Nongshim Holdings is a holding company that does not manufacture anything itself; instead it earns money from the profits and dividends of its operating affiliates, chiefly Nongshim (about 32.7%), maker of the well-known Shin Ramyun and Saewookkang, Yulchon Chemical (about 31.9%), which produces food packaging, and Taekyung Nongsan, a food-ingredient processor. Its value therefore hinges far more on the size of the stakes it holds than on the parent's own operations. Its Q1 2026 report, filed on May 15, confirmed double-digit year-on-year growth in both revenue and profit, and an amended filing on a subsidiary's new facility investment revealed that group-level capital spending is under way. What stands out recently is that, on this year's expected earnings, the forward P/E of 3.05x and P/B of 0.27x sit far below those of its affiliate Nongshim (P/E 11.9x, P/B 0.71x) and other food and diversified holding companies, and with a roughly 52% discount to NAV and a 3.5% dividend yield the undervaluation signal is clear; the catch is that this discount only narrows when a catalyst appears, such as a re-valuation of Nongshim or Yulchon Chemical, or a strengthening of shareholder returns.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 7.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 38.9% higher than a year earlier.
- ROE is 8.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.4%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2024-12-31
Largest shareholder Shin Dong-won 42.92% (individual)
Controlling bloc incl. related parties 43.15%
With the controlling bloc holding 43%, the ownership structure is stable.
Net asset value (NAV) assessment Fairly valued52% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Nongshim | 32.72% |
| Yulchon Chemical | 31.94% |
🔎 In-depth analysis
- Nongshim Holdings is not a company that makes and sells products itself; it is a holding company that earns money from the profits and dividends of the Nongshim group's operating businesses through the stakes it holds in them.
- Its core affiliates are Nongshim (about 32.7%), the ramyun and snack maker best known for Shin Ramyun and Saewookkang, and Yulchon Chemical (about 31.9%), which makes food packaging; it also holds Taekyung Nongsan, which processes food ingredients and agricultural products.
- As a result, a large part of the consolidated revenue (₩858.8 billion in 2025) is the sum of the affiliates' sales, and the fact that controlling-interest net profit (₩114.6 billion) exceeds operating profit (₩81.1 billion) reflects the holding-company structure of recognizing affiliate earnings in proportion to the stakes held.
- Ultimately, this company's value depends far more on how large its Nongshim and Yulchon Chemical stakes are than on the parent's own operations.
- The latest closing price is ₩89,200 and the market cap is ₩413.7 billion.
- The price sits below its 20-day line (₩89,280) and below its 60-day line (₩92,553).
- Trading below both its short- and medium-term moving averages, the trend is on the subdued side.
- RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 48.2, a neutral reading.
- The one-month change is +0.3%, the three-month change is -2.8%, and the price is -28.0% from its 52-week high.
- Its relative strength versus KOSPI is 30 (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), placing it in roughly the top 70% of all stocks by strength.
- Over the past three months it lagged the index by 24.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On last year's confirmed annual figures (2025), the P/E ratio (how many times one year's profit the price represents) is 3.61x and the P/B (how many times net assets the price represents) is 0.31x, both very low.
- There is no need, however, to read these low figures immediately as a burden.
- Holding companies often trade at a discount to the value of the affiliates they own, and Nongshim Holdings' listed-stake value (about ₩0.9 trillion) far exceeds its market cap (about ₩0.4 trillion), leaving it at roughly a 52% discount to net asset value (NAV).
- Profitability supports this too.
- ROE (how much is earned in a year on shareholders' equity) is 8.7%, clearly higher than the roughly 2% at comparable holding companies such as CJ and LG, while the operating margin is 9.4% and the net margin is 13.3%.
- The debt ratio (debt against equity) is 39.0% and the interest coverage ratio (how many times operating profit covers interest) is 11.7x, so the financial burden is on the light side.
- With the trailing P/E (on last year's confirmed results) already low, the forward P/E on this year's expected earnings is even lower at 3.05x and the forward P/B is 0.31x, meaning that as profit grows the valuation burden actually eases.
- The top line has trended steadily upward.
- Revenue rose from ₩769.5 billion in 2023 to ₩858.8 billion in 2025 (+7.6% year on year, with the pace picking up), and controlling-interest net profit jumped 53.3% year on year to ₩114.6 billion in 2025.
- The rise in net profit owes largely to improved equity-method earnings from affiliates, which is the normal way a holding company harvests its subsidiaries' results as its core business.
- The most recent quarter, Q1 2026, started strongly with revenue of ₩265.4 billion (+38.9%), operating profit of ₩30.9 billion (+22.3%) and net profit of ₩27.2 billion (+16.5%).
- If this pace continues, the forward P/E on this year's earnings works out to around 3.05x, below the 3.43x on last year's confirmed figures.
- In other words, this is a stretch in which this year's profit grows over last year's and the valuation gets even cheaper.
- This forward figure is underpinned by solid sales at Nongshim, led by Shin Ramyun, and by improving affiliate profitability, and since there is no clear basis for profit to fall next year or beyond, it is too early to call this a cycle top.
- Recent disclosures center on periodic reports, affiliate management matters, and governance.
- The Q1 report filed on May 15, 2026 disclosed confirmed results showing double-digit year-on-year growth in revenue and profit, and an amended filing on April 30 regarding a subsidiary's new facility investment showed that group-level capital spending is under way.
- In March the annual shareholders' meeting, a change of representative director, and the business report were disclosed in turn.
- In addition, since early June a series of filings on changes in the largest shareholder's holdings has appeared, giving reason to examine the direction and scale of the owner family's share transactions and moves.
- All of these are filings the company submitted directly, so it is more accurate to verify them against the original figures than through news reports.
- The strengths are clear.
- Nongshim's results, led by Shin Ramyun, are solid; Q1 revenue and profit grew at double-digit rates; and on this year's earnings the forward P/E of 3.05x and forward P/B of 0.27x sit far below those of affiliate Nongshim (P/E 11.9x, P/B 0.71x) and other food and diversified holding companies (CJ, LG).
- With a roughly 52% discount to NAV and a 3.5% dividend yield to back it up, the undervaluation signal is clear on valuation alone.
- The point to weigh alongside this is structural: the discount on a holding company's shares narrows when the value of Nongshim and Yulchon Chemical is re-valued or shareholder returns are strengthened.
- When such a catalyst emerges, the low valuation can close quickly and the stock is strong; when affiliate profits wobble or no discount-closing catalyst appears for a while, the cheap state can persist.
- That is simply the point to keep in mind.
🔎 Valuation vs peers Inconclusive
Because Nongshim Holdings is a holding company that oversees food affiliates, it is compared with its core affiliate Nongshim (004370) and with other food and diversified holding companies (CJ, LG).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Nongshim | 12.50x | 0.75x | 6.01% |
| CJ Corporation | 27.91x | 0.77x | 2.75% |
| LG Corp | 21.19x | 0.54x | 2.57% |
(a) Position versus peers: Nongshim Holdings' confirmed P/E of 3.6x and P/B of 0.32x are both lower than those of affiliate Nongshim and of other food and diversified holding companies (CJ, LG). (b) Premium/discount: much of this cheapness, however, stems from the structural discount at which a holding company trades relative to the value of the affiliates it owns (a NAV discount). (c) Limits of trailing and the forward basis: the 2025 net profit (₩114.6 billion) heavily reflects equity-method earnings from affiliates, which can make the 3.6x P/E look low, and this figure will wobble if affiliate results turn. On a forward approximation that applies the last three years' seasonality to confirmed Q1 figures (this year's net profit of about ₩93.0 billion), the forward P/E is around 4.5x. It is hard to call it cheap or expensive on multiples alone, so the verdict is left inconclusive, but there is room for re-valuation if the holding-company discount closes and shareholder returns strengthen together.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩254.7 billion | approx. ₩26.7 billion | approx. ₩22.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩89,200 and the market capitalization is ₩413.7 billion. The price sits below its 20-day moving average (₩89,280) and below its 60-day moving average (₩92,553). 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 48.2, a neutral level. The one-month change is +0.3%, the three-month change is -2.8%, and the position relative to the 52-week high is -28.0%. Relative strength versus the KOSPI is 30 (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 30% of all stocks. Over the past three months it lagged the index by 24.2%. 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 -24.22% / 6M -38.35% / 12M -54.94%
Key metrics vs sector median
Valuation
The P/E of 3.61x is below the sector median (6.67x). The P/B of 0.31x is below the sector median (0.49x). 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 8.7%, above the sector average (5.0%). The operating margin is 9.4%. The debt ratio is 39.0%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $510.0M | $529.1M | $569.2M | +7.58% ↑ faster |
| Operating profit | $49.9M | $57.4M | $53.8M | -6.37% ↓ slower |
| Net profit | $44.5M | $49.5M | $75.9M | +53.28% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $425.2M | $447.1M | $510.0M | $529.1M | $569.2M |
| Operating profit | $37.0M | $35.0M | $49.9M | $57.4M | $53.8M |
| Net profit | $32.5M | $22.6M | $44.5M | $49.5M | $75.9M |
| Revenue CAGR | 4-yr avg 7.57% | ||||
Revenue rose 7.6% year over year (2023 ₩769.5 billion → 2024 ₩798.3 billion → 2025 ₩858.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 6.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.6%. The two-year revenue CAGR is 5.6%. In the most recent quarter (Q1 2026), revenue was 38.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.4%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 report filed - revenue ₩265.4 billion (+38.9%), operating profit ₩30.9 billion (+22.3%), net profit ₩27.2 billion (+16.5%)Near term: revenue and profit grew at double-digit rates year on year, confirming a healthy start to the year. Medium term: whether affiliate results (Nongshim and others) carry through for the full year should be checked each quarter. Source
- 2026-04-30FilingAmended filing on a subsidiary's new facility investment - disclosing that group capital spending is under wayNear term: the direct impact on the parent's earnings is limited. Medium term: since affiliate capacity additions and facility investment feed into future affiliate revenue, depreciation and cash flow, this should be checked alongside follow-up materials. Source
- 2026-03-26FilingAnnual shareholders' meeting results and notice of a change of representative director (representative executive officer)Near term: dividend, director appointments and other AGM agenda items were confirmed. Medium term: a change of management can affect the direction of capital allocation and shareholder-return policy, so subsequent moves warrant watching. Source
- 2026-06-09UpdateReport of changes in the largest shareholder's holdings - successive filings on owner-family stake changes since early JuneNear term: the share transactions themselves are not directly tied to results. Medium term: because there may be governance- or succession-related changes, the direction (acquisition/disposal) and scale should be verified against the original filings. Source
- 2026-03-18Earnings2025 business report (consolidated) filed - revenue ₩858.8 billion, operating profit ₩81.1 billion, controlling-interest net profit ₩114.6 billionNear term: the confirmed annual results set the valuation basis. Medium term: with net profit shown to lean heavily on affiliate equity-method earnings, this gives grounds to interpret the parent's operating profit and net profit separately. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual controlling-interest net profit | ₩114.6 billion | ₩114.6 billion | Confirmed | link |
| Q1 2026 cumulative revenue | ₩265.4 billion(+38.9% YoY) | ₩265.4 billion | Confirmed | link |
| Latest closing price | ₩89,200 | — | Unverified | link |
| This year's seasonality-approximated operating profit | approx. ₩97.6 billion | — | Unverified | link |
Recent filings
- 2026-06-09OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-04OwnershipLargest-shareholder ownership change report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Amended filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-18Audit 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.