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JONBUR Research · Initiation

Hyundai Futurenet · 126560 · Telecom

Hyundai Futurenet: Growing Revenue, Thin Margins and a Low Price-to-Book Multiple

Why this report

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Hyundai Futurenet's trailing revenue reached ₩277.2B with an operating margin of 3.3%, while the shares trade at 0.5x book value and 36.8x earnings. The share price closed at ₩3,100 on 2026-10-30, down 8.3% over one month and within its 52-week range of ₩2,770 to ₩3,750.

Written Oct 31, 2026 · Data as of Oct 30, 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 growing but low-margin business with a very strong balance sheet. Revenue has risen every year shown, and trailing liabilities are only 5.7% of equity, with cash of ₩29.4B against borrowings of ₩6.0B. The shares trade at 0.5x book, below the 1.0x of SK Telecom and in line with or below the other telecom peers listed.

The data does not show strong profitability. Return on equity is 1.3% on a trailing basis, so the low price-to-book multiple reflects weak returns rather than an obvious mismatch. The 36.8x P/E is far above every peer (5.5x to 21.7x) because earnings are small. A dividend yield of 4.8% and recent treasury stock activity point to shareholder returns, but the filings given here do not show the amounts.

Business overview

Hyundai Futurenet is listed on KOSPI in the Telecom sector, was founded on 1992-03-16 and listed on 2010-12-23. It has 109,201,040 listed shares and a market capitalisation of about ₩338.5B. Revenue grew from ₩136.7B in 2021 to ₩264.5B in 2025. Growth was 9.3% in 2023, 28.0% in 2024 and 22.6% in 2025. The data does not describe its products or segments. Foreign ownership is 0.6%, down from 1.0% sixty days ago, and short balance is 0.0%.

Financial analysis

These figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩277.2B, operating income ₩9.1B (3.3% margin), net income ₩9.2B (3.3% margin), ROE 1.3%. Free cash flow was ₩23.4B.

For 2025, revenue was ₩264.5B, operating income ₩6.3B (2.4% margin) and net income ₩7.5B. In 2024 operating income was ₩6.9B (3.2% margin) and net income ₩7.0B. Operating margin was 6.2% in 2022 and 5.4% in 2021, so margins have narrowed as revenue grew. Net losses occurred in 2022 (₩5.4B) and 2023 (₩1.9B). The 2021 net income of ₩93.2B was far above operating income of ₩7.4B and gave a 12.1% ROE, so it appears to be a one-off, though the data does not explain it.

The balance sheet is conservative: liabilities-to-equity 5.7%, borrowings ₩6.0B and cash ₩29.4B.

Valuation

At ₩3,100 the shares trade at a P/E of 36.8x, P/B of 0.5x and P/S of 1.2x. Enterprise value is ₩315.1B; EV/EBITDA is not available. The dividend yield is 4.8%. Year-end P/E was 44.5x in 2025 and 59.1x in 2024, so the current multiple is lower than recent year-ends, while P/B has stayed between 0.4x and 0.6x over five years.

Peers: SK Telecom 21.7x P/E and 1.0x P/B; KT 9.0x and 0.6x; LG Uplus 11.3x and 0.7x; NICE Information & Telecommunication 5.5x and 0.8x; Korea Information & Communication 8.0x and 0.8x. The company has the highest P/E and the lowest P/B in this group.

A valuation model estimate (fair_value_model) is not available for this company, so no comparison with the share price can be made.

Catalysts

  • Earnings results were pre-announced in a filing on 2026-10-26, so third-quarter results may follow soon.
  • A treasury stock acquisition results report was filed on 2026-10-23, following the share buyback decision of 2026-08-03.
  • The half-year report for June 2026 was filed on 2026-08-14 and set the latest trailing figures.
  • An IR event was held on 2026-08-25, though the data does not include its content.
  • Institutions were net buyers of about ₩356M over 20 days, while foreigners and retail investors were net sellers.

Risks

  • Operating margin of 3.3% is thin, so small cost changes could affect profit materially.
  • ROE of 1.3% is low, which may keep the stock trading at a discount to book value.
  • Net income was negative in 2022 and 2023, showing earnings have been volatile.
  • The 36.8x P/E is well above all listed peers, leaving the valuation sensitive to any earnings shortfall.
  • Foreign ownership is very low at 0.6% and fell over 60 days, and the shares fell 8.3% in the last month.

Closing view

The data shows a company with steadily rising revenue, a net cash style balance sheet and positive free cash flow, but with low margins and returns. The 0.5x price-to-book multiple matches a 1.3% ROE, and the high P/E reflects small earnings. No model estimate is available and no news headlines were provided, so the evidence is limited to filings, financials and trading data. Whether margins and returns improve is the key point to watch in upcoming results.

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).

Filings and data used

Report history

  1. Oct 31, 2026InitiationStart of coverage (reader request)Hyundai Futurenet: Growing Revenue, Thin Margins and a Low Price-to-Book Multiple

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