KOSPI · 003350 · Cosmetics · ₩003350

Hankook Cosmetics Manufacturing한국화장품제조

003350 · KOSPI · ₩003350 · 한국화장품제조

₩15,010▼ ₩290 (1.90%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩21,130

vs the current price (₩15,010)

Enterprise value: ₩470B
Equity value: ₩479B
WACC: 7.4%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 41% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩15,010, the model needs an operating margin of 8.5% every year (it uses 11.5%).
Or revenue growth −9.2 points a year higher than assumed in each of the 5 years.
Margins ranged from −1.1% to 17.8% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
Today's P/E is 11.4× against a typical 17.6× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩12,869; −14.3%
Base: ₩21,130; +40.8%
Bull: ₩34,976; +133.0%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (11.5%).

Revenue growth

Revenue growth, year 121.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 216.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 312.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 47.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.5%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
Capital spending1.3%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital20.3%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.23, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.61%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩216B
Net debt (borrowings and leases − cash and deposits): −₩1.5B
+ Stakes and investments: ₩6.9B; Associates, long-term financial assets and deposits (book value)
Shares: 22,660,000
Share price: ₩15,010
Market cap: ₩340B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩109B	₩167B	₩185B	₩262B	₩305B	₩342B	₩368B	₩379B
Growth	5.3%	53.2%	10.2%	21.1%	16.6%	12.1%	7.5%	3.0%
EBIT	₩9B	₩27B	₩33B	₩30B	₩35B	₩39B	₩42B	₩44B
EBIT margin	8.3%	15.9%	17.8%	11.5%	11.5%	11.5%	11.5%	11.5%
After-tax EBIT	₩6.5B	₩19B	₩24B	₩22B	₩25B	₩29B	₩31B	₩32B
+ Depreciation	—	—	—	₩2.6B	₩3.1B	₩3.4B	₩3.7B	₩3.8B
− Capital spending	₩633M	₩3.5B	₩2.3B	₩3.4B	₩4B	₩4.5B	₩4.8B	₩4.9B
− Working capital	−₩4.2B	₩3.4B	₩62B	₩9.3B	₩8.8B	₩7.5B	₩5.2B	₩2.2B
Free cash flow	—	—	—	₩12B	₩16B	₩20B	₩24B	₩28B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩11B	₩14B	₩16B	₩18B	₩20B

Terminal value ₩560B, worth ₩392B today: 83% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩5,380 a share)Now 2.79×	₩10,6431.98×	₩14,9432.78×	₩19,8163.68×
Price / earnings (last 12 months: ₩1,312 a share)Now 11.4×	₩10,9718.36×	₩23,13817.6×	₩60,14545.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩584 a share)Now 25.7×	₩4,8848.36×	₩10,30117.6×	₩26,77745.8×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
6.4%	₩22,354	₩24,071	₩26,175	₩28,815	₩32,225
6.9%	₩20,352	₩21,734	₩23,394	₩25,429	₩27,982
7.4%	₩18,664	₩19,794	₩21,130	₩22,736	₩24,704
7.9%	₩17,224	₩18,160	₩19,252	₩20,544	₩22,097
8.4%	₩15,980	₩16,764	₩17,669	₩18,725	₩19,974

Now (TTM)

Market cap: ₩340B
Enterprise value: ₩339B
P/E: 11.4×
P/B: 2.8×
P/S: 1.6×
EV/EBITDA: —
Dividend yield: 0.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,780	₩10,340	₩4,680	₩5,710	₩5,160
Market cap	₩222B	₩234B	₩106B	₩129B	₩117B
P/E	8.1×	10.1×	14.6×	32.1×	—
P/B	2.1×	3.2×	2.0×	2.7×	2.7×
P/S	1.2×	1.4×	1.0×	1.2×	1.7×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.6%	0.4%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hankook Cosmetics Manufacturing	11.4×	2.8×	1.6×	—	0.4%
APR	25.0×	16.7×	4.7×	24.7×	1.8%
Amorepacific	25.5×	1.3×	1.6×	—	1.0%
LG H&H	—	0.7×	0.6×	6.9×	0.8%
Cosmax	16.0×	4.6×	1.1×	13.7×	1.3%
Kolmar Korea	15.0×	2.8×	0.9×	—	0.7%
d'Alba Global	17.0×	7.3×	2.9×	—	1.8%
Similar companies (median)	17.0×	3.7×	1.4×	13.7×	1.1%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Hankook Cosmetics Manufacturing / 한국화장품제조 / 003350 / KRX:003350

Source: KRX statistical information