PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Renamed after being absorbed into CHA Bio Group, the former JAYJUN Cosmetics is now navigating a transition period marked by chronic operating losses in its core beauty business alongside large swings in net income driven by its equity-method stake in Kakao Healthcare.
Formerly JAYJUN Cosmetics, the company was acquired by CHA Meditech/CHA Cares in 2025, renamed CHA AI Healthcare, with CHA Bio Group executives joining the board.
It joined CHA Bio Group as a strategic investor in an 80 billion won capital injection into Kakao Healthcare, and equity-method gains/losses from that stake are now driving earnings volatility.
2025 owners' net income turned positive at about 1.37 billion won even as the operating loss persisted at roughly negative 7.46 billion won, and the swing to profit over the latest four quarters appears heavily influenced by one-off, non-operating items.
A 40 billion won convertible bond (36th issue) becomes convertible starting October 29, 2026, and a lock-up covering 53.4% of shares outstanding is released on December 11, 2026.
The cosmetics segment is pursuing expansion into North American offline retail and China's high-end tier, but gross margin declines continue to pressure profitability.
CHA AI Healthcare traces its roots to JAYJUN Cosmetics, founded in 1972, which began focusing on cosmetics manufacturing and sales in 2016 with skincare, makeup, and personal-care products as its core lines.
Its flagship products are sheet masks and basic skincare items, built around high-functionality ingredients and dermatology-based technology distributed through expanding domestic and overseas channels.
In 2025, CHA Meditech and CHA Cares, both affiliates of CHA Bio Group, acquired control of the company, renamed it CHA AI Healthcare, and added AI-based medical solutions and platform businesses to its corporate purpose.
Following the acquisition, the board was reshuffled to include the CEOs of CHA Cares and of CHA Bio F&C/CHA Meditech as inside directors alongside a newly appointed CEO, linking the group's cosmetics and healthcare affiliates.
CHA Bio Group is using CHA AI Healthcare to pursue a shift toward a total life-care platform spanning preventive medicine and lifecycle health management, aiming to combine its existing K-beauty brands with AI healthcare technology to diversify channels and revenue models.
In November 2025, the company joined CHA Bio Group as a strategic investor in an 80 billion won capital raise for Kakao Healthcare, participating with an additional 10 billion won (10.5%) capital injection.
Once the deal closes, Kakao Healthcare's ownership structure is set to be CHA Bio Group 43.08%, Kakao 29.99%, and outside investors 26.93%, with CHA AI Healthcare holding Kakao Healthcare as an equity-method associate.
Controlling shareholder CHA Cares holds roughly 89% of CHA AI Healthcare, and market commentary has characterized the listed entity as a platform CHA Group intends to use for restructuring its broader healthcare business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩2B | -₩1.4B | −72.2% |
| 2025Q3 | ₩1.6B | -₩2.1B | −130.8% |
| 2025Q4 | ₩2B | -₩2B | −102.2% |
| 2026Q1 | ₩1.9B | -₩2.4B | −122.4% |
| 2026Q2 | ₩2.9B | -₩1.1B | −39.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩6.2B | -₩10.7B | -₩21.4B | −170.8% | −51.5% | 16.4% |
| 2023 | ₩17B | -₩10.2B | -₩6.8B | −59.8% | −17.0% | 20.9% |
| 2024 | ₩15.7B | -₩5.4B | -₩9.5B | −34.7% | −32.0% | 31.3% |
| 2025 | ₩7.3B | -₩7.5B | ₩1.4B | −102.1% | 1.8% | 46.2% |
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 from 6.25 billion won in 2022 to 17.03 billion won in 2023 and 15.68 billion won in 2024, before falling sharply to 7.31 billion won in 2025.
Operating losses persisted every year — negative 10.67 billion won in 2022 (operating margin -170.8%), negative 10.19 billion won in 2023 (-59.8%), negative 5.45 billion won in 2024 (-34.7%), and negative 7.46 billion won in 2025 (-102.1%) — reflecting a fixed-cost burden that has stayed large relative to revenue scale.
Owners' net income, however, swung from losses of 21.43 billion won in 2022, 6.80 billion won in 2023, and 9.49 billion won in 2024 to a profit of about 1.37 billion won in 2025, a shift that should be read as driven by non-operating, equity-related items rather than by core-business improvement.
On a quarterly basis, owners' net income was about +1.34 billion won in 2025 Q2, swung back to about -2.18 billion won in Q3, then jumped to about +4.56 billion won in Q4, showing considerable volatility.
In 2026 Q1, revenue was about 1.94 billion won with an operating loss of roughly 2.37 billion won and an owners' net loss of about 4.64 billion won, a widening attributed to an approximately 3 billion won equity-method loss from associate Kakao Healthcare, which itself posted revenue of about 6.8 billion won, an operating loss of about 10.1 billion won, and a net loss of about 10.2 billion won in the same quarter.
In 2026 Q2, revenue rose more than 50% quarter-on-quarter to about 2.91 billion won, the operating loss narrowed to about 1.13 billion won, and owners' net income reached about 10.40 billion won, the largest profit among the last five quarters.
As a result, the trailing four-quarter sum of owners' net income from 2025 Q3 through 2026 Q2 came to roughly 8.14 billion won, a picture that appears to have escaped the prior years' annual loss pattern, even though its composition still reflects a persistent operating loss overshadowed by non-operating swings.
Quarterly revenue itself has remained modest, ranging between about 1.6 billion and 2.9 billion won, suggesting that qualitative improvement in earnings quality is still at an early stage.
Korea's cosmetics industry is expanding from an online-centric model toward more diversified offline and distribution channels, buoyed by rising global recognition of K-beauty brands.
CHA AI Healthcare, the former JAYJUN Cosmetics, is likewise pursuing expanded North American offline sales and a China-focused high-end product lineup, building on existing channels that include a presence at Costco in the US and continued brand awareness in China.
Competition among domestic and overseas small and mid-sized cosmetics makers is intensifying, however, and declining gross margins point to rising cost and distribution burdens across the sector.
Separately, the digital healthcare industry is still in an early phase of shifting toward medical-data and AI-based services, with large platform operators and hospital groups in Korea expanding their footprints.
CHA Bio Group is using CHA AI Healthcare, CHA Cares, and Kakao Healthcare to build a connected-healthcare ecosystem spanning preventive medicine, women's health, and senior care, and currently operates 77 medical platforms across 11 major cities in six countries.
Reports indicate that Kakao Healthcare's target for reaching EBITDA breakeven has been pushed back from the end of 2026 to 2028, suggesting the digital healthcare segment will need more time to become profitable.
As a result, the company sits in a transition between being a traditional cosmetics manufacturer and a healthcare-platform investor, and the differing cycles of the two industries complicate interpretation of its results.
The company has stated that its top priority during the post-merger integration period is consolidating its existing cosmetics business, leveraging maintained distribution networks such as its Costco US presence and continued brand recognition in China to pursue overseas expansion.
Specifically, it is pursuing region-targeted strategies including expanded North American offline sales and a high-end product lineup tailored to the Chinese market.
On the financial calendar, a 40 billion won convertible bond (36th issue) issued to fund the Kakao Healthcare investment becomes convertible starting October 29, 2026, and a lock-up on 9,724,473 common shares — 53.4% of shares outstanding at the end of Q1 — is set to be released on December 11, 2026.
Market commentary has flagged that combined with convertible shares from the bond (4,823,926 shares), the potential float could reach as much as 79.9% of shares outstanding, a variable for share supply and demand.
At the group level, media reports have discussed the possibility of a merger between hospital-operating affiliate CHA Healthcare and CHA Cares, and a restructuring roadmap that uses CHA AI Healthcare as a listed platform, making future governance changes worth monitoring.
Kakao Healthcare is also upgrading existing services such as Pasta, HRS, Heycon, and CareChat and plans to raise an additional 50 billion won from outside investors, and the progress of that effort will continue to affect CHA AI Healthcare's equity-method results.
With the core cosmetics business still posting operating losses even as owners' net income swung sharply positive over the last four quarters, the market tends to attribute that profit more to equity-method and non-operating items than to underlying business improvement.
The relationship between share price and net assets has been shaped by several years of capital changes — including a reverse stock split and accumulated equity-method gains and losses — making simple comparison with peer cosmetics companies difficult.
The second-half calendar, where convertible bond conversion rights begin and a lock-up expires in close succession, carries the possibility of an increase in shares outstanding, a dilution variable worth weighing alongside any valuation read.
There has been no recent history of dividend payments, so an approach that tracks earnings trends and ownership-structure changes together seems more relevant than one centered on dividend metrics.
Ultimately, valuation of this stock needs to be viewed through two simultaneous lenses: the pace of profitability recovery in the traditional cosmetics business, and the earnings contribution of the healthcare portfolio that now includes the Kakao Healthcare stake.
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
Trailing four-quarter owners' net income came to roughly 8.14 billion won, a departure from the pattern of large annual losses in prior years. In 2026 Q2, revenue rose more than 50% quarter-on-quarter while the operating loss also narrowed.
The cosmetics segment's overseas channel expansion into North American offline retail and China's high-end tier is contributing to the revenue recovery.
CHA Bio Group used CHA AI Healthcare as a vehicle to secure a stake in Kakao Healthcare, creating a link to a large domestic platform.
The group already operates 77 medical platforms across 11 major cities in six countries, offering potential to combine cosmetics distribution networks with medical-data and AI capabilities. Continued upgrades to Kakao Healthcare's services could eventually feed through positively to equity-method results.
Media reports indicate CHA Group intends to use CHA AI Healthcare as a listed platform for restructuring its healthcare business. Future mergers or business transfers involving affiliates such as CHA Healthcare and CHA Cares could substantially change the company's business scope and asset composition.
With controlling shareholder CHA Cares holding roughly 89%, the structure allows group decisions to be implemented quickly.
The cosmetics segment posted operating losses for four consecutive years from 2022 to 2025, with the 2025 operating margin reaching negative 102.1%. In 2026 Q1, even as revenue grew, the operating loss widened due to a declining gross margin and rising cost burdens. The results of the channel-diversification strategy have not yet translated into improved profitability.
Kakao Healthcare continued to post losses in 2026 Q1, with revenue of about 6.8 billion won and an operating loss of about 10.1 billion won, leading CHA AI Healthcare to recognize an equity-method loss of roughly 3 billion won.
The consolidated debt ratio of acquisition-lead entity CHA Cares jumped from 51% to 332%, and concerns remain over potential impairment of the 48.2 billion won in goodwill recognized. Reports also indicate Kakao Healthcare's EBITDA breakeven target has been pushed back from 2026 to 2028.
A 40 billion won convertible bond (36th issue) becomes convertible starting October 29, 2026, and a lock-up covering 53.4% of shares outstanding is released on December 11, 2026. Adding potential convertible-bond shares, analysts note the potential float could reach roughly 79.9% of shares outstanding. This has been flagged as a burden on share supply and demand.
If associate Kakao Healthcare continues posting losses, recurring equity-method losses are possible, and there is latent risk of impairment testing on the 48.2 billion won of goodwill recognized during the acquisition. Since the group's breakeven target has already been pushed back once, further delays cannot be ruled out.
The onset of CB conversion rights (October 29) and the lock-up release (December 11) fall in sequence within the same year, and if both coincide the potentially tradeable float could rise sharply in a short period.
Depending on where the share price sits relative to the conversion price, cash-outflow risk from early redemption claims should also be considered.
Both domestic and overseas cosmetics markets face intensifying brand proliferation and price competition, making it difficult to defend gross margins. In expanding channels into North America and China, currency fluctuations and reliance on local distribution partners can also act as risk factors.
Start date for conversion rights on the 40 billion won 36th CB issue. Watch how much conversion volume actually materializes and how the share price relates to the conversion price.
Lock-up release date for 9,724,473 common shares (53.4% of shares outstanding). Watch for potential selling pressure and any resulting change in ownership structure.
2026 Q3 earnings release. A point to check whether the cosmetics revenue recovery continues and how the Kakao Healthcare equity-method line item evolves.
Track progress toward Kakao Healthcare's EBITDA breakeven target (currently set for 2028). Any further revision to this target would affect the group's financial burden.
Whether any disclosure emerges on a merger or business restructuring among affiliates such as CHA Healthcare and CHA Cares — an event that could change the company's business scope and governance structure.
CHA AI Healthcare sits in a transition from cosmetics manufacturer to healthcare-platform investor, with its core cosmetics business posting operating losses for four straight years even as it attempts a revenue recovery through overseas channel expansion.
Trailing four-quarter owners' net income came in positive at roughly 8.14 billion won, but that figure reflects a mix of a persistent operating loss and large equity-method swings tied to Kakao Healthcare.
Kakao Healthcare's ongoing losses, the delay in its breakeven target from 2026 to 2028, and a sharp rise in the debt ratio at group affiliates are signals of financial strain across the broader group.
At the same time, the onset of conversion rights on the 40 billion won convertible bond (October 29) and a large lock-up release (December 11) are both scheduled for the second half of the year, making share supply-demand dynamics a clear variable.
The group appears set to continue using CHA AI Healthcare as a listed platform for restructuring its healthcare business, a process that could further alter the company's business scope and governance structure.
On balance, this stock combines a gradual recovery attempt in its core cosmetics business with earnings and supply-demand variables tied to its healthcare portfolio, and its direction is likely to become clearer through the disclosure schedule over the coming months.
Report written 2026-09-05 · Data as of 2026-09-04
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