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Hankook Cosmetics · 123690 · Retail & Trade

Hankook Cosmetics: Profits Have Faded While the Share Price Has Fallen Sharply Over the Past Year

Why this report

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Hankook Cosmetics closed at ₩5,600 on 2026-10-23, down 44.4% over one year, with a market value of about ₩90.0B. Revenue is around ₩81.9B over the trailing twelve months, but operating margin is just 0.7% and the model estimate is below the current price.

Written Oct 25, 2026 · Data as of Oct 23, 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 business whose earnings have weakened sharply after a strong 2023-2024. Operating income fell from ₩3.7B in 2024 to ₩0.5B in 2025, and ROE dropped from 16.4% to 3.5%. The trailing figures through H1 2026 show only a small recovery in net income to ₩0.9B.

On the other side, the balance sheet looks sound: cash of ₩18.4B is well above borrowings of ₩2.6B, and free cash flow is positive at ₩6.0B. The data does not show why margins fell, as no news headlines or guidance are available. The weak share price reflects the earnings decline, and the data cannot say whether it has stabilised.

Business overview

Hankook Cosmetics is listed on KOSPI and classified in the Retail & Trade sector. It was founded on 2010-05-03 and listed on 2010-06-01, with 16,068,000 listed shares. Market capitalisation is about ₩90.0B, small next to the peers in the data, which range from ₩2.8T to ₩46.7T.

Revenue was ₩67.0B in 2021 and ₩66.0B in 2022, rose to ₩78.7B in 2023 and ₩92.8B in 2024, then fell to ₩85.0B in 2025. Details of products or segments are not available in the data.

Financial analysis

These figures come from filed financial statements. Revenue grew 19.2% in 2023 and 17.9% in 2024, then fell 8.4% in 2025. Operating margin was 3.9% in 2023, 4.0% in 2024 and 0.6% in 2025. Net income was ₩3.5B in 2023, ₩4.6B in 2024 and ₩1.1B in 2025. The company posted losses in 2021 (net loss ₩7.2B).

Trailing twelve months to H1 2026: revenue ₩81.9B, operating income ₩0.6B (0.7% margin), net income ₩0.9B (1.1% margin) and ROE 2.7%. Liabilities to equity is 73.5%. Cash is ₩18.4B against ₩2.6B of borrowings, and free cash flow is ₩6.0B.

Valuation

Current P/E is 102.2, P/B 2.6 and P/S 1.1, with no dividend yield. The P/E is high because earnings are small. Year-end P/E was 21.7 in 2024 and 143.1 in 2025, and P/B was 3.3 and 4.8. P/B is now lower than in each of the past five year-ends. Enterprise value is about ₩74.1B; EV/EBITDA is not available.

Peers show P/E of 5.2 to 40.5 and P/B of 0.4 to 5.4 (Samsung C&T 16.7 and 0.4, POSCO International 10.9 and 1.3, ISC 40.5 and 5.4, Youngone 5.2 and 0.7, Dong SUH Companies 19.1 and 1.6). Hankook Cosmetics' P/E is above all of them.

The valuation model (5-year discounted cash flow, 7.4% rate, based on TTM to H1 2026) gives a base estimate of ₩1,667 per share, with a bear case of ₩222 and a bull case of ₩4,332. This is a model estimate based on the assumptions shown, not a target. All three cases are below the ₩5,600 price, and the wide range shows high sensitivity to assumptions.

Catalysts

  • The next quarterly filing will show whether the small H1 2026 recovery in operating income continues.
  • A change in the largest shareholder's holdings was filed on 2026-06-24, and further ownership filings could matter.
  • Foreign investors were net buyers of about ₩533M over 20 days, though foreign ownership fell from 2.4% to 1.9% over 60 days.
  • The share price is near the lower end of its 52-week range (₩4,905 to ₩13,080), so further earnings news may move it sharply.

Risks

  • Operating margin of 0.7% leaves little buffer if revenue declines further, as it did by 8.4% in 2025.
  • Profit is volatile: the company posted losses in 2021 and near-zero operating income in 2022.
  • The P/E of 102.2 depends on very small earnings, and the model estimates all sit below the current price.
  • The share price fell 11.7% in one month and 44.4% in one year, showing weak market sentiment.
  • No news headlines or guidance are available in the data, so the reasons for the margin decline are unclear.

Closing view

The evidence is mixed. The balance sheet, with net cash and positive free cash flow, is a clear strength, and the company has been profitable in recent years apart from 2021. However, earnings have dropped sharply since 2024, returns are low, and the multiples and model estimates both point to a market price that depends on a recovery not yet visible in the numbers. Investors should watch upcoming filings for signs of margin stabilisation and treat the model range as a sign of uncertainty rather than a firm estimate.

Model estimate of fair value

Bear
₩222
-96%
Base
₩1,667
-70%
Bull
₩4,332
-22%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 25, 2026InitiationStart of coverage (reader request)Hankook Cosmetics: Profits Have Faded While the Share Price Has Fallen Sharply Over the Past Year

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