Hyosung is less a maker of products than a holding company that owns listed and unlisted subsidiaries such as Hyosung Heavy Industries (about a 32% stake), Hyosung TNC (about 21%) and Hyosung Chemical (about 33%). Its income comes from subsidiary dividends, brand-royalty fees and property rental, while consolidation of trading and logistics subsidiaries brings reported revenue to about ₩2.4 trillion. Alongside its Q1 2026 report, disclosures on investment judgments and material matters continued, and it maintains subsidiary-stake management activity such as acquiring and disposing of other-company securities, together with a dividend of ₩5,000 per share (a 25% payout ratio). The strengths worth watching are a deep asset-value discount—its listed subsidiary stakes alone total about ₩12 trillion while the holding company's market cap sits in the low ₩3 trillions, a discount of over 70% (deeper than the usual 30-50%)—and the tailwind for Hyosung Heavy Industries from power and AI data-center demand; the cautions are that net profit is swayed by equity-method and one-off items, making it volatile, and that narrowing the holding-company discount will require catalysts such as expanded dividends, and time.
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 7.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.3% lower than a year earlier.
- ROE is 13.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 16.2%.
- 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 2025-12-31
Largest shareholder Cho Hyun-joon 41.02% (individual)
Controlling bloc incl. related parties 57.28%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
Net asset value (NAV) assessment Undervalued71% 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
| Hyosung Heavy Industries | 32.47% |
| Hyosung ITX | 28.26% |
| Hyosung TNC | 20.78% |
| Hyosung ITX | 7% |
🔎 In-depth analysis
- Hyosung is less a company that makes products directly than a holding company that owns several listed and unlisted subsidiaries.
- A holding company's income falls into three main streams: dividends its subsidiaries earn and pass up, brand-royalty fees for letting subsidiaries use the group's trademark (the Hyosung brand), and rental income from properties it holds.
- Added to these, consolidation of unlisted subsidiaries handling trading and logistics (such as Hyosung TNS) brings consolidated revenue to about ₩2.4 trillion.
- But a holding company's real value lies not in this consolidated revenue but in the market value of the subsidiaries it holds via its stakes.
- Its core holdings are Hyosung Heavy Industries, which makes power equipment such as ultra-high-voltage transformers (about a 32% stake); Hyosung TNC, in spandex and tire cord (about 21%); and Hyosung Chemical, in the chemicals segment (about 33%).
- The latest close is ₩146,700 and the market cap is ₩2.5 trillion.
- The price sits below its 20-day moving average (₩176,195) and below its 60-day line (₩193,063).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 32.0, a neutral level.
- The stock is down 18.7% over one month and up 4.0% over three months, and it sits 46.9% below its 52-week high.
- Its relative strength versus the KOSPI is 55 (on a 1-99 scale, based on returns against the index over the past year weighted toward the most recent period; higher means stronger than the market).
- That places it in roughly the top 45% of all stocks by strength.
- Over the past three months it lagged the index by 22.3%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's profit the price represents) is 7.44x and the P/B (how many times book net assets) is 1.01x.
- ROE (how much it earns in a year on its equity) is 13.5%, high for a holding company, and with a dividend yield of 2.7% (₩5,000 per share, a 25% payout ratio) it also offers shareholder returns.
- The operating margin of 16.2% and net margin of 13.6% make profitability decent.
- But a holding company's financial metrics need careful interpretation.
- The debt ratio (debt to equity) looks high at 220%, but that is because consolidated subsidiaries' debt is included, and it cannot be viewed by the same yardstick as an ordinary manufacturer.
- There is another important trap.
- A P/B of 1.28x may look expensive, but book equity records the subsidiary stakes at low historical cost and does not reflect the actual market value of those stakes.
- In other words, the substance shows through only when viewed by market value (NAV) rather than book (P/B).
- Over five years, revenue fell from the ₩3 trillion range to the ₩2 trillion range as the trading segment shrank after COVID, and is now recovering (2025 revenue of ₩2.4 trillion, up 7.0%), while operating profit improved steeply from ₩57.7 billion in 2023 to ₩221.1 billion in 2024 and ₩393.0 billion in 2025 (up 77.7%).
- Net profit fell 27.2% in 2025 to ₩329.9 billion from ₩453.2 billion the prior year, not because operations worsened but because non-operating and one-off items such as equity-method profit swing widely from year to year.
- A holding company's net profit is inherently choppy like this, so a single year's figure is hard to read as a trend.
- The more important signal is the latest quarter.
- Q1 2026 revenue slipped 4.3% year-on-year to ₩530.2 billion, but operating profit rose 15.6% to ₩94.6 billion and net profit rose 19.9% to ₩86.5 billion—a clear increase in profit.
- The root of that profit growth is core subsidiary Hyosung Heavy Industries.
- Its power-equipment order backlog for transformers and the like has built to about ₩15 trillion, and expansion of its US Memphis plant (roughly doubling capacity) completes in 2026, so its earnings contribution grows toward the second half.
- This year's profit therefore has room to keep pace with the Q1 trend or improve further as second-half deliveries land.
- Reflecting this, this year's price-to-earnings multiple works out near 8x—actually lower than the 9.5x based on last year's profit alone.
- Recent disclosures are dominated by routine items.
- Alongside the Q1 2026 report (filed May 14), disclosures related to governance and investment judgments continued—'occurrence of a material lawsuit' on May 8, 'material management matter related to an investment judgment' on May 11, and a 'material report' on May 29.
- On April 24 came the consolidated financial-statement audit report and notice of an investor briefing.
- Several disclosures on the acquisition and disposal of other-company securities were filed across April and May—routine activity by which a holding company manages and adjusts its subsidiary stakes.
- The dividend is maintained at ₩5,000 per share (a 25% payout ratio).
- As a holding company, the real event driver is less any single large order than the way growth in core subsidiary Hyosung Heavy Industries' power-equipment business flows up to the holding company through stake value and dividends.
- The points to watch are clear.
- Because this is a holding company, judging 'cheap or expensive' by the P/E is easy to misread; it should be viewed by the market value (NAV) of the stakes it holds.
- On that basis, the listed subsidiary stakes alone total about ₩12 trillion while the holding company's market cap sits in the low ₩3 trillions—a discount of over 70%.
- That is far deeper than the discount typically attached to holding companies (30-50%), a clear signal of undervaluation relative to asset value.
- The strength is that Hyosung Heavy Industries, which makes up most of the NAV, sits atop a structural tailwind from power and AI data-center demand, and that the holding company itself also offers profitability and returns with a 13.5% ROE and a 2.7% dividend.
- The cautions are that holding-company net profit is swayed by equity-method and one-off items, so a given quarter's or year's figure can swing widely; that a downturn in the chemicals segment (Hyosung Chemical) could erode part of the NAV; and that a holding-company discount tends to persist without catalysts such as expanded dividends or governance events.
- In short: deeply discounted relative to asset value and underpinned by the growth of its core subsidiary, but a stock where narrowing that discount will require time and a catalyst.
🔎 Valuation vs peers Undervalued
Contrasted with large peer holding companies (Hanwha, CJ). Because holding companies differ in business mix and subsidiary character, the key is the NAV discount rather than a simple multiple comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha | 17.34x | 0.55x | 3.15% |
| CJ Corporation | 27.91x | 0.77x | 2.75% |
| HD Hyundai | 15.54x | 1.48x | 9.52% |
A holding company is hard to judge over- or undervalued by P/E or P/B. Net profit is swayed by equity-method and one-off items, so the multiples are choppy, and book equity records subsidiary stakes at historical cost, making the P/B look higher than it really is. So it should be viewed by the market value (NAV) of the stakes held. The listed subsidiary stakes alone total about ₩12 trillion while the holding company's market cap sits in the low ₩3 trillions, a discount of over 70%—far deeper than the 30-50% typically attached to holding companies. Given that most of the NAV (about ₩11 trillion) is the Hyosung Heavy Industries stake and that this asset is in a growth phase with a ₩15 trillion order backlog and US expansion, the discount looks excessive even allowing for weakness in the chemicals segment. The P/E of 9.5x on last year's net profit is also low versus peer holding companies, and reflecting this year's earnings trend it works out lower still, near 8x. That said, a holding-company discount tends to persist without a catalyst such as expanded dividends or a governance event, so the pace at which the discount narrows depends on catalysts.
Price history Close · MA20 · MA60
The latest close is ₩146,700 and the market capitalization is ₩2.5 trillion. The price sits below its 20-day moving average (₩176,195) and below its 60-day moving average (₩193,063). 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 32.0, a neutral level. The one-month change is -18.7%, the three-month change is +4.0%, and the position relative to the 52-week high is -46.9%. Relative strength versus the KOSPI is 55 (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 55% of all stocks. Over the past three months it lagged the index by 22.3%. 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 -22.33% / 6M -22.71% / 12M -17.29%
Key metrics vs sector median
Valuation
The P/E of 7.44x is in line with the sector median (6.67x). The P/B of 1.01x is above the sector median (0.49x).
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.152x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.5%, above the sector average (5.0%). The operating margin is 16.2%. The debt ratio is 220.5%, 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 | $1.2B | $1.5B | $1.6B | +6.99% ↓ slower |
| Operating profit | $38.2M | $146.6M | $260.5M | +77.73% ↓ slower |
| Net profit | $45,223 | $300.3M | $218.7M | -27.20% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.3B | $2.5B | $1.2B | $1.5B | $1.6B |
| Operating profit | $422.9M | $43.0M | $38.2M | $146.6M | $260.5M |
| Net profit | $358.3M | $16.4M | $45,223 | $300.3M | $218.7M |
| Revenue CAGR | 4-yr avg -8.94% | ||||
Revenue rose 7.0% year over year (2023 ₩1.8 trillion → 2024 ₩2.3 trillion → 2025 ₩2.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 77.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is -8.9%. The two-year revenue CAGR is 14.7%. In the most recent quarter (Q1 2026), revenue was 4.3% lower 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 3.4%, is on the high side.
- ROE of 13.5% points to solid profitability.
Points to watch
- Revenue rose 7.0% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 report filed. Revenue of ₩530.2 billion (-4.3% year-on-year), operating profit of ₩94.6 billion (+15.6%), net profit of ₩86.5 billion (+19.9%)—a clear improvement in profit.Confirms earnings momentum as core subsidiary Hyosung Heavy Industries' power-equipment profit flows into the consolidated results. Medium term, further improvement is possible as second-half deliveries expand. Source
- 2026-05-11FilingDisclosure of a material management matter related to an investment judgment. Notice of the holding company's management judgments on investment and stakes.Reflects near-term market interest in the ownership structure and investment direction. Source
- 2026-04-24Filing2025 consolidated financial-statement audit report filed and notice of an investor briefing. Full-year revenue of ₩2,431.7 billion, operating profit of ₩393.0 billion and net profit of ₩329.9 billion confirmed.Confirmed annual results provide a valuation baseline. Confirms a 77.7% year-on-year improvement in operating profit. Source
- 2026-05-08UpdateDisclosure of the occurrence of a material lawsuit (a material management matter related to a subsidiary).Given a holding company's character, subsidiary-related matters can affect stake value and consolidated results, so the progress needs watching. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-21Amended filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-05-08Disclosure
- 2026-04-27Disclosure
- 2026-04-24Disclosure
- 2026-04-24Disclosure
- 2026-04-24EarningsFair-disclosure 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.