HanLa Cast mass-produces aluminum automotive parts for transmissions, engines, and vehicle bodies using die casting, a process that melts aluminum and forces it into a mold under high pressure to set. It supplies automakers and Tier-1 suppliers, so its revenue tracks directly with vehicle production volumes and part prices. In 2025 the company posted revenue of ₩155.9 billion and operating profit of ₩10.3 billion (a 6.6% operating margin), and its top line grew for a third straight year, yet in Q1 2026 revenue was flat while operating profit fell 65%, squeezing profitability, and in March a short-term borrowing increase for working capital was approved. What stands out lately is that its top-line growth ties into demand for lightweight aluminum parts for electric vehicles, a clear strength, while a tight interest-coverage ratio of 1.61x and a compressed operating margin weigh on it. The key question is whether rising revenue converts into profit, which needs to be tracked through quarterly margins and funding disclosures.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 7.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.0% lower than a year earlier.
- ROE is 3.5% (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 2025-12-31
Largest shareholder Oh Jong-du 33.76% (individual)
Controlling bloc incl. related parties 39.72%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- HanLa Cast is a parts maker that mass-produces automotive aluminum components using die casting, a process that melts aluminum, forces it into a mold under high pressure, and lets it set to stamp out parts.
- Its main revenue comes from cast aluminum parts related to transmissions, engines, and vehicle bodies, and because it supplies automakers and Tier-1 suppliers (the core parts firms that deliver directly to automakers), its revenue is tied directly to vehicle production volumes and part prices.
- Rising demand for lightweight aluminum parts around EV drivetrains and battery systems has also drawn market attention.
- In 2025 revenue was ₩155.9 billion and operating profit was ₩10.3 billion (a 6.6% operating margin).
- At its core, this is a parts mass-production business that fills order volumes while managing input costs such as aluminum and electricity and keeping factory utilization up.
- The latest close is ₩7,530 and market capitalization is ₩274.9 billion.
- The price sits below its 20-day line (₩9,754) and below its 60-day line (₩13,354).
- Trading below both the short- and medium-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the last 14 days on a 0-100 scale) is 28.2, near depressed territory.
- The one-month change is -35.7%, the three-month change is -43.0%, and the position versus the 52-week high is -68.6%.
- Relative strength versus the KOSDAQ is 68 (on a 1-99 scale, computed from returns against 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 31% of all stocks by strength.
- Over the past three months it lagged the index by 27.9%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed full-year 2025 figures, the P/E (how many times one year's net profit the share price trades at) is 75.15x, the P/B (how many times net assets the price trades at) is 2.60x, and the P/S (how many times one year's revenue the market cap trades at) is 1.95x.
- A P/E of 83.23x and a P/B of 2.88x sit above the industry medians (P/E 6.83x, P/B 0.61x), so on the surface this is in overvalued territory.
- That said, a high P/E should not be read straight away as "expensive." 2025 net profit (₩3.7 billion) fell 64% from 2024 (₩10.3 billion), so a smaller denominator inflated the multiple.
- In other words, the P/E for a year of sharply swinging profit can look overstated relative to the company's usual value, so it needs to be viewed together with where profit settles.
- Profitability is still modest, with an ROE (how much is earned in a year on shareholders' equity) of 3.5%, an operating margin of 6.6%, and a net margin of 2.4%.
- The balance sheet is average, with a debt ratio (debt relative to equity) of 182.9% and a current ratio of 151.0%, but the interest-coverage ratio (how many times operating profit can cover interest) of 1.61x, meaning operating profit only barely clears interest, is worth watching.
- Revenue rose for three straight years, from ₩122.0 billion in 2023 to ₩144.4 billion in 2024 and ₩155.9 billion in 2025, a compound annual growth rate (CAGR) of 13.1% over that span.
- The pace, however, slowed from the prior year (+18.4%) to this year (+7.9%).
- Profit tells a different story.
- Operating profit fell even as revenue grew, from ₩14.9 billion (2023) to ₩12.3 billion (2024) to ₩10.3 billion (2025), and net profit was erratic, at -₩3.8 billion (2023), ₩10.3 billion (2024), and ₩3.7 billion (2025).
- In the most recent quarter, Q1 2026, revenue was ₩40.5 billion (essentially flat year over year), operating profit was ₩1.5 billion (-65.1% year over year), and net profit was ₩1.6 billion (+15.2% year over year).
- The top line is holding up but operating profitability is wobbling, so for revenue growth to feed through to profit, the operating margin needs to recover through cost and utilization management.
- The company has not disclosed an official numerical target for this year's revenue or profit, so the practical way to gauge the outlook is to watch whether quarterly operating profit turns up off the bottom.
- Disclosures center on periodic reports and IR (investor briefings).
- The Q1 2026 quarterly report on May 14, 2026, confirmed flat revenue and a sharp drop in operating profit in the numbers, and the 2025 business report on March 19 confirmed annual revenue growth alongside a profit decline.
- On March 23 a short-term borrowing increase for working capital was approved, giving a signal to examine funding conditions and interest burden (interest coverage of 1.61x) together.
- In May the company held two IR events (May 20 and May 26) to strengthen communication with the market.
- Still, neither the IR events nor the periodic reports offered a numerical target for this year's revenue or profit, so the right approach is to read confirmed results and quarterly trends rather than official guidance.
- The strengths are clear.
- Revenue has risen for three straight years, top-line growth is intact, and the business is tied to demand for lightweight aluminum parts for electric vehicles.
- The price is also more than 60% below its high, so it is not a spot where expectations are excessively priced in.
- The cautions are just as clear.
- Operating profit is falling against rising revenue, Q1 operating profit dropped 65% in a squeeze on profitability, and interest coverage of 1.61x leaves a tight cushion.
- The seemingly high confirmed P/E is an optical effect of 2025 net profit shrinking sharply in a single year, so it need not be treated as a danger signal in itself, but justifying it requires profit to hold up.
- In short, this is not a stock to judge in one direction; it depends on conditions.
- It strengthens if the operating margin recovers and rising revenue feeds through to profit, and it weakens into a top-heavy structure if cost and utilization pressure persists and quarterly operating profit stays depressed.
- Given the high volatility, it is best read through quarterly margins and funding disclosures rather than price position alone.
🔎 Valuation vs peers Inconclusive
As a small-cap aluminum die-casting auto-parts maker, HanLa Cast has few listed peers with an identical business, so auto-parts names available on the site are used as a same-industry reference frame, with the caveat that they are large caps differing sharply in market cap and business breadth, used only to gauge position.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Mobis | 11.54x | 0.86x | 7.44% |
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hankook Tire & Technology | 8.04x | 0.72x | 9.00% |
| Hanon Systems | — | 0.97x | -5.27% |
(a) The same-industry reference group trades at P/E ratios of 8-23x and P/B ratios of 0.7-1.2x, with industry medians of P/E 6.83x and P/B 0.61x, while HanLa Cast sits distinctly higher at a confirmed P/E of 83.23x and a P/B of 2.88x. (b) That premium, however, is not one backed by profitability, given an ROE of 3.5% and an operating margin of 6.6%; it stems largely from EV lightweight-part expectations overlapping with last year's trough net profit (₩3.7 billion). (c) 2025 net profit plunged 64% from 2024 (₩10.3 billion), an inflection point that limits the trailing P/E, and no official numerical forward guidance is available to justify the multiple on future profit. For these reasons, rather than settling on one direction, this is treated as inconclusive until a recovery in quarterly operating profit is confirmed.
Price history Close · MA20 · MA60
The latest close is ₩7,530 and the market capitalization is ₩274.9 billion. The price sits below its 20-day moving average (₩9,754) and below its 60-day moving average (₩13,354). 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 28.2, near oversold territory. The one-month change is -35.7%, the three-month change is -43.0%, and the position relative to the 52-week high is -68.6%. Relative strength versus the KOSDAQ is 68 (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 69% of all stocks. Over the past three months it lagged the index by 27.9%. 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 -27.92% / 6M -51.65% / 12M +24.57%
Key metrics vs sector median
Valuation
The P/E of 75.15x is above the sector median (7.76x). The P/B of 2.60x is above the sector median (0.56x).
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 3.5%, below the sector average (7.0%). The operating margin is 6.6%. The debt ratio is 182.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $80.8M | $95.7M | $103.3M | +7.92% ↓ slower |
| Operating profit | $9.9M | $8.1M | $6.8M | -16.15% ↑ faster |
| Net profit | -$2.5M | $6.8M | $2.4M | -64.48% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $80.8M | $95.7M | $103.3M |
| Operating profit | — | — | $9.9M | $8.1M | $6.8M |
| Net profit | — | — | -$2.5M | $6.8M | $2.4M |
| Revenue CAGR | 2-yr avg 13.05% | ||||
Revenue rose 7.9% year over year (2023 ₩122.0 billion → 2024 ₩144.4 billion → 2025 ₩155.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 16.2% year over year. That said, the decline narrowed. Over the 3 years on record, revenue compound annual growth (CAGR) is 13.1%. The two-year revenue CAGR is 13.1%. In the most recent quarter (Q1 2026), revenue was 0.0% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue rose 7.9% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 quarterly report filed - revenue ₩40.5 billion (flat year over year), operating profit ₩1.5 billion (-65.1% year over year), net profit ₩1.6 billion (+15.2% year over year)Short term: revenue held up, but the deterioration in operating profitability was confirmed in the numbers, making profit recovery the key checkpoint. Medium term: needs confirmation that cost and utilization management feed through to annual profit. Source
- 2026-03-23FilingShort-term borrowing increase approved - expansion of short-term borrowing for working capitalShort term: a signal to examine funding conditions and interest burden (interest coverage of 1.61x) together. Medium term: prolonged reliance on borrowing risks having profit offset by interest costs. Source
- 2026-03-19Earnings2025 business report (consolidated) filed - revenue ₩155.9 billion (+7.9% year over year), operating profit ₩10.3 billion (-16.2% year over year), net profit ₩3.7 billion (-64.5% year over year)Short term: top-line growth and a profit decline were confirmed together, setting the baseline for reading trailing metrics. Medium term: needs confirmation of how durable the structure is where revenue growth does not convert into profit. Source
- 2026-05-26IRInvestor briefing (IR) held - the company expanded market communication with two IR events during MayShort term: an opportunity to explain results and business conditions. Medium term: with no numerical targets offered, it only supplements interpretation based on confirmed results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-26Disclosure
- 2026-05-20Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-23Disclosure
- 2026-03-23Disclosure
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-11OwnershipOwnership-change filing
- 2026-03-11OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-03Amended filing
📖 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.