Hankook Cosmetics Manufacturing is a specialist OEM/ODM maker that produces cosmetics to order for brand companies. Holding CGMP and ISO 22716 certifications, it wins contract-manufacturing work from domestic and overseas brands, so which brand customers it lands and how steadily it can turn out volume drive its revenue. In October 2025 it issued ₩58.1 billion of privately placed exchangeable bonds and disposed of treasury shares, and in April an adjustment notice for conversion, warrant-exercise, and exchange prices appeared, raising the possibility of a change in share count. What stands out is that an operating margin of 17.8% and ROE of 26.2%—strong profitability—together with double-digit accelerating revenue and earnings, a forward P/E of 5.48x, and a 4.1% dividend are strengths, while the counterpoint is that conversion of the exchangeable bonds could add shares and dilute per-share value, so the earnings trend and the share count must be tracked together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 10.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 37.5% higher than a year earlier.
- ROE is 26.2% (total-net basis). It is above the sector average.
- Operating margin is 17.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lim Chung-heon 11.54% (individual)
Controlling bloc incl. related parties 45.03%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Hankook Cosmetics Manufacturing is a specialist OEM/ODM maker that produces cosmetics to order for brand companies.
- Its sector is classified as chemicals, but the way it actually earns money is by developing and manufacturing cosmetics on others' behalf and supplying them.
- Along with manufacturing know-how built since its founding in 1962, it holds CGMP (the standard for good manufacturing and quality control of cosmetics) certification and the international ISO 22716 certification, securing the quality credentials needed to win contract manufacturing from domestic and overseas brands.
- In the end, revenue turns on which brand customers it lands and how much volume it can steadily turn out.
- Because this is not a large-cap stock, each financing- or share-count-related disclosure weighs relatively heavily on its finances and per-share value, and that should be watched alongside the business flow.
- The latest close is ₩7,620 and the market cap is ₩172.7 billion.
- The price sits below its 20-day line (₩7,990) and below its 60-day line (₩12,112).
- Trading below both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0–100 scale) is 34.5, a neutral level.
- The one-month change is -8.5%, the three-month change is -82.3%, and the position versus the 52-week high is -89.1%.
- Relative strength against the KOSPI is 1 (1–99, computed from returns versus the index over the past year with heavier weight on recent moves; higher means stronger than the market), placing it in roughly the top 100% of all stocks by strength.
- Over the past three months it lagged the index by 86.2%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The latest annual revenue is ₩184.6 billion, operating profit ₩32.9 billion, and net profit ₩27.4 billion, for an operating margin of 17.8% and a net margin of 14.8%.
- ROE (how much is earned on equity in a year) is 26.2%, on the strong side, while the debt-to-equity ratio is 89.8%, the current ratio (assets to be turned into cash soon against debt due within a year) is 454.7%, and the interest-coverage ratio (how many times operating profit covers interest expense) is 34.7x, leaving ample capacity to bear debt.
- On the diagnostics, financial soundness is stable and profitability is excellent.
- The current P/E (how many times a year's earnings the share price is) is 6.31x and the P/B (how many times book value the share price is) is 1.65x, both on last year's confirmed results.
- Because earnings are rising, the forward P/E on this year's estimated earnings drops to 5.48x, with a forward P/B of 1.65x.
- Against peers whose P/Es run in the 9–30x range, this reads as cheap on both earnings and assets.
- Revenue rose steadily from ₩109.3 billion in 2023 to ₩167.5 billion in 2024 and ₩184.6 billion in 2025, and operating profit more than tripled over the same span from ₩9.0 billion to ₩32.9 billion.
- In the first quarter of this year it posted revenue of ₩52.2 billion, operating profit of ₩8.6 billion, and net profit of ₩7.5 billion, with growth actually widening—revenue +37.5%, operating profit +42.9%, and net profit +43.8% year on year.
- Reflecting that strong first quarter and the quarterly earnings trend of recent years, this year's outlook is revenue of ₩236.8 billion, operating profit of ₩43.5 billion, and net profit of ₩31.5 billion—a step up from last year.
- The reason earnings are climbing this much is that demand for cosmetics contract manufacturing is alive and OEM/ODM volume is rising, so the company is running its existing production facilities efficiently.
- With quarterly results accelerating double digits year on year, the forward P/E of 5.48x rests on this year's higher earnings.
- There is also no confirmed basis to expect earnings to fall below this year's level from next year onward, so there is no clue to declare the current growth a temporary peak.
- Recent disclosures mix financing and shareholder returns.
- On October 14, 2025 the disclosure of exchangeable-bond (EB) issuance results confirmed that ₩58.1 billion of privately placed exchangeable bonds had been paid in; because such equity-linked bonds can later convert into shares, they should be viewed as both a cash inflow and a source of potential change in the share count.
- The same day carried a treasury-share disposal results disclosure, in which the company released treasury shares it had held—an item to check from the standpoint of shareholder returns and share count.
- Then on April 15, 2026, an adjustment notice for the conversion price, warrant-exercise price, and exchange price appeared.
- Because that adjustment changes the price basis at which the previously issued bonds convert into shares, it is worth checking the detailed terms of the original filing to see how many new shares could actually be created.
- This is a stock with clear strengths.
- An operating margin of 17.8% and ROE of 26.2%—strong profitability—double-digit accelerating revenue and earnings in this year's first quarter on top of last year, ample liquidity, and a 4.1% dividend, along with a forward P/E of 5.48x and P/B of 1.19x below peers, read as undervaluation signals.
- In other words, if earnings rise as projected, the sharply depressed price today may be seen as cheap relative to earnings power.
- The point to watch on the other side is the share count.
- With equity-linked bonds such as exchangeable bonds and price-adjustment disclosures piling up, if the bonds convert into shares the count rises and per-share earnings and per-share value can be diluted.
- In the end this stock is strong when—as in the first quarter—demand and volume for cosmetics contract manufacturing hold up so projected earnings materialize and share-count growth stays limited, and weak when earnings growth slows or conversions and new issuance swell the share count quickly.
- Since the sharp price fall is intertwined with financing and share-count issues, the key is to track the earnings trend and the share count together.
🔎 Valuation vs peers Undervalued
Public-data peers close in market capitalization within the chemicals sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kyung Nong | 9.52x | 0.67x | 7.08% |
| LK Chem | 27.46x | 2.01x | 7.31% |
| Clio | 14.87x | 0.83x | 5.58% |
Within chemicals, public-data peers close in market cap were looked at first. The current P/E (how many times a year's earnings the share price is) is 6.31x and the P/B (how many times book value the share price is) is 1.65x. That said, because lower-cap names are more exposed to earnings swings and financing disclosures, this was not decided on trailing confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩236.8 billion | ₩43.5 billion | ₩31.5 billion |
| Next quarter | Q2 2026 | ₩65.7 billion | ₩13.7 billion | ₩9.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩7,620 and the market capitalization is ₩172.7 billion. The price sits below its 20-day moving average (₩7,990) and below its 60-day moving average (₩12,112). 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 34.5, a neutral level. The one-month change is -8.5%, the three-month change is -82.3%, and the position relative to the 52-week high is -89.1%. Relative strength versus the KOSPI is 1 (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 1% of all stocks. Over the past three months it lagged the index by 86.2%. 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 -86.18% / 6M -90.39% / 12M -94.16%
Key metrics vs sector median
Valuation
The P/E of 6.31x is below the sector median (14.79x). The P/B of 1.65x is above the sector median (0.97x).
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 26.2%, above the sector average (4.0%). The operating margin is 17.8%. The debt ratio is 89.8%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $72.5M | $111.0M | $122.4M | +10.25% ↓ slower |
| Operating profit | $6.0M | $17.6M | $21.8M | +23.88% ↓ slower |
| Net profit | $4.8M | $15.3M | $18.1M | +18.31% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $44.9M | $68.8M | $72.5M | $111.0M | $122.4M |
| Operating profit | -$511,207 | $2.9M | $6.0M | $17.6M | $21.8M |
| Net profit | -$796,455 | $2.7M | $4.8M | $15.3M | $18.1M |
| Revenue CAGR | 4-yr avg 28.46% | ||||
Revenue rose 10.2% year over year (2023 ₩109.3 billion → 2024 ₩167.5 billion → 2025 ₩184.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 23.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 28.5%. The two-year revenue CAGR is 29.9%. In the most recent quarter (Q1 2026), revenue was 37.5% 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 3.9%, is on the high side.
- ROE of 26.2% points to solid profitability.
- Revenue grew 10.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-04-15UpdateAdjustment of conversion, warrant-exercise, and exchange prices (notice disclosure): check the detailed terms in the original filingA disclosure to view alongside both the purpose of the cash inflow and the change in share count. Where facility or operating purposes are stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2025-10-14UpdateResult of paid-in capital increase or equity-linked bond issuance (voluntary disclosure): actual shares issued as of 10-01, actual amount ₩58,155,484,167, paid in 2025-10-14. 4. Other material matters relevant to investment judgment: the 15th unregistered, unguaranteed privately placed exchangeable bonds resolved by the board on October 1, 2025 were paid in as stated aboveA disclosure to view alongside both the purpose of the cash inflow and the change in share count. Where facility or operating purposes are stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2025-10-14UpdateTreasury-share disposal results report: check the return termsA disclosure related to cash returns or a change in share count. Check whether earnings power and cash flow back it up. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,620 | ₩7,620 | Confirmed | link |
| Latest quarterly results | revenue ₩52.2 billion, operating profit ₩8.6 billion | revenue ₩52.2 billion, operating profit ₩8.6 billion | Confirmed | link |
| Annual results | revenue ₩184.6 billion, operating profit ₩32.9 billion | revenue ₩184.6 billion, operating profit ₩32.9 billion | Confirmed | link |
| Financing disclosure, original text | ㆍㆍ: | ㆍㆍ: | Confirmed | link |
| Financing disclosure, original text | : -10-01 - 58,155,484,167 2025-10-14 4. 2025 10 01 15 | : -10-01 - 58,155,484,167 2025-10-14 4. 2025 10 01 15 | Confirmed | link |
| Shareholder-return disclosure, original text | : | : | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-04-15Disclosure
- 2026-04-06Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Amended filing
- 2026-03-19Amended filing
- 2026-03-19Amended filing
- 2026-03-19Audit report
- 2026-03-06Shareholders' 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.