Yuhwa Securities is a securities company that intermediates financial products such as stocks and bonds and earns returns by managing its own capital. As a small-cap with a market value of ₩173.5 billion, the swings in its quarterly results tend to be large depending on how its holdings perform and the market environment. A January 2026 profit-and-loss structure change disclosure confirmed annual operating profit of ₩5.9 billion and net profit of ₩14.1 billion, and it returns about 96% of net profit as dividends, giving a dividend yield in the 7% range; in March it voluntarily disclosed a corporate value-up plan. The notable point is that a deep asset discount of one-third of book value (a P/B of 0.32x), a high dividend in the 7% range, and a signal of first-quarter profit recovery are all present, so the appeal is distinct from an asset-value and dividend standpoint. On the other hand, as a small securities company with a large share of proprietary capital management, quarterly profit swings widely with the market environment and ROE (2.6%) itself is still low, so it needs confirming whether the high dividend is sustained on top of earnings strength.
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.
- ROE is 2.6% (total-net basis). It is below the sector average.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2016-12-31
Largest shareholder Yoon Kyung-rip 21.96% (individual)
Controlling bloc incl. related parties 78.94%
With the controlling bloc holding 79%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Yuhwa Securities is a securities company that intermediates financial products such as stocks and bonds and earns returns by managing its own capital.
- As a small-cap with a market value of ₩173.5 billion, rather than having a broad business structure like a large securities house, the swings in its quarterly results tend to be large depending on how its holdings perform and the market environment.
- For that reason it is worth watching how each new disclosure affects profit, dividends and share count together.
- The latest close is ₩3,075 and the market cap is ₩174.4 billion.
- The price sits below its 20-day line (₩3,132) and below its 60-day line (₩3,270).
- Trading beneath both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 45.7, a neutral level.
- The one-month change is +0.8%, the three-month change is -5.8%, and the price sits -26.3% below its 52-week high.
- Relative strength versus the KOSPI is 36 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 65% of all stocks by strength.
- Over the past three months it lagged the index by 28.4%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- 2025 annual net profit is ₩14.1 billion and operating profit ₩5.9 billion.
- ROE (how much is earned in a year on equity) is 2.6%, below the peer average, and while the debt ratio is 150.7%, in this industry customer deposits and borrowings are structurally large, so it is hard to view by the yardstick of ordinary manufacturing.
- The metric to note is the P/B (how many times book value the share price is worth) of 0.32x.
- It means the stock trades at about one-third of the value of the company's net assets, a distinct undervaluation signal on an asset-value basis.
- The P/E (how many times a year's earnings the share price is worth) of 12.40x looks higher than some peers, but this is a figure that temporarily expands when earnings fall for a year, so its real position becomes visible only when viewed alongside the P/B and the quarterly trend.
- Annual net profit swung year to year at ₩7.3 billion in 2023, ₩17.8 billion in 2024 and ₩14.1 billion in 2025, but on a two-year average it is on a trajectory of rising 38% a year.
- Taking a single year in isolation, 2025 operating profit fell from the prior year, but the most recent trend has changed direction.
- First-quarter 2026 operating profit rose 82.0% from the same period a year earlier and net profit rose 59.9%.
- Given the nature of a securities company that manages its own capital, this reads as a phase in which management and intermediation revenue recover together when the market is favorable, and the key is to confirm in the next quarter whether it is an inflection point where earnings strength is rising again rather than a one-quarter flash.
- No official company figures are disclosed for the outlook, so here the trend is explained using confirmed results and the quarterly trend alone.
- A profit-and-loss structure change disclosure on January 15, 2026 confirmed annual operating profit of ₩5.9 billion and net profit of ₩14.1 billion.
- On February 25 a cash dividend decision (with a correction) was issued, and a distinctive feature of this company is that it returns about 96% of net profit as dividends, giving a dividend yield in the 7% range.
- On March 26 it directly put forward a corporate value-up plan (voluntary disclosure).
- It is material in which the company itself sets out the direction of its shareholder returns and value enhancement, seen as a clue to gauge the future direction of its dividend and capital policy.
- The strengths are clear.
- A deep asset discount of one-third of book value (a P/B of 0.32x), a high dividend in the 7% range that returns most of net profit, and a signal that first-quarter 2026 profit revived sharply are all present.
- From a standpoint that prizes asset value and dividends, it is a spot with distinct appeal.
- On the other hand, what to watch is that as a small securities company with a large share of proprietary capital management, quarterly profit swings widely with the market environment and ROE (2.6%) itself is still low.
- In other words, the structure is strong when the market is favorable and the first-quarter profit recovery continues, and quarterly results can wobble quickly if the management environment worsens.
- The point to watch is confirming, quarter by quarter, whether the high dividend keeps being sustained on top of earnings strength.
🔎 Valuation vs peers Undervalued
A market-cap-adjacent comparison group within the securities sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| Hanyang Securities | 4.45x | 0.43x | 9.72% |
| LS Securities | 15.64x | 0.41x | 2.61% |
We prioritized a public-data comparison group with a close market cap within the securities sector. The current P/E (how many times a year's earnings the share price is worth) is 12.40x and the P/B (how many times book value the share price is worth) is 0.32x. That said, lower-market-cap stocks are heavily influenced by earnings swings and financing disclosures, so we did not draw conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is that official company guidance could not be confirmed.
Price history Close · MA20 · MA60
The latest close is ₩3,075 and the market capitalization is ₩174.4 billion. The price sits below its 20-day moving average (₩3,132) and below its 60-day moving average (₩3,270). 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 45.7, a neutral level. The one-month change is +0.8%, the three-month change is -5.8%, and the position relative to the 52-week high is -26.3%. Relative strength versus the KOSPI is 36 (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 35% of all stocks. Over the past three months it lagged the index by 28.4%. 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 -28.43% / 6M -31.72% / 12M -52.39%
Key metrics vs sector median
Valuation
The P/E of 12.40x is above the sector median (8.97x). The P/B of 0.32x is below the sector median (0.45x). 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.
Profitability & financials
Return on equity (ROE) is 2.6%, below the sector average (6.0%). The debt ratio is 150.7%, 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 | — | — | — | — |
| Operating profit | -$284,678 | $8.1M | $3.9M | -51.50% |
| Net profit | $4.9M | $11.8M | $9.3M | -20.94% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | -$284,678 | $8.1M | $3.9M |
| Net profit | — | — | $4.9M | $11.8M | $9.3M |
Operating profit fell 51.5% year over year.
Latest quarterly results
No recent quarterly results confirmed from DART.
Technical indicators
What stands out
- The dividend yield, at 7.1%, is on the high side.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure): confirming the source text of the company plan.This is planning material put forward directly by the company. If it contains figures, treat it as the primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-01-15EarningsRevenue or profit-and-loss structure change of 30% or more (15% for large corporations): annual revenue not confirmable, operating profit of ₩5.9 billion, net profit of ₩14.1 billion.This is recent confirmed or preliminary earnings data. Check whether it moves in the same direction as the annual trend and whether there are any one-off factors. Source
- 2026-02-25Update[Correction] Cash/in-kind dividend decision: confirming the return terms.This is a disclosure related to a cash return or a change in share count. Check whether earnings strength and cash flow back it up. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,075 | ₩3,075 | Confirmed | link |
| Latest quarterly results | revenue , operating profit ₩10.6 billion | revenue , operating profit ₩10.6 billion | Confirmed | link |
| Annual results | revenue , operating profit ₩5.9 billion | revenue , operating profit ₩5.9 billion | Confirmed | link |
| Outlook/plan disclosure source text | : | : | Confirmed | link |
| Earnings disclosure source text | revenue30%: revenue · operating profit ₩5.9 billion · net profit ₩14.1 billion | revenue30%: revenue · operating profit ₩5.9 billion · net profit ₩14.1 billion | Confirmed | link |
| Shareholder-return disclosure source text | []ㆍ: | []ㆍ: | Confirmed | link |
| Outlook box basis | — | — | Unverified | — |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-14OwnershipLargest-shareholder ownership change report
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-11PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-02-25Disclosure
- 2026-02-25Shareholders' meeting notice
- 2026-02-25OwnershipLargest-shareholder ownership change report
📖 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.