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Hanwha Investment&Securities · 003530 · Financials

Hanwha Investment&Securities: Share Price Down 24.5% Over a Year as Profits Recover From a Low Base

Why this report

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

The shares closed at ₩4,040 on 2026-10-22, down 24.5% over one year and well below the 52-week high of ₩10,300. Filed statements show profit recovering from 2023–2024 lows, but with a highly leveraged balance sheet and negative free cash flow.

Written Oct 23, 2026 · Data as of Oct 22, 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 improving earnings from a very low base. Net income rose from ₩9B in 2023 to ₩39B in 2024 and ₩102B in 2025, and the trailing figure to H1 2026 is ₩119B. Return on equity reached 6.0%, which is still modest.

What the data does not support is a clean quality story. Liabilities are 855.6% of equity, free cash flow over the trailing period is negative ₩1.2T, and no dividend yield is shown (0.0%). The share price has fallen 13.4% in one month and 8.9% in three months, while foreign ownership dropped from 7.3% to 5.0% in 60 days.

The stock trades at 0.5 times book value, below the 0.8 times seen at most listed securities peers in the data. A discount like this can reflect lower returns and higher leverage, and the data does not say whether it will narrow.

Business overview

Hanwha Investment&Securities is a KOSPI-listed financial company, founded in 1962 and listed in 1986, with 264,547,775 shares outstanding. The market capitalisation is ₩1.07T and enterprise value is ₩1.24T. The CEO listed in the data is 장병호.

Revenue has grown each year in the data: ₩1.97T in 2023, ₩2.50T in 2024 (up 26.8%) and ₩3.09T in 2025 (up 24.0%). Trailing revenue to H1 2026 is ₩6.26T. For a securities firm, large revenue figures can include trading and financial income, so margins on that base are thin.

Recent filings are dominated by prospectuses and supplementary shelf registration documents for derivative-linked bonds and equity-linked securities, which points to ongoing product issuance. The data does not explain the business mix beyond that.

Financial analysis

These figures come from filed financial statements. Operating income was ₩31B in 2023, ₩4B in 2024 and ₩148B in 2025. Operating margin was 1.6%, 0.2% and 4.8% in those years. Net income was ₩9B, ₩39B and ₩102B, and ROE was 0.6%, 2.4% and 5.4%.

Trailing figures to H1 2026 show revenue of ₩6.26T, operating income of ₩148B (2.4% margin), net income of ₩119B (1.9% margin) and ROE of 6.0%. The lower trailing margin versus 2025 is partly because revenue rose faster than operating income.

On the balance sheet, cash is ₩358B against borrowings of ₩533B. Liabilities to equity stand at 855.6%. Free cash flow is negative ₩1.17T, though for a securities firm such cash flow can swing with trading and client balances, and the data does not break this down.

Valuation

The stock trades at a P/E of 9.0, P/B of 0.5 and P/S of 0.2. Its own year-end history shows P/E of 99.0, 22.9 and 12.2 for 2023 to 2025, and P/B of 0.6, 0.5 and 0.6. So the P/E is lower than in recent years while P/B is near its usual range. EV/EBITDA is not available.

Peers in the data trade at P/E of 3.3 to 7.5 and P/B of 0.5 to 0.8: Mirae Asset Securities (3.6, 0.8), NH Investment & Securities (5.7, 0.8), Samsung Securities (4.7, 0.8), KIWOOM Securities (3.3, 0.8) and Samsung Card (7.5, 0.5). Hanwha's P/E is higher than all but Samsung Card, and its P/B is at the low end.

The valuation model uses the excess method (P/B versus ROE) at a 9.7% rate, based on trailing figures to H1 2026. It gives a model estimate based on the assumptions shown of ₩879 per share in the base case, ₩0 in the bear case and ₩3,537 in the bull case. All three are below the ₩4,040 share price. This is a model output, not a target, and it is sensitive to the ROE of 6.0% being below the 9.7% rate used.

Catalysts

  • Ongoing filings of prospectuses and shelf registration documents for derivative-linked bonds and securities in October 2026 show continued product issuance.
  • The next filed financial statements will show whether the trailing operating margin of 2.4% and ROE of 6.0% improve.
  • A Korea Economic Daily headline on 2026-10-21 describes the company as lagging alone while defence and life insurance affiliates take off, which keeps attention on its relative performance.
  • Investor flows over 20 days show institutions net buying (₩2.5B) against retail net selling (₩2.2B) and small foreign selling (₩0.2B), which could matter if the pattern continues.

Risks

  • Liabilities are 855.6% of equity, leaving the balance sheet sensitive to funding and market conditions.
  • Trailing free cash flow is negative ₩1.17T, and the data gives no detail on its drivers.
  • Return on equity of 6.0% is below the 9.7% rate in the valuation model, which drives the low model estimates.
  • Foreign ownership fell from 7.3% to 5.0% in 60 days and the short balance is 1.3%, signalling cautious positioning.
  • Earnings history is volatile, with operating income falling to ₩4B in 2024 before recovering, and no dividend yield is shown.

Closing view

The data shows a securities firm whose earnings have recovered from a very low base while revenue has grown, yet returns remain modest and leverage is high. The stock trades at a discount to peers on book value and below its own recent P/E, but the model estimate based on the assumptions shown (₩879 base, ₩0 to ₩3,537 range) sits under the current price. The evidence is mixed: improving profits and a low P/B on one side, and heavy leverage, negative free cash flow, falling foreign ownership and a weak share price trend on the other. This report offers no recommendation.

Model estimate of fair value

Bear
₩0
-100%
Base
₩879
-78%
Bull
₩3,537
-10%

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

Base case of the P/B vs ROE (excess return) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 23, 2026InitiationStart of coverage (300 largest)Hanwha Investment&Securities: Share Price Down 24.5% Over a Year as Profits Recover From a Low Base

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