Hankook Tire & Technology (161390) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Hankook Tire & Technology is Korea's leading tire maker, producing tires for passenger cars, SUVs, trucks, and buses while expanding its mix of higher-margin large-diameter and EV-specific tires. From 2025 it consolidated Hanon Systems, an automotive climate-control and thermal-management parts company, as a subsidiary with a stake of about 54.8%, giving it two business pillars in tires and thermal management. That consolidation more than doubled 2025 consolidated revenue from ₩9.4 trillion to ₩21.2 trillion, and in the first quarter of 2026 operating profit rose 43% year-on-year to ₩507.0 billion, while the dividend was expanded 15% from the prior year to ₩2,300 per share (a payout ratio of 25.8%). What stands out lately is the need to weigh both sides: strengths such as a P/B of 0.73x, a dividend in the 3% range, and a net-cash position, against cautions such as the elevated debt ratio (120%) from the acquisition and the still-thin margins of the thermal-management arm, which will determine how well earnings can keep improving.
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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 “Tires” (Chemicals, Refining, Steel & Materials · Other Materials), a type typically read first through P/E.
Tire makers feel raw-material prices and new-car sales, but they are a mature industry that earns steadily on a durable replacement-demand base. For a business like this, net profit is the core of the story, so price-to-earnings (P/E) — the price against actual earnings — is the first lens.
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 ratio, current ratio and interest burden all look healthy.
- Revenue rose 125.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 7.1% higher than a year earlier.
- ROE is 9.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.2%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2020-12-31
Largest shareholder Hankook & Company (formerly Hankook Technology Group) 30.67% (corporate)
Controlling bloc incl. related parties 43.23%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis Reading
Hankook Tire & Technology's core business is making and selling tires for passenger cars, SUVs, trucks, and buses. Revenue splits between original-equipment volume supplied to automakers for new vehicles (OE) and replacement tires that consumers swap in (RE). In particular, it has lifted profitability by growing the mix of higher-margin large-diameter tires of 18 inches and up and of EV-specific tires. On top of that, from 2025 it consolidated Hanon Systems, an automotive climate-control and thermal-management (heating/cooling and electrification parts) company, as a subsidiary with a stake of about 54.8%, so it now has a structure with two large pillars: tires and thermal management. The thermal-management arm supplies parts that regulate EV battery and cabin temperature to automakers; its revenue base is large but its margin is still thin, in the 3% range. It is therefore truer to the substance to look at the company's results by separating the higher-margin core tire business from the large but low-margin thermal-management arm.
The latest close is ₩70,500 and the market capitalization is ₩8.7 trillion. The price sits above its 20-day moving average (₩69,695) and above its 60-day moving average (₩67,092). 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 53.9, a neutral level. The one-month change is -4.9%, the three-month change is +18.5%, and the position relative to the 52-week high is -8.1%. Relative strength versus the KOSPI is 62 (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 62% of all stocks. Over the past three months it outpaced the index by 29.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation is close to undervalued territory. The P/E ratio (how many times one year of earnings the price represents) is 8.02x, and the P/B (how many times the company's net assets the price represents) is 0.69x, so it trades below book value. ROE (how much it earns in a year on its equity) is 9.0% and the operating margin is 8.7%, so profitability is respectable. The dividend also appeals, with a yield of 3.2% (₩2,300 per share, a payout ratio of 25.8%). The margins look lower than before because the thin-margin thermal-management revenue has been added wholesale, not because the core tire business has deteriorated. On the balance sheet, the debt ratio (debt to equity) is somewhat high at 220%, reflecting the increased borrowing from the 2025 Hanon Systems acquisition. However, net debt (total borrowings minus cash) is negative, meaning the company holds more cash than it owes, a net-cash position. As a result, the debt-inclusive multiples EV/EBIT (enterprise value divided by operating profit, a debt-adjusted counterpart to the P/E) at 3.1x and EV/EBITDA at 1.7x are low. Even after accounting for debt, it actually looks cheaper. A current ratio of 170% and interest coverage of 3.4x show that its ability to service obligations is intact.
Over five years revenue grew sharply from ₩7.1 trillion (2021) to ₩21.2 trillion (2025). But the 2025 surge (+125%) was mostly the effect of consolidating Hanon Systems, so it differs from the organic growth rate of the core tire business. The earnings trajectory is solid. Operating profit rose steadily from ₩642.2 billion in 2021 to ₩1.8411 trillion in 2025. First-quarter 2026 (cumulative) showed revenue of ₩5.3 trillion (+7.1%), operating profit of ₩507.0 billion (+43%), and net profit of ₩372.4 billion (+19.3%), with earnings growing much faster than revenue. Even though the first quarter is seasonally weak for the tire industry, net profit rose double digits. If the trend of the thermal-management arm, weak in its first year of consolidation, building a foundation of profitability continues through the year, full-year net profit this year has a good chance of exceeding last year's (about ₩1.09 trillion). Reflecting that recovery trajectory, the P/E on this year's earnings trends below the 8.1x on last year's earnings. That said, one should also note that the increased interest expense from the acquisition partly offsets the gain in net profit.
In March 2026 the company voluntarily disclosed a corporate-value enhancement plan. For the tire arm it set out revenue growth above the market rate and maintenance of global top-tier profitability; for the thermal-management arm, securing financial stability; and overall, growth centered on large-diameter tires, capacity expansion, and greater shareholder returns. It did not, however, include specific revenue or profit targets. The 2025 dividend of ₩2,300 per share (₩800 interim + ₩1,500 year-end), a payout ratio of 25.8%, raised the total dividend amount 15% from the prior year. May's preliminary first-quarter results showed operating profit jumping 43% year-on-year, demonstrating the strength of the core tire business. Separately, in May there was a disclosure of a Supreme Court final ruling on occupational embezzlement and breach of trust by a former executive, but the confirmed amount was just 0.01% of shareholders' equity, so the financial impact is negligible. In July, a no-consideration absorption merger between small domestic subsidiaries of the thermal-management arm is scheduled, an internal reorganization aimed at management efficiency.
The strengths are clear. As Korea's leading tire maker, its profitability centered on large-diameter and EV tires is solid. It combines a below-book P/B of 0.73x and EV/EBITDA of 1.7x with a dividend in the 3% range and a net-cash position. The 43% rise in first-quarter operating profit shows the underlying strength of the core business. The cautions must be weighed alongside. The Hanon Systems acquisition pushed the debt ratio up to 120%, and the interest burden could weigh on the pace of net-profit improvement. The thermal-management margin is still thin, so how quickly consolidated profitability recovers is the key question. There is also a cyclical, demand-sensitive character, with results swaying to tire demand, raw materials (rubber and oil prices), and exchange rates. The final ruling on the former executive's embezzlement and breach of trust disclosed in May is negligible in amount but worth noting from a governance perspective. In sum, when premium-tire demand is solid and the thermal-management arm is building a profitable base, the low valuation and dividend appeal, but the interest burden tied to the acquisition and the pace of the thermal-management recovery will decide the direction of earnings.
🔎 Valuation vs peers Undervalued
A domestic comparison set of finished-tire and automotive-parts makers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumho Tire | 6.57x | 1.02x | 15.53% |
| Hankook & Company | 7.22x | 0.50x | 7.18% |
| Hanon Systems | — | 0.93x | -5.27% |
Its P/E looks somewhat higher than tire peer Kumho Tire (a P/E of 5.5x), but at a P/B of 0.73x it is in undervalued territory relative to net assets. The doubling of 2025 revenue was driven by the consolidation of Hanon Systems, so the P/E and margins based on last year's results need to be interpreted with care. The debt-inclusive EV/EBIT of 3.1x and EV/EBITDA of 1.7x are very low thanks to the net-cash position, so from an enterprise-value standpoint it actually looks cheap. Given that first-quarter operating profit rose 43%, the P/E on this year's earnings trends below last year's (8.1x), so the valuation appeal holds.
Price history Close · MA20 · MA60
The latest close is ₩70,500 and the market capitalization is ₩8.7 trillion. The price sits above its 20-day moving average (₩69,695) and above its 60-day moving average (₩67,092). 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 53.9, a neutral level. The one-month change is -4.9%, the three-month change is +18.5%, and the position relative to the 52-week high is -8.1%. Relative strength versus the KOSPI is 62 (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 62% of all stocks. Over the past three months it outpaced the index by 29.6%. 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 +29.62% / 6M -10.76% / 12M -19.65%
Key metrics Computed vs sector median
Valuation
The P/E of 8.02x is above the sector median (6.24x). The P/B of 0.69x is above the sector median (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 9.0%, above the sector average (5.0%). The operating margin is 9.2%. The debt ratio is 102.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $6.3B | $6.6B | $14.9B | +125.27% ↑ faster |
| Operating profit | $932.9M | $1.2B | $1.3B | +4.47% ↓ slower |
| Net profit | $506.0M | $783.0M | $765.4M | -2.26% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.0B | $5.9B | $6.3B | $6.6B | $14.9B |
| Operating profit | $451.1M | $495.8M | $932.9M | $1.2B | $1.3B |
| Net profit | $413.2M | $484.9M | $506.0M | $783.0M | $765.4M |
| Revenue CAGR | 4-yr avg 31.27% | ||||
Revenue rose 125.3% year over year (2023 ₩8.9 trillion → 2024 ₩9.4 trillion → 2025 ₩21.2 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 4.5% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 31.3%. The two-year revenue CAGR is 54.0%. In the most recent quarter (Q1 2026), revenue was 7.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.3%, is on the high side.
- Revenue grew 125.3% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-27FilingVoluntary disclosure of a corporate-value enhancement plan — the tire arm to grow revenue above the market rate and maintain global top-tier profitability, the thermal-management arm to secure financial stability, with growth centered on large-diameter tires and expansion of capacity and shareholder returns (no specific numerical targets given)Confirms the medium-term direction toward greater shareholder returns. 2025 payout ratio of 25.8%, total dividend up 15% year-on-year. Source
- 2026-05-08EarningsPreliminary Q1 2026 consolidated results — revenue of ₩531.39 billion... revenue ₩5.3139 trillion (+7.1% YoY), operating profit ₩507.0 billion (+43.0%), net profit ₩372.4 billion (+19.3%)Operating profit rose sharply on improved core tire margins. With the low net-profit base of the prior quarter (Q4 2025), net profit rebounded strongly quarter-on-quarter. Source
- 2026-05-13FilingSubsidiary Hanon Systems EFP decides on a 100% no-consideration absorption merger of Hanon Systems EFP Korea (merger date 2026-07-01)An internal reorganization within the group aimed at management efficiency. No new shares are issued, so there is no change to governance or capital. Source
- 2026-05-08UpdateDisclosure of a Supreme Court final ruling on occupational embezzlement and breach of trust by a former executive — confirmed amount about ₩1.67 billion, 0.01% of shareholders' equityA cautionary matter from a governance and reputation standpoint, but with the amount at 0.01% of shareholders' equity, the financial impact is negligible. Source
- 2026-04-22IRNotice of an investor briefing (IR) — a session for domestic and overseas institutional and retail investors explaining results and business conditionsRegular investor communication. Tied to the May first-quarter results release. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated revenue | 5₩313.9 billion(base quarter revenue) | 5,313,928 | Confirmed | link |
| Q1 2026 consolidated operating profit | ₩507.0 billion(base quarter op_income) | 506,964 | Confirmed | link |
| 2025 dividend per share (DPS) | ₩2,300(base valuation dps) | ₩2,300, 25.75% | Confirmed | link |
| 2026 in-house estimate of net profit attributable to controlling shareholders | approx. ₩1.26 trillion | — | Unverified | — |
Recent filings Source
- 2026-06-09OwnershipOwnership-change filing
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Merger decision
- 2026-05-08Embezzlement/breach disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-22Disclosure
- 2026-03-27Disclosure
📖 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.