Hyosung: Profits Recover Sharply While Shares Fall From 52-Week Highs

Thesis

The data supports a clear earnings recovery: operating income rose from ₩64.9B in 2022 to ₩538.3B over the trailing twelve months, and net income reached ₩461.9B. Valuation multiples are low, with P/E of 5.1 and a dividend yield of 4.8%.

The data does not explain what drove the recovery or whether it is sustainable. Revenue is ₩2.54T, well below the ₩3.4T to ₩3.7T seen in 2021 to 2023, so the margin gain came from a smaller revenue base. The share price has fallen 12.9% in one month and 5.0% in three months, though it is still up 56.2% over one year. The reasons for the recent decline are not in the data, and no news headlines are provided.

Business overview

Hyosung is listed on the KOSPI (code 004800) and is classified under Financials in the data. It was founded in 1966 and listed in 1973. Co-CEOs are 조현준 and 황윤언. Market capitalization is about ₩2.34T with 16,740,407 listed shares, and enterprise value is ₩2.07T.

Revenue was ₩3.54T in 2021, ₩3.72T in 2022, ₩3.44T in 2023, ₩2.27T in 2024 and ₩2.43T in 2025. The data does not break revenue down by business line.

Financial analysis

All figures come from filed financial statements (DART). Over the trailing twelve months to H1 2026, revenue was ₩2.54T, operating income ₩538.3B and net income ₩461.9B. Operating margin was 21.2%, net margin 18.2% and ROE 19.1%.

Full-year 2025 showed revenue of ₩2.43T (up 7.0%), operating income of ₩393.0B (16.2% margin) and net income of ₩329.9B (ROE 14.3%). In 2024, revenue fell 33.9%, yet net income was ₩453.2B on operating income of only ₩221.1B, so non-operating items appear to have contributed. In 2022 and 2023, operating margins were just 1.7% and 2.7%, and net income was close to zero in 2023 (₩68M).

The balance sheet shows liabilities to equity of 81.7% and cash of ₩266.8B. Free cash flow was ₩99.7B, well below net income. Borrowings are not available in the data.

Valuation

The stock trades at a P/E of 5.1, P/B of 0.9 and P/S of 0.9, with a dividend yield of 4.8%. At the end of 2025, P/E was 5.8 and P/B 0.8, so multiples are similar to the year-end levels. Earlier year-end multiples are not available. EV/EBITDA is not available.

Among the peers provided, P/E ranges from 3.4 (KIWOOM Securities) to 5.2 (NH Investment & Securities), and P/B from 0.7 to 1.0. Kakaopay is an outlier at P/E 58 and P/B 2.6. Hyosung is within the range of the traditional securities peers. Low multiples alongside high ROE may reflect market doubt about how lasting earnings are, but the data does not confirm this.

Catalysts

• Several major sales or supply contract filings appeared in September 2026 (on the 14th, 15th and 30th, including amendments), though contract sizes are not shown in the data.
• A 5%+ holding report was filed on 2026-10-07 and another on 2026-09-11, indicating changes in significant shareholdings.
• A change in the largest shareholder's holdings and an insider shareholding report were filed on 2026-09-11.
• A trading plan report for executives and major shareholders' specific securities was filed on 2026-09-29.
• The next financial statements will show whether the trailing 21.2% operating margin holds.

Risks

• Earnings have been volatile, with operating margin moving from 1.7% in 2022 to 21.2% on a trailing basis, so the recent level may not persist.
• Free cash flow of ₩99.7B is much lower than net income of ₩461.9B, which raises questions about cash conversion.
• A filing dated 2026-09-10 concerns the result of prosecution referral or other measures over an accounting standards violation, and its details are not in the data.
• The share price is down 12.9% over one month and sits well below the 52-week high of ₩318,000, showing high price volatility.
• Investor flows, foreign ownership, short balance and borrowings are not available, limiting visibility on positioning and leverage.

Closing view

The filed numbers show a strong profit recovery and low multiples, with a solid dividend yield. Against that, revenue is well below earlier years, cash flow lags earnings, margins have swung widely, and an accounting-related filing and a sharp recent price drop add uncertainty. The data cannot settle whether the earnings improvement is durable, so the evidence is mixed rather than conclusive.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationHyosung: Profits Recover Sharply While Shares Fall From 52-Week Highs