Hanwha Investment & Securities is an investment and trading house whose core revenue comes from trade intermediation - handling stock trades for individuals and institutions - supplemented by IB, the issuance and management of ELS and DLS, and proprietary trading with its own capital. Southeast Asian subsidiaries in Singapore and Indonesia also act as swing factors in results. A recovery was confirmed as 2025 net profit more than tripled, but in Q1 2026 net profit fell again on the overseas segment and the exchange rate, and the company has paid no dividend for a fourth straight year since 2021. The notable point right now is that it trades at a P/B of 0.49x, below half of net assets, with the strength that trade-intermediation revenue rises quickly when market trading is active. On the other hand, net profit swings sharply with proprietary trading, overseas subsidiaries and the exchange rate, so the strong 2025 profit already halved in Q1, and ROE is low at around 5%.
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 24.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 98.3% higher than a year earlier.
- ROE is 4.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.8%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha Asset Management 46.08% (corporate)
Controlling bloc incl. related parties 53.72%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Hanwha Investment & Securities' core revenue source is trade intermediation - handling stock trades for individuals and institutions and collecting commissions.
- Added to this is IB (underwriting and arranging) that helps companies raise funds, and the business of issuing and managing derivative-linked securities such as ELS and DLS.
- Proprietary trading (the firm investing its own capital in bonds and stocks) also drives results.
- The fact that most recent disclosures are filings for the issuance of equity-linked derivative bonds (ELS/DLS) means this derivative issuance and management is the firm's routine core business.
- It also holds Southeast Asian subsidiaries in Singapore and Indonesia, so the overseas business acts as a swing factor in results.
- The latest close is ₩4,370 and market capitalization is ₩937.6 billion.
- The price sits below its 20-day line (₩5,159) and below its 60-day line (₩6,439).
- Trading below both its short-term and medium-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 31.3, a neutral level.
- The one-month change is -19.7%, the three-month change is -33.6%, and the position versus the 52-week high is -54.3%.
- Relative strength versus the KOSPI is 14 (on a 1-99 scale, computed from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 87% of all stocks by strength.
- Over the past three months it lagged the index by 51.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many years of profit the price represents) is 9.19x, and the P/B (how many times net assets the price represents) is 0.45x.
- In other words, it trades below half of the firm's book net assets.
- ROE (how much is earned on equity in a year) is 4.9%, below the average for comparable investment and trading houses.
- The structure has its strength in a price that is cheap relative to asset value rather than in the quality of earnings.
- That said, the P/E of 9.9x is calculated on 2025 results, when net profit jumped sharply, so on a basis where profit normalizes this year the multiple rises.
- Because such a business carries large debt and interest costs by its nature, the debt-ratio benchmark of a typical manufacturer cannot be applied directly.
- Revenue rose for three straight years, from ₩1.97 trillion in 2023 to ₩3.09 trillion in 2025.
- Net profit recovered steeply: ₩9.3 billion in 2023, ₩38.9 billion in 2024, ₩102.0 billion in 2025.
- 2025 was a year of recovery as trade intermediation revived on more active market trading.
- However, Q1 2026 net profit fell 48.5% year-on-year to ₩19.1 billion.
- Revenue (cumulative ₩1.66 trillion) rose 98% on a surge in trading value, but losses at Southeast Asian subsidiaries, foreign-exchange translation losses and conservative proprietary trading held net profit down.
- It is reasonable to view this year's profit as normalizing to a level below last year's peak.
- Most recent disclosures are blanket-filing statements, prospectuses and issuance-results reports related to ELS and DLS.
- This is the routine business activity of a firm that steadily continues issuing derivative-linked securities.
- On the earnings side, a recovery was confirmed as 2025 net profit more than tripled, while in Q1 2026 net profit fell again on the overseas segment and the exchange rate.
- The company has not paid a dividend since 2021, a fourth straight year without one.
- The strength is price relative to asset value.
- It trades at a P/B of 0.49x, below half of net assets.
- The fact that trade-intermediation revenue rises quickly when market trading is active is also favourable in a recovery phase.
- The caution is earnings volatility.
- Net profit swings sharply with proprietary trading, overseas subsidiary results and the exchange rate.
- Indeed, the strong 2025 profit had already halved by Q1 this year.
- ROE of around 5% is low, and the absence of a dividend for a fourth year offsets the appeal of the asset value.
- In sum, it is strong in a phase where trading value rises and overseas and exchange-rate burdens lift, and it is a structure where profit shrinks quickly in the opposite phase.
🔎 Valuation vs peers Fairly valued
Compared on asset value and profitability against listed mid-sized domestic peers in the same industry (Daishin Securities, Daol Investment & Securities, Shinyoung Securities, NH Investment & Securities).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daishin Securities | 6.98x | 0.32x | 4.60% |
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| Shinyoung Securities | 22.40x | 1.38x | 6.18% |
| NH Investment & Securities | 10.10x | 1.10x | 10.94% |
The P/B of 0.45x is higher than Daishin Securities and Daol Investment & Securities (each 0.33x) but well below Shinyoung and NH (over 1x). In other words, on an asset-value basis it sits at the lower end of the mid-sized peer average. That said, ROE of 4.9% falls far short of NH Investment & Securities (10.9%), and with no dividend there is a weak catalyst to convert the asset-based discount into a premium. The trailing P/E of 9.9x is calculated on 2025, when net profit more than tripled, so on a basis where this year's profit falls below last year's peak the multiple rises. Asset value is cheap, but profitability and shareholder returns offset it, so rather than a clear undervaluation this is seen as a fair range.
Price history Close · MA20 · MA60
The latest close is ₩4,370 and the market capitalization is ₩937.6 billion. The price sits below its 20-day moving average (₩5,159) and below its 60-day moving average (₩6,439). 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 31.3, a neutral level. The one-month change is -19.7%, the three-month change is -33.6%, and the position relative to the 52-week high is -54.3%. Relative strength versus the KOSPI is 14 (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 13% of all stocks. Over the past three months it lagged the index by 51.1%. 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 -51.12% / 6M -45.76% / 12M -71.31%
Key metrics vs sector median
Valuation
The P/E of 9.19x is in line with the sector median (8.97x). The P/B is 0.45x.
Profitability & financials
Return on equity (ROE) is 4.9%, below the sector average (6.0%). The operating margin is 4.8%. The debt ratio is 739.3%, 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 (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.7B | $2.1B | +23.99% ↓ slower |
| Operating profit | $20.8M | $2.6M | $97.9M | +3624.18% ↑ faster |
| Net profit | $6.2M | $25.8M | $67.6M | +162.30% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.3B | $1.7B | $2.1B |
| Operating profit | — | — | $20.8M | $2.6M | $97.9M |
| Net profit | — | — | $6.2M | $25.8M | $67.6M |
| Revenue CAGR | 2-yr avg 25.37% | ||||
Revenue rose 24.0% year over year (2023 ₩2.0 trillion → 2024 ₩2.5 trillion → 2025 ₩3.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 3624.2% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 25.4%. The two-year revenue CAGR is 25.4%. In the most recent quarter (Q1 2026), revenue was 98.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 24.0% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-10FilingFiled an additional blanket-registration document for equity-linked derivative bonds (ELS/DLS), continuing derivative-linked securities issuanceIssuance and management of derivative-linked securities is the firm's routine core business, with related fees and management gains and losses feeding into results Source
- 2026-06-08FilingFiled a securities-issuance results report, reporting subscription and allotment outcomes for recently issued securitiesA routine disclosure showing that issuance activity continues steadily Source
- 2026-06-05FilingFiled a prospectus (blanket filing) for the issuance of derivative-linked securitiesA routine document suggesting the scale of ELS/DLS issuance is being maintained Source
- 2026-03-18DividendNo dividend declared at the 2025 fiscal-year AGM, maintaining a fourth straight year without a dividend since 2021Despite the undervaluation appeal relative to net assets, the absence of shareholder returns is a weakness for dividend-oriented investors Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 net profit attributable to controlling shareholders | ₩102.0 billion | 2025 net profit approx. ₩102.0 billion, 162.3% | Confirmed | link |
| Q1 2026 net profit | ₩19.1 billion | 1 net profit ₩19.1 billion, 比 -48.5% | Confirmed | link |
| Dividend status | DPS | 2021 | Confirmed | link |
| 2026 net profit estimate | approx. ₩76.0 billion (forward PER 13.3x) | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-06-08Earnings disclosure
- 2026-06-08Earnings disclosure
- 2026-06-08Earnings disclosure
- 2026-06-05Earnings disclosure
- 2026-06-05Earnings disclosure
- 2026-06-05Disclosure
- 2026-06-05Disclosure
📖 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.
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