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Hwaseung · 013520 · Auto parts

Hwaseung: Low Multiples and High ROE, but a Model Estimate Well Below the Share Price

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Hwaseung's shares closed at ₩2,395 on 2026-10-16, with a trailing P/E of 1.6 and a P/B of 0.4 against a trailing return on equity of 28.9%. The valuation model's base estimate of ₩1,092 per share sits below the share price, and the range around it is very wide.

Written Oct 18, 2026 · Data as of Oct 16, 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 company whose earnings have recovered sharply from a loss in 2021. Net income was ₩78.0B in 2025 and ₩74.1B over the trailing twelve months to H1 2026. Valuation multiples are very low: P/E 1.6, P/B 0.4, EV/EBITDA 0.9, and a dividend yield of 3.1%.

The data does not support a simple reading that low multiples mean undervaluation. Revenue has been flat to slightly lower, with a 3.5% decline in 2025. Net income has exceeded operating income recently, which suggests non-operating items may have contributed, though the data does not break this down. Liabilities are 191.3% of equity. The model's base estimate is below the market price.

Share ownership signals are mixed. Foreign ownership fell from 7.6% to 7.0% over 60 days, and foreigners were net sellers over the last 20 trading days, while retail investors were net buyers. Filings show frequent changes in the largest shareholder's holdings, but the data gives no detail on their size or direction.

Business overview

Hwaseung (code 013520) is listed on KOSPI in the auto parts sector. It was founded on 1978-09-15 and listed on 1991-02-22. The CEOs are listed as 허성룡 and 현지호. There are 50,051,252 listed shares and the market capitalization is ₩119.9B.

Revenue has grown from ₩1.40T in 2021 to ₩1.64T in 2025, with a peak of ₩1.70T in 2024. Trailing twelve-month revenue to H1 2026 is ₩1.62T. The data gives no breakdown by product or customer.

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Model estimate of fair value

Bear
₩0
-100%
Base
₩1,092
-54%
Bull
₩13,649
+473%

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 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026Update noteModel fair value changeHwaseung: Model Estimate Rises Sharply to ₩21,846 Per Share After Discount Rate Change
  2. Oct 18, 2026InitiationStart of coverage (reader request)Hwaseung: Low Multiples and High ROE, but a Model Estimate Well Below 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