HFR is a telecom network-equipment company built on two pillars: transport equipment (xHaul) that carries 5G and LTE base-station data to carriers' core networks, and optical-access (FTTH/PON) equipment that connects high-speed internet by fiber all the way to homes and buildings. Private 5G and repeater systems are added to these, and its main customers are domestic and overseas carriers such as SK Telecom, KT, and NTT Docomo. A February 26 disclosure of a change in profit-and-loss structure confirmed that the 2025 operating loss narrowed sharply from the prior year (-₩20.2 billion); the March business report and May Q1 report carried the results, and on June 1 a disposal of shares in another company tidied up its asset composition. The notable point is that narrowing the loss from -₩20.2 billion in 2024 to -₩1.6 billion in 2025, right up to the edge of break-even, together with an overseas customer base and a low valuation at a P/B of 1.79x, is a strength, while revenue is driven by carrier investment schedules, making quarterly volatility large, and losses stand out in off-peak quarters such as the first.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 9.6% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 39.3% lower than a year earlier.
- ROE is -0.2% (controlling-interest basis).
- Operating margin is -1.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Jung Jong-min 29.92% (individual)
Controlling bloc incl. related parties 30.66%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- HFR is a telecom network-equipment company founded in 2000.
- Its two core revenue pillars are, first, mobile access and, second, optical-access networks.
- Mobile access is equipment called 'xHaul' — fronthaul, midhaul, and backhaul transport equipment that carries data generated by 5G and LTE base stations to carriers' core networks (its own product line is flexiHaul, offering both WDM, which splits light by wavelength, and packet methods).
- The optical-access network is FTTH/PON equipment (OLT, ONT, etc.) that connects high-speed internet by fiber all the way to homes and buildings.
- By the company's official solution descriptions, mobile transport accounts for a large share of revenue and wired optical access for the rest.
- Added to these are private 5G, a dedicated network for enterprises and institutions (its own 'my5G,' with the domestic 'e-eum 5G' business handled by subsidiary HFR Mobile), repeater systems (DAS) that fill in coverage gaps inside buildings, and carrier-Ethernet equipment.
- Its main customers are domestic and overseas carriers, with the company's profile naming domestic operators such as SK Telecom, KT, and SK Broadband, and overseas operators such as NTT Docomo and Telekom Malaysia.
- In short, because the starting point of revenue is carrier capital investment, quarterly revenue varies widely with customers' investment timing.
- The latest close was ₩15,580 and the market cap is ₩207.4 billion.
- The price sits below both the 20-day line (₩20,662) and the 60-day line (₩27,415).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing recent upward and downward strength over the past 14 days on a 0-100 scale) is 28.4, close to oversold territory.
- The one-month change is -32.4%, the three-month change is -45.3%, and the position versus the 52-week high is -59.1%.
- Relative strength against the KOSDAQ is 80 (on a 1-99 scale, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 20% of all stocks by strength.
- Over the past three months it lagged the index by 23.2%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On asset value, the P/B (how many times book value per share the price is) is 1.46x, actually below the telecom/broadcast-equipment industry median (1.99x), with book value per share (BPS) of ₩10,701.
- Shareholders' equity is ₩142.4 billion, the debt-to-equity ratio (the size of debt relative to equity) is 85.7%, and the current ratio (assets convertible within a year against debt due within a year) is 182%, so the financial structure itself is not strained.
- Profitability metrics (on confirmed 2025 results, ROE -0.2%, operating margin -1.1%) are still weak because of the loss, but this company is at an inflection point where profit is crossing from loss to profit.
- In such a case, judging cheap or expensive from last year's trailing numbers alone (the P/E is not even calculable) means little, and a forward P/E assuming normalized profit is closer to the true picture.
- The forward P/E is at a level similar to peer 5G-transport and telecom-equipment makers (RFHIC about 60x, Hanwha Vision about 62x), so assuming a profit recovery, it is not in a conspicuously expensive range versus peers.
- Five-year revenue ran ₩206.4 billion (2021) → ₩366.3 billion (2022) → ₩164.2 billion (2023) → ₩157.1 billion (2024) → ₩142.0 billion (2025), with the top line declining after the 2022 peak (a two-year average of -7.0%).
- Where the company is actually improving, though, is profit and loss.
- The operating result deepened to -₩8.4 billion in 2023 and -₩20.2 billion in 2024, then narrowed the loss at a stroke to -₩1.6 billion in 2025, coming right up to break-even.
- Quarterly results have clear seasonality: because carrier capital investment clusters in the second half and the fourth quarter, revenue and profit concentrate toward year-end and the first quarter is structurally the weakest.
- Indeed, in 2025 it showed a pattern of a Q1 loss → Q2 profit (+₩4.0 billion) → Q3 loss → Q4 profit.
- The most recent Q1 2026 was weak again, with revenue of ₩16.3 billion (down 39.3% year on year) and an operating loss of -₩5.7 billion, but this simply reflects that it is the weakest quarter of the year.
- This year's forward P/E is set at a level similar to peers on the premise that this quarterly seasonality and the carrier investment cycle return to a normal flow, and it is well explained if the narrowing loss leads to a return to profit.
- Whether the revenue top line itself grows again is a separate matter to confirm through second-half carrier orders and overseas wins.
- The disclosure flow can be summarized as 'confirmation of the narrowing loss' and 'tidying of assets and holdings.' The February 26, 2026 disclosure of a 30%-plus change in profit-and-loss structure reported that the 2025 operating loss narrowed sharply from the prior year (-₩20.2 billion); the business report (2025.12) on March 19 and the quarterly report (2026.03) on May 15 are the primary documents carrying the confirmed annual and Q1 results, respectively.
- There were regular shareholder-meeting results on March 27, and a KOSDAQ market-section change disclosure on April 30.
- On June 1, a decision to dispose of shares in another company was disclosed (with a subsequent revision), a decision to tidy up a holding in another company, related to a change in asset composition.
- Rather than general news articles, it is appropriate to follow the flow through such original disclosures and official company materials.
- Starting with the strengths, the loss narrowed from -₩20.2 billion in 2024 to -₩1.6 billion in 2025, right up to the edge of break-even, and the company combines a core telecom-infrastructure business in 5G transport, optical access, and private 5G with an overseas customer base such as NTT Docomo and Telekom Malaysia.
- The price relative to assets (P/B 1.79x) is below the industry median, and the forward P/E assuming normalized profit is also at a level similar to peer 5G-transport and telecom-equipment makers, so as the recovery is confirmed in the numbers, the price burden is not large.
- The point to watch comes from the business structure: revenue is driven by carrier investment schedules, making quarterly volatility large, and losses stand out in off-peak quarters like the first.
- In short, it is strong when second-half carrier-investment concentration and a return to profit continue and overseas wins translate into actual revenue, and weak when off-peak weakness hardens into the annual result or the revenue top line keeps shrinking.
- Ultimately this is a stock to track through quarterly results and disclosures for 'whether the return to profit is sustained.'
🔎 Valuation vs peers Inconclusive
Uses KOSDAQ telecom/broadcast-equipment names whose business substance (5G transport, telecom equipment) is close and whose market cap and metrics are available as the peer set. On-site metrics are values computed by tools/peers.py (at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| RFHIC | 45.40x | 3.84x | 8.45% |
| KMW | — | 4.85x | -20.57% |
| Hanwha Vision | 47.79x | 2.52x | 5.27% |
(a) Position versus the peer set: HFR's P/B of 2.47x is lower than its 5G-transport and telecom-equipment peers (RFHIC 6.03x, KMW 8.88x, Hanwha Vision 4.39x). That said, a low price relative to assets does not by itself mean undervalued. (b) Premium/discount: versus the industry median (P/B 1.99x) it is at a slight premium, and versus the peer set at a discount, read as the fact that a profit recovery is not yet confirmed in the numbers acting as a discount factor. (c) Limits of the trailing P/E and the forward basis: because 2025 confirmed net profit is a loss, there is no trailing P/E, and at an inflection point where profit swings between loss and profit, it is hard to assess from trailing metrics alone. The forward basis can only be gauged by approximating from the seasonality of confirmed DART quarterly results, since no company-provided numerical outlook is confirmed. For these reasons, rather than declaring it cheap or expensive, we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩19.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩15,580 and the market capitalization is ₩207.4 billion. The price sits below its 20-day moving average (₩20,662) and below its 60-day moving average (₩27,415). 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 28.4, near oversold territory. The one-month change is -32.4%, the three-month change is -45.3%, and the position relative to the 52-week high is -59.1%. Relative strength versus the KOSDAQ is 80 (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 80% of all stocks. Over the past three months it lagged the index by 23.2%. 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 -23.21% / 6M +36.32% / 12M -13.08%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.46x is in line with the sector median (1.32x).
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 -0.2%. The operating margin is -1.1%. The debt ratio is 85.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $108.8M | $104.1M | $94.1M | -9.62% ↓ slower |
| Operating profit | -$5.6M | -$13.4M | -$1.0M | — |
| Net profit | $1.2M | -$12.3M | -$204,696 | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $136.8M | $242.8M | $108.8M | $104.1M | $94.1M |
| Operating profit | $14.5M | $59.8M | -$5.6M | -$13.4M | -$1.0M |
| Net profit | $12.3M | $45.3M | $1.2M | -$12.3M | -$204,696 |
| Revenue CAGR | 4-yr avg -8.92% | ||||
Revenue fell 9.6% year over year (2023 ₩164.2 billion → 2024 ₩157.1 billion → 2025 ₩142.0 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -8.9%. The two-year revenue CAGR is -7.0%. In the most recent quarter (Q1 2026), revenue was 39.3% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 9.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-01FilingDecision to dispose of shares and equity securities of another company (with a subsequent revision) — a decision to dispose of a holding in another companyIn the short term, a matter related to a change in the asset and investment portfolio; the effect of the disposal proceeds on cash flow and financial structure needs to be confirmed in subsequent reports. Source
- 2026-05-15EarningsQuarterly report (2026.03) — Q1 2026 revenue ₩16.3 billion (down 39.3% year on year), operating loss -₩5.7 billion, net loss -₩7.8 billion confirmedThe first quarter is structurally the weakest, but as the loss was large, whether a second-half recovery leads to an annual return to profit should be checked through quarterly results. Source
- 2026-04-30FilingMarket-section change — a change in the section classification within the KOSDAQ marketIn the mid term, a matter related to a change in the company's classification and management criteria, whose meaning needs to be confirmed in connection with results and financial requirements. Source
- 2026-03-19EarningsBusiness report (2025.12) — 2025 revenue ₩142.0 billion, operating loss -₩1.6 billion, net loss -₩0.3 billion confirmed (loss narrowed sharply from the prior year)In the mid term, material confirming proximity to break-even, serving as the baseline for judging whether a return to profit is sustained in 2026. Source
- 2026-02-26Earnings30%-plus change in revenue or profit-and-loss structure — a disclosure reporting that the 2025 operating loss narrowed sharply from the prior year (-₩20.2 billion)In the short term, material confirming a signal of profitability recovery; it should be viewed together with the quarterly results flow to gauge whether the trend is sustained. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating result | -₩1.6 billion(operating margin -1.1%) | -₩20.2 billion | Confirmed | link |
| Q1 2026 operating result | -₩5.7 billion | (2026.03) | Confirmed | link |
| Shareholders' equity and BPS | ₩142.4 billion, BPS ₩10,701, 85.7% | (2025.12) | Confirmed | link |
| 2026 annual revenue (approximation) | approx. ₩79.6 billion | — | Unverified | link |
Recent filings
- 2026-06-01Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-02-26EarningsEarnings 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.