Hanwha Corporation is the group's parent, running explosives, defense, construction, trading, and machinery divisions directly while acting as a holding company whose stakes in listed affiliates — Hanwha Aerospace (about 32%), Hanwha Solutions (about 37%), and Hanwha Life (about 43% on a group-combined basis) — are worth far more than its market cap. Its debt ratio of 2,034% looks high only because insurance liabilities are consolidated in full. In the first half of 2026, a spin-off is under way that keeps defense, shipbuilding, energy, and finance in the surviving company while carving out security and retail into a new holding company; the effectiveness of the May 26 registration statement was announced on June 8, and the group also built its stake in Korea Aerospace Industries to over 9%, moving into aerospace vertical integration. The strengths to note are that the NAV discount — roughly ₩21-22 trillion in the three listed affiliates' stakes against a market cap of about ₩7.2 trillion, some 66-68% — is deep, layered on a profit inflection where Q1 net profit (₩775.8 billion) already topped last year's full-year figure. The caution is that a holding-company discount rarely narrows until dividends and cash flow actually improve, so its timetable and the change in asset mix through the spin-off need watching too.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 2034.5%).
- 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 3.1% (controlling-interest basis). It is below 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 Undervalued68% 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
- Hanwha Corporation is the group's parent, and its value comes from both the divisions it runs directly and the affiliate stakes it holds.
- Its own businesses include an explosives and defense division (commercial explosives, ammunition, and precision-guided weapons), a construction division (direct building), a trading and global division (energy and industrial-materials trading), and a machinery and equipment division.
- But the core of its corporate value is its holdings.
- The stakes in listed affiliates — Hanwha Aerospace (defense and aircraft engines, about 32%), Hanwha Solutions (solar and petrochemicals, about 37%), and Hanwha Life (life insurance, about 43% on a group-combined basis) — are worth far more than the company's market cap.
- Much of the roughly ₩74.8 trillion in 2025 consolidated revenue is a combination of insurance (Hanwha Life) and defense and manufacturing affiliate revenue, and the headline debt ratio of 2,034% is high only because insurance liabilities (debt of the nature of claims owed to policyholders) are consolidated in full, not because pure borrowing is heavy.
- So it is closer to reality to understand it not as a 'chemical company' but as a holding company holding several businesses and stakes together.
- The latest close is ₩91,600 and the market cap is ₩6.5 trillion.
- The price sits below its 20-day line (₩108,435) and below its 60-day line (₩123,987).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 34.2, a neutral reading.
- The one-month change is -23.2%, the three-month change is -20.7%, and the price is -39.3% from its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale that converts the past year's return against the index with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 40.4%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E (how many times a year's net profit the price reflects) is 17.34x, which looks high on the surface, but that is because 2025 was a trough year in which net profit fell 51.8% from the prior year.
- For a stock whose earnings are recovering, a past multiple makes real value look inflated.
- The P/B (price against book net asset value) is 0.55x, so it trades below net asset value.
- In particular, a holding company records affiliate stakes at acquisition cost (the old purchase price) at a low book value, so book net assets themselves are understated relative to the actual market value of those stakes.
- In other words, a P/B of 0.61x is an illusion that actually looks more expensive than reality, and the real discount is larger.
- ROE (how much it earns in a year on its equity) is a low 3.1%, but this too is a trough-year figure.
- Equity is about ₩11.8 trillion, so the balance sheet itself is stable, and the high debt ratio is an illusion arising from consolidating financial affiliates such as Hanwha Life.
- Over five years, revenue rose from ₩52.8 trillion in 2021 to ₩74.8 trillion in 2025, with revenue up 34.4% and operating profit up 71.6% in 2025 alone, an acceleration.
- Net profit, by contrast, fell sharply to ₩372.5 billion in 2025 from ₩773.0 billion the prior year, largely because of swings in equity-method income from affiliates (non-cash profit that reflects affiliate results in proportion to the stake).
- The key inflection is Q1 2026.
- Q1 net profit alone was ₩775.8 billion (+76.4% year on year), already surpassing full-year 2025 net profit.
- The backdrop is the affiliates improving together: Hanwha Aerospace Q1 operating profit ₩638.9 billion (+13.9%), Hanwha Life net profit ₩381.6 billion (+29%), and Hanwha Solutions swinging to a profit across all divisions.
- With a defense-order boom (an order backlog in the tens of trillions of won) meeting a solar and chemical recovery, the equity-method income flowing to the holding company this year is on a clearly larger path than last year.
- Reflecting this, the valuation on this year's expected profit looks entirely different from the headline P/E of 19.3x.
- There are two key events in the first half of 2026.
- First, a division-by-division spin-off (a structural change that separates the company into businesses of different character to run and list each on its own).
- After a January decision, the spin-off registration statement was amended and refiled several times, and the effectiveness of the May 26, 2026 statement was announced on June 8.
- Defense, shipbuilding, energy, and finance stay in the surviving company (Hanwha Corporation), while technology and service businesses such as security equipment (Hanwha Vision) and retail (Hanwha Galleria) are separated into a new holding company.
- The stated rationale is business-specific strategy and faster decision-making, with resolving the holding-company discount cited as a goal.
- Second, an expansion of the aerospace value chain.
- The group built its stake in Korea Aerospace Industries (KAI) to over 9%, becoming the second-largest shareholder, and began aerospace vertical integration spanning launch vehicles, satellites, and ground systems in earnest.
- It also outlined a capital-allocation plan of about ₩700 billion over five years for R&D, stakes, and facilities.
- Meanwhile, a June 2 disclosure of a serious industrial accident at a subsidiary means the safety and cost side needs follow-up confirmation.
- Points to watch: this company's real value lies not in its earnings multiple (P/E) but in the market value of its holdings (NAV).
- The three listed affiliates alone come to about ₩21-22 trillion in stake value against a market cap of roughly ₩7.2 trillion — a discount to NAV of about 66-68%.
- That is far deeper than the usual discount for Korean holding companies (30-50%), and there is no clear affiliate weakness to justify it.
- If anything, with the defense, insurance, and chemical affiliates all improving, asset value and results are favorable at the same time, and factoring in a profit inflection where Q1 2026 net profit (₩775.8 billion) already topped last year's full-year figure, several yardsticks point one way toward undervaluation.
- The spin-off under way, by sharpening the character of each business, could act as a catalyst to narrow the discount — another item to watch.
- Cautions: a holding-company discount tends not to narrow until dividends, governance, and cash flow actually improve, so 'why and when' the discount narrows needs confirming alongside a timetable.
- Equity-method income from affiliates swings widely quarter to quarter, so caution is warranted in reading a single quarter's result straight into an annual figure, and the change in the asset and profit mix of the surviving and new companies through the spin-off should be watched too.
🔎 Valuation vs peers Undervalued
Given the nature of a holding company, this should be viewed by the net asset value (NAV) of its holdings rather than by an earnings multiple (P/E); the real peer set is the core listed affiliates (defense, chemicals, life insurance) that make up most of its value, and the sum of their market values is the substance of the holding company's value.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 34.98x | 5.07x | 14.51% |
| Hanwha Solutions | 0.00x | 0.58x | -7.15% |
| Hanwha Life Insurance | 5.75x | 0.27x | 4.62% |
Hanwha Corporation is a classic operating holding company that should be viewed by the market value of its holdings (NAV) rather than an earnings multiple. The listed affiliates alone come to about ₩21-22 trillion in stake value against a market cap of roughly ₩7.2 trillion, an NAV discount of 66-68%. That is far deeper than the usual discount for Korean holding companies (30-50%), and with the affiliates (defense, life, chemicals) all in an improving phase, there is no clear reason to justify so deep a discount. The headline P/E of 19.3x reflects 2025 being a trough year for net profit, and factoring in a profit inflection where Q1 2026 net profit (₩775.8 billion) already topped last year's full-year figure, the valuation on this year's basis is far lower. The P/B of 0.61x is likewise an illusion — affiliate stakes are recorded at acquisition cost, making them look larger than real asset value — so on a NAV basis we judge it undervalued. That said, a holding-company discount tends to narrow only once improvements in dividends and governance are confirmed, so whether the spin-off becomes that catalyst needs watching.
Price history Close · MA20 · MA60
The latest close is ₩91,600 and the market capitalization is ₩6.5 trillion. The price sits below its 20-day moving average (₩108,435) and below its 60-day moving average (₩123,987). 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 34.2, a neutral level. The one-month change is -23.2%, the three-month change is -20.7%, and the position relative to the 52-week high is -39.3%. Relative strength versus the KOSPI is 35 (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 34% of all stocks. Over the past three months it lagged the index by 40.4%. 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 -40.41% / 6M -33.28% / 12M -56.79%
Key metrics vs sector median
Valuation
The P/E of 17.34x is above the sector median (6.67x). The P/B of 0.55x is in line with the sector median (0.49x). 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 3.1%, below the sector average (5.0%). The operating margin is 5.5%. The debt ratio is 2034.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $35.2B | $36.9B | $49.6B | +34.39% ↑ faster |
| Operating profit | $1.6B | $1.6B | $2.7B | +71.63% ↑ faster |
| Net profit | $252.2M | $512.3M | $246.9M | -51.81% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $35.0B | $41.3B | $35.2B | $36.9B | $49.6B |
| Operating profit | $1.9B | $1.7B | $1.6B | $1.6B | $2.7B |
| Net profit | $645.2M | $869.7M | $252.2M | $512.3M | $246.9M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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
- 2026-06-08FilingNotice of effectiveness of the division spin-off registration statement (filed 2026-05-26). Defense, shipbuilding, energy, and finance stay in the surviving company, while technology and service businesses (Hanwha Vision, Hanwha Galleria, etc.) are separated into a new holding company.A business-by-business restructuring that could catalyze narrowing of the holding-company discount, but it also changes the medium-term valuation premise as the consolidated results, assets, and liabilities of the surviving and new companies are recomposed. Source
- 2026-06-04FilingAmended filing of the division spin-off registration statement. Details such as the spin-off ratio and schedule supplemented and revised.A process finalizing the details of the spin-off terms, directly affecting each company's size and ownership structure after the spin-off (short and medium term). Source
- 2026-06-02UpdateDisclosure of a major management matter that a serious industrial accident occurred at a subsidiary.Could be a short-term burden through safety-related costs and work stoppages, so follow-up measures and the scope of impact need confirming (short term). Source
- 2026-05-29EarningsQ1 2026 quarterly report (amended filing). Consolidated net profit ₩775.8 billion, up 76.4% year on year, with cumulative revenue ₩21.5 trillion (+28.9%) and operating profit ₩1.27 trillion (+21.5%).Improving affiliate results flow in as equity-method income, confirming a profit inflection. A basis for re-valuing on this year's profit (medium term). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated net profit | ₩775.8 billion | (2026.03) | Confirmed | link |
| Q1 2026 cumulative operating profit | ₩1.27 trillion | 1,266,711 | Confirmed | link |
| Progress and effectiveness of the spin-off | — | ) | Confirmed | link |
| Discount to the value of listed affiliate stakes (NAV) | 3 approx. 21~22 vs approx. 7.2 → approx. 66~68% | — | Unverified | link |
Recent filings
- 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.