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JONBUR Research · Initiation

Hanilcementco · 300720 · Building materials

Hanilcementco: Earnings Recovering from 2025 Low, Shares Trade Below Book Value

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Hanilcementco's trailing-twelve-month operating margin of 10.6% is above the 9.3% reported for 2025, while the shares trade at 0.6x book value and a 6.5% dividend yield. The DCF-based model estimate of ₩12,210 per share is below the ₩16,390 close, so the data gives mixed signals.

Written Oct 13, 2026 · Data as of Oct 12, 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 partial earnings recovery. Operating income for the twelve months to H1 2026 was ₩146.9B, up from ₩132.7B in 2025, but still well below the ₩271.4B reported for 2024. The share price rose 14.5% over three months yet is down 11.8% over one year and sits below the 52-week high of ₩20,750.

The low P/B of 0.6 and the 6.5% dividend yield stand out, but ROE of 5.7% is modest, which may explain part of the discount. The model estimate is below the current price, and the range between bear (₩0) and bull (₩53,290) is very wide, so it offers little precision. Investor flow, foreign ownership and short-balance data are not available, and no news headlines were provided.

Business overview

Hanilcementco is a KOSPI-listed building materials company, founded on 2018-07-02 and listed on 2018-08-06, with 69,261,540 listed shares and a market cap of about ₩1.14T. Its CEOs are listed as 전근식 and 오해근. Revenue over the five years shown ranged from ₩1.27T in 2021 to a peak of ₩1.80T in 2023, and was ₩1.42T in 2025. Peers in the data include Tokai Carbon Korea, Wonik QnC, Sampyo Cement, Hanil Holdings and IS Dongseo, though most lack multiples.

Financial analysis

All figures come from filed financial statements (DART). TTM revenue to H1 2026 was ₩1.38T, with operating income of ₩146.9B (10.6% margin) and net income of ₩101.7B (7.4% margin). Annual revenue fell 3.2% in 2024 and 18.2% in 2025, while operating margin moved from 15.6% in 2024 to 9.3% in 2025. ROE went from 11.7% in 2023 and 11.1% in 2024 to 4.1% in 2025, and is 5.7% on a TTM basis.

Liabilities to equity are 62.1%. Cash is ₩110.3B against borrowings of ₩648.6B. TTM free cash flow is ₩63.5B.

Valuation

The shares trade at a P/E of 11.2, P/B of 0.6 and P/S of 0.8, with a dividend yield of 6.5%. The year-end 2025 P/E was 16.8 and P/B 0.7; earlier year-end multiples are not available. EV/EBITDA is not available. The only peer with multiples, Tokai Carbon Korea, shows a P/E of 43.7 and P/B of 6.2, which is a very different business profile and limits comparison.

The valuation model (5-year DCF, discount rate 4.4%, TTM to H1 2026) gives a model estimate of ₩12,210 per share in the base case, ₩0 in the bear case and ₩53,290 in the bull case, based on the assumptions shown. Against the ₩16,390 close, the base case is about 25.5% lower. This is a model estimate, not a target or a reason to buy or sell.

Catalysts

  • A corporate value-up plan was filed on 2026-10-08, which may bear on shareholder returns and capital policy, though details are not in the data.
  • The half-year report filed on 2026-08-14 showed the TTM figures now reflected in the margins and returns.
  • An IR event was held on 2026-08-14, alongside the half-year report.
  • Amended filings on sale of property, plant and equipment (2026-06-26 and 2026-08-07) could affect the asset base and cash position.
  • 5%+ holding reports on 2026-05-22 and 2026-08-31 indicate changes in significant shareholdings.

Risks

  • Earnings remain well below 2024 levels, with TTM operating income about 45.9% lower than that year.
  • Revenue fell 18.2% in 2025, and the data does not show whether the decline has stabilised.
  • Borrowings of ₩648.6B are large relative to cash of ₩110.3B.
  • The model's bear-to-bull range of ₩0 to ₩53,290 shows high sensitivity to assumptions, and the base case is below the current price.
  • Investor flows, foreign ownership, short interest and news are not available, so sentiment cannot be assessed.

Closing view

The data shows a company with recovering but still reduced profitability, a low P/B of 0.6, a 6.5% dividend yield and moderate leverage. The model base case of ₩12,210 sits below the ₩16,390 share price, while the wide model range limits how much weight it deserves. The balance of evidence is mixed, and the October value-up plan is the main recent item to follow once details are available.

Model estimate of fair value

Bear
₩0
-100%
Base
₩12,210
-27%
Bull
₩53,290
+219%

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 4.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Hanilcementco: Earnings Recovering from 2025 Low, Shares Trade Below Book Value

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