Hanil Forging Industrial한일단조

Hanil Forging's profits have shrunk sharply since 2023, and the shares have fallen over the past year despite a low price-to-book ratio.

Hanil Forging makes forged automotive, defense and industrial parts from a plant in Jincheon, Korea and a subsidiary in Thailand. Trailing twelve-month revenue is about ₩142.8B with operating income of ₩8.9B and net income of ₩3.7B as of H1 2026, both well below 2023 levels. The shares closed at ₩2,090 on 2026-10-16, down 6.3% over one year, with a market cap of about ₩68.8B.

What stands out

• Revenue fell 9.2% in 2025 and 21.8% in 2024, after a flat 2023; operating margin dropped from 8.5% in 2023 to 2.8% in 2025.
• Trailing net margin is 2.6% and ROE is 2.6%, versus 6.5% in 2023 and 2022.
• Balance sheet shows cash of about ₩42.4B against borrowings of about ₩16.3B, with liabilities at 96.8% of equity.
• Trailing free cash flow is about ₩20.6B, which is well above trailing net income of ₩3.7B.
• Valuation metrics are mixed: P/E of 18.6 and P/B of 0.4 on trailing figures, and the discounted cash flow model gives a base value of ₩1,998, close to the current price, with a bear case of ₩1,022 and a bull case of ₩3,742.
• Foreign ownership fell from 5.4% to 4.9% over about 60 days, and the 20-day flows show foreign and institutional net selling with retail net buying.

What to watch

• Full-year 2026 results and the next quarterly report, to see whether the margin recovery in trailing figures holds.
• Continued filings of 5%+ holding reports, which appeared several times in 2026 and may signal ownership changes.
• Auto industry demand and the Thailand subsidiary, since the data names automakers as the main customers but gives no detail on order volumes or contract terms. No news headlines were available in the data.