HMM: Earnings Well Below 2021-2022 Peaks, Low Leverage and Net Cash, Shares Near Book Value

Thesis

The data supports a picture of a company with a very strong balance sheet and sizeable cash generation, but with earnings that have normalized sharply from the peak years. Trailing revenue is ₩11.5T with an operating margin of 10.7%, compared with 53.6% in 2022 and 30.0% in 2024. Free cash flow over the trailing period was ₩2.8T, above net income of ₩1.4T... which suggests cash conversion has been solid, though the data does not explain why. Return on equity is 5.1%, well below the 15.3% of 2024 and 65.0% of 2022. The share price is 12.6% below its 52-week high of ₩24,950 and 21.7% above its low of ₩17,910. Investor flows, foreign ownership and short balance are not available in the data, so positioning cannot be assessed.

Business overview

HMM is listed on KOSPI in the Transport & Logistics sector. It was founded on 1976-03-25 and listed on 1995-10-05, with 1,025,039,496 shares outstanding. The CEO is listed as 최원혁. Market cap of ₩22.3T is the largest among the peers provided, ahead of Hyundai Glovis at ₩13.6T, Pan Ocean at ₩3.4T, CJ Logistics at ₩1.6T, Korea Line at ₩673B and Heung-A Shipping at ₩451B. Revenue history in filings: ₩13.8T in 2021, ₩18.6T in 2022, ₩8.4T in 2023, ₩11.7T in 2024 and ₩10.9T in 2025. The data shows the business is highly cyclical in its results, but does not describe segments or routes.

Financial analysis

These figures come from filed financial statements (DART). Annual revenue fell 6.9% in 2025 to ₩10.9T after rising 39.3% in 2024. Operating income was ₩1.5T in 2025 (13.4% margin) versus ₩3.5T in 2024 (30.0%), ₩585B in 2023 (7.0%), ₩10.0T in 2022 (53.6%) and ₩7.4T in 2021 (53.5%). Net income was ₩1.9T in 2025, ₩3.8T in 2024, ₩969B in 2023, ₩10.1T in 2022 and ₩5.3T in 2021. For the trailing twelve months to H1 2026, revenue was ₩11.5T, operating income ₩1.2T, net income ₩1.4T, net margin 12.4%. Net income exceeding operating income in several years suggests non-operating income, though the data does not break it down. Balance sheet: cash of ₩1.1T against borrowings of ₩293B, and liabilities-to-equity of 29.4%. Free cash flow was ₩2.8T.

Valuation

The current P/E is 15.6, up from 11.2 at the end of 2025, while P/B is 0.8, unchanged from year-end 2025. The higher P/E reflects lower trailing earnings rather than a lower share price, based on the figures given. P/S is 1.9 and the dividend yield is 3.0%. Enterprise value is ₩21.6T; EV/EBITDA is not available. Among peers, only Hyundai Glovis has multiples in the data, at a P/E of 8.9 and P/B of 1.3, so HMM has a higher P/E but lower P/B. Multiples for Pan Ocean, CJ Logistics, Korea Line and Heung-A Shipping are not available, so the peer comparison is thin. Year-end multiples for 2021-2024 are also not available.

Catalysts

• The headquarters relocation to Busan was marked by a ceremony attended by the President on 2026-10-13, with 120 employees starting work there, per news headlines.
• Reports mention further tasks ahead, including organizational relocation and a new headquarters building.
• The half-year report filed on 2026-08-13 provides the latest earnings baseline, with the next periodic filing a possible reference point.
• Major sales or supply contract disclosures were filed on 2026-06-26 and 2026-09-08, though the data gives no contract values.
• A new facility investment filing on 2026-06-24 and a forward business plan disclosure on 2026-07-24 may signal capital allocation, but details are not in the data.

Risks

• Earnings have fallen sharply from peak levels, with operating margin at 10.7% versus 30.0% in 2024, and the data shows continued volatility in revenue.
• Trailing P/E has risen to 15.6 from 11.2 at year-end 2025 as earnings declined.
• Return on equity of 5.1% is modest relative to recent years, which may limit support for the valuation beyond book value.
• Two filings responding to rumour or news reports (2026-07-09 and 2026-08-07) show market speculation, though their content is not in the data.
• Investor flows, foreign ownership and short interest are unavailable, so shifts in positioning cannot be assessed.

Closing view

The data shows a company that has come down from exceptional profits to a more modest level, while keeping low debt, ₩1.1T in cash and strong free cash flow. The shares trade at 0.8x book and 15.6x trailing earnings, with a 3.0% dividend yield. Limited peer data and missing flow information leave gaps. The Busan headquarters move is the most visible recent event, but its financial effect is not quantified in the data.

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, 2026InitiationHMM: Earnings Well Below 2021-2022 Peaks, Low Leverage and Net Cash, Shares Near Book Value