Hyosung효성

Hyosung's trailing earnings are solid and its shares trade at low multiples, but the stock has fallen about 30% in a month after a criminal referral over accounting standards.

Hyosung is a Korean holding company with subsidiaries in ATM services, pumps, car dealerships, spandex and yarn, heavy electrical equipment, and chemicals. On trailing results to H1 2026 it reported revenue of ₩2.54T, operating income of ₩538B and net income of ₩462B, with a 21.2% operating margin. The share price closed at ₩115,100, near its 52-week low of ₩110,100 and well below its high of ₩318,000.

What stands out

• Trailing operating margin is 21.2%, up from 16.2% in 2025 and 9.7% in 2024, and trailing ROE is 19.1%.
• Valuation is low: P/E 4.2, P/B 0.7 and a dividend yield of 4.3%, close to the peer group's P/E range of 3.2 to 7.4.
• Borrowings of ₩1.62T exceed cash of ₩267B, and liabilities are 81.7% of equity; trailing free cash flow is ₩100B.
• A filing on 10 September 2026 reported a criminal referral following a violation of accounting standards, and the shares have fallen 29.9% over the past month.
• Many filings are for major sales or supply contracts, several of them amended, but the data does not give their size or terms.
• Over the last 20 days, institutions were net sellers of about ₩4.5B while foreign and retail investors were net buyers of about ₩2.1B and ₩2.3B; foreign ownership is 21.6%.

What to watch

• Follow-up on the criminal referral over accounting standards, which the data does not explain in detail and which may affect the shares.
• Whether the amended contract filings change the picture, and the size and timing of the contracts, which the data does not give.
• Next reported results and whether the margin improvement holds, since annual net income swung sharply between 2023 and 2024 and the data does not give a results date.