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JONBUR Research · Initiation

Harim Holdings · 003380 · Holding companies

Harim Holdings: Low P/B and thin net margin, with a model estimate far above the share price

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Harim Holdings closed at ₩11,600 on 2026-10-12, up 60.7% over one year, with a market cap of ₩1.3T. Filed statements show TTM revenue of ₩14.3T and an operating margin of 6.8%, but a net margin of only 1.2% and ROE of 5.0%.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a large, steady-revenue holding company whose operating profit has recovered while net profit remains small relative to sales. Operating income rose from ₩567.5B in 2023 to ₩887.4B in 2025 and ₩972.8B on a TTM basis. The share price trades at 0.4x book and 7.8x earnings, with a 4.3% dividend yield. The data does not show why net income is so much lower than operating income, though borrowings of ₩4.3T against cash of ₩1.9T suggest financing costs may play a role; this is an inference and not confirmed by the data. Investor flows, foreign ownership, short balance and news headlines are not available, so sentiment cannot be assessed.

Business overview

Harim Holdings is a holding company listed on KOSDAQ since 2017-06-30 (company founded 1950-04-01), led by CEO 김홍국, with 112,005,621 listed shares. Annual revenue was ₩10.8T in 2021, ₩13.8T in 2022, ₩12.1T in 2023, ₩12.3T in 2024 and ₩13.2T in 2025. The data does not break revenue down by segment or subsidiary. Recent filings mention subsidiary facility investments and a major sales or supply contract, but give no amounts.

Financial analysis

These figures come from filed financial statements (DART). TTM to H1 2026: revenue ₩14.3T, operating income ₩972.8B (6.8% margin), net income ₩167.4B (1.2% margin), ROE 5.0%. Annual net income was ₩311.8B in 2021, ₩244.0B in 2022, ₩37.1B in 2023, ₩26.4B in 2024 and ₩229.7B in 2025. ROE moved from 14.8% in 2021 to 0.9% in 2024, then 7.3% in 2025. Revenue growth was 7.7% in 2025 after 1.7% in 2024. Liabilities to equity stand at 182.6%, with borrowings of ₩4.3T and cash of ₩1.9T. TTM free cash flow is ₩616.0B.

Valuation

Current multiples are P/E 7.8x, P/B 0.4x, P/S 0.1x and dividend yield 4.3%; enterprise value is ₩3.7T and EV/EBITDA is not available. Year-end 2025 P/E was 5.2x and P/B 0.4x, so P/B is unchanged while P/E is higher. Listed peers in the data are mostly financial groups and SK-related holdings: P/E ranges from 4.0x to 10.2x and P/B from 0.8x to 2.4x, so Harim's P/B is below all of them. The five-year DCF model (rate 4.2%, as of TTM to H1 2026) gives a model estimate based on the assumptions shown of ₩313,874 per share, with bear ₩129,992 and bull ₩861,941. Even the bear case is far above the ₩11,600 price, and the very wide range suggests the output is highly sensitive to its assumptions, so it should be treated with caution. It is not a target price.

Catalysts

  • The half-year report filed on 2026-08-13 provided the latest TTM figures, and the next periodic filing will show whether net margin improves from 1.2%.
  • Filings on 2026-09-28 and 2026-07-31 refer to a major sales or supply contract, though the data gives no contract size.
  • Subsidiary new facility investment filings (2026-06-26, 2026-06-29, 2026-09-30 amendment) point to ongoing capital spending whose effect is not quantified in the data.
  • Repeated 5%+ holding reports (2026-06-26, 2026-08-04, 2026-08-20, 2026-08-28) show changes in major shareholdings.
  • The dividend yield of 4.3% is a data point for income-focused holders if payouts continue, though dividend policy details are not provided.

Risks

  • Net margin of 1.2% and ROE of 5.0% show little of the operating profit reaches shareholders.
  • Borrowings of ₩4.3T and liabilities to equity of 182.6% leave the company exposed to financing costs.
  • Net income has been volatile, falling to ₩26.4B in 2024 from ₩311.8B in 2021.
  • The share price is up 60.7% in one year and 64.3% above its 52-week low of ₩7,060, though still below the 52-week high of ₩19,610, so it has already moved sharply.
  • Flow, foreign ownership, short interest and news data are unavailable, and the DCF range is extremely wide, limiting confidence in any conclusion.

Closing view

The data shows a large holding company with recovering operating profit, positive free cash flow and a P/B of 0.4x, but weak net profitability, meaningful leverage and volatile earnings. The DCF model estimate sits far above the market price, yet its extremely wide bear-to-bull range and sensitivity to assumptions mean it should not be read as a reliable valuation signal. Missing flow and news data leave the picture incomplete, so the evidence is mixed rather than conclusive.

Model estimate of fair value

Bear
₩129,992
+1033%
Base
₩313,874
+2636%
Bull
₩861,941
+7415%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 4.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Harim Holdings: Low P/B and thin net margin, with a model estimate far above the share price

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information