HL Holdings is the holding company of the former Halla Group, an operating holding company that itself runs auto-parts logistics and distribution (about ₩1.3 trillion in annual scale) while holding stakes in subsidiaries such as HL Mando, HL Klemove and HL D&I Halla, whose results flow into net profit via the equity method. The Q1 report on May 15 confirmed a profit surge with operating profit +100% and net profit +239.8%, bringing this year's earnings-based P/E down to around 4.6x, and with a P/B of 0.33x it is lower than even peers in the same holding-company group (LG, LX International), while the dividend yield is thick at around 5%. The key point of late is that when the profit recovery of the auto-parts subsidiaries continues and core-business efficiency holds, the low valuation and thick dividend stand out together, whereas core-business revenue is still contracting, ROE of 1.9% means capital efficiency is not high, and an 87.1% payout ratio means dividend capacity could shrink if profit wobbles.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 2.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.0% lower than a year earlier.
- ROE is 1.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2022-12-31
Largest shareholder Chung Mong-won 24.31% (individual)
Controlling bloc incl. related parties 24.35%
With the controlling bloc holding 24%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- HL Holdings is the holding company of the former Halla Group (now HL Group).
- It is not a pure holding company that only holds subsidiary stakes but an operating holding company in which the parent itself runs auto-parts logistics and distribution (a business of buying parts, storing and delivering them and supplying repair networks).
- As a result, the parent's own revenue alone comes to about ₩1.3 trillion a year.
- On top of this it holds stakes in subsidiaries such as HL Mando, which makes braking and steering parts, HL Klemove, which makes autonomous-driving assistance devices, and HL D&I Halla, which does construction, so their results flow into HL Holdings' net profit through the equity method (accounting that reflects a subsidiary's profit in proportion to the stake held).
- In short, it is a structure where the channels of earning money split into two — the parent's logistics and distribution operations, and the value of the subsidiary stakes.
- The latest close is ₩36,950 and the market cap is ₩335.5 billion.
- The price sits below its 20-day line (₩41,015) and below its 60-day line (₩42,770).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the balance of up-moves versus down-moves over the past 14 days on a 0-100 scale) is 33.8, a neutral level.
- The one-month change is -8.9%, the three-month change is -9.0%, and the position versus the 52-week high is -30.3%.
- Relative strength against the KOSPI is 20 (1-99, a conversion of the past year's return versus the index that weights recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 81% by strength across all listed names.
- Over the past three months it lagged the index by 28.7%.
- Chart reading is best done alongside volume and the dates of disclosures.
- On a confirmed annual (FY2025) basis, the P/E ratio (how many times one year's profit the share price represents) is 16.10x, the P/B (price versus the company's net assets) is 0.31x, ROE (how much is earned in a year on equity) is 1.9%, and the operating margin is 6.6%.
- A P/B of 0.33x means the market cap is about one-third of book net assets, a common look for an asset-thick holding company.
- A debt ratio (debt against equity) of 117.2% is also hard to view by the same yardstick as ordinary manufacturing, since the parent runs logistics and distribution operations alongside financial borrowing.
- The key is that the P/E above is on a "last year's confirmed profit (trailing, the past 12 months' results)" basis.
- As shown below, profit rose sharply in Q1 2026, so the forward P/E (a P/E based on future profit) that reflects this year's earnings comes down.
- This is clearly a lower value than peers in the same holding group, and in an inflection phase where profit bends upward, the forward basis shows the company's actual value more accurately than a multiple on past profit.
- That is, this is not a place to conclude it is expensive on a trailing P/E of 17.1x alone.
- Over five years revenue rose from ₩1.0 trillion in 2021 to ₩1.3 trillion in 2025 (a CAGR of about 6.4%), but operating profit fell from ₩139.9 billion to ₩88.7 billion over the same period, so the top line was in a phase of stagnation and contraction.
- Q1 2026, however, is of a different character.
- Revenue of ₩327.0 billion was down 1.0% year on year, but operating profit of ₩34.7 billion roughly doubled (+100%) and net profit jumped to ₩22.7 billion (+239.8%).
- That profit rose this much even with revenue almost unchanged means the cost efficiency of the parent's logistics and distribution operations improved and the subsidiary stake results improved alongside.
- When the profitability recovery of the auto-parts subsidiaries (HL Mando, HL Klemove) and the core-business margin improvement mesh, a trajectory of this year's annual profit thickening greatly versus last year's naturally follows.
- A stock whose annual profit rose this much looks expensive on a past-profit basis but, on a forward-looking basis, is placed in a cheap spot instead.
- That said, since the core-business revenue itself is still contracting, the fact that the profit improvement leans on both the subsidiaries' conditions and core-business efficiency is a point to keep in mind.
- Recent disclosures, as befits a holding company, are largely stake- and subsidiary-related.
- On May 29 a subsidiary's single sales/supply contract (a corrective filing) was disclosed, and the contract size and revenue-recognition timing — how they are reflected through the subsidiary's results — are the point to watch.
- The same day a decision on a debt guarantee for a subsidiary's borrowing was also disclosed; this is a signal that the holding company backs the subsidiary's fund-raising, and at the same time both sides must be viewed together as contingent liabilities rise by the guaranteed amount.
- The Q1 2026 quarterly report on May 15 officially confirmed the profit surge, and in early June reports of stake changes by the largest shareholder and executives and a corporate governance report disclosure on June 1 followed.
- The strengths are clear.
- The share price against assets, at a P/B of 0.33x, is lower than even peers in the same holding group (LG 0.53x, LX International 0.49x), and the dividend yield is thick at around 5%.
- On top of this, with Q1 2026 profit jumping (operating profit +100%, net profit +239.8%), this year's earnings-based P/E reflecting that recovery comes down to around 4.6x, placing it in a clearly cheap spot versus peers.
- Adding the listed-subsidiary stake values in HL Mando, HL D&I Halla and others to the parent's logistics and distribution operating value gives a thick asset-side underpinning against the market cap.
- Points to examine: the core-business revenue is still in a contracting phase, ROE of 1.9% means capital efficiency itself is not high, and an 87.1% payout ratio means dividend capacity could shrink if profit wobbles.
- In sum, when the profit recovery of the auto-parts subsidiaries continues and core-business efficiency holds, the low valuation and thick dividend stand out together and it is strong; conversely, if the subsidiaries' conditions (auto parts, construction) bend or the core-business top line shrinks further, a question mark attaches to profit continuity.
🔎 Valuation vs peers Inconclusive
On the basis that it is an operating holding company owning industrial-goods-affiliated subsidiaries in auto parts, construction and the like, it is compared with names in the same holding-company form; the on-site figures are all on a current-price basis.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Corp | 21.19x | 0.54x | 2.57% |
| Doosan | 257.06x | 12.49x | 4.86% |
| LX International | 10.15x | 0.52x | 5.12% |
For a holding company it is hard to conclude cheap or expensive on a single consolidated P/E. (a) Position versus peers: the P/B is lower than even LG and LX International, so on asset valuation it is on the discount side, but with ROE at 1.9%, the lowest, a profitability discount is at work at the same time. (b) Premium/discount: a textbook operating-holding-company structure of assets valued cheaply and profitability valued thinly. (c) Limits of trailing and forward basis: last year's confirmed P/E of 17.9x is a number from before the Q1 2026 profit surge (operating profit +100%, net profit +239.8%), so it can look more expensive than reality. That said, whether that recovery carries into the year is unconfirmed (the seasonality approximation below is not an official company forecast), and with core-business revenue contracting, a question mark remains over profit continuity. With assets cheap but the basis for profitability and continuity still weak, it is better to leave the verdict Inconclusive than to conclude in one direction.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩332.5 billion | approx. ₩32.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩36,950 and the market capitalization is ₩335.5 billion. The price sits below its 20-day moving average (₩41,015) and below its 60-day moving average (₩42,770). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.8, a neutral level. The one-month change is -8.9%, the three-month change is -9.0%, and the position relative to the 52-week high is -30.3%. Relative strength versus the KOSPI is 20 (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 19% of all stocks. Over the past three months it lagged the index by 28.7%. 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 -28.73% / 6M -46.92% / 12M -62.71%
Key metrics vs sector median
Valuation
The P/E of 16.10x is above the sector median (6.67x). The P/B of 0.31x is below the sector median (0.49x). 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 1.9%, below the sector average (5.0%). The operating margin is 6.6%. The debt ratio is 117.2%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $852.0M | $908.7M | $884.8M | -2.63% ↓ slower |
| Operating profit | $61.1M | $59.9M | $58.8M | -1.94% ↓ slower |
| Net profit | $33.5M | $13.1M | $13.8M | +5.12% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $690.1M | $846.4M | $852.0M | $908.7M | $884.8M |
| Operating profit | $92.7M | $56.9M | $61.1M | $59.9M | $58.8M |
| Net profit | $70.4M | $2.1M | $33.5M | $13.1M | $13.8M |
| Revenue CAGR | 4-yr avg 6.41% | ||||
Revenue fell 2.6% year over year (2023 ₩1.3 trillion → 2024 ₩1.4 trillion → 2025 ₩1.3 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 1.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.4%. The two-year revenue CAGR is 1.9%. In the most recent quarter (Q1 2026), revenue was 1.0% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.4%, is on the high side.
Points to watch
- Revenue fell 2.6% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29UpdateCorrective disclosure of a subsidiary's single sales/supply contract (subsidiary key management matter)Near term, the subsidiary's order backlog rises, forming a basis for future revenue recognition. Medium term, the crux is how much the contract size and delivery schedule are reflected in HL Holdings' net profit through the equity method. Source
- 2026-05-29UpdateDecision on a third-party debt guarantee for a subsidiary's borrowing (subsidiary key management matter)A signal that the holding company backs the subsidiary's fund-raising, but at the same time contingent liabilities rise by the guaranteed amount, a factor in the parent's financial burden. The guarantee size and the subsidiary's credit must be viewed together. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — a confirmed surge in operating and net profitQ1 operating profit of ₩34.7 billion (+100%) and net profit of ₩22.7 billion (+239.8%) were officially confirmed. That said, with revenue at -1.0% the top line is stagnant, so the source of the profit improvement (core-business efficiency vs. subsidiary stake results) needs to be checked in the body of the quarterly report. Source
- 2026-06-01FilingCorporate governance report disclosedA periodic disclosure covering the holding company's board composition, shareholder rights and internal-control operation. Since a holding company's core is the structure through which it oversees subsidiaries, governance transparency affects medium-to-long-term value. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-29Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly 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.