Hankook Tire & Technology makes tires for passenger cars, SUVs, trucks and buses while raising the share of high-inch and EV-specific tires, and in January 2025 it brought the automotive thermal-management company Hanon Systems in as a subsidiary, giving it two business pillars—tires and thermal management. On a 2025 basis the tire segment generated about ₩10.3 trillion in revenue and thermal management about ₩10.9 trillion, roughly equal in size, and in March 2026 the firm disclosed a corporate-value enhancement plan raising the target payout ratio to 33% for 2026 and toward 35% by 2027 and introducing an interim dividend. What stands out lately is the strength of a P/B of 0.64x, a 3%-plus dividend, and a P/E that falls to around 6x on this year's earnings as thermal management normalizes—set against the caution that the acquisition-driven debt ratio (220%) and interest burden, and governance oversight such as the embezzlement/breach-of-trust matter disclosed in May, are the key variables.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 220.1%).
- 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 8.7%.
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
- Hankook Tire & Technology makes and sells tires for passenger cars, SUVs, trucks and buses.
- Its volumes divide into original-equipment supply to carmakers for new vehicles (OE) and replacement tires that consumers swap in (RE), and lately it has been raising the share of higher-margin 18-inch-and-up high-inch tires and EV-specific tires.
- On top of this, in January 2025 it brought in the automotive thermal-management (heating/cooling and electrification-component) company Hanon Systems as a subsidiary (acquiring about a 55% stake, later expanded to the mid-60% range), so it now has a structure with two large business pillars: tires and thermal management.
- On a 2025 basis, the tire segment generated about ₩10.3 trillion in revenue and the thermal-management (Hanon Systems) segment about ₩10.9 trillion, the two businesses filling out consolidated results in roughly equal size.
- The recent close is ₩70,700 and market cap is ₩8.8 trillion.
- The price sits above its 20-day line (₩66,880) and above its 60-day line (₩64,520).
- Trading above both its short- and mid-term moving averages, the trend looks favorable.
- The RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 56.9, a neutral reading.
- The 1-month change is +0.1%, the 3-month change is +32.6%, and it stands -6.9% below its 52-week high.
- Relative strength versus the KOSPI is 56 (1-99, a recency-weighted conversion of returns against the index over the past year—higher means stronger than the market), placing it around the top 44% of all stocks by strength.
- Over the past three months it has lagged the index by 7.4%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The P/E (how many times one year's earnings the price represents) is 8.04x and the P/B (how many times the company's net assets) is 0.72x, so it trades below net assets.
- ROE (how much is earned in a year on equity) is 9.0% and the operating margin 8.7%, making profitability unremarkable but sound.
- The dividend yield is 3.7% (₩2,300 per share, a payout ratio of about 26%), lending some dividend appeal.
- The debt ratio (debt against equity) of 220% is somewhat high, reflecting the increased borrowing from the 2025 Hanon Systems acquisition, but with a current ratio of 170% and interest coverage of 3.4x, repayment capacity itself is maintained.
- Note that last year's (2025) net profit was similar to the prior year, reflecting the integration costs and interest burden of the first year of consolidating Hanon Systems; measuring against 2026, when earnings rise again, is closer to the company's substance.
- Five-year revenue rose from ₩7.1 trillion (2021) to ₩21.2 trillion (2025), where the 2025 surge (+125%) was mostly the effect of consolidating Hanon Systems.
- Operating profit also rose, from ₩642.2 billion (2021) to ₩1,841.1 billion (2025).
- For Q1 2026 (cumulative), revenue was ₩5.3 trillion (+7.1%), operating profit ₩507.0 billion (+43%), and net profit ₩372.4 billion (+19.3%), with earnings growing far faster than revenue as the thermal-management segment moved onto a profitable track.
- Given that net profit rose double digits even in the first quarter—seasonally weak for the tire sector—and that thermal-management normalization continues through the year, full-year net profit should clearly exceed last year's (about ₩1.09 trillion).
- Reflecting this recovery trajectory, the P/E on this year's earnings falls to around 6x, lower than the 7.1x on last year's basis attached to the current price.
- In March 2026 the company voluntarily disclosed a "corporate-value enhancement plan," stating it would gradually raise the payout ratio toward the 35% level over 2025-2027 and introduce an interim dividend starting in 2025 (a target payout ratio of 33% for 2026).
- In April it held an investor briefing (IR), and in May, alongside provisional Q1 results, business-realignment disclosures followed including a merger decision within the Hanon Systems subsidiary group.
- On May 8 there was a disclosure confirming embezzlement/breach-of-trust facts related to a past matter—something to note alongside as a governance concern.
- In June, a large-holding report related to a treasury-share acquisition was filed.
- The strengths are clear.
- The core tire business is solid, centered on high-inch and EV tires; it trades cheaply below net assets (P/B of 0.64x), carries a 3%-plus dividend, and has the company's official plan to raise the payout ratio to 35%.
- Above all, 2026 is a stretch where, past the first-year burden of consolidation, Hanon Systems (thermal management) normalizes and earnings rise again, so the P/E on this year's earnings falls to around 6x, lower than on last year's basis.
- On the other hand, the cautions are the acquisition-driven debt ratio (220%) and the attendant interest burden, and governance risk such as the embezzlement/breach-of-trust matter disclosed in May.
- In sum, if tire profitability holds and thermal-management normalization proceeds as planned, the structure draws strength from both earnings and shareholder returns, while debt repayment and management of governance issues become the key variables.
🔎 Valuation vs peers Undervalued
A comparison set of tire and auto-parts companies and group holding companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumho Tire | 4.96x | 0.85x | 17.12% |
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hankook & Company | 6.96x | 0.51x | 7.26% |
It is higher than tire peer Kumho Tire (P/E of 4.2x), but that company pays no dividend and is smaller in scale. Conversely, it is much lower than auto-parts maker HL Mando (P/E of 22.6x) and similar to the group holding company Hankook & Company (P/E of 6.6x). The P/E of 7.1x on last year's basis looks somewhat high because integration costs and the interest burden in the first year of consolidating Hanon Systems weighed on earnings; measured against this year's earnings as the thermal-management segment normalizes, the P/E falls to around 6x. Taken together with a P/B of 0.64x below net assets and the official plan to expand the payout ratio to 35%, valuation relative to scale, profitability and shareholder returns is judged to be in an undervalued zone.
Price history Close · MA20 · MA60
The latest close is ₩70,700 and the market capitalization is ₩8.8 trillion. The price sits above its 20-day moving average (₩66,880) and above its 60-day moving average (₩64,520). 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 56.9, a neutral level. The one-month change is +0.1%, the three-month change is +32.6%, and the position relative to the 52-week high is -6.9%. Relative strength versus the KOSPI is 56 (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 56% of all stocks. Over the past three months it lagged the index by 7.4%. 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 -7.42% / 6M -24.09% / 12M -29.90%
Key metrics vs sector median
Valuation
The P/E of 8.04x is in line with the sector median (7.76x). The P/B of 0.72x 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 9.0%, above the sector average (7.0%). The operating margin is 8.7%. The debt ratio is 220.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.9B | $6.2B | $14.1B | +125.27% ↑ faster |
| Operating profit | $880.1M | $1.2B | $1.2B | +4.47% ↓ slower |
| Net profit | $477.3M | $738.7M | $722.1M | -2.26% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.7B | $5.6B | $5.9B | $6.2B | $14.1B |
| Operating profit | $425.6M | $467.8M | $880.1M | $1.2B | $1.2B |
| Net profit | $389.8M | $457.5M | $477.3M | $738.7M | $722.1M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.2%, 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 — a phased expansion of the payout ratio toward the 35% level over 2025-2027, introduction of an interim dividend from 2025, and a target payout ratio of 33% for 2026.An official plan that provides a basis for expanded shareholder returns over the medium term, and a factor that raises dividend appeal if paired with growing dividend resources. Source
- 2026-05-08EarningsQ1 2026 consolidated provisional results — revenue of ₩5.31 trillion (+7.1%), operating profit of ₩507.0 billion (+43%), and net profit of ₩372.4 billion (+19.3%).Confirms an earnings improvement from thermal-management normalization in the short term, supporting expectations for a full-year earnings recovery. Source
- 2026-05-13FilingSubsidiary (Hanon Systems group) merger decision — realignment of a subsidiary's lower-tier organization.A matter related to efficiency of the organizational and cost structure of the thermal-management business over the medium term. Source
- 2026-05-08UpdateDisclosure confirming embezzlement/breach-of-trust facts.A governance-related concern requiring monitoring over the short to medium term. Source
- 2026-04-22IRInvestor briefing (IR) held — guidance on results and business conditions.An official company communication channel on the direction of results in the short term. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue and operating profit | revenue 21.20 / operating profit 1.841 | revenue 212,022 / operating profit 18,425 | Confirmed | link |
| Hanon Systems stake consolidation | 2025 revenue YoY +125% | 2025 1 approx. 54.77% | Confirmed | link |
| 2026 forward P/E on this year's earnings | approx. 6.0x | — | Unverified | — |
Recent filings
- 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.