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.
At-a-glance assessment financial health · growth · profitability · valuation
- 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 9.3%.
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
- 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 ₩14,660 and the market cap is ₩1.1 trillion.
- The price sits above its 20-day line (₩14,123) and below its 60-day line (₩15,355).
- With the short- and mid-term trends diverging, the direction should be read separately.
- The RSI (a gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 53.3, a neutral level.
- The one-month change is +2.9%, the three-month change is -10.0%, and the price is -31.2% below its 52-week high.
- Its relative strength versus the KOSPI is 13 (on a 1-99 scale, 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 87% of all stocks by strength.
- Over the past three months it lagged the index by 31.1%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- The P/E ratio (how many times one year's profit the share price is) is 14.53x and the P/B ratio (how many times the company's net assets the share price is) is 0.58x.
- 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 | 19.93x | 0.31x | 1.55% |
| Sungshin Cement | 8.32x | 0.37x | 4.43% |
| Hanil Holdings | 16.40x | 0.31x | 1.88% |
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 ₩14,660 and the market capitalization is ₩1.1 trillion. The price sits above its 20-day moving average (₩14,123) and below its 60-day moving average (₩15,355). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.3, a neutral level. The one-month change is +2.9%, the three-month change is -10.0%, and the position relative to the 52-week high is -31.2%. Relative strength versus the KOSPI is 13 (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 13% of all stocks. Over the past three months it lagged the index by 31.1%. 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 -31.12% / 6M -46.67% / 12M -66.87%
Key metrics vs sector median
Valuation
The P/E of 14.53x is below the sector median (19.93x). The P/B of 0.58x is above the sector median (0.45x).
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 9.3%. The debt ratio is 162.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.2B | $943.7M | -18.25% ↓ slower |
| Operating profit | $163.4M | $179.9M | $88.0M | -51.09% ↓ slower |
| Net profit | $112.8M | $122.0M | $49.2M | -59.69% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $843.0M | $985.9M | $1.2B | $1.2B | $943.7M |
| Operating profit | $79.8M | $78.2M | $163.4M | $179.9M | $88.0M |
| Net profit | $52.1M | $52.2M | $112.8M | $122.0M | $49.2M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 6.8%, is on the high side.
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
- 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.