Hanwha Engine: Profits Have Turned Sharply Higher, While the Share Price Has Fallen 22.7% in a Month

Thesis

The data supports a clear earnings recovery. Revenue rose from ₩599.0B in 2021 to ₩1.37T in 2025, and operating margin moved from -6.6% to 9.5%. Trailing operating margin to H1 2026 is 11.9%, and trailing free cash flow is ₩303.9B.

The data does not explain the recent share price decline. No news headlines are provided, and investor flow, foreign ownership and short balance data are not available. Trailing net income (₩238.3B) is well above operating income (₩163.3B), so non-operating items likely contributed, though the data does not say what they were. Return on equity of 45.7% is high, and liabilities are 234.1% of equity, so leverage is also part of the picture.

Business overview

Hanwha Engine (082740) is a KOSPI-listed machinery company founded on 1999-12-30 and listed on 2011-01-04. It has 83,447,142 listed shares and a market cap of about ₩3.25T. The CEO is listed as 김종서. The data gives no breakdown of products or customers, so this report does not describe them.

Recent filings include an amended major sales or supply contract (2026-10-08), a corrected new facility investment filing (2026-09-30), and a treasury share acquisition result report (2026-08-03). The data does not give contract values or details.

Financial analysis

All figures come from filed financial statements (DART).

Revenue grew from ₩599.0B in 2021 to ₩764.2B in 2022, ₩854.4B in 2023, ₩1.20T in 2024 and ₩1.37T in 2025. Growth was 40.7% in 2024 and 14.0% in 2025. Trailing revenue to H1 2026 is ₩1.37T, about level with 2025.

Operating income went from -₩39.8B in 2021 and -₩29.5B in 2022 to ₩8.7B in 2023, ₩71.5B in 2024 and ₩130.1B in 2025. Trailing operating income is ₩163.3B, a 11.9% margin. Net income was ₩173.8B in 2025 and is ₩238.3B on a trailing basis, a 17.4% net margin.

ROE rose from -19.0% in 2021 to 36.6% in 2025 and 45.7% trailing. Liabilities to equity is 234.1%. Cash is ₩163.6B. Borrowings data is not available. Trailing free cash flow is ₩303.9B.

Valuation

At the current price, the trailing P/E is 13.6, P/B is 5.0 and P/S is 2.4. Enterprise value is about ₩3.08T. EV/EBITDA and dividend yield are not available.

At the end of 2025, the P/E was 20.6 and the P/B was 6.4, so both multiples are lower now. Earlier year-end multiples are not available.

The listed peers have much higher multiples: P/E of 37.1 (Wonik IPS) to 4,456.7 (Rainbow Robotics) and P/B of 5.6 (Doosan Enerbility) to 57.1 (Rainbow Robotics). Those companies are in different businesses and several have distorted P/Es from low earnings, so the comparison is only loosely informative.

Catalysts

• The amended major sales or supply contract filing on 2026-10-08 may matter, but the data does not show its size or terms.
• The corrected new facility investment filing on 2026-09-30 points to capital spending plans, though details are not in the data.
• The treasury share acquisition result report on 2026-08-03 shows the company bought back its own shares.
• Insider shareholding reports on 2026-07-31, 2026-08-03, 2026-08-10 and 2026-10-06 show ongoing insider activity, though the direction of trades is not given.
• The next earnings release will show whether the trailing 11.9% operating margin holds.

Risks

• The share price is down 22.7% over one month and sits close to its 52-week low, and the data offers no explanation.
• Trailing net income is well above operating income, so earnings quality depends on non-operating items not detailed here.
• Liabilities are 234.1% of equity, and borrowings data is not available to assess debt levels.
• Trailing revenue is roughly flat versus 2025, so growth has slowed from 40.7% in 2024.
• Investor flows, foreign ownership and short interest are not available, which limits insight into market positioning.

Closing view

The filed numbers show a sizeable improvement in revenue, margins, returns and cash generation since 2021, and the multiples are lower than at the end of 2025. Against that, the share price has fallen sharply, revenue growth has levelled off, leverage is notable, and the data lacks the news and flow information that might explain the move. The evidence shows a company with much stronger recent earnings but an unexplained market reaction.

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, 2026InitiationHanwha Engine: Profits Have Turned Sharply Higher, While the Share Price Has Fallen 22.7% in a Month