Price Target Changed • May 26
Price target increased by 8.0% to ₩4,503 Up from ₩4,168, the current price target is an average from 17 analysts. New target price is 14% below last closing price of ₩5,240. Stock is up 73% over the past year. The company is forecast to post earnings per share of ₩216 next year compared to a net loss per share of ₩292 last year. Price Target Changed • May 05
Price target increased by 7.6% to ₩4,362 Up from ₩4,055, the current price target is an average from 17 analysts. New target price is 10% below last closing price of ₩4,850. Stock is up 38% over the past year. The company is forecast to post earnings per share of ₩216 next year compared to a net loss per share of ₩292 last year. New Risk • May 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). Announcement • Apr 15
Hanon Systems to Report Q1, 2026 Results on Apr 30, 2026 Hanon Systems announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Apr 01
Hanon Systems Supplies Highly Integrated Cooling Entity for Electric Vehicles Hanon Systems announced the company is supplying its innovative highly integrated cooling entity for electric vehicles. The very compact and multifunctional thermal management module is designed to integrate several components – including the innovative eCompressor, electronic expansion valve block, a combined water-cooled condenser, and internal heat exchanger, chiller, A/C lines, and pressure and temperature sensors – into a single high power-density solution that reduces system complexity, improves thermal performance, and enhances energy utilization, contributing to extended driving range. The highly integrated cooling entity developed by Hanon Systems was first deployed in BMW's fully electric iX3 SUV model. Designed for electric vehicles, the highly integrated cooling entity manages the thermal needs of multiple vehicle subsystems through an intelligent thermal management module. Weighing only 16 kg (35lbs), the system dynamically regulates refrigerant flow and temperature to optimally support real-time demands such a fast charging, high-performance driving, and extreme weather, all while minimizing energy usage. In addition, the module includes design elements related to noise, vibration and harshness (NVH), such as vibration isolation components and a sound cover. This design facilitates scalable production and efficient vehicle assembly, supporting adaptability to a wide range of battery electric vehicles platforms. Buy Or Sell Opportunity • Mar 30
Now 21% undervalued Over the last 90 days, the stock has risen 30% to ₩3,850. The fair value is estimated to be ₩4,874, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years. Meanwhile, the company became loss making. New Risk • Feb 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Announcement • Feb 13
Hanon Systems, Annual General Meeting, Mar 26, 2026 Hanon Systems, Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 95, sinilseo-ro, daedeok-gu, daejeon South Korea Buy Or Sell Opportunity • Jan 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to ₩3,305. The fair value is estimated to be ₩4,186, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jan 20
Hanon Systems to Report Fiscal Year 2025 Results on Feb 03, 2026 Hanon Systems announced that they will report fiscal year 2025 results at 3:00 PM, Korea Standard Time on Feb 03, 2026 New Risk • Jan 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 51% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Reported Earnings • Nov 19
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: ₩81.00 (up from ₩26.35 loss in 3Q 2024). Revenue: ₩2.71t (up 8.2% from 3Q 2024). Net income: ₩54.7b (up ₩68.9b from 3Q 2024). Profit margin: 2.0% (up from net loss in 3Q 2024). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Auto Components industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Nov 13
Now 21% undervalued Over the last 90 days, the stock has risen 28% to ₩4,050. The fair value is estimated to be ₩5,155, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Nov 05
Hanon Systems Joins Hankook & Company Group to Showcase Thermal Management Technologies At Apex 2025 Hanon Systems announced that it will participate in the AAPEX 2025 exhibition in Las Vegas, USA, from November 4 to 6, marking the company's first joint exhibition with Hankook & Company Group affiliates. Through this platform, Hanon Systems aims to showcase its latest advancements in thermal management solutions, reinforcing its position as a global leader in automotive innovation that supports both OEMs and the aftermarket. Participation with Hankook & Company group affiliates also serves to strengthen brand awareness and foster strategic partnerships across North and Latin American markets. The Hanon Systems exhibition area will feature six themed zones: HVAC systems, compressors, coolant and refrigerant modules, heat exchangers, electronic & fluid pressure products, and PACE award-winning technologies. At the booth entrance, a vehicle mock-up will demonstrate the Group's comprehensive integrated solutions, incorporating Hanon Systems' 4th-generation heat pump system, Hankook Tire's iON evo formula E edition, and Hankook & Company's ES Division AGM battery. Hanon Systems' 4th -generation heat pump system, first applied to the Kia EV3, is the world's first to feature a parallel heat-source recovery structure that simultaneously utilizes ambient air and waste heat from the motor and battery. This innovation design enhances cabin comfort and battery thermal efficiency, contributing to extended driving range for electric vehicles (EVs). An advanced controller further optimizes performance by integrating hardware and software to efficiently manage the vehicle's thermal system. The booth will also showcase a range of eco-friendly EV components utilizing natural refrigerants, including Hanon Systems' R744-based electric compressor and R290-based refrigerant modules. The R744 electric compressor, supplied to the Volkswagen Group's MEB platform, achieved a major production milestone of one million units in September 2025. In the PACE Award zone, visitors can see the company's visible-light LED photocatalyst HVAC technology, designed to enhance in-vehicle air quality through advanced sterilization and deodorization. This innovative delivers 98.5% sterilization and 97.5% deodorization efficiency, while generating zero electromagnetic interference and offering semi-per permanent durability compared with conventional ionizers. Price Target Changed • Nov 04
Price target increased by 10% to ₩3,628 Up from ₩3,284, the current price target is an average from 20 analysts. New target price is 18% below last closing price of ₩4,430. Stock is up 7.7% over the past year. The company is forecast to post earnings per share of ₩60.39 next year compared to a net loss per share of ₩659 last year. New Risk • Oct 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.2x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Shareholders have been diluted in the past year (27% increase in shares outstanding). Announcement • Oct 15
Hanon Systems to Report Q3, 2025 Results on Oct 29, 2025 Hanon Systems announced that they will report Q3, 2025 results on Oct 29, 2025 Announcement • Sep 24
Hanon Systems has filed a Follow-on Equity Offering in the amount of KRW 900.025 billion. Hanon Systems has filed a Follow-on Equity Offering in the amount of KRW 900.025 billion.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 278,000,000
Price\Range: KRW 2590
Discount Per Security: KRW 10.36
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 69,500,000
Price\Range: KRW 2590
Discount Per Security: KRW 10.36
Transaction Features: ESOP Related Offering; Rights Offering Price Target Changed • Aug 20
Price target decreased by 7.9% to ₩3,433 Down from ₩3,728, the current price target is an average from 18 analysts. New target price is 5.4% below last closing price of ₩3,630. Stock is down 11% over the past year. The company is forecast to post a net loss per share of ₩67.75 next year compared to a net loss per share of ₩659 last year. Major Estimate Revision • Aug 16
Consensus estimates of losses per share improve by 50% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ₩10.5b to ₩10.8b. EPS estimate increased from -₩89.92 per share to -₩45.00 per share. Auto Components industry in South Korea expected to see average net income growth of 1.7% next year. Consensus price target broadly unchanged at ₩3,711. Share price fell 7.7% to ₩3,160 over the past week. Announcement • Aug 07
Hanon Systems to Report First Half, 2025 Results on Aug 14, 2025 Hanon Systems announced that they will report first half, 2025 results on Aug 14, 2025 Major Estimate Revision • May 09
Consensus EPS estimates fall by 66% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -₩57.21 to -₩94.81 per share. Revenue forecast unchanged at ₩10.5b. Auto Components industry in South Korea expected to see average net income growth of 8.6% next year. Consensus price target broadly unchanged at ₩3,995. Share price fell 5.1% to ₩3,335 over the past week. Major Estimate Revision • Apr 24
Consensus EPS estimates upgraded to ₩57.21 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -₩63.73 to -₩57.21 per share. Revenue forecast steady at ₩10.5b. Auto Components industry in South Korea expected to see average net income growth of 14% next year. Consensus price target broadly unchanged at ₩4,080. Share price rose 5.0% to ₩3,555 over the past week. Announcement • Apr 18
Hanon Systems to Report Q1, 2025 Results on May 08, 2025 Hanon Systems announced that they will report Q1, 2025 results on May 08, 2025 Reported Earnings • Mar 26
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: ₩659 loss per share (down from ₩109 profit in FY 2023). Revenue: ₩10.00t (up 5.0% from FY 2023). Net loss: ₩353.9b (down ₩412.0b from profit in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Auto Components industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Announcement • Mar 01
Hanon Systems, Annual General Meeting, Mar 31, 2025 Hanon Systems, Annual General Meeting, Mar 31, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 95, sinilseo-ro, daedeok-gu, daejeon South Korea Announcement • Feb 17
Hanon Systems Provides Earnings Guidance for the Full Year 2025 Hanon Systems provided earnings guidance for the full year 2025. The company expects that there will be no difficulty achieving sales exceeding KRW 10 trillion in 2025, and the operating margin is expected to improve gradually. In 2025, the company will continue improving profitability and cash flow, strengthening accountability in management through the rollout of a new regional organization structure, and enhancing management efficiency through successful integration. The company has established specific implementation plans to achieve these goals. Board Change • Feb 01
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. No highly experienced directors. Independent Outside Director Lee Paik is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Jan 26
Hanon Systems to Report Q4, 2024 Results on Feb 13, 2025 Hanon Systems announced that they will report Q4, 2024 results on Feb 13, 2025 New Risk • Jan 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 27% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Shareholders have been diluted in the past year (27% increase in shares outstanding). Announcement • Jan 07
Hanon Systems Appoints Soo Il Lee as CEO On January 3, 2025, Hanon Systems held an extraordinary general meeting at its headquarters in Daejeon, South Korea, appointing Soo Il Lee, Vice Chairman of Hankook Tire, as its new CEO. With a 37-year career at Hankook Tire, Mr. Lee is seen as the ideal leader to integrate Hankook & Company Group's successful DNA into Hanon Systems. Joining Hankook Tire in 1987, he held various executive positions such as Head of Marketing, Americas Regional Director, China Regional Director, and Business Operations Director. He served as President & CEO from 2018 and as Vice Chairman from 2024. Announcement • Dec 25
Hanon Systems announced that it has received KRW 600.000002728 billion in funding from Hankook Tire & Technology Co., Ltd. On December 23, 2024, the company has closed the transaction. Upcoming Dividend • Dec 20
Upcoming dividend of ₩68.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 18 April 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 6.7%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.6%). Price Target Changed • Nov 14
Price target decreased by 7.6% to ₩4,673 Down from ₩5,059, the current price target is an average from 22 analysts. New target price is 13% above last closing price of ₩4,145. Stock is down 42% over the past year. The company is forecast to post earnings per share of ₩15.82 for next year compared to ₩95.54 last year. Price Target Changed • Aug 10
Price target decreased by 7.9% to ₩5,630 Down from ₩6,117, the current price target is an average from 23 analysts. New target price is 48% above last closing price of ₩3,800. Stock is down 60% over the past year. The company is forecast to post earnings per share of ₩73.23 for next year compared to ₩95.54 last year. Major Estimate Revision • Aug 09
Consensus EPS estimates fall by 82% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩262 to ₩46.97 per share. Revenue forecast steady at ₩9.91b. Net income forecast to grow 520% next year vs 21% growth forecast for Auto Components industry in South Korea. Consensus price target down from ₩6,210 to ₩5,804. Share price fell 13% to ₩3,800 over the past week. Announcement • Aug 08
Hanon Systems Develops First 4th Generation Heat Pump System for Electric Vehicles Hanon Systems has announced the development of the world's first 4th generation heat pump system, a key thermal management component for electric vehicles (EVs). The 4th generation heat pump system has been commercially available since July. The company's 4th generation heat pump system is the first to employ a parallel heat source recovery method, utilizing waste heat from the motor and battery as well as heat from external air. The recovered heat is used for both heating and cooling, as well as battery temperature management, significantly enhancing EV driving range. This modular heat pump system incorporates multiple new features that represent patented or patent pending technologies, demonstrating the thermal management leadership of Hanon Systems. The system integrates the Refrigerant Control Module (RCM) and the Coolant Control Module (CCM) into a unified control unit, allowing comprehensive management of the entire thermal system. Additionally, Hanon Systems has introduced Thin HVAC (Heating, Ventilation, and Air Conditioning). technology, a world first. Thin HVAC, as the name suggests, refers to a 'reduced' HVAC system. By reducing the overall HVAC system size by approximately 30%, it minimizes the exposure of the HVAC system area under the cockpit (dashboard component module), providing more legroom for passengers. This technology also ensures a comfortable and pleasant driving experience. Announcement • Jul 17
Hanon Systems to Report Q2, 2024 Results on Aug 08, 2024 Hanon Systems announced that they will report Q2, 2024 results on Aug 08, 2024 New Risk • May 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.2% Last year net profit margin: 0.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Dividend is not well covered by earnings and cash flows. Dividend per share is over 10x earnings per share. Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (0.2% net profit margin). Major Estimate Revision • May 11
Consensus EPS estimates fall by 23% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩378 to ₩291 per share. Revenue forecast steady at ₩9.89b. Net income forecast to grow 219% next year vs 49% growth forecast for Auto Components industry in South Korea. Consensus price target broadly unchanged at ₩6,796. Share price fell 12% to ₩5,710 over the past week. Buy Or Sell Opportunity • May 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to ₩5,620. The fair value is estimated to be ₩7,232, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 37%. For the next 3 years, revenue is forecast to grow by 5.6% per annum. Earnings are also forecast to grow by 49% per annum over the same time period. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩6,470, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 6x in the Auto Components industry in South Korea. Total loss to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩7,800 per share. Announcement • Apr 19
Hanon Systems to Report Q1, 2024 Results on May 09, 2024 Hanon Systems announced that they will report Q1, 2024 results on May 09, 2024 Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩5,020, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 6x in the Auto Components industry in South Korea. Total loss to shareholders of 68% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩9,006 per share. Upcoming Dividend • Mar 21
Upcoming dividend of ₩90.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 27 May 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.7%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.2%). Price Target Changed • Mar 18
Price target decreased by 8.2% to ₩7,471 Down from ₩8,143, the current price target is an average from 20 analysts. New target price is 26% above last closing price of ₩5,940. Stock is down 30% over the past year. The company is forecast to post earnings per share of ₩395 for next year compared to ₩95.54 last year. Reported Earnings • Mar 09
Full year 2023 earnings released: EPS: ₩96.00 (vs ₩38.00 in FY 2022) Full year 2023 results: EPS: ₩96.00 (up from ₩38.00 in FY 2022). Revenue: ₩9.56t (up 11% from FY 2022). Net income: ₩51.0b (up 150% from FY 2022). Profit margin: 0.5% (up from 0.2% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Auto Components industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Announcement • Feb 15
Hanon Systems, Annual General Meeting, Mar 28, 2024 Hanon Systems, Annual General Meeting, Mar 28, 2024, at 09:00 Korea Standard Time. Location: The main conference room of the executive office at the headquarters of Hanon Systems Shinilseo-ro 95, Daedeok-gu, Daejeon, Korea Daejeon South Korea Agenda: To consider the Audit report, Business report; to consider Report on the operating condition of the internal accounting control system; to consider and approve Financial Statements and allocation of Retained Earnings; to consider and elect three non-executive directors, and three outside directors; to consider and elect two Audit Committee members; and to consider and approve 2024 total remuneration limit for directors. Major Estimate Revision • Feb 15
Consensus EPS estimates fall by 30% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩468 to ₩328 per share. Revenue forecast steady at ₩9.87b. Net income forecast to grow 158% next year vs 66% growth forecast for Auto Components industry in South Korea. Consensus price target down from ₩7,896 to ₩7,718. Share price was steady at ₩6,370 over the past week. Buy Or Sell Opportunity • Feb 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to ₩6,380. The fair value is estimated to be ₩8,004, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 24%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 52% per annum over the same time period. Board Change • Feb 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. Vice Chairman & Executive Advisor Jay Son was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Jan 25
Hanon Systems to Report Q4, 2023 Results on Feb 14, 2024 Hanon Systems announced that they will report Q4, 2023 results at 3:00 PM, Korea Standard Time on Feb 14, 2024 Announcement • Jan 24
Hanon Systems Production of R744 eCompressors Surpasses 500,000 Units in Portugal Hanon Systems announced its automotive compressor plant in Palmela, Portugal, has surpassed a milestone production level of more than 500,000 electric compressors (eCompressors) designed specifically for use with R744, an environmentally friendly refrigerant. The Palmela plant is located in the Setúbal District, about 25 kilometers (16 miles) south of Lisbon, the capital city of Portugal. It opened in 1998 producing mechanical scroll compressors and production of its first eCompressor began in 2009. In 2018, the plant expanded with a new two-story construction adding approximately 10,000 square meters (108,000 square feet) of space and increasing the annual production capacity to support the industry's migration toward e mobility and address the demand for eCompressors. High volume manufacturing of the R744 eCompressor began at the Palmela plant in late-2019. R744 is an environmentally-friendly alternative to traditional refrigerants with a global warming potential (GWP) of one. Often referred to as carbon dioxide or CO2, R744 is preferred by certain automakers, primarily in Europe, for its improved heating performance in heat pump systems, which is quickly becoming mainstream technology in battery electric vehicle (BEV) applications. Hanon Systems has decades of experience developing thermal solutions that operate with various refrigerants. Aside from R744 solutions, others include R290 (also known as propane), and traditional refrigerants such as R134a and R1234yf. Buying Opportunity • Jan 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ₩8,212, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 24%. For the next 3 years, revenue is forecast to grow by 4.6% per annum. Earnings is also forecast to grow by 52% per annum over the same time period. Upcoming Dividend • Dec 20
Upcoming dividend of ₩90.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.8%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.0%). Buying Opportunity • Dec 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ₩8,749, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 24%. For the next 3 years, revenue is forecast to grow by 4.6% per annum. Earnings is also forecast to grow by 52% per annum over the same time period. New Risk • Nov 25
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.3x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.3x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 255% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (0.8% net profit margin). Buying Opportunity • Nov 12
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be ₩9,319, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 15%. For the next 3 years, revenue is forecast to grow by 4.9% per annum. Earnings is also forecast to grow by 38% per annum over the same time period. Announcement • Oct 27
Hanon Systems to Report Q3, 2023 Final Results on Nov 09, 2023 Hanon Systems announced that they will report Q3, 2023 final results on Nov 09, 2023 Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩7,820, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 6x in the Auto Components industry in South Korea. Total loss to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩8,914 per share. Upcoming Dividend • Sep 19
Upcoming dividend of ₩90.00 per share at 3.9% yield Eligible shareholders must have bought the stock before 26 September 2023. Payment date: 23 November 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.9%. Within top quartile of South Korean dividend payers (3.4%). Higher than average of industry peers (2.0%). Major Estimate Revision • Aug 12
Consensus EPS estimates increase by 23% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from ₩447 to ₩548. Revenue forecast steady at ₩9.56b. Net income forecast to grow 571% next year vs 39% growth forecast for Auto Components industry in South Korea. Consensus price target up from ₩10,224 to ₩10,805. Share price rose 13% to ₩9,610 over the past week. Announcement • Aug 02
Hanon Systems Has Announces Executive Changes Hanon Systems has announced the resignation of Min Suk Sung from the position of CEO. The company is planning to name Nurdal Kucukkaya and Ramachandran (Subu) Nagasubramony as co-CEOs to head the company, pending board of director approval to be confirmed at the upcoming regular meeting on August 10. Kucukkaya is serving as a representative executive officer of the company and Nagasubramony is serving as the company's chief financial officer (CFO) since January 1, 2019. Announcement • Jul 31
Hanon Systems Announces the Resignation of Min Suk Sung as CEO Hanon Systems announced that CEO, Min Suk Sung has tendered his resignation, effective July 31, 2023. Upcoming Dividend • Jun 22
Upcoming dividend of ₩90.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 24 August 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.8%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (2.1%). Major Estimate Revision • May 12
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from ₩9.09b to ₩9.32b. EPS estimate fell from ₩505 to ₩427 per share. Net income forecast to grow 1,025% next year vs 37% growth forecast for Auto Components industry in South Korea. Consensus price target broadly unchanged at ₩9,795. Share price rose 3.9% to ₩9,690 over the past week. Reported Earnings • Mar 26
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: ₩38.00 (down from ₩578 in FY 2021). Revenue: ₩8.63t (up 17% from FY 2021). Net income: ₩20.4b (down 93% from FY 2021). Profit margin: 0.2% (down from 4.2% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 77%. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Auto Components industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of ₩90.00 per share at 4.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 25 May 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.2%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.2%). Major Estimate Revision • Feb 12
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩9.20b to ₩9.06b. EPS estimate also fell from ₩544 per share to ₩464 per share. Net income forecast to grow 45% next year vs 16% growth forecast for Auto Components industry in South Korea. Consensus price target broadly unchanged at ₩9,553. Share price fell 8.6% to ₩8,770 over the past week. Announcement • Jan 19
Hanon Systems to Report Q4, 2022 Results on Feb 09, 2023 Hanon Systems announced that they will report Q4, 2022 results on Feb 09, 2023 Upcoming Dividend • Dec 21
Upcoming dividend of ₩90.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 20 April 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.4%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.3%). Reported Earnings • Nov 18
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: ₩32.00 (down from ₩95.00 in 3Q 2021). Revenue: ₩2.20t (up 29% from 3Q 2021). Net income: ₩16.8b (down 67% from 3Q 2021). Profit margin: 0.8% (down from 3.0% in 3Q 2021). Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 53%. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Auto Components industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 6% per year. Price Target Changed • Nov 16
Price target decreased to ₩10,018 Down from ₩11,383, the current price target is an average from 17 analysts. New target price is 15% above last closing price of ₩8,700. Stock is down 37% over the past year. The company is forecast to post earnings per share of ₩237 for next year compared to ₩578 last year. Price Target Changed • Nov 13
Price target decreased to ₩10,500 Down from ₩11,383, the current price target is an average from 17 analysts. New target price is 27% above last closing price of ₩8,300. Stock is down 41% over the past year. The company is forecast to post earnings per share of ₩237 for next year compared to ₩578 last year. Major Estimate Revision • Nov 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩8.44b to ₩8.62b. EPS estimate fell from ₩328 to ₩232 per share. Net income forecast to grow 39% next year vs 30% growth forecast for Auto Components industry in South Korea. Consensus price target down from ₩11,383 to ₩11,041. Share price rose 4.6% to ₩8,190 over the past week. Announcement • Oct 20
Hanon Systems to Report Q3, 2022 Results on Nov 09, 2022 Hanon Systems announced that they will report Q3, 2022 results on Nov 09, 2022 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩8,320, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 7x in the Auto Components industry in South Korea. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩13,933 per share. Upcoming Dividend • Sep 22
Upcoming dividend of ₩90.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 24 November 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.6%. Within top quartile of South Korean dividend payers (3.1%). Higher than average of industry peers (2.1%). Buying Opportunity • Aug 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 4.4%. The fair value is estimated to be ₩13,626, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has declined by 2.6%. Revenue is forecast to grow by 20% in 2 years. Earnings is forecast to grow by 40% in the next 2 years. Major Estimate Revision • Aug 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩8.17b to ₩8.42b. EPS estimate fell from ₩464 to ₩287 per share. Net income forecast to shrink 24% next year vs 27% growth forecast for Auto Components industry in South Korea . Consensus price target broadly unchanged at ₩12,311. Share price rose 2.3% to ₩11,000 over the past week. Price Target Changed • Jun 08
Price target decreased to ₩13,760 Down from ₩14,855, the current price target is an average from 20 analysts. New target price is 23% above last closing price of ₩11,200. Stock is down 35% over the past year. The company is forecast to post earnings per share of ₩502 for next year compared to ₩578 last year. Announcement • Apr 20
Hanon Systems to Report Q1, 2022 Results on May 11, 2022 Hanon Systems announced that they will report Q1, 2022 results on May 11, 2022