Hanyang Securities is a small-to-mid-sized securities company with shareholders' equity of about ₩581.8 billion that earns money through equity and bond trading for clients, corporate finance (helping companies with listings, rights offerings and corporate bonds), and bond and repo intermediation. In its corporate value-up plan, the firm laid out a direction of leaning less on its own capital and building up a people-based intermediation and fee structure to smooth out earnings swings. The former largest shareholder, the Hanyang Academy foundation, sold a 29.59% stake to affiliates of KCGI, and with regulatory approval finalized the controlling ownership has changed hands. Under the new controlling shareholder, the company disclosed a value-up plan in March (targeting ROE of 10% or more and a per-share payout of at least ₩1,600 or a payout ratio of 30% or more) and decided on a share cancellation in April. What stands out lately is that its strengths include the highest ROE among small-to-mid-sized peers at 9.7%, a dividend yield in the high 7% range, a P/B of 0.41x, a forward P/E of 4.7x, and shareholder returns that are actually being carried out; against this, its earnings swing heavily with trading volumes, rates and market direction, and Q1 2026 net profit fell versus a year earlier.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 9.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 155.3% higher than a year earlier.
- ROE is 9.7% (total-net basis). It is above the sector average.
- Operating margin is 0.0%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KCGI Private Equity Fund No. 2 29.59% (corporate)
Controlling bloc incl. related parties 29.59%
With the controlling bloc holding 30%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Hanyang Securities is a small-to-mid-sized securities company that makes money in three main ways: trading stocks and bonds for clients in exchange for a fee, corporate finance/IB (helping companies with IPOs, rights offerings and corporate bond issuance for a fee), and intermediation of financial products such as bonds and repos (repurchase-agreement bonds).
- With shareholders' equity of about ₩581.8 billion it is smaller than the majors, but wealth-management products such as funds and wrap accounts, along with proprietary trading (PI), are also revenue sources.
- In its corporate value-up plan the company set out a direction of reducing its reliance on capital-heavy businesses and building up a people-driven, intermediation- and fee-centered structure so that earnings hold up better when markets are choppy.
- The latest close is ₩19,760 and the market cap is ₩251.5 billion.
- The price sits below its 20-day line (₩20,292) and below its 60-day line (₩24,275).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- RSI (a gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 41.2, a neutral level.
- The price is down 5.1% over one month and 19.5% over three months, and sits 36.3% below its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale, converting the past year's return versus the index while weighting recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 67% of all stocks by strength.
- Over the past three months it lagged the index by 38.0%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- The P/E (how many times one year's earnings the price is) is 4.45x and the P/B (how many times net assets the price is) is 0.43x, meaning the stock trades below even half its net asset value.
- ROE (how much it earns in a year on its capital) is 9.7%, clearly above comparable small-to-mid-sized securities companies (in the 4-6% range), a sign that it generates more profit from the same capital.
- The dividend yield is in the high 7% range (₩1,600 per share, a payout ratio of 37.4%), well above the market average.
- The forward P/E recalculated on this year's expected earnings (4.7x) is also the lowest in the peer group, so whether measured on last year's confirmed results (trailing) or on this year's basis, the picture of undervaluation holds.
- The debt ratio (debt relative to equity) of 315% looks high, but a securities company carries large customer deposits and trading-related liabilities by the nature of the business, so its risk cannot be judged by the same yardstick as a typical manufacturer.
- Net profit rose three years running, from ₩35.1 billion in 2023 to ₩38.8 billion in 2024 to ₩56.6 billion in 2025, with the pace of increase quickening (+45.8% in 2025), and operating profit is also on a recovery path.
- Revenue (operating revenue) turned up +9.1% in 2025 after the prior year's decline (-16.6%).
- In short, even if this year's earnings come in somewhat below last year's, ROE remains the best among peers, and the key point is that the share price is cheap enough relative to those earnings.
- The company's recent story centers on a change in controlling ownership.
- The former largest shareholder, the Hanyang Academy foundation, sold its 29.59% stake to affiliates of KCGI, and with the financial regulator's approval of the change of largest shareholder finalized, control has shifted.
- Under the new controlling shareholder, the company disclosed a corporate value-up plan in March 2026, laying out a predictable shareholder-return framework of ROE of 10% or more and a per-share payout of at least ₩1,600 or a payout ratio of 30% or more, and in April decided on a share cancellation to reduce the number of shares outstanding.
- A March disclosure of asset-revaluation results is also meaningful as a way of reviewing net asset value.
- Frequent filings of changes in holdings by executives and major shareholders read as traces of the ownership transition.
- The strengths are clear.
- The highest ROE among small-to-mid-sized peers (9.7%), a dividend yield in the high 7% range, a P/B of 0.41x (half of net assets), and shareholder returns that the new controlling shareholder is actually carrying out through the value-up plan and share cancellation all come together.
- The forward P/E on this year's expected earnings (4.7x) is also the lowest in the peer group, so even factoring in earnings that are somewhat lower than last year, the undervaluation picture stays intact.
- Points to watch: its earnings swing heavily with trading volumes, rates and market direction; Q1 2026 net profit fell versus a year earlier; and the share price is in a soft trend below its moving averages.
- In sum, the stock is strong when shareholder returns are steadily delivered through dividends and cancellations and when the market backdrop is supportive, and its earnings get pressed when trading volumes shrink.
- Even in those weak phases, though, a thick cushion of ROE, dividends and price relative to asset value is what characterizes this stock.
🔎 Valuation vs peers Undervalued
Small-to-mid-sized securities companies similar in business mix (client trading, IB and bonds) and market-cap tier.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| Eugene Investment & Securities | 6.18x | 0.35x | 5.70% |
| Hyundai Motor Securities | 8.36x | 0.33x | 4.00% |
| Daishin Securities | 6.98x | 0.32x | 4.60% |
The P/B of 0.46x is somewhat higher than the peer group (0.35-0.41x), but given that its ROE is roughly double, on an ROE-adjusted basis it can be seen as discounted instead. Its P/E of 4.68x is also the lowest in the peer group (5-10x). That said, this P/E is on 2025 confirmed results (trailing), and given that Q1 2026 net profit turned to a decline, the multiple rises somewhat on a this-year (forward) basis. Even so, taking the high ROE and dividends together with the explicit follow-through on shareholder returns, rather than flatly calling it cheap, it is more apt to say the discount versus peers on capital efficiency and shareholder returns is excessive.
Price history Close · MA20 · MA60
The latest close is ₩19,760 and the market capitalization is ₩251.5 billion. The price sits below its 20-day moving average (₩20,292) and below its 60-day moving average (₩24,275). 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 41.2, a neutral level. The one-month change is -10.6%, the three-month change is -19.5%, and the position relative to the 52-week high is -36.3%. Relative strength versus the KOSPI is 34 (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 33% of all stocks. Over the past three months it lagged the index by 38.0%. 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 -37.96% / 6M -37.21% / 12M -53.47%
Key metrics vs sector median
Valuation
The P/E of 4.45x is below the sector median (8.97x). The P/B of 0.43x is in line with the sector median (0.45x).
Profitability & financials
Return on equity (ROE) is 9.7%, above the sector average (6.0%). The operating margin is 0.0%. The debt ratio is 315.2%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $662.1M | $552.3M | $602.5M | +9.09% ↑ faster |
| Operating profit | $26,622 | $109,425 | $165,602 | +51.34% ↓ slower |
| Net profit | $23.3M | $25.7M | $37.5M | +45.81% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $662.1M | $552.3M | $602.5M |
| Operating profit | — | — | $26,622 | $109,425 | $165,602 |
| Net profit | — | — | $23.3M | $25.7M | $37.5M |
| Revenue CAGR | 2-yr avg -4.61% | ||||
Revenue rose 9.1% year over year (2023 ₩999.0 billion → 2024 ₩833.3 billion → 2025 ₩909.0 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 51.3% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is -4.6%. The two-year revenue CAGR is -4.6%. In the most recent quarter (Q1 2026), revenue was 155.3% 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.
- The dividend yield, at 8.1%, is on the high side.
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
- 2025-06-11UpdateThe change of largest shareholder, moving control from the Hanyang Academy foundation to KCGI affiliates, cleared the financial regulator's review (29.59% stake sold). A turning point in the shift of control.Over the medium term, a catalyst for stronger resolve on shareholder returns and capital efficiency. In the short term it also brings some uncertainty from the ownership transition. Source
- 2026-03-26FilingCorporate value-up plan disclosed voluntarily. It aims for ROE of 10% or more, a per-share payout of at least ₩1,600 or a payout ratio of 30% or more, and a stronger fee- and intermediation-centered structure that leans less on capital.Presenting a predictable shareholder-return framework gives grounds for the undervaluation to unwind, though the outcome depends on follow-through and the market backdrop. Source
- 2026-03-31FilingAsset-revaluation results disclosed voluntarily. A reassessment of the book value of assets held, providing a reference for gauging net assets (the basis for the P/B).A supporting basis for interpreting the asset discount behind the 0.46x P/B from a net-asset-value standpoint. Source
- 2026-04-29DividendShare-cancellation decision disclosed. A shareholder-return step that raises per-share value by reducing shares outstanding, and a real example of the value-up plan being carried out.A sign that the commitment to shareholder returns has moved beyond words into action. Fewer shares outstanding is favorable for per-share metrics. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed. On a cumulative basis, operating profit -13.4% and net profit -11.6%, normalizing from a high year-ago base. The +155% revenue swing reads as one-off variation from proprietary-trading activity.Possible passage through an earnings peak. The trailing P/E may look cheaper than reality, so a forward view is worth checking. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29Disclosure
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31Disclosure
- 2026-03-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
📖 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.