Hwaseung Corporation (013520) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Hwaseung Corporation is an operating-holding-style company centered on auto parts, with 24 subsidiaries, earning its money along four lines: rubber and sealing components for vehicles (Auto Parts), rubber and chemical materials (Material), general trade that buys and sells raw materials and products (General Trade), and industrial and defense rubber products (Product), so that when one area wavers the others provide support. In February 2026 a profit-and-loss structure-change disclosure confirmed full-year revenue of ₩1.6 trillion, operating profit of ₩83.1 billion, and net profit of ₩78.0 billion; in February it announced a ₩37.0 billion investment (10.2% of shareholders' equity) to build a demonstration Tech Center, and in March it declared a cash and in-kind dividend. What stands out lately is that its increased earnings capacity, a 3.2% dividend yield, and the mutual cushioning across its several businesses are strengths. On the other hand, with a debt ratio of 287.3%, a current ratio of 92.3%, and interest coverage of 1.37x, its financial slack is limited, and with Q1 operating profit down year on year, it can feel the impact more directly if auto demand or quarterly margins waver.
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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 “Automobiles & Parts”, a type typically read first through P/E.
Autos and parts live and die by unit sales and volume, but they are a mature industry that generates steady profit on scale. For this kind of business earnings are the heart of the story, so price-to-earnings (P/E) — the price set against net profit — is the first thing to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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 is somewhat higher than equity (debt ratio 277.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 97.8%).
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.7% lower than a year earlier.
- ROE is 26.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.8%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Hyun Ji-ho 35.42% (individual)
Controlling bloc incl. related parties 49.69%
With the controlling bloc holding 50%, the ownership structure is stable.
🔎 In-depth analysis Reading
Hwaseung Corporation is an operating-holding-style company centered on auto parts, with 24 subsidiaries. Its earnings streams split broadly into four. The first is the Auto Parts business, which makes rubber and sealing components for vehicles and supplies them to automakers and parts firms. The second is the Material business, which handles rubber and chemical materials. The third is the General Trade business, which buys and sells raw materials and products, and the fourth is the Product business, which makes industrial and defense rubber and the like. With auto parts as its core, it also runs materials, trade, and industrial goods together, so that when one area wavers the others provide support. The company has been certified as a mid-sized enterprise, and it recently decided to invest ₩37.0 billion to build a demonstration Tech Center (a research center) as an R&D hub.
The latest close is ₩2,700 and the market capitalization is ₩135.1 billion. The price sits above its 20-day moving average (₩2,528) and above its 60-day moving average (₩2,604). 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 59.2, a neutral level. The one-month change is +4.2%, the three-month change is -19.8%, and the position relative to the 52-week high is -22.3%. Relative strength versus the KOSPI is 44 (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 44% of all stocks. Over the past three months it lagged the index by 1.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For the most recent year (2025), revenue was ₩1.6 trillion, operating profit ₩83.1 billion, and net profit ₩78.0 billion. The operating margin is 5.1%, and the ROE (how much it earns in a year on its own equity) is 27.5%, well above the industry average. That works out to earning ₩275 in a year on ₩1,000 of equity, so profitability is clearly on the good side. The debt ratio (debt against equity) is 287.3%, meaning debt exceeds equity, and the current ratio is a tight 92.3%, so the financial structure is at an average level. What stands out is the valuation. The current P/E (how many times a year's earnings the price represents) is 1.73x and the P/B (how many times book value the price represents) is 0.46x, so it trades at less than half the company's net assets. It is easy to mistake a low P/E and P/B for a burden, but here they read closer to a signal that the price is cheap against earnings and assets. On top of that, the forward P/E reflecting this year's expected earnings is even lower, placing it clearly below industry peers (for example Duol 3.8x, Korea Movenex 5.0x).
Revenue rose steadily from ₩1.48 trillion in 2023 to ₩1.56 trillion in 2024 and ₩1.64 trillion in 2025, holding an upward trend all three years. That said, the pace of growth itself is a gentle single digit, so on the top line it is diagnosed as a growth slowdown. Net profit, however, has a different grain. Net profit, which was just ₩3.5 billion in 2023, jumped sharply to ₩26.7 billion in 2024 and ₩78.0 billion in 2025 over two years. With revenue similar but net profit rising so sharply, it means that on top of core-business margins, below-the-line items such as affiliate results, financing, and foreign exchange recovered, thickening the profit the company actually pockets. This year's (2026) outlook is around revenue of ₩1.7 trillion, operating profit of ₩85.9 billion, and net profit of ₩89.8 billion, a picture of the earnings capacity established last year carrying on. That said, in Q1 2026 revenue slipped 0.7% and operating profit fell 13.9% year on year; this appears to reflect the quarterly variability typical of the auto-parts industry combined with raw-material and foreign-exchange effects, and it is too early to see the annual earnings capacity itself as broken. The investment to build a research center (the demonstration Tech Center) also reads as a move to firm up mid-to-long-term product competitiveness.
Recent disclosures came in along three lines: results, investment, and shareholder returns. On February 26, 2026, a profit-and-loss structure-change disclosure reported confirmed results of full-year revenue of ₩1.6 trillion, operating profit of ₩83.1 billion, and net profit of ₩78.0 billion. It is worth checking whether these point in the same direction as the annual trend and whether any one-off factors are mixed in. On February 3, it announced a ₩37.0 billion investment (10.2% of shareholders' equity) to build a demonstration Tech Center (a research center); as material the company itself presented, it shows the direction of expanding its R&D hub. On March 16, it decided on a cash and in-kind dividend, letting you check whether the flow of returning earned profit to shareholders continues.
The strengths are clear. A 3.2% dividend yield lends support as well. Its business structure, with auto parts as the core and materials, trade, and industrial goods running alongside, also lets movement in one area be cushioned by another. What to watch are the finances and the quarterly flow. A debt ratio of 287.3% and a current ratio of 92.3% mean limited slack on debt and short-term funding, and interest coverage (how many times operating profit covers interest) of 1.37x is not ample either. That Q1 2026 operating profit fell year on year also shows the quarterly volatility. In sum, as long as the increased earnings capacity and a stable dividend continue, its low valuation is positioned to come into focus, while conversely, if auto demand or quarterly margins waver, it can feel the impact more directly given its limited financial slack.
🔎 Valuation vs peers Undervalued
Peers within auto parts that are close in market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Movenex | 5.39x | 0.27x | 3.95% |
| Dowool | 3.33x | 0.34x | 7.07% |
| KNW | — | 0.96x | -4.72% |
The primary comparison uses public-data peers within auto parts that are close in market cap. The current P/E (how many times a year's earnings the price represents) is 1.73x and the P/B (how many times book value the price represents) is 0.46x. That said, for smaller-cap names, earnings swings and financing disclosures carry greater weight, so we did not draw firm conclusions from last year's confirmed-results figures alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩1.7 trillion | ₩85.9 billion | ₩89.8 billion |
| Next quarter | Q2 2026 | ₩432.0 billion | ₩24.7 billion | ₩10.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩2,700 and the market capitalization is ₩135.1 billion. The price sits above its 20-day moving average (₩2,528) and above its 60-day moving average (₩2,604). 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 59.2, a neutral level. The one-month change is +4.2%, the three-month change is -19.8%, and the position relative to the 52-week high is -22.3%. Relative strength versus the KOSPI is 44 (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 44% of all stocks. Over the past three months it lagged the index by 1.5%. 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 -1.48% / 6M -7.92% / 12M -27.58%
Key metrics Computed vs sector median
Valuation
The P/E of 1.73x is below the sector median (6.24x). The P/B is 0.46x.
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.
Profitability & financials
Return on equity (ROE) is 26.1%, above the sector average (5.0%). The operating margin is 4.8%. The debt ratio is 277.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.0B | $1.1B | $1.2B | +4.82% ↓ slower |
| Operating profit | $61.7M | $60.3M | $58.4M | -3.17% ↓ slower |
| Net profit | $2.4M | $18.7M | $54.8M | +192.38% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $983.4M | $1.1B | $1.0B | $1.1B | $1.2B |
| Operating profit | $7.0M | $30.3M | $61.7M | $60.3M | $58.4M |
| Net profit | -$28.9M | $2.0M | $2.4M | $18.7M | $54.8M |
| Revenue CAGR | 4-yr avg 4.03% | ||||
Revenue rose 4.8% year over year (2023 ₩1.5 trillion → 2024 ₩1.6 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 3.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.0%. The two-year revenue CAGR is 5.4%. In the most recent quarter (Q1 2026), revenue was 0.7% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 26.1% points to solid profitability.
Points to watch
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-02-26EarningsChange of 30% or more (15% for large corporations) in revenue or profit-and-loss structure: full-year revenue of ₩1.6 trillion, operating profit of ₩83.1 billion, and net profit of ₩78.0 billionRecent confirmed or preliminary results. Check whether they point in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-02-03UpdateNew facility investment, etc.: new facility investment / (2026.02.03) new facility investment. 1. Investment type: new facility investment - Target: demonstration Tech Center (new research center). 2. Details: investment amount (won) 37,000,000,000; shareholders' equity (won) 361,990,247,304; ratio to equity (%) 10.22; large-corporation status: not applicable. 3. InvestmentMaterial the company itself presented as a plan. Where figures are given, treat them as the primary basis for the outlook box; where absent, treat them only as directional. Source
- 2026-03-16UpdateCash and in-kind dividend decision: check the return termsA disclosure tied to a cash return or a change in share count. Check whether earnings capacity and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩2,700 | ₩2,700 | Confirmed | link |
| Latest quarterly results | revenue ₩421.5 billion, operating profit ₩25.6 billion | revenue ₩421.5 billion, operating profit ₩25.6 billion | Confirmed | link |
| Annual results | revenue ₩1.6 trillion, operating profit ₩83.1 billion | revenue ₩1.6 trillion, operating profit ₩83.1 billion | Confirmed | link |
| Results disclosure (original text) | revenue or profit structure changed by 30% or more (15% for large companies): revenue ₩1.6 trillion · operating profit ₩83.1 billion · net profit ₩78.0 billion | revenue or profit structure changed by 30% or more (15% for large companies): revenue ₩1.6 trillion · operating profit ₩83.1 billion · net profit ₩78.0 billion | Confirmed | link |
| Outlook and plan disclosure (original text) | /(2026.02.03) 1. - Tech Center 2. 37,000,000,000 361,990,247,304 (%) 10.22 3. | /(2026.02.03) 1. - Tech Center 2. 37,000,000,000 361,990,247,304 (%) 10.22 3. | Confirmed | link |
| Shareholder-return disclosure (original text) | cash/stock dividend declared: check the payout terms | cash/stock dividend declared: check the payout terms | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-14OwnershipOwnership-change filing
- 2026-04-14Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-17Amended filing
- 2026-03-17Amended filing
- 2026-03-16Disclosure
- 2026-03-16Shareholders' meeting 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.