Hanwha Galleria earns its money from directly operated department stores such as the Apgujeong luxury flagship (about 88.9% of 2025 revenue) and from food-and-beverage subsidiaries; on top of its premium positioning centered on luxury and high-end goods, F&B such as Five Guys (FG Korea), premium wine (Vino Galleria) and ice cream (Better Scoop Creamery) is growing as another axis, and the company was spun off from Hanwha Solutions in 2023. A first-quarter report on May 14 confirmed an operating-profit recovery (₩12.3 billion in the first quarter), and in April it approved a growth investment of a cumulative ₩50.0 billion into its ice-cream subsidiary. What stands out recently is that just after last year's swing into profit, the 118.42x P/E is close to an optical illusion, and on this year's earnings the P/E of about 19.6x and P/B of 0.48x place it near Hyundai Department Store (about 20.8x); on the other hand, with a current ratio of 51.9% and interest coverage below 1x, financial slack is thin, so funding pressure can grow together as early-stage investment in new businesses increases.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 51.9%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 6.9% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 2.4% lower than a year earlier.
- ROE is 0.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha 36.31% (corporate)
Controlling bloc incl. related parties 79.99%
With the controlling bloc holding 80%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Hanwha Galleria earns its money on two axes, 'department stores' and 'food and beverage (F&B).' Most of its revenue comes from department stores (₩511.5 billion before consolidation adjustment in 2025, about 88.9% of the total): across four directly operated stores, the Apgujeong luxury flagship, Cheonan Center City, Gwanggyo and Jinju, plus Daejeon Time World run by a subsidiary, its core revenue sources are commissions on apparel and accessory sales and store rents.
- With a premium positioning centered on luxury, high-end fashion and living, it moves in step with high-end consumption.
- The other axis, food and beverage (₩104.7 billion before consolidation adjustment), is handled by subsidiaries: FG Korea operates the U.S. burger brand 'Five Guys' across nine domestic stores (two more planned in 2026, and a Japan-entry entity established), Vino Galleria imports and distributes premium wine, and Pure Plus (aloe beverages) and the newly established Better Scoop Creamery (premium ice cream, set up in 2025) join in.
- Galleria Duty Free 63, which it once ran, closed operations in 2019, so it no longer has a duty-free business.
- It was spun off from Hanwha Solutions in 2023, and its largest shareholder is Hanwha.
- The latest close is ₩1,939 and the market cap is ₩375.9 billion.
- The price sits below the 20-day line (₩2,267) and below the 60-day line (₩2,668).
- Trading beneath both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that measures the balance of upward and downward force over the past 14 days on a 0-100 scale) is 32.6, a neutral level.
- The one-month change is -21.5%, the three-month change is -17.1%, and the position versus the 52-week high is -46.7%.
- Relative strength versus the KOSPI is 60 (on a 1-99 scale, converted 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 40% by strength among all stocks.
- Over the past three months it lagged the index by 37.9%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- This is a stock whose valuation metrics look very different depending on the reference point.
- On a most-recent confirmed annual (2025) basis, the P/E ratio (how many times one year's earnings the share price represents) is 113.39x, looking far above the industry median (about 18x), but this figure arises because last year's net profit in the denominator (₩3.3 billion) is very small, coming just after a swing into profit.
- In other words, it is not 'expensive' but rather that the multiple looks temporarily inflated because 'earnings have just turned around,' and this last-year-based P/E should be treated only as a reference.
- The P/E on this year's earnings (forward P/E), which reflects actual earnings strength, is about 19.6x, almost the same level as the comparable department-store operator Hyundai Department Store (about 20.8x), but higher than the forecast P/E median for the whole retail and distribution industry (about 9x), so broadly speaking it sits in a zone where some expectation is reflected.
- That is to say, set against companies in the same directly-operated department-store business, its valuation is not far off.
- On a net-asset basis, the P/B (how many times net assets the share price represents) is 0.46x, slightly below the industry median (0.55x), a spot where the market cap is below the company's net assets, i.e. discounted relative to asset value.
- Meanwhile, financial stability should be tracked separately.
- The debt-to-equity ratio (debt relative to equity) is 144.6%, the current ratio is 51.9%, meaning it has relatively few assets that can be turned into cash immediately against debt due within a year, and interest coverage is also below 1x, a tight zone where operating profit barely covers interest.
- This is a stock to view with both its earnings-based valuation and asset-based valuation diverging and with thin financial slack in mind.
- The top line has grown steadily.
- Consolidated revenue went ₩434.5 billion in 2023 → ₩538.3 billion in 2024 → ₩575.2 billion in 2025, a three-year CAGR of 15.0% and a one-year increase of +6.9%.
- The recovery in profit is even more distinct.
- Operating profit dipped once to ₩3.4 billion in 2024, then jumped +177.7% to ₩9.4 billion in 2025, and net profit swung from losses in 2023 and 2024 to a ₩3.3 billion profit in 2025.
- And the most important change appeared in the first quarter of 2026.
- Single-quarter operating profit of ₩12.3 billion surpassed the whole prior year's operating profit (₩9.4 billion) in just one quarter.
- Department stores typically have peak-season effects around holidays and year-end, so there is quarter-to-quarter variation, but exceeding last year's full-year figure in the opening quarter is a signal that the earnings base itself has stepped up a level.
- Taking this year's normalized earnings as the reference, the share price sits at about 20.8 times earnings (forward P/E), a normal zone so different from the last-year-based P/E (125x) that it is hard to see them as the same company.
- This improvement is supported jointly by the normalization of core department-store earnings and by the top-line expansion of new F&B businesses such as Five Guys, wine and ice cream.
- That said, first-quarter revenue (₩126.1 billion) was -2.4% year on year, a slight decline, so the point that profit is improving quickly while top-line growth briefly paused is worth watching too.
- Since there is no evidence that earnings next year and beyond will fall below this year's, it is more natural to read this as a phase of earnings returning to a normal track rather than to declare this year a cycle top.
- The recent flow can be summed up as regular disclosures and new-business investment.
- On May 14, 2026, the first-quarter report (and a corrective filing) confirmed the operating-profit recovery (₩12.3 billion in the first quarter), preceded by the March 18 2025 business report confirming the annual swing into profit.
- On April 16, the board resolved to take part in a rights issue by the premium ice-cream subsidiary Better Scoop Creamery, a decision under which, on top of a first ₩7.0 billion, additional contributions within the year bring the cumulative contribution to around ₩50.0 billion.
- This is a growth investment putting more capital into F&B new businesses beyond department stores.
- However, while new-business expansion is an opportunity to scale up, in a tight-liquidity financial situation the timing at which early costs are reflected in results needs to be watched together.
- At the March 26 annual general meeting, regular agenda items such as approval of the financial statements and election of directors were handled.
- The key to this stock is the 'reference point.' Judged only by last year's confirmed results, the P/E of 118.42x looks expensive, but this is close to an optical illusion created by a small denominator just after earnings turned into profit.
- The P/E on this year's earnings, reflecting actual earnings strength, is about 19.6x, almost the same as the comparable Hyundai Department Store (about 20.8x), and on a net-asset basis a P/B of 0.48x means it trades below asset value.
- Set against companies in the same directly-operated department-store business its valuation is not far off, but set against the forecast P/E median for the whole retail and distribution industry (about 9x) the earnings-based multiple is somewhat high, so the point that some expectation is pre-reflected is worth watching too.
- The strengths are clear.
- It has climbed out of losses with a fast earnings recovery, first-quarter 2026 single-quarter operating profit surpassed last year's full-year figure, and F&B new businesses such as Five Guys, wine and ice cream are growing as another axis of the top line.
- Conversely, there are points to keep an eye on.
- With a current ratio of 51.9% and interest coverage below 1x, financial slack is thin, so funding pressure can grow together as early-stage new-business investment increases.
- Also, first-quarter revenue posted a slight negative growth, and the large price volatility since late last year is worth knowing for the flow.
- In sum, this is a stock whose valuation appeal sharpens when earnings normalization hardens beyond a quarter into annual results and new businesses contribute to profit, and conversely a stock whose burden grows when a consumption slowdown or early new-business costs weigh on its thin financial capacity.
🔎 Valuation vs peers Inconclusive
We took department-store operators with the same business substance as the peer group. Shinsegae, Lotte Shopping and Hyundai Department Store, like Hanwha Galleria, directly run premium and full-line department stores, so their revenue structures are closest; that said, Hanwha Galleria's market cap (about ₩492.4 billion) is far smaller than theirs, so simple multiple comparison has limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Department Store | 17.40x | 0.79x | 4.56% |
| Lotte Shopping | 86.91x | 0.30x | 0.34% |
| Shinsegae | 423.56x | 1.32x | 0.31% |
Even among department-store operators, P/Es vary wildly from company to company, from 19x to 484x, a common phenomenon in which earnings are pinned near the bottom amid a weak industry, shrinking the denominator. Hanwha Galleria's last-year-based P/E (118.42x) is likewise inflated by the small earnings just after the swing into profit, so it is hard to call it expensive on this figure alone. The P/B (0.48x) is slightly below the industry median (0.55x), a discount zone on a net-asset basis, and ROE (0.4%) is below the peer average. That said, the forecast P/E on this year's earnings is above the whole retail and distribution industry median, so broadly it is also a spot where some expectation is reflected. The precise position can only be gauged after seeing whether this year's earnings continue through the year at the first-quarter recovery pace, not on a trailing (past confirmed results) basis. With no official company forecast figures, we do not fix the future multiple and keep the DART seasonality approximation only as a reference. So the conclusion is not pinned to either undervalued or overvalued but left inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩172.0 billion | ₩29.0 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩1,939 and the market capitalization is ₩375.9 billion. The price sits below its 20-day moving average (₩2,267) and below its 60-day moving average (₩2,668). 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 32.6, a neutral level. The one-month change is -21.5%, the three-month change is -17.1%, and the position relative to the 52-week high is -46.7%. Relative strength versus the KOSPI is 60 (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 60% of all stocks. Over the past three months it lagged the index by 37.9%. 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 -37.91% / 6M -7.15% / 12M -35.66%
Key metrics vs sector median
Valuation
The P/E of 113.39x is above the sector median (16.77x). The P/B of 0.46x is below the sector median (0.56x). 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 0.4%, below the sector average (3.0%). The operating margin is 1.6%. The debt ratio is 144.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $288.0M | $356.8M | $381.2M | +6.85% ↓ slower |
| Operating profit | $6.5M | $2.2M | $6.2M | +177.72% ↑ faster |
| Net profit | -$20.0M | -$11.6M | $2.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $288.0M | $356.8M | $381.2M |
| Operating profit | — | — | $6.5M | $2.2M | $6.2M |
| Net profit | — | — | -$20.0M | -$11.6M | $2.2M |
| Revenue CAGR | 2-yr avg 15.05% | ||||
Revenue rose 6.9% year over year (2023 ₩434.5 billion → 2024 ₩538.3 billion → 2025 ₩575.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 177.7% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 15.0%. The two-year revenue CAGR is 15.0%. In the most recent quarter (Q1 2026), revenue was 2.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 51.9%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 6.9% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsDisclosure of the first-quarter 2026 report (including a corrective filing). Consolidated revenue of ₩126.1 billion (-2.4% year on year), operating profit of ₩12.3 billion confirming a sharp recovery.Short term: single-quarter operating profit surpassed 2025 full-year operating profit (₩9.4 billion), grounds that offset the limit of an inflated-looking last-year P/E. Medium term: whether this level of profit carries through annually is the key check point. Source
- 2026-04-16FilingBoard resolution to participate in a rights issue by the premium ice-cream subsidiary Better Scoop Creamery. After paying a first ₩7.0 billion, additional contributions within the year bring the cumulative contribution to around ₩50.0 billion.Medium term: a growth investment putting more capital into F&B new businesses beyond department stores. At the same time, in a tight-liquidity financial situation it can raise early costs and funding pressure, so the timing of its profit contribution is the crux. Source
- 2026-03-18EarningsDisclosure of the 2025 business report. Consolidated revenue of ₩575.2 billion (+6.9%), operating profit of ₩9.4 billion (+177.7%), and net profit of ₩3.3 billion confirming the swing into profit.Medium term: official confirmation of the turnaround out of losses. Primary material to be read together with the revenue structure of 88.9% department stores and a widening F&B share. Source
- 2026-03-26FilingDisclosure of the annual general meeting results. Approval of the financial statements and handling of regular agenda items such as director election.Short term: a regular governance and board-composition procedure not directly tied to results. A filing on a change in outside-director appointment was carried out together. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit | ₩9.4 billion(+177.7%) | ₩9.4 billion | Confirmed | link |
| Revenue composition by business segment (2025) | — | ₩511.5 billion(88.9%)· ₩104.7 billion | Confirmed | link |
| First-quarter 2026 operating profit | ₩12.3 billion | ₩12.3 billion | Confirmed | link |
| Latest closing price | ₩1,939 | — | Unverified | link |
| Seasonality-approximated operating profit (2026) | approx. ₩72.1 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-04-16Disclosure
- 2026-03-27Amended filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-02-27Large-business-group status disclosure
- 2026-02-24Disclosure
📖 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.