Hanil Cement (300720) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Hanil Cement is a company that makes and sells cement using limestone as its raw material, and it also sells ready-mix concrete and building finishing materials; because most of its revenue is a basic material that goes into construction sites, its results are driven by construction volumes. In June 2026 its board resolved to absorb its affiliate Hanil Hyundai Cement (a roughly 78% stake), and after the November 1 merger it will become Korea's largest cement company with annual revenue approaching ₩1.7 trillion, while maintaining a high-dividend policy of ₩1,000 per share (a 7.1% yield). The notable point is that its number-one domestic position, a 7%-plus dividend, and a P/B well below 1x support the downside, and the merger creates room to improve cost competitiveness; on the other hand, domestic cement demand is at its lowest in 34 years, revenue has fallen for a third year amid electricity- and fuel-cost pressure, and if profit worsens further the capacity for high dividends could be tested.
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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 “Building Materials” (Construction & Building Materials), a type typically read first through P/E.
Building-materials makers see results rise and fall with construction activity and new project starts, but the underlying make-and-sell profit structure is fairly clear. That makes price-to-earnings (P/E) — the share price against the profits earned — 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 fell 18.2% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 1.7% lower than a year earlier.
- ROE is 4.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.4%.
Ownership & governance As of 2025-12-31
Largest shareholder Hanil Holdings 59.84% (corporate)
Controlling bloc incl. related parties 71.35%
With the controlling bloc holding 71%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Hanil Cement is a company that makes and sells cement. It produces cement using limestone as its raw material, and also sells ready-mix concrete (concrete not yet set, mixing in water, sand, and gravel) and building finishing materials (dry mortar and the like). Because most of its revenue is a basic material that goes into construction sites, it does well when construction volumes such as apartments and roads rise and struggles when they fall. It has run the cement business in a dual structure through its affiliate Hanil Hyundai Cement (a roughly 78% stake), and it decided to absorb this affiliate in November 2026, merging them into a single company. After the merger it becomes Korea's largest cement company, with annual revenue approaching ₩1.7 trillion.
The latest close is ₩14,730 and the market capitalization is ₩1.1 trillion. The price sits above its 20-day moving average (₩14,054) and above its 60-day moving average (₩14,380). 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 59.4, a neutral level. The one-month change is +0.3%, the three-month change is -12.3%, and the position relative to the 52-week high is -30.9%. Relative strength versus the KOSPI is 19 (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 18% of all stocks. Over the past three months it outpaced the index by 4.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times one year's profit the share price is) is 14.60x and the P/B ratio (how many times the company's net assets the share price is) is 0.60x. With the P/B well below 1x, it trades cheaper than book net assets. ROE (how much is earned in a year on equity) is 4.0%, not high, but rather above average in an industry facing poor conditions. The operating margin is 9.3%. The debt ratio (debt relative to equity) is 162%, somewhat elevated due to environmental-facility investment and corporate-bond issuance. EV/EBIT (enterprise value including debt divided by operating profit, an extended version of the P/E) is 12.8x, and net debt (total borrowings minus cash) is about ₩667.6 billion. Once debt is factored in, it looks a little heavier than the simple P/E. That said, large environmental-facility investment was largely wrapped up by 2025, so there is room for the investment burden to ease from 2026.
2025 revenue fell 18.2% from a year earlier to ₩1.4239 trillion, operating profit plunged 51%, and net profit plunged 60%. This is the result of a domestic cement slump hitting results head-on. Domestic cement shipments are expected to be about 36 million tons in 2026, the lowest level since 1991 - the lowest in 34 years. However, Q1 2026 shows signs of forming a bottom. Q1 revenue fell just 1.7% year on year, a much smaller drop, and operating profit was almost unchanged (+0.4%). Only net profit fell 11% on interest-cost effects. Q1 - winter - is cement's slowest season, so results in the peak Q2-Q3 will shape the annual picture. We expect this year's profit to settle at a level slightly below last year's. The sharp revenue decline is calming and operating profit is being defended.
The biggest issue is the absorption merger of the affiliate Hanil Hyundai Cement. The board resolved it in June 2026, with the merger set for November 1 and new-share listing on November 21. It is a decision aimed at combining overlapping cement businesses to lower costs and pursue economies of scale. In March, the company voluntarily disclosed a corporate value-up plan, signaling its commitment to shareholder returns. The dividend is ₩1,000 per share for a 7.1% yield, maintaining a high-dividend policy that returns most of net profit as dividends. In March-April it raised funds by issuing corporate bonds, which is also a factor increasing interest costs. In June it also decided to dispose of tangible assets.
The strong conditions are clear. Its position as Korea's number-one cement company, a high 7%-plus dividend yield, and a P/B well below 1x support the downside. There is also room for larger scale and improved cost competitiveness from the merger. On the other side, the weak condition is industry conditions. Domestic cement demand is at its lowest in 34 years, and electricity- and fuel-cost pressure plus price-cut pressure are weighing on profitability. Revenue has been falling for a third year. The dividend yield is attractive, but paying out most of net profit as dividends while profit has fallen means the capacity for dividends could be tested if profit worsens further. If construction conditions revive, results and dividend stability improve together; if the slump drags on, the sustainability of the high dividend becomes the key issue for this name.
🔎 Valuation vs peers Fairly valued
Listed domestic cement and building-materials companies with a similar business structure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Asia Cement | 20.21x | 0.31x | 2.07% |
| Sungshin Cement | 7.50x | 0.34x | 4.43% |
| Hanil Holdings | 17.22x | 0.33x | 1.65% |
At 0.58x, the P/B is higher than Asia Cement (0.31), Sungshin Cement (0.38), and Hanil Holdings (0.30). However, this is a premium justified by an ROE (4.0%) above the peer set and the highest dividend yield (7.1%). With net profit down sharply last year, the trailing P/E (13.9x) looks low, but because it is a phase of declining profit, on this year's profit the multiple rises somewhat. In other words, it is hard to call it cheap on the trailing P/E alone. Even so, a P/B well below 1x and a 7%-plus dividend are value factors that support the downside. With the whole industry in a downcycle, it is early to assign a large premium, so we view it as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩14,730 and the market capitalization is ₩1.1 trillion. The price sits above its 20-day moving average (₩14,054) and above its 60-day moving average (₩14,380). 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 59.4, a neutral level. The one-month change is +0.3%, the three-month change is -12.3%, and the position relative to the 52-week high is -30.9%. Relative strength versus the KOSPI is 19 (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 18% of all stocks. Over the past three months it outpaced the index by 4.3%. 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 +4.30% / 6M -31.56% / 12M -62.03%
Key metrics Computed vs sector median
Valuation
The P/E of 14.60x is below the sector median (17.22x). The P/B of 0.60x is above the sector median (0.42x).
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 4.0%, above the sector average (2.0%). The operating margin is 9.4%. The debt ratio is 65.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.2B | $1.0B | -18.25% ↓ slower |
| Operating profit | $173.2M | $190.7M | $93.2M | -51.09% ↓ slower |
| Net profit | $119.5M | $129.3M | $52.1M | -59.69% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $893.5M | $1.0B | $1.3B | $1.2B | $1.0B |
| Operating profit | $84.6M | $82.9M | $173.2M | $190.7M | $93.2M |
| Net profit | $55.2M | $55.4M | $119.5M | $129.3M | $52.1M |
| Revenue CAGR | 4-yr avg 2.86% | ||||
Revenue fell 18.2% year over year (2023 ₩1.8 trillion → 2024 ₩1.7 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 51.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.9%. The two-year revenue CAGR is -11.1%. In the most recent quarter (Q1 2026), revenue was 1.7% lower 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 6.8%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 18.2% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-17FilingResolution to absorb the affiliate Hanil Hyundai Cement. Hanil Cement is the surviving company, with a merger date of November 1, a merger ratio of 1:1.0028211, and a planned new-share listing date of November 21.Integrating overlapping cement businesses raises hopes for cost savings and economies of scale. Positive over the medium term for profitability and for tidying up minority-shareholder stakes. Source
- 2026-03-19FilingVoluntary disclosure of a corporate value-up plan. Presents a direction of strengthened shareholder returns.Confirms the intent to sustain the high-dividend policy. Positive for medium-term investment confidence. Source
- 2026-06-26FilingDecision to dispose of tangible assets. Tidying up part of its holdings.An aspect of asset efficiency and securing liquidity. A slight help to near-term cash flow. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue ₩293.0 billion (-1.7% YoY), operating profit ₩17.0 billion (+0.4%), net profit ₩9.4 billion (-11.2%).A narrower revenue decline and defended operating profit signal a bottoming in results. Net profit is pressed by interest costs. Source
- 2026-04-01FilingFiling of a securities registration statement for corporate-bond issuance. Fundraising is underway.Secures funds for facility investment and debt repayment. However, it is a factor increasing interest costs. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-04-07Earnings disclosure
- 2026-04-07Disclosure
- 2026-04-06Disclosure
- 2026-04-01Disclosure
- 2026-04-01Amended filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19Disclosure
📖 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.