Hanjin KAL is a holding company that owns stakes in the core affiliates of the Hanjin Group, including Korean Air (about 30%), Jin Air, Hanjin, and KAL Hotel Network. The parent company itself earns relatively little from trademark royalties, real estate, and IT services, so the bulk of its net profit is filled by equity-method gains from its subsidiaries. In the first quarter of 2026, operating profit rose 92.7% and cumulative net profit reached ₩85.4 billion, putting the aviation recovery cycle into hard numbers. In May, a series of subsidiary-level disclosures followed, covering a merger decision, new facility investment, and the acquisition of stakes in other companies. What stands out most is that the company combines a solid balance sheet (a 21% debt ratio) and an asset base of held stakes with rising equity-method gains driven by the aviation recovery. At the same time, because its earnings are heavily tied to Korean Air, it remains directly exposed to swings in subsidiary profits whenever air travel demand and fares soften or integration uncertainty grows.
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 rose 2.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.1% higher than a year earlier.
- ROE is 4.6% (controlling-interest basis). It is below the sector average.
- Operating margin is -2.5%.
- 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 2019-12-31
Largest shareholder Cho Won-tae 6.52% (individual)
Controlling bloc incl. related parties 21.07%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
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
| Hanjin | 30.2% |
| Korean Air | 29.27% |
| Korean Air | 0.86% |
🔎 In-depth analysis
- Hanjin KAL does not make products or sell services directly; it is a holding company that owns stakes in the core affiliates of the Hanjin Group.
- Its largest holding is its stake in Korean Air (about 30%), and it also has subsidiaries such as Jin Air, Hanjin (parcel delivery and logistics), and KAL Hotel Network.
- The money the parent earns directly comes from trademark (brand) royalties, real estate and hotels (Seogwipo KAL Hotel, Grand Hyatt Incheon, and others), and IT service fees, all of which are small in scale, so the parent's own operating result in 2025 was a slight loss.
- Net profit, on the other hand, is largely filled by equity-method gains from subsidiaries, so an accounting operating loss at the parent level coexisting with a healthy net profit is the normal structure for a holding company.
- In other words, the key to understanding Hanjin KAL is not "how the parent does business" but "how well the subsidiaries it holds earn."
- The latest closing price is ₩126,000 and the market cap is ₩8.4 trillion.
- The price sits above its 20-day line (₩123,405) and above its 60-day line (₩117,160).
- Being above both the short- and medium-term moving averages, the trend looks fairly healthy.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 53.0, a neutral level.
- The one-month change is +9.0%, the three-month change is +17.5%, and the position versus the 52-week high is -27.2%.
- Relative strength versus the KOSPI is 38 (on a 1-99 scale, converting the past year's return versus the index with more recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 62% of all stocks by strength.
- Over the past three months it lagged the index by 11.5%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On confirmed 2025 results, the trailing P/E (the share price divided by last year's per-share net profit) is 54.27x, the P/B (the share price divided by per-share net asset value) is 2.52x, and ROE (the return earned on shareholders' equity over one year) is 4.6%, so the headline numbers look expensive.
- But these surface metrics are hard to apply directly to a holding company.
- The parent's operating profit reflects only its small in-house businesses and easily slips into a loss, while net profit is filled by equity-method gains from subsidiaries, so ROE and operating margin are measured differently than at an ordinary manufacturer or service firm.
- In particular, the trailing P/E surged to 52x because confirmed 2025 net profit (₩155.0 billion) fell sharply from the prior year (₩497.0 billion); when the denominator temporarily shrinks, the multiple is automatically inflated.
- Meanwhile, the debt ratio is a low 21.4%, so the financial structure itself is stable, and the value of held stakes (about ₩3.0 trillion for the listed portion alone, and more when unlisted subsidiaries are included) provides a solid asset base.
- The parent's revenue is centered on trademarks and real estate and is small in scale, so it carries little meaning; a holding company's real growth comes from the equity-method gains its subsidiaries earn.
- Looking at cumulative first-quarter 2026 results, revenue was ₩69.6 billion (+11.1% year on year), operating profit was ₩13.0 billion (+92.7%), and net profit was ₩85.4 billion (+16.9%), all higher than a year earlier.
- Operating profit nearly doubling shows the parent's own businesses are normalizing by narrowing their loss, and net profit of ₩85.4 billion points to the growing profit contribution from subsidiaries, above all the core subsidiary Korean Air.
- Air travel demand has recovered from the pandemic shock and is maintaining stable fares and load factors, and the Korean Air-Asiana integration is strengthening its footing in terms of routes and market share, which underpins this year's earnings recovery.
- The confirmed 2025 P/E was high at 52x simply because last year's profit temporarily shrank; measured against this year's earnings power, the valuation burden eases considerably.
- Recent disclosures center on governance changes and confirmed earnings.
- On May 13-14, 2026, a subsidiary merger decision and its attached documents were disclosed, opening the door for affiliate reorganization and changes in subsidiary value, and on May 15 the quarterly report disclosed confirmed first-quarter results.
- On March 26, a subsidiary's new facility investment decision was disclosed, showing a subsidiary moving into growth investment, and on May 29 a subsidiary's decision to acquire shares and equity securities in another company (a material management matter) was disclosed, indicating that business expansion through subsidiaries is continuing.
- Because Hanjin KAL's essence lies in the value of its subsidiary stakes rather than its own operations, these subsidiary-level merger, investment, and earnings disclosures are effectively the company's key variables.
- Hanjin KAL's strengths are clear.
- Riding the aviation recovery cycle, equity-method gains from subsidiaries are rising again, and first-quarter operating profit of +92.7% and cumulative net profit of ₩85.4 billion put that recovery into hard numbers.
- Its finances are solid, with a 21% debt ratio, and the asset base of its held stakes supports its value.
- The point to watch carefully is the structural fact that Hanjin KAL is not a company that earns money from its own operations but one heavily linked to subsidiary results, especially Korean Air's.
- So if air travel demand and fares soften, equity-method gains can shrink too, and the variables around the Korean Air-Asiana integration process also bear watching.
- In short, when the aviation environment is firm and integration benefits take hold, the stock is strong as forward earnings recovery and a low valuation come to the fore; conversely, when air travel demand turns down or integration uncertainty grows, it remains directly exposed to swings in subsidiary profits.
🔎 Valuation vs peers Inconclusive
Because the business is essentially a holding company, it is compared not against "banks/finance" under the Korean industry classification but against holding and operating-holding companies—SK (operating holding), LG (pure holding), and Hanwha (operating holding)—sharing the common point that the value of subsidiary stakes is central to the assessment.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK | 27.68x | 1.76x | 6.34% |
| LG Corp | 21.19x | 0.54x | 2.57% |
| Hanwha | 17.34x | 0.55x | 3.15% |
(a) The true peer group—holding companies such as SK, LG, and Hanwha—trade at a P/B of 0.6-1.7x and a P/E in the low 20s, whereas Hanjin KAL is higher on the surface at a P/B of 2.1x and a P/E of 45x. (b) That premium is not unrelated to the leverage expectation that equity-method gains rise sharply when the core aviation business recovers, so it is hard to dismiss as simply overvalued. (c) Last year's trailing P/E was distorted by a swing in net profit (₩497.0 billion in 2024 to ₩155.0 billion in 2025), and the forward path this year, approximated from DART seasonality, points toward recovery, so it is hard to call it expensive on the trailing multiple alone. Since a holding company should fundamentally be viewed on the sum of its net asset value and subsidiary stake values (SOTP), the multiple comparison is treated only as a secondary indicator, and the verdict is left Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩73.9 billion | approx. ₩15.6 billion | approx. ₩116.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩126,000 and the market capitalization is ₩8.4 trillion. The price sits above its 20-day moving average (₩123,405) and above its 60-day moving average (₩117,160). 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 53.0, a neutral level. The one-month change is +9.0%, the three-month change is +17.5%, and the position relative to the 52-week high is -27.2%. Relative strength versus the KOSPI is 38 (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 38% of all stocks. Over the past three months it lagged the index by 11.5%. 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 -11.53% / 6M -34.23% / 12M -55.24%
Key metrics vs sector median
Valuation
The P/E of 54.27x is above the sector median (6.67x). The P/B of 2.52x is above 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 4.6%, in line with the sector average (5.0%). The operating margin is -2.5%. The debt ratio is 21.4%, 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 | $182.7M | $193.6M | $197.7M | +2.12% ↓ slower |
| Operating profit | $28.4M | $32.6M | -$5.0M | -115.29% ↓ slower |
| Net profit | $255.3M | $329.4M | $102.7M | -68.81% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $98.4M | $132.8M | $182.7M | $193.6M | $197.7M |
| Operating profit | -$6.6M | $9.6M | $28.4M | $32.6M | -$5.0M |
| Net profit | $11.4M | $453.2M | $255.3M | $329.4M | $102.7M |
| Revenue CAGR | 4-yr avg 19.07% | ||||
Revenue rose 2.1% year over year (2023 ₩275.7 billion → 2024 ₩292.2 billion → 2025 ₩298.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 115.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 19.1%. The two-year revenue CAGR is 4.0%. In the most recent quarter (Q1 2026), revenue was 11.1% higher 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 2.1% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15FilingFiled its first-quarter 2026 quarterly report (revenue ₩69.6 billion, operating profit ₩13.0 billion, net profit ₩85.4 billion). Confirms figures reflecting both parent-level results and equity-method gains from subsidiaries.Short term: confirms the first-quarter earnings improvement. Medium term: a reference point for tracking whether subsidiary (especially aviation) results feed through via the equity method. Source
- 2026-05-13FilingA subsidiary's merger decision (material-matters report). A merger at the level of a Hanjin KAL subsidiary that reorganizes the group's affiliate structure.Short term: assessment criteria shift depending on the merger schedule and terms. Medium term: consolidated results and the method for valuing subsidiary stakes may change, making it a factor for re-valuing the holding company. Source
- 2026-05-14FilingAttachment correction to a subsidiary's merger decision. A corrective disclosure supplementing the attached documents of the earlier merger-decision disclosure.Short term: part of finalizing the detailed merger terms. Medium term: material for tracking the progress of subsidiary structural reorganization. Source
- 2026-03-26FilingA subsidiary's decision on new facility investment. New investment at the subsidiary level that affects the subsidiary's future results and asset size.Short term: the investment announcement itself. Medium term: if the investment translates into subsidiary results, it feeds into the parent's net profit via the equity method. Source
- 2026-05-29FilingCorrection to the disclosure on acquiring shares and equity securities in another company (a subsidiary's material management matter). A correction to a subsidiary's stake-acquisition disclosure.Short term: tidies up the stake-acquisition terms. Medium term: given the nature of a holding company, changes in subsidiary and affiliate stakes are directly linked to the parent's asset value. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩13.0 billion | ₩13.0 billion | Confirmed | link |
| 2025 annual net profit (attributable to controlling shareholders) | ₩155.0 billion | ₩155.0 billion | Confirmed | link |
| Existence of a subsidiary merger-decision disclosure | 2026-05-13 / 05-14 | DART | Confirmed | link |
| 2026 annual results (seasonality approximation) | revenue approx. ₩329.4 billion· approx. ₩49.8 billion· approx. ₩476.0 billion | — | Unverified | link |
Recent filings
- 2026-05-29Amended filing
- 2026-05-29Corporate governance report
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Material-fact report (amended)
- 2026-05-13Material-fact report
- 2026-05-13Amended filing
- 2026-04-22OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-26Disclosure
📖 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.