PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩6,000 per share · Prices as of the 2026-10-02 close
Chohung's cheese- and frozen pizza-driven revenue has grown for four straight years, but net income attributable to owners has swung sharply from quarter to quarter, including a loss in the first quarter of 2026.
Annual revenue rose for four consecutive years, from KRW 324.0 billion in 2022 to KRW 488.2 billion in 2025.
Net income attributable to owners fell to KRW 0.36 billion in 2023 before gradually recovering to KRW 8.08 billion in 2025.
After a net loss of about KRW 2.0 billion in Q1 2026, the company returned to profit with roughly KRW 1.2 billion in net income in Q2 2026.
OEM supply of frozen pizza and cheese tied to its relationship with Otoki forms one pillar of its revenue base.
The debt ratio rose for three straight years, from 163.3% in 2023 to 187.0% in 2025.
Chohung is a comprehensive food company listed on the KOSPI market in 1976, focused on cheese processing and the manufacture of food and food additives. Its business mix shows a dual structure in which cheese products account for 61.1% of revenue and food and food additive products for 38.9%.
Its product lineup spans cheese, sauces, powders and seasonings, bakery creams, pizza, meal kits, fried products, yeast, and compound preparations, supplying raw materials to bakery, foodservice, and institutional catering channels.
The company listed on the KOSPI market in 1976 and holds a subsidiary, Chohung GF, established in 2010. Chohung produces bakery ingredients such as yeast, processed cheese, and frozen pizza, and notably manufactures frozen pizza for Otoki, the domestic market leader in frozen pizza.
Otoki appears as a major shareholder that periodically discloses changes in its Chohung holdings through large-shareholding reports. More recently, the company has partnered with Farm&Deul, a domestic meal-kit specialist, to jointly develop meal kits as part of its product diversification.
Health and wellness trends are driving demand for organic and additive-free cheese, and the market share of premium cheese and specialty bakery ingredients is expanding.
The domestic industrial cheese and food-additive market is generally understood to be a competitive space dominated by a handful of large dairy and bakery-ingredient producers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩122.3B | ₩4B | 3.3% |
| 2025Q3 | ₩123.1B | ₩6.2B | 5.0% |
| 2025Q4 | ₩127.9B | ₩4.7B | 3.7% |
| 2026Q1 | ₩122.5B | ₩3.8B | 3.1% |
| 2026Q2 | ₩126.2B | ₩5.6B | 4.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩324B | ₩15B | ₩11.1B | 4.6% | 7.2% | 181.3% |
| 2023 | ₩405.9B | ₩15.6B | ₩400M | 3.9% | 0.2% | 163.3% |
| 2024 | ₩428.2B | ₩20.8B | ₩2.5B | 4.9% | 1.7% | 170.5% |
| 2025 | ₩488.2B | ₩18.6B | ₩8.1B | 3.8% | 5.3% | 187.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue rose for four straight years: KRW 324.0 billion in 2022, KRW 405.9 billion in 2023, KRW 428.2 billion in 2024, and KRW 488.2 billion in 2025.
Operating profit climbed from KRW 15.0 billion in 2022 to KRW 20.8 billion in 2024 before slipping to KRW 18.6 billion in 2025, with the operating margin fluctuating between 4.6%, 3.9%, 4.9%, and 3.8% over the period.
Net income attributable to owners plunged from KRW 11.1 billion in 2022 to just KRW 0.36 billion in 2023, then gradually recovered to KRW 2.5 billion in 2024 and KRW 8.1 billion in 2025.
Operating cash flow swung from a large outflow of KRW -83.0 billion in 2022 to inflows of KRW 9.2 billion in 2023 and KRW 45.9 billion in 2024, before falling back to KRW 10.6 billion in 2025.
The debt ratio rose for three consecutive years, from 163.3% in 2023 to 170.5% in 2024 and 187.0% in 2025, indicating expanding financial leverage.
On a quarterly basis, after posting KRW 122.3 billion in revenue, KRW 4.0 billion in operating profit, and KRW 5.5 billion in net income in Q2 2025, revenue stayed steady through Q3 (KRW 123.1 billion revenue, KRW 6.2 billion operating profit, KRW 1.8 billion net income) and Q4 (KRW 127.9 billion revenue, KRW 4.7 billion operating profit, KRW 1.3 billion net income), even as net income varied widely each quarter.
In Q1 2026, despite revenue of KRW 122.5 billion and operating profit of KRW 3.8 billion, the company swung to a net loss of about KRW 2.0 billion, before returning to profit in Q2 2026 with KRW 126.2 billion in revenue, KRW 5.6 billion in operating profit, and KRW 1.2 billion in net income.
Combined net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) stood at roughly KRW 2.2 billion, reflecting how quarterly volatility carries through into the annual results.
Revenue increased on a wider product range, but rising raw material costs pushed up cost of goods sold, limiting the extent of margin improvement, a pattern also visible in recent quarterly results.
South Korea's processed food and food-additive industry continues to grow at a moderate pace, supported by rising single-person households and expanding demand for convenience foods.
The frozen convenience food segment, including frozen pizza, has been broadening its base through smaller portion sizes and premium product lineups. Health and wellness trends are boosting demand for organic and additive-free cheese, with premium cheese and specialty bakery ingredients gaining market share.
However, volatility in raw material prices for milk, wheat, and fats and oils remains a structural factor that directly affects profitability across the industry.
Chohung has secured a position in the ingredient supply chain through its relationship with large food companies, notably as it manufactures frozen pizza for Otoki, the domestic market leader in frozen pizza.
The industrial cheese and food-additive market includes numerous large domestic dairy processors and specialty food-additive makers, keeping price competition persistent.
Expansion into new categories such as the joint meal-kit development with Farm&Deul, a meal-kit specialist, broadens growth potential, though its revenue contribution has yet to be established.
No specific quantitative earnings guidance from the company has been confirmed, but the swing from a net loss in Q1 2026 to a profit in Q2 2026 suggests ongoing efforts to defend profitability despite raw material cost pressure.
New product and category expansion, including the joint meal-kit development with Farm&Deul, is underway, making the future revenue contribution of the meal-kit segment a point to watch.
As long as the relationship with Otoki continues, OEM volume tied to the domestic market-leading frozen pizza brand could remain a stable revenue base. Rising demand for premium cheese and specialty bakery ingredients driven by health and wellness trends is cited as an opportunity for product-mix improvement.
Conversely, the risk that rising raw material prices push up cost of goods sold and limit margin improvement has already been evident in recent quarterly results.
Whether the cash dividend policy approved at the March 2026 annual shareholders meeting continues will be confirmed again when the next full-year results are finalized. Given the debt ratio's rise over the past three years, the direction of future balance-sheet management is also worth monitoring.
The price-to-earnings ratio calculated on combined net income over the most recent four quarters sits on the higher side historically, reflecting Chohung's earnings volatility.
This traces back to repeated episodes—such as 2023 and Q1 2026—when net income collapsed or turned negative, causing earnings-based valuation to swing widely from year to year. The share price sits below per-share net asset value, meaning it trades at a discount to book value.
By contrast, shareholders' equity has stayed roughly stable at around KRW 150 billion over the past four years, even as net income fluctuated, indicating a comparatively steady asset base.
The company has paid a cash dividend annually, which, if the policy continues, is a factor worth noting from a shareholder-return perspective. That said, care is needed when interpreting earnings-based valuation metrics during periods of high profit volatility.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Annual revenue grew for four consecutive years, from KRW 324.0 billion in 2022 to KRW 488.2 billion in 2025. Expanding sales of core products such as frozen pizza and cheese underpinned this top-line growth. Its trading relationship with large customers such as Otoki adds stability to the revenue base.
Net income attributable to owners fell to KRW 0.36 billion in 2023 before gradually improving to KRW 2.5 billion in 2024 and KRW 8.1 billion in 2025. Although the company posted a loss in Q1 2026, it returned to profit in Q2, showing the recovery trend continuing. Operating profit itself has held in the range of KRW 15.0-20.8 billion each year.
Driven by health and wellness trends, the market share of premium categories such as organic and additive-free cheese, high-end cheese, and specialty bakery ingredients is expanding. The company is also pursuing new categories, including joint meal-kit development with Farm&Deul. As the product mix diversifies, exposure to any single raw material's price swings could ease.
Net income attributable to owners plunged from KRW 11.1 billion in 2022 to just KRW 0.36 billion in 2023, and the company posted a net loss of roughly KRW 2.0 billion in Q1 2026.
Net income has repeatedly declined or turned negative even in quarters when revenue and operating profit rose, making results relatively unpredictable.
The operating margin fluctuated between 3.8% and 4.9% from 2022 to 2025. Revenue rose on a wider product range, but higher raw material prices increased cost of goods sold, limiting margin improvement, a pattern repeated in recent quarterly results.
The debt ratio rose for three straight years, from 163.3% in 2023 to 187.0% in 2025. In 2022, operating cash flow recorded a large outflow of about KRW -83.0 billion, underscoring the year-to-year variability in cash generation that also warrants attention.
The cost of key products such as cheese, sauces, and yeast is heavily influenced by international prices of milk, fats and oils, and wheat. Rising raw material prices increased cost of goods sold and limited profitability improvement, a factor cited in the Q1 2026 results as well. Further increases in global grain and dairy prices could add pressure to the operating margin.
Chohung has revenue exposure to a specific customer, as it manufactures frozen pizza for Otoki, the domestic market leader in frozen pizza. Otoki is also a major shareholder that discloses stake changes through large-shareholding reports.
A structure with high dependence on a specific customer or shareholder can see a large earnings impact if trading terms or order volumes change.
Chohung is a relatively small-cap stock with a limited float of only 600,000 shares outstanding, resulting in restricted trading volume. Given this characteristic, price volatility can increase sharply on a single shift in supply-demand or a shareholding disclosure. Information asymmetry can also be relatively pronounced, warranting caution in investment decisions.
The Q3 2026 quarterly report is due. This will show whether the Q2 return to profit continues into Q3 and whether raw material cost pressure is easing.
A period to track trends in milk, wheat, and fat/oil prices, which will indicate whether cost-of-goods pressure is easing or intensifying.
The annual shareholders meeting for fiscal year 2026 is expected, at which full-year results will be finalized and the continuation of the cash dividend policy will be decided.
Large-shareholding reports from major shareholders such as Otoki should be monitored for any changes in ownership or the trading relationship.
Chohung's revenue, anchored by cheese and frozen pizza, has grown for four consecutive years, but net income has fluctuated sharply year to year and even quarter to quarter due to raw material cost pressure and other factors.
Net income attributable to owners recovered to KRW 8.1 billion in 2025 from the 2023 low, but the swing back to a loss in Q1 2026 followed by a return to profit in Q2 shows the stability of this recovery is still being tested.
The trading and shareholding relationship with Otoki serves as both a revenue pillar and a concentration risk tied to a specific customer. With the debt ratio rising for three straight years and a year of large operating cash outflow in the recent past, financial stability also warrants scrutiny.
Rising demand for premium cheese and specialty ingredients driven by health and wellness trends, along with diversification into new products such as meal kits, are cited as medium-to-long-term opportunities.
Investors can gather further basis for judgment from upcoming quarterly results, raw material price trends, and whether the dividend policy continues. This report is for informational purposes only and does not constitute a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.