Hyundai Home Shopping runs a home-shopping business selling goods over TV and mobile as its core, earning money from sales commissions and product margins, on top of which equity-method income flows in from a roughly 39.7% stake in Handsome and a roughly 48% stake in Hyundai Futurenet, giving it a 'home-shopping core plus subsidiary stakes' structure. The dominant issue in 2026 is Hyundai GF Holdings absorbing Hyundai Home Shopping as a wholly owned subsidiary through a comprehensive share swap: each share converts into 6.3571040 new Hyundai GF Holdings shares, and the stock will be delisted on July 20 and become an unlisted company. What stands out lately is that the undervaluation case is clear, with a P/B below half of net assets, a 3.2% dividend and an 8.5% FCF yield, which is also the very reason for the wholly-owned-subsidiary absorption; on the other hand, the fixed swap ratio makes the price converge on the swap value, and after delisting its character changes into that of holding-company shares.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 211.2%).
- Revenue fell 1.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.9% higher than a year earlier.
- ROE is 4.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.5%.
- 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 Hyundai GF Holdings 57.36% (corporate)
Controlling bloc incl. related parties 57.36%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
Net asset value (NAV) assessment Fairly valued
💡 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
| Hyundai FutureNet | 78.55% |
| Handsome | 40.5% |
🔎 In-depth analysis
- Hyundai Home Shopping's core is a home-shopping business selling goods over TV, mobile and the internet.
- It sells items via broadcast and online and earns money from sales commissions and product margins.
- On top of that it holds a roughly 39.7% stake in the fashion company Handsome and a roughly 48% stake in Hyundai Futurenet, which is in the digital-signage and information-and-communications business.
- In other words, with income from subsidiary stakes (equity-method income) added to home-shopping operating profit, it is closer to reality to view it not as a simple retailer but as a company holding a 'home-shopping core plus subsidiary stakes.'
- The latest close is ₩87,300 and market cap is ₩1.0 trillion.
- The price sits above its 20-day line (₩84,810) and above its 60-day line (₩83,085).
- Trading above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 60.4, a neutral level.
- The one-month change is +11.3%, the three-month change is +13.8%, and the position versus the 52-week high is -7.3%.
- Relative strength against the KOSPI is 57 (on a 1-99 scale, computed from returns versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 43% of all stocks by strength.
- Over the past three months it lagged the index by 8.3%.
- Chart reading is best done alongside trading volume and filing dates.
- The valuation metrics differ between appearance and reality.
- The P/E ratio (how many years of earnings the price represents) is 10.58x and the P/B (how many times book net assets the price represents) is 0.45x, less than half of net assets.
- That said, the company's book equity carries the Handsome and Hyundai Futurenet stakes at low historical cost, so once the actual market value of those stakes is reflected, asset value is larger than book.
- In other words, the 0.45x P/B if anything understates the undervaluation.
- The dividend yield is high at 3.2% (₩2,800 per share).
- The balance sheet is stable.
- The current ratio is 260%, giving ample short-term solvency, and net debt is about ₩15.5 billion, effectively close to debt-free.
- The EV/EBIT (enterprise value including debt divided by operating profit, a debt-reflecting version of the P/E) is 8.1x and the FCF yield (actual cash earned relative to market cap) is a healthy 8.5%, so cash generation is good.
- The debt ratio of 211% largely reflects home-shopping's characteristic trade payables (amounts due for merchandise), which are different from an interest-bearing borrowing burden.
- The earnings trend is recovering after passing a trough.
- Annual net profit rose from ₩136.2 billion in 2023 to ₩157.7 billion in 2024, then fell to ₩99.0 billion in 2025.
- The 2025 decline owes largely to the prior year's high base and swings in equity-method income.
- What matters is the latest quarter.
- Cumulative first-quarter 2026 net profit was ₩54.7 billion, up 61.6% year on year, and operating profit rose 36.0% too.
- Improving home-shopping core margins and recovering results at subsidiaries such as Handsome and Hyundai Futurenet worked together.
- In a single first quarter it already topped half of last year's full-year net profit.
- Reflecting this recovery track, this year's net profit is likely to come well above last year's ₩99.0 billion.
- In that case the forward earnings multiple falls far below last year's 10.6x P/E.
- Put differently, the trailing P/E looks ordinary, but on this year's earnings it is quite low.
- The dominant issue in 2026 is the governance reorganization.
- Hyundai GF Holdings is absorbing Hyundai Home Shopping as a wholly owned subsidiary through a comprehensive share swap.
- Each Hyundai Home Shopping share converts into 6.3571040 new Hyundai GF Holdings shares.
- In line with this process, a capital adjustment (capital reduction) and approval at an extraordinary shareholders' meeting were carried out.
- Once complete, Hyundai Home Shopping will be delisted on July 20, 2026 and become an unlisted company.
- After the absorption, Handsome and Hyundai Futurenet move up from grand-subsidiaries of the holding company to direct subsidiaries.
- Separately, first-quarter 2026 provisional results confirmed the earnings recovery, and there were affiliate-related filings such as a decision on a subsidiary debt guarantee.
- The observation points are clear.
- This stock's biggest variable is not results but delisting.
- With a fixed swap ratio against Hyundai GF Holdings set, the price effectively converges on that swap value.
- So holding the shares now means they convert into holding-company shares at the delisting date.
- Separated out, the fundamentals show clear strengths.
- A P/B below half of net assets, a 3.2% dividend, an 8.5% FCF yield, and recovering subsidiary results give several grounds for undervaluation.
- Indeed, this very undervaluation is part of the backdrop for the holding company absorbing it as a wholly owned subsidiary.
- The point to watch is that after delisting the stock cannot be traded directly and its character changes into holding-company shares.
- It is also worth keeping in mind that swings in equity-method income can make quarterly earnings uneven.
🔎 Valuation vs peers Undervalued
An affiliate peer group considering both the home-shopping core and subsidiary stakes (Handsome and the Hyundai Department Store affiliates).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Handsome | 10.43x | 0.34x | 3.22% |
| Hyundai Department Store | 17.40x | 0.79x | 4.56% |
With a home-shopping core plus stakes in listed subsidiaries (Handsome and Hyundai Futurenet) added on, Hyundai Home Shopping is better read through a NAV lens that sums the market value of its stakes and the core-business value than through a single P/E or P/B. The market value of its listed stakes alone explains a large part of the market cap, and with unlisted subsidiaries and the home-shopping operating value added on top, the price is at a discount to real asset value. The trailing 10.6x P/E is based on a trough year (₩99.0 billion net profit) and does not reflect the earnings recovery. On this year's earnings, reflecting the +61.6% first-quarter recovery track, the earnings multiple falls to around 5-6x. Among affiliate peers such as Handsome (P/B 0.33x) and Hyundai Department Store (P/B 0.88x), it is in an undervalued position relative to asset value. That said, this undervaluation is being resolved through delisting and the share swap, so in practice the holding-company swap value governs the price.
Price history Close · MA20 · MA60
The latest close is ₩87,300 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩84,810) and above its 60-day moving average (₩83,085). 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 60.4, a neutral level. The one-month change is +11.3%, the three-month change is +13.8%, and the position relative to the 52-week high is -7.3%. Relative strength versus the KOSPI is 57 (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 57% of all stocks. Over the past three months it lagged the index by 8.3%. 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 -8.34% / 6M +1.84% / 12M -33.73%
Key metrics vs sector median
Valuation
The P/E of 10.58x is below the sector median (16.77x). The P/B of 0.45x is below the sector median (0.56x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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.
Profitability & financials
Return on equity (ROE) is 4.2%, above the sector average (3.0%). The operating margin is 3.5%. The debt ratio is 211.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $2.6B | $2.5B | -1.65% ↓ slower |
| Operating profit | $39.7M | $86.2M | $86.7M | +0.49% ↓ slower |
| Net profit | $90.3M | $104.5M | $65.6M | -37.20% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.4B | $1.4B | $1.4B | $2.6B | $2.5B |
| Operating profit | $92.9M | $73.3M | $39.7M | $86.2M | $86.7M |
| Net profit | $67.4M | $57.2M | $90.3M | $104.5M | $65.6M |
| Revenue CAGR | 4-yr avg 15.97% | ||||
Revenue fell 1.7% year over year (2023 ₩2.1 trillion → 2024 ₩3.9 trillion → 2025 ₩3.8 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 0.5% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 16.0%. The two-year revenue CAGR is 35.5%. In the most recent quarter (Q1 2026), revenue was 1.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.2%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 1.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-22FilingDecision (amended) on a comprehensive share swap/transfer with Hyundai GF Holdings. Absorption as a wholly owned subsidiary at a swap ratio of 6.3571040 new Hyundai GF Holdings shares per Hyundai Home Shopping share.The price converges on the fixed swap value. The key event leading to delisting and conversion into holding-company shares. Source
- 2026-05-22FilingDecision (amended) on the capital adjustment (capital reduction) accompanying the share-swap process.A capital-cleanup procedure for the holding-company absorption. More governance-reorganization in character than business substance. Source
- 2026-05-06EarningsQ1 2026 consolidated provisional results. Cumulative revenue ₩978.5 billion (+1.9%), operating profit ₩65.3 billion (+36.0%), net profit ₩54.7 billion (+61.6%).Confirms the earnings recovery through improving core margins and recovering subsidiary results. A basis for raising this year's forward earnings. Source
- 2026-04-20FilingExtraordinary shareholders' meeting results. Handling of agenda related to the share swap with the holding company.The shareholder-approval step of the share-swap and delisting process. Contributes to fixing the absorption schedule. Source
- 2026-05-29FilingCorporate governance report filed. Disclosure of the company's governance status while the reorganization is under way.A regular filing on governance transparency during the holding-company absorption phase. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Material-fact report (amended)
- 2026-05-22Material-fact report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-04Disclosure
- 2026-04-29EarningsEarnings disclosure
- 2026-04-20Amended filing
- 2026-04-20Shareholders' meeting notice
- 2026-04-10Disclosure
📖 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.