HS Hyosung Advanced Materials makes most of its money from tire cord, the reinforcing material inside automotive tires (roughly 58% of revenue), rounded out by industrial yarn and interior materials, while positioning lightweight, high-strength carbon fiber and aramid (used in body armor and optical-cable reinforcement) as its future growth engines. In early June 2026 the company filed a series of changes in the largest shareholder's holdings and governance reports, several decisions on debt guarantees for third parties came through in May and June, and the May Q1 quarterly report confirmed a swing back to a net profit. The point worth watching now is that the shares trade at a P/B of 0.88x, below book equity, and an EV/EBIT of 7.75x that makes the enterprise value look light, while peak-season price hikes and expansion of higher-value materials support a recovery; at the same time, a 381% debt ratio, a 50% current ratio, and an interest coverage ratio of 1.16x mean financial costs are eating into earnings, and that structure has to be weighed alongside the value case.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 381.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 50.1%).
- The most recent full-year net result was a loss.
- Revenue fell 0.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.9% lower than a year earlier.
- ROE is -2.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.8%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HS Hyosung 27.85% (corporate)
Controlling bloc incl. related parties 51.19%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- The core of this company is earning money from the reinforcing material (tire cord) that goes inside automotive tires.
- Tire cord is the flagship business, accounting for roughly 58% of total revenue, more than half.
- On top of that come industrial yarn used in items such as carpets and seat belts, and interior materials.
- The growth axes are carbon fiber and aramid.
- Carbon fiber is light and strong, used in hydrogen tanks, aviation, and wind power, while aramid is a high-value super-fiber used in body armor and as optical-cable reinforcement.
- In other words, most revenue is carried by the mature tire cord business, while future growth is pulled along by carbon fiber and aramid.
- The latest close is ₩148,300 and market capitalization is ₩664.4 billion.
- The price sits below the 20-day line (₩173,840) and below the 60-day line (₩208,670).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the last 14 days on a 0-100 scale) is 30.1, a neutral level.
- The one-month change is -22.0%, the three-month change is -27.8%, and the position versus the 52-week high is -46.6%.
- Relative strength versus the KOSPI is 9 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 91% of all stocks by strength.
- Over the last three months it lagged the index by 43.8%.
- Chart readings are best viewed alongside trading volume and the dates on which disclosures occur.
- Valuation is best read against assets to get the picture right.
- Because of the 2025 net loss, the P/E ratio (how many times one year's earnings the price represents) cannot be calculated.
- Instead, the P/B (how many times the company's book equity the price represents) is 0.88x, so the shares trade even below the company's book net assets.
- The P/S (how many times one year's revenue the price represents) is 0.22x, light relative to the scale of revenue.
- Metrics that also reflect debt are especially useful here.
- EV/EBIT (enterprise value divided by operating profit, a debt-inclusive counterpart to the P/E) is 7.75x, which actually sits in undervalued territory relative to operating earnings power.
- EV/Sales (enterprise value divided by revenue) is 0.37x.
- That said, the financial burden is a clear weakness.
- The debt ratio (debt relative to equity) is high at 381%, and the current ratio (assets convertible to cash within a year versus debt due) is 50%, a heavy short-term repayment burden.
- The interest coverage ratio (how many times operating profit covers interest) is low at 1.16x, so a large share of operating profit flows out as interest.
- The 2025 net loss came even though operations were profitable; these financial costs were the decisive blow.
- ROE (how much is earned in a year on equity) is currently negative at -2.7%.
- The long-run trend is a trough-confirmation phase following an earnings decline.
- Net profit went through ₩250.7 billion in 2021, ₩125.3 billion in 2022, ₩44.9 billion in 2023, and ₩49.8 billion in 2024, before turning to a loss of -₩21.6 billion in 2025.
- This was the result of a broad downcycle across the chemicals and materials sector combined with heavy financial costs.
- Revenue in 2025 was ₩3.28 trillion, similar to the prior year, but operating profit fell 28% to ₩157.4 billion.
- The inflection point is 2026.
- Q1 2026 revenue was ₩829.0 billion, operating profit ₩34.4 billion, and net profit ₩6.7 billion, with net profit turning positive.
- The key point is that the direction of earnings has turned upward.
- The second quarter is the peak season, when the largest annual contracted volume of tire cord ships, and the effect of price hikes is concentrated in this quarter.
- In the second half, the start-up of new carbon fiber capacity in Vietnam and aramid body-armor demand are added on top.
- Reflecting this recovery trajectory, it is natural for 2026 net profit to build a positive figure quarter by quarter, rather than simply repeating last year's loss.
- The P/E calculated on last year's net loss is a distorted value; on this year's recovering earnings, the story is different.
- Recent disclosures are concentrated on financial and governance housekeeping.
- In early June 2026 came a series of changes in holdings by the largest shareholder and reports of executive and major-shareholder ownership, along with disclosures of the large business group status and the corporate governance report.
- In May and June there were several decisions on debt guarantees for third parties; as matters tied to funding operations for affiliates and subsidiaries, these are points to examine alongside the financial burden.
- In May the Q1 2026 quarterly report was filed, confirming the swing to a net profit.
- On the company's own front, moves to expand higher-value materials continue, including participation in industrial-materials exhibitions showcasing carbon fiber and aramid.
- The heart of the observation is that undervaluation and financial burden coexist.
- Starting with the strengths, the company trades below book equity (P/B 0.88x), and enterprise value relative to operating earnings power (EV/EBIT 7.75x) is also light.
- Earnings passed the 2025 trough and turned direction with the swing to a net profit in Q1 2026.
- Peak-season price hikes and expansion of higher-value carbon fiber and aramid support the recovery.
- The point to note is the financial structure.
- A 381% debt ratio, a 50% current ratio, and a 1.16x interest coverage ratio form a structure in which financial costs eat into earnings.
- In sum, this is a stock whose undervaluation appeal comes to the fore once the industry cycle turns and financial costs stabilize.
- Conversely, if the recovery is delayed or borrowing pressure grows, the stretch in which the low P/B is justified could last longer.
🔎 Valuation vs peers Undervalued
Domestic materials companies that, like this firm, operate across industrial materials such as tire cord, aramid, and carbon fiber.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kolon Industries | 42.63x | 0.42x | 0.97% |
| Songwon Industrial | 125.46x | 0.39x | 0.31% |
Kolon Industries, which likewise operates in tire cord, aramid, and carbon fiber, and specialty-chemical maker Songwon Industrial both carry low P/B ratios in the 0.3-0.5x range. This shows that earnings across the sector are depressed by the chemicals and materials downcycle. This company's P/B of 0.88x is actually higher than both comparison names, but still below book equity. Because the 2025 net loss distorts the P/E, it is more appropriate for now to look at asset and operating earnings power. An EV/EBIT of 7.75x sits in undervalued territory relative to operating profit even after reflecting debt. Given the Q1 2026 swing to profit, peak-season price hikes, and expansion of higher-value materials, the position is one in which the undervaluation appeal comes to the fore as the earnings recovery is confirmed. That said, the financial burden of a 381% debt ratio and a 50% current ratio is the backdrop to the low P/B, so financial stabilization is the condition for a normalization of the valuation.
Price history Close · MA20 · MA60
The latest close is ₩148,300 and the market capitalization is ₩664.4 billion. The price sits below its 20-day moving average (₩173,840) and below its 60-day moving average (₩208,670). 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 30.1, a neutral level. The one-month change is -22.0%, the three-month change is -27.8%, and the position relative to the 52-week high is -46.6%. Relative strength versus the KOSPI is 10 (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 9% of all stocks. Over the past three months it lagged the index by 43.8%. 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 -43.80% / 6M -48.38% / 12M -72.56%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.82x is below the sector median (0.97x).
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -2.7%, below the sector average (4.0%). The operating margin is 4.8%. The debt ratio is 381.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.1B | $2.2B | $2.2B | -0.85% ↓ slower |
| Operating profit | $115.4M | $145.6M | $104.3M | -28.35% ↓ slower |
| Net profit | $29.8M | $33.0M | -$14.3M | -143.42% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.5B | $2.1B | $2.2B | $2.2B |
| Operating profit | $289.8M | $208.8M | $115.4M | $145.6M | $104.3M |
| Net profit | $166.2M | $83.1M | $29.8M | $33.0M | -$14.3M |
| Revenue CAGR | 4-yr avg -2.26% | ||||
Revenue fell 0.9% year over year (2023 ₩3.2 trillion → 2024 ₩3.3 trillion → 2025 ₩3.3 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 28.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.3%. The two-year revenue CAGR is 1.2%. In the most recent quarter (Q1 2026), revenue was 2.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 381.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 50.1%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 0.9% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed. Revenue ₩829.0 billion, operating profit ₩34.4 billion, and net profit ₩6.7 billion, with net profit swinging to positive.Confirms that, after the 2025 net loss, the direction of earnings has turned upward. A first signal of an earnings inflection. Source
- 2026-06-02FilingDisclosure of decisions on debt guarantees for third parties. Multiple filings were received across May and June.As matters tied to funding operations for affiliates and subsidiaries, this is a point to examine for financial burden alongside the already-high debt ratio. Source
- 2026-06-05FilingReport of changes in holdings by the largest shareholder and others, and reports of executive and major-shareholder ownership of specific securities.Of the nature of governance and ownership housekeeping, with limited impact on near-term earnings. Source
- 2026-05-29FilingDisclosure of the corporate governance report.A periodic disclosure related to governance transparency, an item to view alongside whether the financial burden improves. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-02Disclosure
- 2026-06-02Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-26Disclosure
- 2026-05-19Disclosure
- 2026-05-18PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
📖 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.