[Edaily Reporter Kim Hyung-il ] To shed the label of “undervalued companies” in the domestic stock market and prevent delisting, listed companies have been rolling out corporate value enhancement plans (value-up disclosures) one after another. Some companies have drawn attention by presenting ambitious goals, such as raising their price-to-book ratio (PBR) several times higher than current levels or boosting their return on equity (ROE) to double digits. However, the securities industry points out that rather than focusing solely on the goals set by these companies, one must also consider their feasibility and specific implementation plans.

According to the Financial Supervisory Service’s electronic disclosure system on the 25th, a total of 53 companies disclosed relevant plans over two days: 46 on the 22nd—the deadline for value-up disclosures to qualify for an exemption from being listed on the low PBR (price-to-book ratio) company list—and 7 on the 21st, the day before. By market, there were 29 KOSPI-listed companies and 24 KOSDAQ-listed companies.

The disclosure system for low-PBR companies targets firms in the bottom 25% of the KOSPI and the bottom 10% of the KOSDAQ, based on a comparison of PBRs by market and sector. Companies that disclose a corporate value enhancement plan containing measures to improve their PBR can receive an exemption from the disclosure requirement for one year (excluding companies that have met the low-PBR criteria in any of the past six years).

Among the companies that have recently disclosed value-enhancement plans, some have set ambitious targets relative to their current financial standing. SHINIL PHARMACEUTICAL CO., LTD.(012790), for instance, set a target of 3 times PBR by 2029, despite having a PBR of 0.39 times in the first half of this year. This means it must raise its PBR to approximately 7.7 times its current level. The company plans to boost profitability by expanding its specialty pharmaceutical sales network, growing its contract development and manufacturing (CDMO) and overseas export operations, and improving cost efficiency. However, on a standalone basis, revenue fell from 89.4 billion won in 2024 to 80.6 billion won last year, while operating profit dropped by approximately 51%, from 15.2 billion won to 7.4 billion won. Return on equity (ROE) also declined from 10.16% to 5.04%. The company has also set a target price-to-earnings ratio (PER) of 35.24 times for 2029, suggesting that not only improved performance but also a shift in market sentiment will influence the achievement of this goal.

SD Biosensor(137310)The company announced plans to achieve a price-to-book ratio (PBR) of at least 1x and a return on equity (ROE) of 5% by 2029, up from a PBR of 0.32x and an ROE of 1.61% in the first half of this year. The company plans to pursue Prequalification (PQ) from the World Health Organization (WHO) for its malaria diagnostic products and registration with the U.S. Food and Drug Administration (FDA) for its molecular diagnostic products, while also strengthening shareholder returns through measures such as treasury stock buybacks and increased dividends. However, challenges remain, including a decline in revenue related to COVID-19, delays in expanding its U.S. operations, and lower factory utilization rates. The key question is whether new product approvals and overseas business expansion will actually lead to improved revenue and profits, and whether there are specific profit and loss targets by business segment to support this.

The profitability improvement targets are also challenging. #HL D&I HALLA CORPORATION announced plans to raise its ROE from 2.9% last year to over 12% by 2029 and achieve a net income of 100 billion won. However, consolidated net income for 2025 amounted to only 15.2 billion won. The target net income is approximately 6.6 times last year’s figure. Even if the company pursues profitability-focused contract awards and reduces debt, it will only be able to achieve this goal if its order backlog translates into actual profits and financial expenses are reduced.

Sangsangin Co., Ltd.(038540)The company posted net losses for three consecutive years from 2023 to 2025. The consolidated net loss for 2025 reached 123.1 billion won. Under these circumstances, the company has set targets to return to profitability in 2026 and achieve a 10% ROE by 2028. Consolidated revenue fell by approximately 30%, from 596 billion won in 2023 to 418.6 billion won in 2025, while last year’s operating loss and net loss stood at 48.2 billion won and 123.1 billion won, respectively. Although the company plans to strengthen asset quality and expand revenue from affiliates, the specific scale of profit and loss improvements across business segments needed to support a return to profitability remains unclear, so its ability to execute these plans will need to be closely monitored.

Some observers point out that achieving the “Value-Up” goals requires more than just raising target figures; they must be backed by tangible results, such as profit growth and improved capital efficiency. Kim Dae-jong, a professor of business administration at Sejong University, stated, “To improve ROE, the company must boost the profitability of its core business, reduce unnecessary costs, and generate tangible profits by divesting unprofitable businesses and enhancing productivity.” He added, “To raise the PBR, the company must strengthen shareholder returns through sustained profit growth, increased dividends, and share buybacks and cancellations to secure market confidence.”

He further emphasized, “If companies merely present target figures without disclosing implementation plans and pathways to achievement, value-up disclosures will inevitably remain nothing more than declarations,” adding, “They must disclose annual implementation plans, key performance indicators, and—in the event of falling short of targets—the causes and improvement measures.”

The securities industry is also focusing more on implementation than on the disclosures themselves. An analyst at a securities firm said, “If companies present ambitious targets but fail to achieve them, it could actually erode market confidence.” In fact, during the analysis process, when calculating the discount rate relative to net asset value (NAV), the extent of implementation of the value-up plan is also factored in as an evaluation criterion.