PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩130 per share · Prices as of the 2026-10-02 close
Crown Haitai Holdings has extended revenue growth for four straight years, but its operating margin has been softening since peaking in 2023, and a renewed rise in international cocoa prices has resurfaced as a cost variable.
Consolidated revenue rose for four consecutive years from 2022 to 2025, but the operating margin fell from 6.9% in 2023 to 5.4% in 2025.
Operating profit recovered to roughly KRW 14.9 billion in Q1 2026 from the prior quarter, but eased slightly to about KRW 12.6 billion in Q2 2026, showing continued quarter-to-quarter volatility.
Export diversification continues through the new Asan plant and the expansion of the Zappo candy brand into North America and Oceania, but overseas sales still account for only a single-digit share of total revenue.
International cocoa prices have turned upward again in 2026, resurfacing as a cost pressure heading into the second half of the year.
The stock trades at a discount to book value per share and at a multiple below the industry average relative to earnings.
Crown Haitai Holdings is a holding company established in 2017 through a spin-off from Crown Confectionery, with Crown Confectionery and Haitai Confectionery & Foods as its core operating subsidiaries.
Its main subsidiaries include CH Tech, Younggreen, Art Valley, and Haitai Confectionery & Foods, and most of the group's revenue is generated from the confectionery segment.
Crown Confectionery, founded in 1968, holds flagship products including Kukdas, Guk-hee Peanut Sandwich, Ppoddo, Big Pie, Mai Chew Xylitol, and Peanut Caramel, while Haitai Confectionery & Foods maintains a stable domestic position with long-standing brands such as Ace, Icecool, Jayu Sigan, Matdongsan, Nugabar, and Gohyang Mandu.
Both Crown Confectionery and Haitai Confectionery & Foods are separately listed on the KOSPI, meaning the holding company's consolidated equity includes a substantial non-controlling interest.
The competitive landscape is shaped by domestic market-share competition with large confectionery makers such as Orion and Lotte Wellfood, alongside rising selling expenses tied to growing reliance on large discount stores and convenience-store channels.
More recently, the group has pursued brand localization through the candy brand Zappo, expanding into Australia, the United States, and Canada.
Production has been recentered around Chungnam Asan, where Haitai Confectionery & Foods completed a new plant in 2022 and Crown Confectionery in 2024, both serving as logistics hubs for domestic sales and exports.
Streamlining lower-competitiveness products while concentrating sales efforts on higher-margin lines is another notable feature of the business structure.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩273.4B | ₩14.6B | 5.3% |
| 2025Q3 | ₩263.8B | ₩10.8B | 4.1% |
| 2025Q4 | ₩268.9B | ₩11.4B | 4.2% |
| 2026Q1 | ₩261.6B | ₩14.9B | 5.7% |
| 2026Q2 | ₩264.7B | ₩12.6B | 4.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩979.1B | ₩38.4B | ₩8.4B | 3.9% | 2.8% | 122.8% |
| 2023 | ₩1T | ₩71B | ₩20.8B | 6.9% | 6.6% | 112.5% |
| 2024 | ₩1T | ₩67.6B | ₩23.8B | 6.5% | 7.1% | 105.2% |
| 2025 | ₩1.1T | ₩57.3B | ₩18.3B | 5.4% | 5.2% | 96.8% |
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
Consolidated revenue rose for four consecutive years, from KRW 979.1 billion in 2022 to KRW 1,035.5 billion in 2023, KRW 1,046.9 billion in 2024, and KRW 1,069.9 billion in 2025.
Operating profit, however, surged from KRW 38.4 billion in 2022 to KRW 71.0 billion in 2023, then declined for two straight years to KRW 67.6 billion in 2024 and KRW 57.3 billion in 2025, pulling the operating margin down from 6.9% in 2023 to 5.4% in 2025.
Net income attributable to owners also rose to KRW 20.8 billion in 2023 and KRW 23.8 billion in 2024 before falling to KRW 18.3 billion in 2025, with the net income decline (-22.9%) outpacing the operating profit decline (-15.3%).
On a quarterly basis, operating profit fell notably to KRW 10.8 billion in Q3 2025 from KRW 14.6 billion in Q2 2025, before gradually recovering to KRW 11.4 billion in Q4 2025 and KRW 14.9 billion in Q1 2026.
Operating profit eased slightly to KRW 12.6 billion in Q2 2026, but net income attributable to owners rose to KRW 4.6 billion from KRW 4.2 billion in the same quarter a year earlier.
Net income attributable to owners summed over the most recent four quarters (Q3 2025 to Q2 2026) reached KRW 17.4 billion, underscoring continued quarter-to-quarter volatility within the annual trend.
This margin pattern appears to reflect fluctuations in raw material costs, including cocoa, along with selling and administrative expense burdens.
Operating cash flow rose from KRW 43.3 billion in 2022 to KRW 79.9 billion in 2023 and KRW 111.2 billion in 2024, before declining to KRW 72.5 billion in 2025, tracking a similar pattern to profit trends.
In the domestic confectionery industry, raw material price volatility has become a key variable amid stagnant domestic consumption.
International cocoa futures prices, which hit a record high at the end of 2024 before plunging, have nearly doubled again within six months, reaching about USD 6,046 per ton as of August, a level cited as increasing cost pressure for the second half of the year.
The won-dollar exchange rate has also risen over the past three months, a factor cited as adding to cost burdens for confectionery makers with heavy reliance on imported raw materials such as cocoa.
In this environment, Orion is seen as relatively better positioned to offset cost pressure given its higher share of local production and its ability to flexibly manage pricing policy by market.
Crown Haitai Group, by contrast, has relied on indirect exports from domestic production without overseas subsidiaries, and its overseas sales growth has been slower compared with Orion and Lotte Wellfood, which operate ten to twenty local plants worldwide.
More recently, however, the group has sought to narrow this gap through the reorganization of its Asan production base and the expansion of the Zappo candy brand into China, Southeast Asia, and North America.
Industry-wide, brokerage analysis has also noted that the confectionery sector's price-cost spread fell by 12.0 percentage points year-on-year, indicating that cost pressure is not confined to a single company.
The company plans to use the new Asan plant as a hub serving both domestic sales and exports, aiming to improve production efficiency and reduce logistics costs going forward.
Crown Confectionery's new Asan plant, built with an investment of roughly KRW 70 billion, is twice the size of its previous facility and, at full capacity, can produce flagship snack products worth about KRW 240 billion annually.
The company has stated plans to leverage this plant to expand exports to China and Southeast Asia, taking advantage of its logistical proximity, about 30 minutes by vehicle, to Pyeongtaek Port.
The candy brand Zappo, having established a foothold in Australia, is now expanding its distribution network into the United States and Canada, with the company setting an overseas sales target of KRW 10 billion for the brand in 2026, implying substantial growth from roughly KRW 6 billion the prior year.
On the cost side, the brokerage industry had projected that cocoa input costs for confectionery makers would ease meaningfully from the third quarter of 2026, but international cocoa prices have since turned upward again, leaving the realization of that forecast uncertain.
The integrated ESG rating for the holding company and its subsidiaries improved from D in 2023 to C in 2024 and B in 2025, reflecting favorable changes on non-financial metrics as well.
The company has indicated that its focus is less on explosive overseas sales growth and more on building a stable growth foundation through consistent production and logistics efficiency.
The stock trades at a level well below its book value per share, reflecting a discounted multiple relative to net assets.
Its price-to-earnings level is also on the lower side compared with the average multiples typically observed in holding companies and traditional confectionery peers, which can be interpreted as reflecting the structural discount characteristic of holding companies.
The dividend yield sits below the sector average, and the company's dividend policy has shown gradual changes over recent years. That said, given that the annual operating margin has been softening since peaking in 2023, valuation levels warrant consideration alongside the earnings cycle.
Non-controlling interests account for a very large share of the holding company's consolidated equity, making it reasonable to factor in this structure when comparing owners' equity with market capitalization.
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
Crown Confectionery and Haitai Confectionery & Foods each completed new plants in Asan, securing logistics hubs that serve both domestic sales and exports.
Building on this, the Zappo candy brand is expanding from Australia into the United States and Canada, with a 2026 sales target roughly double the prior year's level. While exports still account for a modest share of total revenue, efforts to diversify the growth base are becoming more concrete.
The holding company's operating cash flow rose significantly in 2023-2024, and its integrated ESG rating was upgraded from D in 2023 to B in 2025. Improved cash generation supports a buffer against raw material price swings.
However, operating cash flow declined in 2025 compared with the prior year, indicating the improvement has not been uniform every year.
The company holds a range of brands familiar to consumers for decades, such as Kukdas, Home Run Ball, Oh Yes, and Matdongsan, which help sustain baseline demand even as retail channels diversify. It has also continued to roll out seasonal limited editions and collaboration products to extend brand life cycles. Revenue has maintained an upward trend for four consecutive years since 2022.
International cocoa futures prices have turned upward again in 2026, reaching the mid-USD 6,000 range per ton as of August. A rising won-dollar exchange rate is also cited as adding to cost burdens.
Because of the time lag between raw material contracts and actual input, recent price swings may be reflected in earnings with a delay over the coming quarters.
Crown Haitai Group has relied on indirect exports without overseas subsidiaries, resulting in slower overseas sales growth compared with peers such as Orion and Lotte Wellfood, which operate local production bases.
As of 2025, overseas sales accounted for about 6% of Crown Confectionery's revenue and about 8% of Haitai Confectionery & Foods' revenue. How much the new plants translate into actual export growth remains to be seen.
The consolidated operating margin peaked at 6.9% in 2023 before declining for two straight years to 6.5% in 2024 and 5.4% in 2025. Quarterly results have also shown volatility, with operating profit falling notably in Q3 2025 from the prior quarter.
Should selling and administrative expenses and raw material burdens rise simultaneously, the pace of margin recovery could slow further.
International prices for raw materials such as cocoa and palm oil, along with the won-dollar exchange rate, directly affect production costs. With cocoa prices trending upward again recently, input cost pressure could intensify further in the second half.
Depending on whether prices are raised, there could also be an offsetting effect between sales volume and profitability.
Rising reliance on large discount stores and convenience-store channels creates a structural burden of increasing selling expenses and shelf-placement competition costs. The continued entry of global brands into the domestic market may also require additional spending to defend market share. This is cited as one reason margin improvement has been limited even as revenue grows.
Because Crown Confectionery and Haitai Confectionery & Foods are each separately listed, a substantial portion of the holding company's consolidated equity consists of non-controlling interests.
The influence of subsidiary-level decisions or dividend policy on holding-company results may be constrained by this governance structure. Any change in equity relationships among group affiliates could also affect the holding company's financial structure.
Q3 2026 (July-September) consolidated results are scheduled for disclosure, offering a chance to check how much the renewed rise in cocoa prices has been reflected in actual margins.
International cocoa futures prices and the won-dollar exchange rate warrant continued monitoring. How the recent renewed rise in cocoa prices feeds into Q4 input costs will be a key variable for margin direction.
This is a window to check whether the Zappo candy brand achieves its roughly KRW 10 billion overseas sales target for 2026. If achieved, it could serve as a performance indicator for the company's export diversification strategy.
Full-year 2026 results and cash dividend disclosures are expected around this time, providing an opportunity to assess whether the annual operating margin recovers and whether dividend policy continuity is maintained.
Crown Haitai Holdings is a holding company with Crown Confectionery and Haitai Confectionery & Foods as its core subsidiaries, and consolidated revenue has risen for four consecutive years since 2022.
However, the consolidated operating margin peaked at 6.9% in 2023 before declining to 6.5% in 2024 and 5.4% in 2025, with quarterly volatility continuing, including softer results in Q3 2025 and Q2 2026.
Export diversification efforts have become more concrete recently through the new Asan plant and the overseas expansion of the Zappo candy brand, but overseas sales still make up only a single-digit share of total revenue.
The renewed upturn in cocoa and other raw material prices in 2026 is cited as a variable that could again increase cost pressure in the second half of the year.
On the financial side, operating cash flow and ESG ratings have shown improvement, though cash flow declined in 2025 compared with the prior year, indicating the improvement has not been uniform every year.
The stock trades at a level well below book value per share and at a multiple below the industry average relative to earnings, which can be interpreted as reflecting characteristics of the holding-company structure.
Overall, the company sits at a juncture where stable domestic brand strength and improving financial resilience coexist with raw material and currency volatility and slower overseas sales expansion.
Report written 2026-09-05 · Data as of 2026-09-04
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