Hansae Co Ltd

Hansae Co Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 616.1 billion KRW against total equity of 734.7 billion KRW, resulting in a debt-to-equity ratio of 0.84. The company holds 310.6 billion KRW in cash and equivalents, but this is insufficient to cover total liabilities of 800.9 billion KRW, leading to a negative net cash position. Liquidity is assessed as medium, supported by a current ratio of 1.45, which indicates adequate short-term asset coverage for current liabilities. The market capitalization stands at 353.7 billion KRW, implying a valuation discount relative to book value.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 6.0% and a return on assets (ROA) of 2.87%. The company generated a net income of 57.3 billion KRW on revenues of 1.94 trillion KRW, yielding a net margin of approximately 2.95%. Operating income was 83.4 billion KRW, suggesting that operating expenses are controlled relative to gross profit of 261.5 billion KRW. However, free cash flow is negative at -50.5 billion KRW, driven by capital expenditures of 134.3 billion KRW that exceed operating cash flow of 85.4 billion KRW. This negative free cash flow highlights a period of heavy investment or working capital strain.

Segment and geographic revenue breakdowns are not provided in the available data, preventing an analysis of revenue concentration or specific business unit performance. The company’s total revenue of 1.94 trillion KRW is attributed to its overall operations within the Textiles, Apparel & Luxury Goods sector. Without segment data, it is not possible to assess the contribution of specific product lines or regional markets to the total revenue base.

Historical growth trends are not available in the input data, limiting the ability to assess the trajectory of revenue and earnings over time. The current financial snapshot reflects a single period’s performance, with no comparative historical periods provided to calculate year-over-year growth rates or identify trends in profitability and cash flow generation.

Risk assessment identifies medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, which may constrain financial flexibility. The debt-to-equity ratio of 0.84 is moderate but requires monitoring given the negative free cash flow. The absence of historical data limits the assessment of long-term solvency trends, but the current balance sheet shows a manageable leverage level relative to equity.

Recent analyst observations indicate a positive sentiment, with a mean recommendation of 1.88 (where 1 is strong buy) and a mean price target of 14,700 KRW, representing a significant upside from the current market price of 8,980 KRW. The high price target is 25,000 KRW, while the low is 11,500 KRW. There are 2 strong buy and 5 buy ratings, with only 1 hold rating, suggesting broad analyst confidence in the company’s future performance despite the current valuation discounts.

Analysts project 93.4% upside to a mean price target of 17,000 KRW, signaling strong market confidence.

Revenue grew 8.0% year-over-year to 1.94 trillion KRW in FY2026, demonstrating top-line expansion.

Cash conversion ratio of 1.94 exceeds the cohort median of 1.19, indicating superior cash generation efficiency.

Free cash flow turned positive in FY2025 at 13.0 billion KRW, reversing the negative trend from prior years.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Credit risk is flagged as high, indicating potential vulnerabilities in the company's debt management or asset quality.

Net margin of 2.27% and operating margin of 3.79% both lag significantly behind cohort medians.

Return on equity of 6.0% underperforms the cohort median of 7.78%, reflecting inefficient capital utilization.

Revenue KRW 467.22B, −0,0% YoY; Operating income −48,5% YoY.

• ▍Revenue KRW 467.22B, −0,0% YoY
• ▍Operating income −48,5% YoY
• ▍Net income −139,7% YoY
• ▍Free cash flow −33,5% YoY
• ▍Net margin -0.8%

Revenue KRW 456.08B, +12,9% YoY; Operating income +0,9% YoY.

• ▍Revenue KRW 456.08B, +12,9% YoY
• ▍Operating income +0,9% YoY
• ▍Net income +135,5% YoY
• ▍Free cash flow +95,1% YoY
• ▍Net margin 1.4%

Revenue KRW 543.40B, +1,8% YoY; Operating income −18,2% YoY.

• ▍Revenue KRW 543.40B, +1,8% YoY
• ▍Operating income −18,2% YoY
• ▍Net income −45,2% YoY
• ▍Free cash flow −127,3% YoY
• ▍Net margin 3.6%

Revenue KRW 475.03B, +6,0% YoY; Operating income −71,0% YoY.

• ▍Revenue KRW 475.03B, +6,0% YoY
• ▍Operating income −71,0% YoY
• ▍Net income −0,7% YoY
• ▍Free cash flow −93,2% YoY
• ▍Net margin 4.6%

Revenue KRW 467.27B; Operating income KRW 20.28B.

• ▍Revenue KRW 467.27B
• ▍Operating income KRW 20.28B
• ▍Net margin 2.0%

Revenue KRW 404.11B; Operating income KRW 13.70B.

• ▍Revenue KRW 404.11B
• ▍Operating income KRW 13.70B
• ▍Net margin -4.4%

Revenue KRW 533.95B; Operating income KRW 45.23B.

• ▍Revenue KRW 533.95B
• ▍Operating income KRW 45.23B
• ▍Net margin 6.7%

Revenue KRW 447.98B; Operating income KRW 42.55B.

• ▍Revenue KRW 447.98B
• ▍Operating income KRW 42.55B
• ▍Net margin 4.9%

Revenue KRW 1.94T, +8,0% YoY; Operating income −40,2% YoY.

• ▍Revenue KRW 1.94T, +8,0% YoY
• ▍Operating income −40,2% YoY
• ▍Net income −1,4% YoY
• ▍Free cash flow −487,3% YoY
• ▍Net margin 2.9%

Revenue KRW 1.80T, +5,2% YoY; Operating income −16,1% YoY.

• ▍Revenue KRW 1.80T, +5,2% YoY
• ▍Operating income −16,1% YoY
• ▍Net income −48,2% YoY
• ▍Free cash flow −83,5% YoY
• ▍Net margin 3.2%

Revenue KRW 1.71T, −22,5% YoY; Operating income −7,3% YoY.

• ▍Revenue KRW 1.71T, −22,5% YoY
• ▍Operating income −7,3% YoY
• ▍Net income +30,8% YoY
• ▍Free cash flow +11,6% YoY
• ▍Net margin 6.6%

Revenue KRW 2.20T, +31,9% YoY; Operating income +68,3% YoY.

• ▍Revenue KRW 2.20T, +31,9% YoY
• ▍Operating income +68,3% YoY
• ▍Net income +27,2% YoY
• ▍Free cash flow +34,8% YoY
• ▍Net margin 3.9%