Hanssem is Korea's largest home-interior company, built on two pillars: a remodeling business (Rehaus) that bundles kitchens, bathrooms and storage from measurement through design to installation, and a home-furnishing business that sells furniture. These are complemented by the online Hanssem Mall and a B2B channel that supplies builders. In June 2026 the company laid out a shareholder-return policy, launching a ₩50 billion buyback through a trust arrangement to run to year-end and pledging to return more than 50% of net profit to shareholders alongside quarterly dividends; it will also absorb its wholly owned subsidiary Hanssem Nexus on July 31 with no new shares issued. The encouraging point is that core operating profit is back on a recovery track while shareholder returns are being expanded through buybacks and dividends, and the company's number-one brand and installation network are genuine strengths. The cautions are that revenue is still pressed by the housing cycle so a top-line rebound is not yet confirmed, the debt ratio is high so interest costs weigh heavily, and a sizeable share of profit is swayed by non-operating items.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 248.4%).
- Revenue fell 8.6% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 9.9% lower than a year earlier.
- ROE is 11.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 1.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2020-12-31
Largest shareholder Cho Chang-kul 15.45% (individual)
Controlling bloc incl. related parties 19.09%
With the controlling bloc holding 19%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Hanssem's two pillars are a remodeling business (Rehaus) that designs and installs entire spaces such as kitchens, bathrooms and storage, and a home-furnishing business that sells furniture like dressing rooms, desks and dining tables.
- In other words, its core competitiveness lies not in selling products alone but in bundling the whole process from measurement to design to installation.
- Added to this are the online Hanssem Mall channel and a B2B/bulk-supply arm that delivers materials to construction companies.
- It is the number-one player in Korea's home-interior market by both scale and brand.
- The latest close is ₩35,200 and market capitalization is ₩828.4 billion.
- The price sits above its 20-day line (₩33,532) and above its 60-day line (₩35,148).
- Being above both the short- and medium-term moving averages, the trend is on the healthier side.
- RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 57.3, a neutral level.
- The one-month change is +9.3%, the three-month change is -8.3%, and the position versus the 52-week high is -31.5%.
- Relative strength against the KOSPI is 12 (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).
- That places it in roughly the top 88% of all stocks by strength.
- Over the past three months it lagged the index by 29.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times a year's net profit the share price represents) is about 17.90x and the P/B (how many times book equity the price represents) is about 2.07x.
- ROE (how much the company earns in a year on its equity) is 11.6%, respectable for the sector.
- However, last year's net profit (₩46.3 billion) exceeded operating profit (₩18.5 billion), meaning non-operating gains were mixed in, so the P/E alone is a poor guide to whether the stock is cheap or expensive.
- The operating margin, which better reflects the true profitability of the core business, is still thin at 1.1%.
- A high debt ratio (debt against equity) of 248% is a burden that brings heavy interest costs.
- On the other hand, net debt (total borrowings less cash) is negative, meaning the company is in a net-cash position, and the FCF yield (cash actually generated relative to market cap) is a solid 6.9%, so cash-generating power itself is firm.
- Revenue has fallen for three straight years (-8.6% in 2025), reflecting weak demand for housing transactions, moves and interior work.
- The surface-level profit trend is also choppy.
- The ₩151.1 billion net profit of 2024 was heavily inflated by a one-off gain from the sale of the Sangam headquarters building.
- With that effect gone, 2025 (₩46.3 billion) naturally came down, so the 69% drop does not reflect a collapsing business.
- The genuine recovery in the core business is clearest in operating profit.
- Q1 2026 operating profit was ₩10.1 billion, up 56% year on year, extending a run of 12 consecutive profitable quarters.
- A major driver was the Rehaus division turning from a loss to a profit.
- Revenue is still shrinking, but margins are reviving on cost management and an improved product mix.
- The biggest change is stronger shareholder returns.
- In June 2026 the company decided to buy back ₩50 billion of its own shares through a trust arrangement by year-end, and set out a policy of returning more than 50% of net profit to shareholders alongside quarterly dividends.
- It stated a principle of buying and retiring shares while they are undervalued.
- It is also absorbing its wholly owned subsidiary Hanssem Nexus (merger date July 31, 2026) to improve operating efficiency.
- Because it is a small-scale merger with no new shares issued, there is no share dilution.
- The points to watch are clear.
- Core operating profit is back on a recovery track, and shareholder returns are being expanded through buybacks and dividends.
- The industry-leading brand and installation network are also strengths.
- The cautions are equally clear.
- Revenue is still pressed down by the housing cycle, so a top-line rebound has yet to be confirmed.
- The debt ratio is high, bringing heavy interest costs, and a considerable part of profit is swayed by non-operating items, adding volatility.
- In short, the structure is strong if housing transactions revive and operating-profit recovery continues, but faces persistent top-line pressure if the transaction slump drags on.
🔎 Valuation vs peers Fairly valued
Compared against home-interior and building-materials companies exposed to the housing and interior cycle; Hanssem is the pure number-one home-interior player and close to the only one currently profitable with a double-digit ROE.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LX Hausys | 0.00x | 0.33x | -5.26% |
While building-materials and interior peers tied to the same housing cycle remain in losses or at low ROE, Hanssem maintains profitability and an ROE in the 11% range, which justifies its relatively higher P/B (around 2x) in the current phase. That said, last year's net profit contained non-operating gains, so the trailing P/E of about 17x creates an illusion of looking cheaper than the core business warrants. Measured on operating profit, the margin is still thin and EV/EBIT comes out high. Balancing the strengths of core-business recovery and shareholder returns against the weaknesses of thin operating margin, high debt and shrinking top line, we view the stock as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩35,200 and the market capitalization is ₩828.4 billion. The price sits above its 20-day moving average (₩33,532) and above its 60-day moving average (₩35,148). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 57.3, a neutral level. The one-month change is +9.3%, the three-month change is -8.3%, and the position relative to the 52-week high is -31.5%. Relative strength versus the KOSPI is 12 (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 12% of all stocks. Over the past three months it lagged the index by 29.1%. 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 -29.13% / 6M -50.07% / 12M -66.68%
Key metrics vs sector median
Valuation
The P/E of 17.90x is above the sector median (9.68x). The P/B of 2.07x is above the sector median (0.80x). 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.
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 9.2%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.692x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.6%, above the sector average (7.0%). The operating margin is 1.1%. The debt ratio is 248.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.3B | $1.2B | -8.59% ↓ slower |
| Operating profit | $1.3M | $20.7M | $12.3M | -40.79% ↓ slower |
| Net profit | -$41.2M | $100.2M | $30.7M | -69.38% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.5B | $1.3B | $1.3B | $1.3B | $1.2B |
| Operating profit | $45.9M | -$14.4M | $1.3M | $20.7M | $12.3M |
| Net profit | $37.9M | -$47.3M | -$41.2M | $100.2M | $30.7M |
| Revenue CAGR | 4-yr avg -5.97% | ||||
Revenue fell 8.6% year over year (2023 ₩2.0 trillion → 2024 ₩1.9 trillion → 2025 ₩1.7 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 40.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.0%. The two-year revenue CAGR is -5.8%. In the most recent quarter (Q1 2026), revenue was 9.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 11.6% points to solid profitability.
Points to watch
- Revenue fell 8.6% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-09UpdateDecided to enter a ₩50 billion trust agreement to acquire its own shares. Purchases run through a trust arrangement to year-end, with a stated principle of buying and retiring while undervalued.Reducing the free float and enhancing shareholder value is positive for near-term supply-demand and sentiment. A medium-term signal of a higher payout ratio. Source
- 2026-06-09DividendSet a record date (shareholder register closing) for cash and in-kind dividends. Linked to quarterly dividends and the policy of returning more than 50% of net profit.Expanding regular cash dividends is a medium-term factor strengthening shareholder returns. Source
- 2026-05-11UpdateDecided to absorb its wholly owned subsidiary Hanssem Nexus (merger date 2026-07-31). A small-scale merger with no new shares issued, aimed at operating efficiency.Integrates costs and resources without share dilution. Favorable for medium-term profitability. Source
- 2026-05-11EarningsDisclosed preliminary consolidated Q1 2026 results. Operating profit rose 56% year on year, marking 12 consecutive profitable quarters.Confirms core-margin recovery despite falling revenue. Evidence of the improving operating-profit trend. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩10.1 billion(YoY +56%) | ₩10.1 billion(YoY +56%) | Confirmed | link |
| 2025 full-year revenue, operating profit and net profit | revenue 17,445 / operating profit 185 / net profit 463 | revenue 17,445 / operating profit 185 / net profit 463 | Confirmed | link |
| 2026 net profit estimate | approx. ₩32.0 billion(self-estimate, forward PER 24.6) | — | Unverified | link |
Recent filings
- 2026-06-09DividendCash/stock dividend decision
- 2026-06-09TreasuryMaterial-fact report
- 2026-06-09Fair-disclosure notice
- 2026-05-28Corporate governance report
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-11Material-fact report (amended)
- 2026-05-08Material-fact report
- 2026-05-07Disclosure
- 2026-04-23OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-21Disclosure
📖 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.