ILSHIN SPINNING, ‘Off-Balance-Sheet Assets’ Emerge as Core Business Recovers; Revaluation Expected at 0.2x PBR

[Financial News]  ILSHIN SPINNING is drawing attention as an undervalued asset stock, with the recovery of its core business and the value of its holdings coming into focus at the same time.
As the investment case, once focused on the value of its real estate, expands to include recovering profits in textiles and cosmetics as well as rising stakes in affiliates, attention is turning to whether the discount reflected in its price-to-book ratio (PBR) of about 0.2 times can narrow.
On the 14th, Stunning Value Research highlighted ILSHIN SPINNING’s improving core-business performance and the potential for a revaluation of its holdings, although it did not provide an investment rating or target price.
ILSHIN SPINNING’s consolidated revenue in the first half of 2026 rose 8.0% year on year to 279 billion won. Operating profit increased 239.5% to 15.5 billion won. The recovery in textile-business profitability following the streamlining of its Vietnam production base coincided with growth in new businesses, including cosmetics. In other words, the recovery of the core business’s cash-generating capacity has been added to an investment case previously centered on asset value.
The gap between asset value and market capitalization is also significant. ILSHIN SPINNING’s market capitalization stands at about 237.2 billion won, putting its PBR at approximately 0.2 times. While cash-like assets have increased following the development and sale of its Gwangju Im-dong plant site, Stunning Value Research estimates that the value of its real estate holdings, including the Yeouido Ilshin Building and properties in Hannam-dong, amounts to about 1.32 trillion won.
The company’s approximately 300 artworks, including works by Jean-Michel Basquiat, Lee Ufan, and Park Seo-bo, also represent potential assets. Researcher Jeon Yeong-dae said, "The market value of the artworks, which are recorded on the books mainly at acquisition cost, is estimated at 400 billion to 500 billion won," adding, "However, actual sale prices may differ from appraised values." 
The value of stakes in affiliates is another potential revaluation factor. As of the 11th, ILSHIN SPINNING’s 21.2% stake in HIGEN RNM was estimated to be worth about 136.5 billion won. That exceeds half of ILSHIN SPINNING’s market capitalization. Its 48.5% stake in Giordano Korea, along with unlisted and investment assets such as Ilshin Investment, is also considered an additional source of value.
The key question, however, is whether the increased earnings and asset value will translate into shareholder returns. ILSHIN SPINNING’s cash dividend per share doubled from 200 won in 2024 to 400 won last year.
Jeon added, "In the past, ILSHIN SPINNING’s undervaluation was based primarily on its real estate holdings, but now a recovery in core-business earnings and an increase in the value of its stakes in affiliates are emerging at the same time." He continued, "How much of the value of its holdings and cash-generating capacity is returned to shareholders will be the key factor in narrowing the discount going forward." 


[email protected] Kim Kyung-ah Reporter