Hanwha Corporation (000880) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Hanwha Corporation is the holding company that sits atop the entire Hanwha Group. It runs its own businesses in trading, construction and machinery, but the core of its value lies in stakes in listed subsidiaries such as Hanwha Aerospace (defense), Hanwha Solutions (solar and chemicals) and Hanwha Life (insurance). Q1 2026 net profit was ₩775.8 billion, up 76.4% from a year earlier, driven largely by strong results at the defense subsidiary flowing through as equity-method income. What stands out lately is that the market value of the listed-subsidiary stakes it holds far exceeds Hanwha's own market cap, a deep net-asset-value discount, and that an August spin-off will reshape the governance structure. Because a holding company's net profit swings sharply with subsidiary results, it is more appropriate to view this stock on the value of the assets it holds than on an earnings multiple.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 1977.2%).
- Revenue rose 34.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 28.9% higher than a year earlier.
- ROE is 5.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.5%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2022-12-31
Largest shareholder Kim Seung-youn 22.65% (individual)
Controlling bloc incl. related parties 58.95%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
Net asset value (NAV) assessment 75% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Hanwha Life Insurance | 43.24% |
| Hanwha Solutions | 36.31% |
| Hanwha Galleria | 36.31% |
| Hanwha Vision | 33.95% |
| Hanwha Aerospace | 32.18% |
| Hanwha Solutions | 24.92% |
| Hanwha Galleria | 24.92% |
🔎 In-depth analysis Reading
Hanwha is an operating holding company: it is the Hanwha Group's holding entity while also running its own businesses. Its own operations span the Global division (defense and industrial-goods trading), the Construction division (plants, civil works and housing) and the Momentum division (machinery such as solar and battery equipment). But the core of the company's value is not its own operations, it is the stakes it holds in listed subsidiaries. Through holdings in Hanwha Aerospace (defense), Hanwha Solutions (solar and chemicals), Hanwha Life (life insurance), Hanwha Ocean (shipbuilding) and Hanwha Systems (defense electronics), it controls the entire group. Consolidated revenue of ₩74.8 trillion captures these subsidiaries' sales, but the holding company's own profit is driven by dividends and equity-method income received from the subsidiaries.
The latest close is ₩83,800 and the market capitalization is ₩5.9 trillion. The price sits below its 20-day moving average (₩88,610) and below its 60-day moving average (₩110,130). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 35.4, a neutral level. The one-month change is -17.7%, the three-month change is -40.4%, and the position relative to the 52-week high is -44.5%. Relative strength versus the KOSPI is 12 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 11% of all stocks. Over the past three months it lagged the index by 28.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation multiples have to be read with the holding-company structure in mind. The P/E ratio (how many times one year's profit the price represents) is 15.86x, which looks high on the surface. But that reflects a temporarily low 2025 net profit, and holding-company earnings themselves swing sharply from year to year with subsidiary results. The P/B (price relative to book equity) is 0.48x, near half of book value. There is a catch here: book equity carries the subsidiary stakes at their low historical acquisition cost, so with subsidiary share prices now much higher, the actual asset value is far above book. In other words, even a P/B of 0.54x makes the stock look more expensive than it really is. The dividend yield is 1.22% (₩1,100 per share). The debt-to-equity ratio of 2,034.5% looks extremely high, but that is the consolidated result of insurance liabilities at financial subsidiaries such as Hanwha Life and Hanwha General Insurance plus the large operating liabilities of Hanwha Ocean, and it is different in character from the holding company's own financial burden.
The top line is clearly growing. Consolidated revenue rose to ₩74.8 trillion in 2025, up 34.4% year on year, with the pace accelerating each year (a rising three-year trend). Operating profit also grew 71.6% to ₩4.15 trillion. Net profit, by contrast, fell 51.8% to ₩372.5 billion, owing to base effects from a one-off gain in 2024 and swings in equity-method income. This kind of volatility in holding-company net profit is structural. Into 2026 the direction turns back up. Q1 net profit surged 76.4% year on year to ₩775.8 billion, as the defense subsidiary Hanwha Aerospace, entering an earnings super-cycle on the back of an order backlog in the ₩37 trillion range, fed through as equity-method income. Still, a holding company's future profit is governed by subsidiary results and hard to pin down precisely, which is why this company is more accurately viewed on the value of the assets it holds than on an earnings multiple.
The biggest event is the spin-off. At a January 2026 board meeting the company resolved to split itself in two via a spin-off, and went through securities-registration filings and shareholder approval in May and June. The surviving entity, Hanwha Corporation, keeps the defense, shipbuilding-and-offshore, energy and financial segments (Hanwha Aerospace, Hanwha Ocean, Hanwha Solutions, Hanwha Life and others). The new entity, Hanwha Machinery & Service Holdings, is carved out as a holding company overseeing the Tech segment (Hanwha Vision, Hanwha Momentum, Hanwha Semitech, Hanwha Robotics) and the Life segment (Hanwha Galleria, Hanwha Hotels & Resorts, Ourhome). The split ratio is 0.7563533 for the surviving entity and 0.2436467 for the new one. The split date is August 1, with the changed listing and relisting scheduled for August 25. Beyond this, there were filings on capital contributions to related parties and a corporate-governance report. As a governance reshaping that sharpens each business group's focus and tidies up the separation of the founding family's three branches, the split could become a mid-term catalyst for re-rating subsidiary value.
Viewed as a holding company, the story is clear. The strength is undervaluation. The market value of the company's listed-subsidiary stakes reaches the ₩25 trillion range, yet Hanwha's own market cap is only ₩6.4 trillion, a very deep net-asset-value discount. In particular, the key subsidiary Hanwha Aerospace is in the middle of a defense super-cycle, so there is no subsidiary weakness that would justify the discount. The August spin-off could sharpen the value of each business group and act as a re-rating catalyst. There are cautions too. Holding-company net profit swings widely with subsidiary results and equity-method income, so the P/E alone cannot judge value. The high-looking consolidated debt ratio is also a distortion from consolidating financial and shipbuilding subsidiaries, so taking the figure at face value is easy to misread. In the end, when subsidiary share prices rise the net asset value grows and the stock is strong, while if the defense, solar and insurance markets weaken together the asset value is depressed, that is the structure of this company.
🔎 Valuation vs peers Undervalued
As a holding company, it is viewed on the value of its listed-subsidiary stakes (net asset value) rather than on a consolidated earnings multiple, with the valuations of the key subsidiaries considered for reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 38.68x | 5.46x | 17.56% |
| Hanwha Solutions | 0.00x | 0.55x | -7.15% |
| Hanwha Life Insurance | 6.20x | 0.26x | 4.84% |
| Hanwha Systems | 54.67x | 2.68x | 5.00% |
A holding company's true value lies not in its consolidated P/E but in the market value of the stakes it holds. The sum of Hanwha's listed-subsidiary stakes reaches the ₩25 trillion range, yet Hanwha's own market cap is just ₩6.4 trillion. This deep net-asset-value discount is the basis for viewing the stock as undervalued. The headline P/E of 17.1x is a distortion from a temporarily low 2025 net profit, and the P/B of 0.54x is likewise a figure that makes the stock look more expensive than it is, because the subsidiary stakes are carried at acquisition cost. No single multiple explains this company accurately at face value. That said, the structural linkage whereby the net asset value shrinks if the subsidiaries' markets (defense, solar, insurance) are depressed together is a point to watch.
Price history Close · MA20 · MA60
The latest close is ₩83,800 and the market capitalization is ₩5.9 trillion. The price sits below its 20-day moving average (₩88,610) and below its 60-day moving average (₩110,130). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 35.4, a neutral level. The one-month change is -17.7%, the three-month change is -40.4%, and the position relative to the 52-week high is -44.5%. Relative strength versus the KOSPI is 12 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 11% of all stocks. Over the past three months it lagged the index by 28.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -28.54% / 6M -39.23% / 12M -54.41%
Key metrics Computed vs sector median
Valuation
The P/E of 15.86x is above the sector median (8.18x). The P/B of 0.48x is in line with the sector median (0.53x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 5.7%, above the sector average (4.0%). The operating margin is 5.5%. The debt ratio is 1977.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $37.3B | $39.1B | $52.5B | +34.39% ↑ faster |
| Operating profit | $1.7B | $1.7B | $2.9B | +71.63% ↑ faster |
| Net profit | $267.3M | $543.0M | $261.7M | -51.81% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $37.1B | $43.8B | $37.3B | $39.1B | $52.5B |
| Operating profit | $2.1B | $1.8B | $1.7B | $1.7B | $2.9B |
| Net profit | $683.9M | $921.8M | $267.3M | $543.0M | $261.7M |
| Revenue CAGR | 4-yr avg 9.07% | ||||
Revenue rose 34.4% year over year (2023 ₩53.1 trillion → 2024 ₩55.6 trillion → 2025 ₩74.8 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 71.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.1%. The two-year revenue CAGR is 18.6%. In the most recent quarter (Q1 2026), revenue was 28.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 34.4% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-04FilingFiled the securities registration statement for the spin-off, splitting into the surviving Hanwha Corporation (defense, shipbuilding-and-offshore, energy, finance) and the new Hanwha Machinery & Service Holdings (Tech, Life), with a split ratio of 0.7563533 for the surviving entity and 0.2436467 for the new one.Mid-term: potential re-rating of subsidiary value from sharper business-group focus and governance reform. Source
- 2026-06-08FilingNotice that the spin-off registration statement took effect, with a split date of August 1 and changed listing and relisting scheduled for August 25.Short-term: with the split schedule fixed, the listing valuations of the new and surviving entities begin to be assessed in earnest. Source
- 2026-05-29EarningsQ1 2026 report: consolidated revenue ₩21.45 trillion (YoY +28.9%), operating profit ₩1.27 trillion, net profit ₩775.8 billion (YoY +76.4%).Short-term: profit surged as strong defense-subsidiary results flowed through as equity-method income. Source
- 2026-06-01FilingCorporate-governance report and large-business-group status disclosure, the regular reporting of governance and affiliate status as the group's holding company.Mid-term: reference material on governance transparency around the spin-off. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-08Disclosure
- 2026-06-08Spin-off/split decision
- 2026-06-04Spin-off/split decision (amended)
- 2026-06-02Disclosure
- 2026-06-02Spin-off/split decision (amended)
- 2026-06-02Disclosure
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Spin-off/split decision (amended)
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.