HRSHRS

HRS trades near book value on a small, low-debt chemicals business whose profits have been falling from their 2021 peak.

HRS, a KOSDAQ-listed chemicals company, reported trailing twelve-month revenue of ₩85.4B and net income of ₩16.4B to H1 2026, with a 16.1% operating margin and a 13.4% liabilities-to-equity ratio. Revenue was ₩78.9B in 2025, down 1.7% on the year, and operating income has drifted lower since 2024. The share price of ₩4,745 sits in the lower part of its 52-week range of ₩4,275 to ₩5,640.

What stands out

• Trailing operating income is ₩13.8B against ₩17.9B in 2021, so profitability has come down from the peak year.
• Trailing free cash flow is slightly negative at about -₩0.05B, although cash held is ₩19.2B and no borrowings are reported.
• The company declared a cash dividend in October 2026 and has a dividend yield of 6.3%, which is a large part of the investment case in the data.
• The DCF fair value model gives a base of ₩10,866, but this is a model output, not a forecast, and it sits well above the current price.
• Foreign ownership fell from 3.7% to 3.0% over the last 60 days, while the 20-day flows show foreign net selling.

What to watch

• The next results release, which will show whether the trailing margin and profit trend holds.
• Follow-up filings on the dividend payment and any further asset transfers or collateral decisions noted in August 2026.
• Whether free cash flow turns positive, since the trailing figure is currently negative.