HS Hyosung is an operating holding company that makes its money less by manufacturing products itself and more by owning and managing its subsidiaries, earning dividends and equity-method income. Its consolidated revenue (roughly ₩1.41 trillion in 2025) is the combined result of a trading business, HS Hyosung Advanced Materials (which makes tire reinforcement, industrial yarn, aramid and carbon fiber), logistics, and an imported-car dealership. This year the company has repeatedly added to its stake in listed subsidiary HS Hyosung Advanced Materials, working toward the holding-company requirement of a 30% stake in a listed subsidiary, and this has generated disclosures on largest-shareholder and major-holding changes as well as debt guarantees. What stands out lately is that the market value of its HS Hyosung Advanced Materials stake alone exceeds the company's own market capitalization, and at a P/B of 0.34x the stock looks cheap on both an asset and an earnings basis; the flip side is that the key subsidiary's current profitability is weak (negative ROE), so how quickly that stake value recovers is the crux, and it may take time for the holding-company discount to narrow.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 95.3% year over year, and the pace is holding steady (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.7% lower than a year earlier.
- ROE is 3.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.3%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Cho Hyun-sang 55.08% (individual)
Controlling bloc incl. related parties 57.36%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis
- HS Hyosung is an operating holding company that earns its money less by manufacturing products itself and more by owning and managing its subsidiaries, collecting dividends and equity-method income.
- Its consolidated revenue (roughly ₩1.41 trillion in 2025) is the sum of its subsidiaries' results, with the main revenue sources being a trading business, HS Hyosung Advanced Materials (which makes tire reinforcement, industrial yarn, aramid and carbon fiber), logistics and freight forwarding, and an imported-car (Toyota) dealership.
- On the surface a variety of business revenues show up, but the company's real value is driven largely by the subsidiary stakes it holds, especially its stake in the listed HS Hyosung Advanced Materials.
- The latest close is ₩43,900 and market cap is ₩163.6 billion.
- The price sits below the 20-day line (₩48,350) and below the 60-day line (₩54,378).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the last 14 days on a 0-100 scale) is 31.0, a neutral level.
- The one-month change is -12.7%, the three-month change is -17.5%, and the position versus the 52-week high is -52.1%.
- Relative strength against the KOSPI is 6 (on a 1-99 scale that weights recent index-relative returns more heavily over the past year, with higher meaning stronger than the market).
- That places it in roughly the top 95% of all stocks by strength.
- Over the past three months it lagged the index by 35.5%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 8.34x, and the P/B (how many times book equity the price represents) is 0.32x, so it trades at about 34% of book equity.
- In other words it is cheap even on an earnings basis, and there is no reason to view the trailing figure as a "burden." In particular, holding companies often carry subsidiary stakes on the books at low acquisition cost, which can make P/B look higher than the true value; even so, 0.34x represents a deep discount on an asset basis too.
- Profitability is on the low side, with ROE (how much is earned on equity in a year) at 3.8%, an operating margin of 3.3%, and a net margin of 1.4% — a reflection of thin-margin trading and dealership revenue that looms large in the consolidated figures, so the holding company's true value is better read from the value of the stakes it holds than from these consolidated results.
- The debt ratio (debt relative to equity) is 74.7%, which is not heavy, and the interest coverage ratio is 1.87x.
- In 2025, revenue rose 95.3% year over year and net profit grew roughly 7.9-fold.
- That said, 2024 was a partial operating year right after the July spin-off, so the comparison base itself was low — something to keep in mind when reading those absolute growth rates.
- What matters more is this year's trend: in the first quarter of 2026 revenue was ₩367.0 billion (flat year over year), operating profit was ₩12.5 billion (+3.8% year over year), and net profit was ₩7.4 billion, holding the top line while improving earnings.
- A holding company's net profit tends to swing quarter to quarter with its subsidiaries' results, so its intrinsic value is best assessed alongside the operating recovery of its subsidiaries and changes in the value of the stakes it holds.
- Recent disclosures reflect the very nature of a holding company.
- It has added several times this year to its stake in key subsidiary HS Hyosung Advanced Materials, raising its ownership ratio (a move toward the holding-company requirement of a 30% stake in a listed subsidiary), and disclosures on largest-shareholder and major-holding changes have followed.
- It has also issued debt-guarantee decisions backing subsidiary borrowing; this is a routine activity by which a holding company supports its subsidiaries' funding, though as such guarantees accumulate they can also act as contingent liabilities for the holding company — a two-sided matter.
- In May the first-quarter report along with large-business-group status and corporate-governance reports were disclosed, showing that the holding-company structure is settling in following the spin-off.
- Strengths: the market value of its stake in listed subsidiary HS Hyosung Advanced Materials alone exceeds the company's own market cap, which suggests a zone where the rest of the businesses — trading, logistics, the dealership — are effectively thrown in for free.
- Its P/B of 0.34x is far below that of sister holding company Hyosung (1.17x), and this year's P/E is also in the mid-single digits, a cheap signal on both an asset and an earnings basis.
- Add to that a roughly 1.9% dividend and the ongoing expansion of the subsidiary stake (which stabilizes the governance structure once the requirement is met).
- Points to watch: the key subsidiary HS Hyosung Advanced Materials currently has weak profitability (negative ROE), so how quickly that stake value recovers is the crux, and the holding-company discount can take time to narrow.
- In short, the stock is strong when the subsidiaries' results turn around and the discount narrows, and slow to recover when subsidiary weakness and a persistent discount overlap.
- The price level itself sits low relative to asset value.
🔎 Valuation vs peers Inconclusive
To view both the holding-company structure and the business substance of the key subsidiary (industrial materials), the peer set is drawn from Hyosung-affiliated holding companies and subsidiaries; for a holding company, however, the value of the stakes it holds (NAV) is more accurate than a simple P/E or P/B comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyosung | 7.44x | 1.01x | 13.50% |
| HS Hyosung Advanced Materials | 0.00x | 0.82x | -2.68% |
(a) Compared with sister holding company Hyosung (P/B 1.29x, ROE 13.5%), HS Hyosung trades far lower relative to book equity at a P/B of 0.38x and an ROE of 3.8%. (b) The market value of its stake (about 28%) in key subsidiary HS Hyosung Advanced Materials alone exceeds HS Hyosung's own market cap, which from an NAV standpoint looks like a deep discount that effectively throws in the other businesses — trading, logistics, the dealership — for free. (c) That said, last year's confirmed trailing P/E is distorted by the low base of the spin-off's first year, making it hard to declare the stock cheap or expensive, and the key subsidiary's weak profitability together with the persistence of the holding-company discount make it hard to conclude simply that it is "cheap." We therefore leave the verdict inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩43,900 and the market capitalization is ₩163.6 billion. The price sits below its 20-day moving average (₩48,350) and below its 60-day moving average (₩54,378). 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 31.0, a neutral level. The one-month change is -12.7%, the three-month change is -17.5%, and the position relative to the 52-week high is -52.1%. Relative strength versus the KOSPI is 6 (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 5% of all stocks. Over the past three months it lagged the index by 35.5%. 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 -35.49% / 6M -52.29% / 12M -78.31%
Key metrics vs sector median
Valuation
The P/E of 8.34x is above the sector median (6.67x). The P/B of 0.32x is below the sector median (0.49x).
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 8.6%, 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 3.8%, below the sector average (5.0%). The operating margin is 3.3%. The debt ratio is 74.7%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | $478.4M | $934.4M | +95.32% |
| Operating profit | — | $14.2M | $30.8M | +117.14% |
| Net profit | — | $1.5M | $13.0M | +786.48% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | $478.4M | $934.4M |
| Operating profit | — | — | — | $14.2M | $30.8M |
| Net profit | — | — | — | $1.5M | $13.0M |
| Revenue CAGR | 1-yr avg 95.32% | ||||
Revenue rose 95.3% year over year, and the three-year trend is 'mixed'. Operating profit rose 117.1% year over year. In the most recent quarter (Q1 2026), revenue was 0.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 95.3% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-05FilingReport of changes in shares owned by the largest shareholder and in major holdings — a follow-up filing to the ongoing accumulation of the stake in key subsidiary HS Hyosung Advanced MaterialsA signal of moving closer to meeting the holding-company requirement (a 30% stake in a listed subsidiary), positive for governance stability over the medium term, though the funding burden of the acquisitions bears watching. Source
- 2026-06-02FilingKey management matter of a subsidiary — decision on a debt guarantee for a third party (subsidiary)This is the holding company's core activity of supporting subsidiary funding, but accumulated guarantees can act as contingent liabilities for the holding company, a short-term burden factor. Source
- 2026-05-29FilingDisclosure of large-business-group status and corporate-governance report — organizing the group's post-spin-off governance and affiliate statusA periodic disclosure showing the holding structure is settling in after the spin-off; neutral to positive on governance transparency. Source
- 2026-05-15EarningsQ1 2026 quarterly report — revenue ₩367.0 billion (flat year over year), operating profit ₩12.5 billion (+3.8%), net profit ₩7.4 billionThe top line was flat but earnings improved slightly, so near-term results are stable, though the pace of growth acceleration is limited. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-02Disclosure
- 2026-06-02Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-19Disclosure
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-08Disclosure
📖 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.