informational disclosure): Q1 2026 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billionRecently finalized or preliminary results. Check alongside whether they point the same way as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,320 | ₩6,320 | Confirmed | link |
| Latest quarterly results | revenue ₩496.9 billion, operating profit -₩14.8 billion | revenue ₩496.9 billion, operating profit -₩14.8 billion | Confirmed | link |
| Annual results | revenue ₩2.3 trillion, operating profit ₩9.6 billion | revenue ₩2.3 trillion, operating profit ₩9.6 billion | Confirmed | link |
| Outlook/plan disclosure (original text) | ): revenue ₩2 · operating profit ₩300 | ): revenue ₩2 · operating profit ₩300 | Confirmed | link |
| Results disclosure (original text) | 2026 1 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billion | 2026 1 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billion | Confirmed | link |
| Results disclosure (original text) | 2026 1 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billion | 2026 1 revenue ₩496.9 billion · operating profit -₩14.8 billion · net profit -₩20.4 billion | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30EarningsEarnings disclosure
- 2026-04-28Earnings disclosure
- 2026-04-28Disclosure
- 2026-04-27Disclosure
- 2026-04-22Disclosure
- 2026-04-22Amended filing
- 2026-04-20OwnershipLargest-shareholder ownership change 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.