Hansae한세실업

Hansae's trailing revenue is holding up, but profit margins have narrowed and the share price has fallen sharply over the past year.

Hansae is a Korean apparel maker that produces clothing for US retail brands through contract manufacturing plants in Central America and Southeast Asia. Trailing twelve-month revenue to H1 2026 was about ₩2.03T, with operating income of ₩97B and net income of ₩35B, both lower than in 2023 and 2024. The shares closed at ₩8,520 on 2026-10-22, down 19.2% over one year, with a market cap of ₩341B.

What stands out

• Trailing operating margin is 4.8% and net margin 1.7%, down from 9.8% and 19% ROE in 2023 and 7.9% in 2025, with 2026 ROE at 4.9%.
• Borrowings of ₩689B exceed cash of ₩261B, and liabilities are 133% of equity; trailing free cash flow was negative at about -₩66B.
• Annual revenue rose 8% in 2025 after a 22.5% drop in 2023 and no 2024 decline, yet 2025 net income of ₩57B was below 2023's ₩112B.
• Shares trade at a P/E of 9.7 and P/B of 0.5 with no dividend, and the in-model DCF base value is ₩44,175, well above the current price; the bear case is ₩14,422.
• Foreign ownership eased from 5.9% to 5.4% over 60 days, and 20-day flows show foreign and institutional net selling against net retail buying.

What to watch

• Upcoming full-year results and whether margins recover from the trailing 4.8% level.
• Progress on reducing borrowings relative to cash, given negative trailing free cash flow.
• Ongoing 5%+ holding reports from recent filings and the Uzbekistan plant expansion reported in October 2026 news.