Hanseon Engineering (452280) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Hanseon Engineering makes precision fittings, valves, tubes, and manifold modules for instrumentation and plant piping under the 'S-LOK' brand; petrochemical and refining plants and shipbuilding and offshore are its main end markets, and on top of defense, aerospace, and semiconductors it has recently widened its customer base to distributed generation such as SOFC and to power-supply equipment for data centers, a precision-components business that controls fluids so they do not leak. The May quarterly report confirmed a strong core business in the first quarter, with revenue of ₩22.4 billion and operating profit of ₩6.2 billion, though net profit alone was in the red, and on May 12 a 'derivative trading loss' disclosure revealed the cause to be an accounting valuation loss, alongside a decision to acquire its own convertible bonds before maturity. What stands out lately is that with stable end markets plus new demand from data centers and SOFC, 2025 operating profit rose 98.0% and a 13.1% ROE exceeds peers, while a forward P/E of 14.6x is lower than Sungkwang Bend's 20.2x — strengths against which the first-quarter net loss stemming from a derivative valuation loss must be tracked separately from the core business, and the 205.7% debt-to-equity ratio and convertible-bond variables must be watched.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Steel & Metals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Steel and metals swing hard with raw-material prices and downstream demand, so profits balloon in upturns and can flip to losses in downturns. Because earnings are so volatile, price-to-book (P/B) — the share price against the value of plant and assets — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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 rose 30.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 70.7% higher than a year earlier.
- ROE is 13.1% (total-net basis). It is above the sector average.
- Operating margin is 19.7%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Steel Wire 62.52% (corporate)
Controlling bloc incl. related parties 69.47%
With the controlling bloc holding 69%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Hanseon Engineering makes and sells, under the 'S-LOK' brand, precision fittings (connectors that join pipe to pipe without leaking), valves, tubes, and manifold modules used in instrumentation and plant piping. Its main end markets are petrochemical and refining plants and shipbuilding and offshore, joined by defense, aerospace, semiconductors, and displays. Recently it has been widening its customer base to piping and modules for distributed generation such as solid-oxide fuel cells (SOFC) and for power-supply equipment at data centers. That is, rather than simple metalworking, it is closer to the actual revenue structure to view it as a 'precision components' business that controls fluids so they flow without leaking.
The latest close is ₩12,750 and the market capitalization is ₩245.4 billion. The price sits above its 20-day moving average (₩10,740) and below its 60-day moving average (₩17,541). 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 52.6, a neutral level. The one-month change is +0.9%, the three-month change is -38.6%, and the position relative to the 52-week high is -62.4%. Relative strength versus the KOSDAQ is 83 (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 84% of all stocks. Over the past three months it lagged the index by 4.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's (2025) confirmed results, the P/E (how many times one year's earnings the price is) is 27.47x and the P/B (how many times net assets) is 2.68x. On profitability, the ROE (how much it earns in a year on its equity) is 13.1%, the operating margin is 15.4%, and the net margin is 14.1%, higher than fellow fittings makers (Sungkwang Bend ROE 6.3%, TK 10.2%). One point to note here is that the P/E above is on a 'last full year's earnings (trailing)' basis. For a company whose earnings are rising quickly, a P/E divided by last year's earnings tends to look higher than it really is. The forward P/E reflecting this year's expected earnings is even lower than Sungkwang Bend's trailing P/E (20.2x). In other words, though it looks expensive on assets and last year's earnings alone, reflecting the rising earnings trend it reads instead as lower than peers. The debt-to-equity ratio (debt against equity) is 205.7%, so debt is somewhat greater than equity, but interest coverage of 9.3x (operating profit covers interest more than nine times over) and a current ratio of 176% support the repayment and liquidity side.
Annual revenue rose from ₩47.8 billion (2023) to ₩48.5 billion (2024) to ₩63.2 billion (2025), with the pace of growth clearly accelerating to +30.2% in 2025. That same year operating profit rose 98.0% and net profit 114.9%, so earnings grew even more than revenue. As revenue rises, the fixed-cost burden eases and margins improve alongside it — the classic look of an earnings inflection. By quarter this trend is even clearer. First-quarter 2026 revenue was ₩22.4 billion (+70.7%) and operating profit ₩6.2 billion (+268.9%), with the core business stronger still, and that single quarter's operating profit already amounts to about 64% of full-year 2025 operating profit. The forward P/E on this year's expected earnings falling as far as 14.6x is precisely because core-business earnings are swelling this quickly. Behind it lies the mid-cycle-and-earlier picture in which, on top of firm demand from refining, plant, and shipbuilding end markets, new demand from data-center power equipment and SOFC feeds into capacity and orders. One point to read separately is that first-quarter 2026 net profit was -₩5.1 billion, a loss. This was not core-business weakness but the result of a derivative valuation loss (an accounting loss) recognized in the same quarter, and should be viewed apart from the core-business trend of sharply higher operating profit.
Recent disclosures fall into three strands. First, the May 2026 quarterly report (Q1) and its amendment disclosed the confirmed first-quarter results: revenue of ₩22.4 billion and operating profit of ₩6.2 billion showed a strong core business, with net profit alone in the red. Second, on May 12 a 'derivative trading loss' disclosure revealed that the cause of the net loss was not the core business but an accounting valuation loss. Third, on the same day a material-fact report on a 'decision to acquire its own convertible bonds before maturity' arose, adding items to check together — bond repayment, cash management, and share dilution. All of these are facts confirmable directly from the original disclosures rather than general news.
The strengths are clear. With new demand from data-center power equipment and SOFC added to stable end markets in refining, plants, and shipbuilding, 2025 core-business earnings rose more than revenue (operating profit +98.0%) and a 13.1% ROE exceeds fellow fittings makers. In particular, at 14.6x, the forward P/E on this year's expected earnings is lower than Sungkwang Bend's trailing P/E (20.2x), so reflecting the rising earnings trend it is hard to call expensive versus peers. Points to watch together are that first-quarter net profit was in the red on a derivative valuation loss (to be tracked separately from the core business) and that the 205.7% debt-to-equity ratio and convertible-bond-related variables require monitoring of the finance and dilution picture. In short, if new demand actually converts into revenue and earnings and core-business earnings growth is sustained, the low forward valuation versus peers comes alive as a strength; conversely, if earnings growth stalls or finance and dilution variables come to the fore, the metrics that look high on a last-year basis are apt to read again as a burden.
🔎 Valuation vs peers Overvalued
The peer set is Korea's leading fittings makers whose business substance (manufacturing precision pipe fittings, flanges, and valves) is the same. Because the base sector 'metalworking' is a broad classification, companies whose actual products overlap were chosen directly.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sungkwang Bend | 20.75x | 1.29x | 6.10% |
| Taekwang | 9.35x | 0.92x | 12.75% |
Compared with Sungkwang Bend (P/E 21.5x, P/B 1.35x) and TK (P/E 10.6x, P/B 1.08x), which run the same fittings business, Hanseon Engineering's trailing P/E of 48.7x and P/B of 6.36x sit two to three times higher. That is, a large premium versus peers is attached. The grounds for this premium are (a) a higher ROE than the peer set and (b) expectations for new revenue sources in SOFC and data centers, but one must allow that the company is smaller than the two peers and carries greater growth expectations. That said, the P/E above is on a 'last full year's earnings' basis, so in a stretch where earnings were rising quickly it can look higher than reality. On a forward view, only a seasonality approximation from DART confirmed quarterly results (about ₩27.5 billion of operating profit this year) can be referenced in place of an official company outlook, and it should be viewed together with the fact that first-quarter net profit was in the red on a derivative loss. Therefore, rather than concluding 'cheap or expensive,' the key is whether the high premium versus peers is justified by new demand actually converting into revenue.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩25.5 billion | ₩8.6 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩12,750 and the market capitalization is ₩245.4 billion. The price sits above its 20-day moving average (₩10,740) and below its 60-day moving average (₩17,541). 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 52.6, a neutral level. The one-month change is +0.9%, the three-month change is -38.6%, and the position relative to the 52-week high is -62.4%. Relative strength versus the KOSDAQ is 83 (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 84% of all stocks. Over the past three months it lagged the index by 4.6%. 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 -4.64% / 6M +69.11% / 12M +72.03%
Key metrics Computed vs sector median
Valuation
The P/E of 27.47x is above the sector median (14.98x). The P/B of 2.68x is above the sector median (0.78x). 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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, 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 13.1%, above the sector average (1.0%). The operating margin is 19.7%. The debt ratio is 70.2%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $33.5M | $34.1M | $44.4M | +30.23% ↑ faster |
| Operating profit | $4.4M | $3.5M | $6.8M | +98.05% ↑ faster |
| Net profit | $3.2M | $2.9M | $6.3M | +114.90% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $33.5M | $34.1M | $44.4M |
| Operating profit | — | — | $4.4M | $3.5M | $6.8M |
| Net profit | — | — | $3.2M | $2.9M | $6.3M |
| Revenue CAGR | 2-yr avg 15.06% | ||||
Revenue rose 30.2% year over year (2023 ₩47.8 billion → 2024 ₩48.5 billion → 2025 ₩63.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 98.0% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 15.1%. The two-year revenue CAGR is 15.1%. In the most recent quarter (Q1 2026), revenue was 70.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 13.1% points to solid profitability.
- Revenue grew 30.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14UpdateAmendment to the quarterly report (Q1) — disclosure of confirmed first-quarter 2026 results (revenue ₩22.4 billion, operating profit ₩6.2 billion, net loss)Short term: the core business (operating profit) was strong, but the net loss splits the read on earnings. Medium term: with first-quarter operating profit at about 64% of last year's full-year figure, whether earnings accelerate is the point to watch. Source
- 2026-05-12UpdateOccurrence of a derivative trading loss — disclosure of the accounting valuation loss that directly drove the first-quarter swing to a net lossShort term: pins the cause of the net loss on the derivative loss rather than core-business weakness. Medium term: as FX and derivative valuation losses are accounting-driven volatility factors, they need to be tracked apart from core-business cash flow. Source
- 2026-05-12FilingMaterial-fact report (decision to acquire its own convertible bonds before maturity) — a decision related to bond repayment and cash managementShort term: depending on the cash outflow or how the bonds are handled, there is an effect on finances. Medium term: because convertible bonds also connect to share-dilution variables, changes in equity and shares outstanding should be checked together. Source
- 2026-03-27FilingResult of the regular shareholders' meeting and report of appointment and dismissal of outside directors — changes to governance and board compositionShort term: the direct earnings impact is limited. Medium term: changes in board composition can affect the decision-making and oversight framework and are worth noting. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest close | ₩12,750 | — | Unverified | link |
| 2026 first-quarter operating profit | ₩6.2 billion | ₩6.2 billion | Confirmed | link |
| 2026 first-quarter net profit (swing to a loss) | -₩5.1 billion | — | Confirmed | link |
| 2025 annual revenue | ₩63.2 billion | — | Unverified | link |
| Seasonality-approximated annual operating profit | ₩27.5 billion | — | Unverified | link |
Recent filings Source
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report (amended)
- 2026-05-12Disclosure
- 2026-05-12Material-fact report
- 2026-05-12PeriodicQuarterly report
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-07Disclosure
- 2026-04-30Disclosure
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
📖 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.