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Hanjoo Light Metal

198940 · KOSDAQ · ₩198940 · 한주라이트메탈

₩1,187▼ ₩127 (9.67%)End-of-day · Oct 30, 2026 · End-of-day prices.
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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

With these assumptions the model gives no positive value.

Enterprise value
−₩65B
Equity value
−₩60B
WACC
9.9%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩1,187, the model needs an operating margin of 2.4% every year (it uses −0.9%).
  • Margins ranged from −6.1% to 2.3% over the last 4 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
—
Base
—
Bull
—

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

Assumptions

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Cycle options

Margin path

Every year uses the cycle-average margin (−0.9%).

Revenue growth

  • 3.7%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.4%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.2%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

Business

  • -0.9%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 4 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 5.6%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 7.5%

    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).

  • 9.2%

    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

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 1.08

    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 1.12, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.51%

    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)
₩260B
Net debt (borrowings and leases − cash and deposits)
−₩5.3B
+ Stakes and investments
₩4M
Associates, long-term financial assets and deposits (book value)
Shares
19,968,491
Share price
₩1,187
Market cap
₩24B

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.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩221B₩251B₩259B₩269B₩279B₩288B₩298B₩307B
Growth−5.0%13.5%3.5%3.7%3.5%3.4%3.2%3.0%
EBIT−₩14B−₩8.7B₩1.3B−₩2.4B−₩2.5B−₩2.6B−₩2.7B−₩2.8B
EBIT margin−6.1%−3.5%0.5%−0.9%−0.9%−0.9%−0.9%−0.9%
After-tax EBIT−₩9.8B−₩6.3B₩967M−₩1.8B−₩1.8B−₩1.9B−₩1.9B−₩2B
+ Depreciation₩12B——₩15B₩16B₩16B₩17B₩17B
− Capital spending₩20B₩18B₩17B₩20B₩21B₩22B₩22B₩23B
− Working capital−₩22B−₩14B₩7.9B₩884M₩868M₩872M₩849M₩821M
Free cash flow₩5B——−₩7.8B−₩8B−₩8.2B−₩8.4B−₩8.6B
Discount factor———0.9100.8270.7520.6840.622
Present value———−₩7.1B−₩6.6B−₩6.2B−₩5.8B−₩5.4B

Terminal value −₩55B, worth −₩34B today: 52% 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:

LowTypicalHigh
Price / book (book value ₩2,419 a share)Now 0.49×₩1,3480.56×₩1,6660.69×₩6,8702.84×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2023, 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%
8.9%—————
9.4%—————
9.9%—————
10.4%—————
10.9%—————

Now (TTM)

Market cap
₩24B
Enterprise value
₩18B
P/E
—
P/B
0.5×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

202520242023
Price₩1,286₩1,512₩5,540
Market cap₩26B₩30B₩111B
P/E———
P/B0.6×0.6×3.0×
P/S0.1×0.1×0.5×
EV/EBITDA———
Dividend yield0.0%——

Loading data for this company — check back soon

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hanjoo Light Metal—0.5×0.1×—0.0%
POSCO Holdings16.1×0.4×0.3×7.7×3.7%
Korea Zinc18.6×1.6×0.9×—2.3%
Hyundai Steel—0.2×0.1×—1.9%
Poongsan8.0×0.7×0.3×5.9×3.0%
SeAH Besteel Holdings11.5×0.5×0.3×9.2×4.2%
Sama Aluminium—4.0×2.9×—0.0%
Similar companies (median)13.8×0.6×0.3×7.7×2.6%

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

Also known as: Hanjoo Light Metal / 한주라이트메탈 / 198940 / KRX:198940

Source: KRX statistical information