HMM (011200) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
HMM is Korea's largest liner shipping company, carrying cargo on container ships, and it makes money from container transport linking Asia, the Americas and Europe as well as from bulk shipping. In 2025 it posted revenue of ₩10.9 trillion and net profit of ₩1.9 trillion, but in the first quarter of 2026 it passed through a low, with net profit sliding to ₩353.6 billion (down 52% year on year) amid weak freight rates. What stands out lately is that a large container freight index nearly doubled from its Q1 bottom into June, widening the room for a second-half earnings rebound as a strength; but rising deliveries of newly built ships plus US tariff and Middle East variables could shake rates again, and given the cyclical nature of the business, earnings swings are large.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Shipping” (Transportation), a type typically read first through P/B.
Shipping is a textbook cyclical industry where profits balloon and then swing to losses as freight rates rise and fall. When earnings gyrate like that, current-year earnings multiples get distorted, so price-to-book (P/B) — the price against asset value such as the fleet of vessels — is a steadier gauge.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 6.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.8% lower than a year earlier.
- ROE is 5.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 10.4%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Development Bank 35.42% (corporate)
Controlling bloc incl. related parties 35.42%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis Reading
HMM is Korea's largest liner shipping company, carrying containers packed with finished goods, parts and consumer products from Asia to the Americas and Europe and collecting freight in return. Most of its revenue comes from container liner transport, complemented by bulk (tramp) shipping that carries raw materials, grain and the like. The way it makes money is simple: when freight rates (the price to move one piece of cargo) rise, profit grows sharply, and when rates fall, profit shrinks quickly. Because fixed costs such as ships and routes are a large share, this is a classic economically sensitive (cyclical) business in which even a small move in rates swings profit by several times.
The latest close is ₩21,400 and the market capitalization is ₩20.2 trillion. The price sits above its 20-day moving average (₩20,434) and above its 60-day moving average (₩19,915). 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 60.3, a neutral level. The one-month change is +9.2%, the three-month change is +4.1%, and the position relative to the 52-week high is -13.0%. Relative strength versus the KOSPI is 41 (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 41% of all stocks. Over the past three months it outpaced the index by 21.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The key to valuation is the P/B rather than the P/E. Because shipping is a cyclical industry where profit swings sharply from year to year, looking only at the P/E (how many times one year's earnings the price represents) of a given year creates an optical illusion. The P/B (how many times book net assets the price represents), an asset-value measure, is therefore a more stable yardstick. The current P/B is 0.71x, meaning the shares trade below net assets. That reflects a price of ₩20,100 against net assets per share of ₩28,168. The balance sheet is very solid. The debt ratio (debt against equity) is a low 26%, and the current ratio (short-term cash-like assets against debt due within a year) is an ample 5.8x. Profitability shows ROE (how much is earned in a year on equity) of 7.1% and an operating margin of 13.4%. Viewed alongside debt-adjusted measures, the picture sharpens: net debt (total borrowings minus cash) is ₩3.4 trillion, and EV/EBITDA (debt-adjusted enterprise value divided by pre-depreciation operating profit) is 8.3x. The FCF yield (actual cash generated relative to market cap) is 9.5%, a level at which the price is not burdensome relative to the cash being generated.
Results have swung sharply, tracking the freight cycle directly. Net profit went from ₩5.3 trillion in 2021 to ₩10.1 trillion in 2022 (the peak of the pandemic logistics crunch), ₩1.0 trillion in 2023 (the bottom as rates plunged), ₩3.8 trillion in 2024 (recovery) and ₩1.9 trillion in 2025, repeating ups and downs. That 2025 revenue, operating profit and net profit fell year on year is because of the high base from the 2024 recovery, not because the business collapsed. The first quarter of 2026 was a freight low. Revenue of ₩2.7 trillion, operating profit of ₩269.1 billion and net profit of ₩353.6 billion directly reflected the aftermath of a large container freight index that was heavily depressed early in the year. However, into June the freight index jumped to about double its Q1 bottom, the result of an early start to the peak season overlapping with pull-forward demand ahead of tariffs. This freight rise is not yet reflected in the Q1 numbers. So there is large room for earnings to improve as the year moves into the second half. This year's net profit is estimated at around ₩2 trillion, reflecting this rebound trajectory. That is higher than simply multiplying the Q1 result by four.
The most important event is the corporate value-up plan announced in March 2026. The company formalized its intent to continue shareholder returns through 2030. The approach uses one of either a 30% dividend payout ratio or a 5% dividend-to-price ratio as its benchmark, and shareholder returns include both dividends and share buybacks and cancellations. On a 2024 year-end basis, actual shareholder returns were about ₩2.7 trillion. Combining ₩528.6 billion in dividends with ₩2.1432 trillion in share buybacks and cancellations produced a total shareholder-return ratio of 72.8%. It set a three-year average ROE target of 4%, and as its 2025 execution reported a three-year average ROE of 8.9%. It also outlined an investment plan: capital spending of ₩23.5 trillion in total through 2030, including ₩12.7 trillion for an eco-friendly fleet. In May it filed its Q1 2026 quarterly report.
HMM is a container-shipping stock with the defensive shields of balance-sheet strength and shareholder returns. The strengths are clear. With a low debt ratio and ample cash-like assets, it has the capacity to withstand phases when rates are depressed. At a P/B of 0.69x it trades below net assets, and with a 3.6% dividend yield plus large-scale share cancellations, the intensity of its shareholder returns is high. Above all, large container freight rates jumped since June to about double the Q1 bottom, opening room for second-half earnings to improve markedly over Q1. The cautions must be viewed alongside these. 2026 is a year of rising supply, with many newly built container ships delivered. Depending on US tariff policy and Middle East conditions, rates could reverse quickly again. In short, this company's profit is heavily swayed by the direction of freight rates. If rate strength continues, the low valuation and high shareholder returns come to the fore; if rates collapse again, earnings volatility is reflected directly in the share price.
🔎 Valuation vs peers Undervalued
Compared against bulk shipping companies among domestic listed shippers whose scale and finances are comparable; container liner shipping is a different business in character, but it is used as a reference given the shared trait of being driven by freight cycles.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Pan Ocean | 10.38x | 0.52x | 5.35% |
| Korea Line | 3.59x | 0.28x | 7.77% |
At a P/B of 0.69x it trades below net assets. That is higher than the bulk shippers Pan Ocean (0.47x) and Korea Line (0.28x), but HMM leads on balance-sheet strength and its shareholder returns are far more intense, so this premium is justified. Last year's (2025) P/E of 9.7x may look burdensome because it reflects earnings from a cyclical low. But with rates jumping since June to about double their Q1 level, once second-half earnings improve the forward valuation burden eases. With a 9.5% FCF yield, the price is also not heavy relative to cash generation. Combining a discount to net assets, high cash generation and strong shareholder returns, the current zone reads as undervalued.
Price history Close · MA20 · MA60
The latest close is ₩21,400 and the market capitalization is ₩20.2 trillion. The price sits above its 20-day moving average (₩20,434) and above its 60-day moving average (₩19,915). 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 60.3, a neutral level. The one-month change is +9.2%, the three-month change is +4.1%, and the position relative to the 52-week high is -13.0%. Relative strength versus the KOSPI is 41 (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 41% of all stocks. Over the past three months it outpaced the index by 21.5%. 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 +21.51% / 6M -13.86% / 12M -53.23%
Key metrics Computed vs sector median
Valuation
The P/E of 10.75x is in line with the sector median (10.38x). The P/B of 0.73x is above the sector median (0.54x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.115x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.4%, below the sector average (7.0%). The operating margin is 10.4%. The debt ratio is 29.9%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.9B | $8.2B | $7.7B | -6.91% ↓ slower |
| Operating profit | $410.8M | $2.5B | $1.0B | -58.40% ↓ slower |
| Net profit | $680.4M | $2.7B | $1.3B | -50.33% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.7B | $13.1B | $5.9B | $8.2B | $7.7B |
| Operating profit | $5.2B | $7.0B | $410.8M | $2.5B | $1.0B |
| Net profit | $3.7B | $7.1B | $680.4M | $2.7B | $1.3B |
| Revenue CAGR | 4-yr avg -5.74% | ||||
Revenue fell 6.9% year over year (2023 ₩8.4 trillion → 2024 ₩11.7 trillion → 2025 ₩10.9 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 58.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.7%. The two-year revenue CAGR is 13.9%. In the most recent quarter (Q1 2026), revenue was 4.8% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 6.9% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-27IRCorporate value-up plan (voluntary disclosure) — shareholder returns through 2030 based on either a 30% dividend payout ratio or a 5% dividend-to-price ratio, a three-year average ROE target of 4% (2025 execution of a three-year average of 8.9%), and capital spending of ₩23.5 trillion through 2030 (including ₩12.7 trillion for an eco-friendly fleet).A factor that improves the predictability of the shareholder-return policy over the medium term. Formalizes a return structure that runs dividends and share cancellations in parallel. Source
- 2026-05-13EarningsFiled the Q1 2026 quarterly report — revenue of ₩2.7187 trillion, operating profit of ₩269.1 billion, net profit of ₩353.6 billion (net profit down about 52% year on year).Confirms weak results at a freight low over the short term. The rate rebound since June is not reflected. Source
- 2026-03-30DividendDisclosures related to the annual general meeting, including the shareholder-register closure period and record date — proceeding with shareholder-return steps including the year-end dividend and share cancellation.Over the medium term, supports execution of the 72.8% total shareholder-return ratio on a 2024 year-end basis (₩528.6 billion in dividends plus ₩2.1432 trillion in share buybacks and cancellations, about ₩2.7 trillion). Source
- 2026-06-01FilingFiled the corporate governance report and large business group status disclosure — periodically disclosing governance and group status.Limited short-term impact. A routine disclosure related to governance transparency that reinforces trust alongside the shareholder-return policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (detailed-sector key metric) | 0.69x | ₩19,320 ÷ ₩28,168 = 0.686x | Confirmed | link |
| 2025 net profit | 1₩878.4 billion | 1₩878.4 billion | Confirmed | link |
| Total shareholder-return ratio (2024 year-end basis) | 72.8% | ₩528.6 billion + · 2₩143.2 billion = approx. 27, 72.8% | Confirmed | link |
| 2026 net profit (own estimate) | approx. ₩2 trillion | — | Unverified | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-13PeriodicQuarterly report
- 2026-05-08Shareholders' meeting notice
- 2026-04-23Disclosure
- 2026-04-23Shareholders' meeting notice
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-30Shareholders' meeting notice
- 2026-03-30Disclosure
- 2026-03-27Disclosure
- 2026-03-26Disclosure
📖 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.