Pan Ocean is a shipping company that operates large cargo vessels, centered on bulk carriers that haul dry cargo such as iron ore, coal and grain, and collects freight rates, with about half of revenue coming from bulk carriers and grain trading, added after joining the Harim Group, accounting for about 30%; LNG and tanker operations, small in revenue share but high in margin, underpin profit. In May 2026 it disclosed a vessel-investment plan via a new facility-investment filing, and on the same day confirmed a recovering profit trend with Q1 revenue of ₩1.5089 trillion, operating profit of ₩140.9 billion and net profit of ₩94.5 billion, while continuing a ₩150 per-share dividend. The recent point of note is a balance: the strengths are the scale of the largest domestic bulk carrier, a grain-trading stabilizer, high-margin LNG and tanker diversification, plus a P/B of 0.45x and a dividend in the 3% range; the cautions are that shipping profit swings heavily with the freight cycle, so it wobbles if dry-bulk rates roll over, and one must watch a debt ratio of about 190%, large-scale vessel investment and the largest shareholder's stake-pledge issue.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 5.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.3% higher than a year earlier.
- ROE is 5.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 9.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2020-12-31
Largest shareholder Harim Holdings 54.7% (corporate)
Controlling bloc incl. related parties 54.73%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Pan Ocean is a shipping company that earns money by operating large cargo vessels that haul raw materials and collecting freight rates.
- About half of revenue comes from bulk carriers hauling dry cargo such as iron ore, coal and grain, and the grain business added after joining the Harim Group (trading in which it directly buys, ships and sells grain for feed) has settled in at about 30% of revenue.
- The rest is filled by LNG carriers, container ships and tankers.
- Worth noting is that revenue share and profit contribution differ.
- By cargo volume, bulk is overwhelming, but LNG carriers are a high-earning business that, though small in revenue share, take a large slice of operating profit.
- In other words, bulk carriers form the backbone of results, while LNG and tankers underpin the margin.
- With much volume locked in under long-term shipping contracts, base revenue holds up to a degree even when short-term rates swing.
- The latest close is ₩5,000 and the market cap is ₩2.7 trillion.
- The price sits above the 20-day line (₩4,984) and below the 60-day line (₩5,391).
- With the short- and medium-term trends diverging, direction is best read separately.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 48.0, a neutral level.
- The one-month change is -2.7%, the three-month change is -2.7%, and the position versus the 52-week high is -19.4%.
- Relative strength against the KOSPI is 45 (1-99, computed from returns versus 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 55% of all stocks by strength.
- Over the past three months it lagged the index by 22.0%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On confirmed annual (2025) figures, the P/E (how many times one year's profit the share price is) is 8.87x and the P/B (how many times book net assets the share price is) is 0.47x, below even half of book value.
- The P/S (how many times revenue the share price is) is also low at 0.46x.
- That said, shipping is an industry where profit swings heavily along the freight cycle, so it is hard to declare it expensive or cheap on the P/E computed from last year's confirmed results alone.
- In an inflection zone like the present, where profit is rising again, the value seen on this year's expected profit (forward) is a more accurate picture, and on that basis the P/E comes down to around 7x.
- On profitability, ROE (how much is earned in a year on equity) is still ordinary at 5.3% and the operating margin is 9.0%.
- The debt ratio (debt versus equity) of about 190% is a common level in a capital-intensive industry that needs financing to buy vessels.
- The dividend yield is 3.1% (₩150 per share, a payout ratio of about 27%), and stable cash returns are a distinct feature of this stock.
- Over five years of results, net profit peaked at ₩549.3 billion and ₩677.1 billion in 2021-2022 during the shipping super-cycle, then fell to ₩245.0 billion in 2023 as rates cooled.
- Since then it has climbed the stairs again to ₩268.1 billion in 2024 and ₩301.4 billion in 2025, a recovery phase.
- Q1 2026 is a particular inflection point.
- Revenue was +8.3% year on year, but operating profit was +24.4% and net profit +31.2%, with profit growth far outpacing revenue.
- This is because dry-bulk freight rates (bulk rates, represented by the BDI) held clearly higher than a year earlier, and the share of high-margin LNG and tankers grew, retaining more profit on the same revenue.
- In the first half of this year the company is securing a large fleet of very large crude carriers, cutting bulk dependence and broadening its earnings base into tankers and LNG, so there is ample room for the Q1 profit recovery to carry into the full year.
- Even if last year's confirmed P/E looks somewhat high, on this year's profit basis the valuation actually falls.
- Recent disclosures can be summarized in two strands.
- The first is fleet expansion.
- A new facility-investment filing on May 14, 2026 disclosed a vessel-investment plan, part of a medium- to long-term strategy to ease bulk concentration and build up tanker and LNG carrying capacity.
- The Q1 quarterly report filed the same day is the source data for revenue of ₩1.5089 trillion, operating profit of ₩140.9 billion and net profit of ₩94.5 billion, confirming the recovering profit trend in numbers.
- The second is that governance- and stake-related disclosures were concentrated in May-June.
- Changes in the holdings of the largest shareholder (Harim Holdings) and of executives and major shareholders, large-holding reports, and a corporate governance report followed, reflecting periodic and occasional filings tied to shifts in the ownership structure, such as the largest shareholder's provision of a stake pledge.
- Along with the dividend (₩150 per share), these disclosures are material that shows the ownership and financial structure transparently.
- The strong phase is clear.
- The competitiveness of scale as the largest domestic bulk carrier, the volume stabilizer of grain trading, and business diversification into high-margin LNG and tankers combine so that 2026 profit is improving clearly.
- With a dividend in the 3% range on top of a level about half of book value (P/B 0.45x), the valuation appeal is large if the profit recovery continues.
- Even against peers, it trades lower on an asset-value basis than the large carrier HMM (P/B 0.66x).
- Conversely, the cautionary phase is just as clear.
- Shipping profit swings heavily with the freight cycle, so results wobble together if dry-bulk rates roll over.
- A debt ratio of about 190% overlaps with large-scale vessel investment for a capital burden, and an interest-coverage ratio of 1.9x (operating profit about twice interest expense) shows room for profit to thin if rates and freight worsen at the same time.
- The largest shareholder's stake-pledge issue is also a part to watch.
- In sum, it is strongly undervalued on a net-asset and profit basis when freight is firm and the new fleet runs normally, and weaker when freight plunges or the interest and investment burden grows.
🔎 Valuation vs peers Undervalued
Domestic listed shipping companies close in business reality were taken as the comparison set: the container-centered large carrier HMM and the bulk-specialist Korea Line. Figures are on-site calculations at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HMM | 9.70x | 0.69x | 7.07% |
| Korea Line | 3.30x | 0.28x | 8.35% |
(a) Within the comparison set, Pan Ocean's P/B of 0.45x is below the large shipping name HMM (0.66x), a clear discount zone on a net-asset basis. The bulk specialist Korea Line (0.28x) trades even lower as its revenue plunges, but Pan Ocean differs in character in that it cushions earnings volatility with grain, LNG and the like. (b) On the P/E of 8.5x on last year's confirmed results alone it looks ordinary, but shipping is an industry where profit varies greatly with the freight cycle, so the trailing P/E has large limits. On this year's profit basis, reflecting the +31% jump in Q1 2026 net profit, firm freight, and the expansion of high-margin operations, the valuation actually falls further. (c) Taking asset value, dividends and profit improvement together, the current level is judged toward undervalued. That said, the still-low ROE of 5.3% and the heavy dependence on freight rates should be viewed together as discount factors.
Price history Close · MA20 · MA60
The latest close is ₩5,000 and the market capitalization is ₩2.7 trillion. The price sits above its 20-day moving average (₩4,984) and below its 60-day moving average (₩5,391). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.0, a neutral level. The one-month change is -2.7%, the three-month change is -2.7%, and the position relative to the 52-week high is -19.4%. Relative strength versus the KOSPI is 45 (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 45% of all stocks. Over the past three months it lagged the index by 22.0%. 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 -21.96% / 6M -18.87% / 12M -45.07%
Key metrics vs sector median
Valuation
The P/E is 8.87x. The P/B is 0.47x.
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 5.3%, below the sector average (7.0%). The operating margin is 9.0%. The debt ratio is 189.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.9B | $3.4B | $3.6B | +5.26% ↓ slower |
| Operating profit | $255.7M | $312.3M | $326.1M | +4.41% ↓ slower |
| Net profit | $162.4M | $177.7M | $199.8M | +12.41% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.1B | $4.3B | $2.9B | $3.4B | $3.6B |
| Operating profit | $379.7M | $523.3M | $255.7M | $312.3M | $326.1M |
| Net profit | $364.1M | $448.8M | $162.4M | $177.7M | $199.8M |
| Revenue CAGR | 4-yr avg 4.16% | ||||
Revenue rose 5.3% year over year (2023 ₩4.4 trillion → 2024 ₩5.2 trillion → 2025 ₩5.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 4.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.2%. The two-year revenue CAGR is 11.6%. In the most recent quarter (Q1 2026), revenue was 8.3% higher 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 3.0%, is on the high side.
Points to watch
- Revenue rose 5.3% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-14FilingNew facility-investment and related disclosure - pursuing fleet expansion through vessel acquisition and business diversification into tankers, LNG and the likeOver the medium term, an expanded share of high-margin operations and a strengthened revenue base. Over the short term, accompanied by a financial and capital burden from large-scale investment. Source
- 2026-05-14EarningsQ1 2026 quarterly report - revenue of ₩1.5089 trillion (+8.3%), operating profit of ₩140.9 billion (+24.4%) and net profit of ₩94.5 billion (+31.2%), with profit growth far exceeding revenuePositive over both the short and medium term. Firm freight and the expansion of high-margin operations confirm improved profitability in the results. Source
- 2026-06-08FilingLarge-holding report (general) - filing of structural changes such as the largest shareholder's holdings and pledgesGovernance and supply-demand material. The largest shareholder's stake-pledge situation warrants watching over the medium term. Source
- 2026-06-01FilingCorporate governance report disclosure - disclosure of governance status such as the board and shareholder rightsA periodic disclosure on governance transparency. The direct impact on results is limited. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 net profit | ₩94.5 billion | DART 2026 1 (2026.05.14) | Confirmed | link |
| 2025 annual results (revenue / operating profit / net profit) | revenue 54,329 · 4,919 · net profit ₩301.4 billion | DART | Confirmed | link |
| Existence of the new facility-investment disclosure | 2026-05-14 | DART | Confirmed | link |
| 2026 annual net profit (estimate) | approx. ₩360.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-09OwnershipLargest-shareholder ownership change report
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-22OwnershipLargest-shareholder ownership change report
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-14Disclosure
- 2026-05-14PeriodicQuarterly report
📖 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.