PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close
Despite a return to net profit in the second quarter of 2026, Hanil Steel's trailing four-quarter attributable net income remains in the red, leaving construction-cycle recovery as the key swing factor.
Revenue declined for four consecutive years from 2022 to 2025 before rebounding to the KRW 60 billion range for two straight quarters in the first half of 2026.
Quarterly operating margin swung widely between 0.06% and 4.63%, with the second quarter of 2026 marking the high point of the recent window.
The sum of attributable net income over the trailing four quarters (Q3 2025 through Q2 2026) remains negative.
The debt ratio rose from 90.7% in 2023 to 103.6% in 2025, while operating cash flow also declined steadily over the same period.
Delayed recovery in construction-related steel demand and shifting trade regulations are cited as the key variables shaping earnings direction.
Hanil Steel was established in 1957 and listed on the KOSPI in 1988 as a mid-sized Korean steel distribution and processing company.
According to the company's website, its core business centers on hot-rolled coil, plate, and shaped-steel products, along with rental and sale of sheet piles and H-beams, coil cutting, and shot-blast processing services.
The company operates logistics and coil centers in Seoul, Incheon, Pyeongtaek, Pohang, and Dangjin, supplying products nationwide through what functions as a steel service center (SSC) business model.
According to data compiled by JobKorea as of the first quarter of 2025, revenue was split roughly 47% steel plate and shapes, 43% plate, 6% sheet piles, and 4% coil and shot-blast processing, with plate and shape products dominating the mix.
In 2003, Hanil Steel spun off its steel pipe division to form Hi-Steel, and it currently holds two affiliates: Hanil Shipping, which handles maritime cargo transport, and a pipe manufacturing subsidiary in Jiangyin, China.
Its primary customers are construction companies and manufacturers, with a large share of revenue tied to shaped-steel and plate distribution linked to construction activity.
Competitively, the market includes distribution networks of large integrated steelmakers such as POSCO and Hyundai Steel alongside numerous regional steel service centers and distributors, resulting in persistent price competition.
Raw materials are primarily sourced from major domestic steelmakers, and profitability is largely driven by the spread between selling prices and input costs.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩50.1B | ₩1.5B | 3.1% |
| 2025Q3 | ₩50.8B | ₩1.4B | 2.8% |
| 2025Q4 | ₩45.7B | ₩25,982,183 | 0.1% |
| 2026Q1 | ₩61.9B | ₩500M | 0.7% |
| 2026Q2 | ₩61.8B | ₩2.9B | 4.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩255.2B | ₩4B | -₩1.5B | 1.6% | −0.9% | 94.3% |
| 2023 | ₩216.3B | ₩4.9B | ₩740,696 | 2.2% | 0.0% | 90.7% |
| 2024 | ₩205.8B | ₩700M | -₩5.3B | 0.3% | −3.2% | 102.1% |
| 2025 | ₩196.4B | ₩3.2B | -₩600M | 1.6% | −0.3% | 103.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Revenue fell for four straight years, from KRW 255.2 billion in 2022 to KRW 216.3 billion in 2023, KRW 205.8 billion in 2024, and KRW 196.4 billion in 2025.
Operating profit improved from KRW 4.03 billion (1.6% margin) in 2022 to KRW 4.86 billion (2.2%) in 2023, then plunged to KRW 0.67 billion (0.3%) in 2024 before recovering to KRW 3.18 billion (1.6%) in 2025.
Attributable net income was a loss of KRW 1.51 billion in 2022, near breakeven at roughly KRW 0.0007 billion in 2023, widened sharply to a loss of KRW 5.26 billion in 2024, and narrowed to a loss of KRW 0.55 billion in 2025.
On a quarterly basis, attributable net income posted a profit of KRW 1.86 billion in the second quarter of 2025 but swung back to losses of KRW 0.91 billion and KRW 1.32 billion in the third and fourth quarters, with the loss continuing at KRW 1.46 billion in the first quarter of 2026.
In the second quarter of 2026, however, revenue reached KRW 61.76 billion with operating profit of KRW 2.86 billion (a 4.6% margin), and attributable net income turned to a profit of KRW 1.84 billion.
As a result, the sum of attributable net income over the trailing four quarters (Q3 2025 through Q2 2026) remains a loss of roughly KRW 1.86 billion.
According to FnGuide data, consolidated revenue rose 24.3% year-on-year in the first quarter of 2026, operating profit rose 145.0%, while the net loss expanded 687.1%, indicating that top-line and operating gains did not translate into bottom-line improvement in that quarter.
Operating cash flow, a measure of cash-generating capacity, declined steadily from KRW 21.37 billion in 2022 to KRW 5.72 billion in 2023, KRW 3.28 billion in 2024, and KRW 0.59 billion in 2025, while the debt ratio moved from 94.3% to 90.7% to 102.1% to 103.6% over the same span, trending higher after an initial dip.
There is broad industry consensus that the construction sector, a key downstream market, remains stuck in a prolonged slump.
The Steel Daily research institute assessed that construction-oriented steel products such as rebar and pipe are likely to face delayed market recovery, as the probability of policy measures capable of driving a dramatic construction recovery in 2026 is very low.
At the same time, it noted that as the government-led steel industry competitiveness enhancement plan is implemented in full, restructuring pressure on the rebar industry is expected to materialize.
FerroTimes analyzed that Korea's steel industry aims to rebound starting in 2026, but is more likely to see an L-shaped bottoming pattern or very modest recovery rather than a V-shaped rebound.
On the other hand, AI, semiconductor, and defense-related industries are expected to post the highest growth rates, and industrial construction such as data centers and semiconductor plants is projected to become more active in 2026, suggesting some product categories could benefit.
A recent distribution market check found that in the rebar market, insufficient underlying construction demand—beyond simple seasonal off-peak factors—was cited as the key factor blocking a price rebound.
On the trade front, it has been observed that import pressure centered on Chinese hot-rolled coil and plate has not disappeared but has shifted toward Japanese plate, Southeast Asian hot-rolled coil, and Chinese wire rod, raising concerns that managing only regulated items could allow price pressure to resurface through alternate supply routes.
Companies like Hanil Steel, centered on plate and shape distribution and processing, have results heavily dependent on the spread between raw material and selling prices, and on the recovery of construction order volumes.
No specific quantitative guidance from the company itself was confirmed, but FnGuide assessed that despite a downturn in the construction and manufacturing sectors that serve as downstream markets, the company achieved meaningful financial improvement through proactive measures and profitability-focused management, with domestic rate cuts and a construction recovery expected to drive future growth.
A key policy variable is the government's 2026 tax reform proposal, under which the domestic production tax credit was proposed for six sectors—solar, wind, batteries, semiconductors, core materials, and AI robotics components—excluding steel, prompting the Minister of Trade, Industry and Energy to state in the National Assembly that he would coordinate to include steel.
This bill could still be adjusted before submission to the regular National Assembly session in September, making whether tax benefits extend to the steel sector a near-term watch point.
On industry restructuring, Daol Investment & Securities forecast that under the steel industry upgrade plan announced in November 2025, preemptive capacity cuts at Hyundai Steel and Dongkuk Steel are underway, with a concrete reduction roadmap to be presented within the first half of 2026, and whether such supply-side adjustments translate into normalized distribution prices remains to be seen.
At the company level, it remains to be confirmed whether the second-quarter 2026 improvement in revenue and operating profit is a temporary rebound or the start of a trend recovery.
The pipe market conditions at affiliate Hi-Steel and the performance of the China-based Jiangyin subsidiary are also variables that could partly affect consolidated results.
Overall, the pace of construction order recovery, the raw-material-to-selling-price spread, and the degree to which trade and tax policy is finalized are cited as the key variables shaping the earnings path ahead.
In terms of the relationship between the company's book value and its share price, the multiple currently assigned by the market appears to be roughly in line with, or somewhat below, the average for the domestic steel sector.
This should be considered alongside the broader industry context, where valuations across the sector have traded at low multiples relative to book value for an extended period, and may also reflect the market pricing in the company's lack of earnings stability.
On the earnings side, results have oscillated between losses and modest profits in recent years, and whether the return to profit in the second quarter of 2026 marks a genuine shift will require confirmation from additional quarters.
On the dividend side, the company has maintained a modest cash dividend in recent periods, though given the volatility in earnings, the sustainability of that dividend could remain tied to the trajectory of results.
Ultimately, valuation judgments sit in a fluid range that could shift depending on the pace of construction-sector recovery and any improvement in raw-material-to-selling-price spreads.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Operating margin in the second quarter of 2026 reached 4.6%, the highest of the trailing four quarters, and attributable net income turned to a profit of KRW 1.84 billion. Revenue in the same quarter held at a high level of KRW 61.76 billion, little changed from the prior quarter. This illustrates a case where revenue recovery has also translated into some profitability improvement.
Revenue in the first and second quarters of 2026 came in at KRW 61.87 billion and KRW 61.76 billion respectively, above the 2025 quarterly average. According to FnGuide, first-quarter 2026 revenue rose 24.3% year-on-year. This can be seen as a rebound signal following four consecutive years of annual revenue decline.
Industry analysis suggests that steel demand tied to industrial construction such as data centers and semiconductor plants is expected to remain relatively firm in 2026. This implies that project-specific demand could emerge even amid broader weakness in construction-related shaped steel and plate demand. This could serve as a partial demand base for Hanil Steel, whose core business is plate and shape distribution.
Revenue fell for four consecutive years, from KRW 255.2 billion in 2022 to KRW 196.4 billion in 2025. This largely reflects a shrinking volume of plate and shape distribution amid a prolonged construction downturn. It remains unconfirmed whether the rebound in the first half of 2026 will fully reverse this multi-year trend.
Multiple industry analyses point to the possibility that Korea's steel industry in 2026 will see an L-shaped pattern rather than a clear rebound. Construction-related steel products such as rebar and shapes are expected to recover particularly slowly.
This is a factor that could constrain the pace of earnings recovery for Hanil Steel, given its high exposure to construction-related revenue.
Operating cash flow declined steadily from KRW 21.37 billion in 2022 to KRW 0.59 billion in 2025. Over the same period, the debt ratio rose from 94.3% to 103.6%. The simultaneous decline in cash generation and rise in leverage is a point warranting attention from a financial flexibility standpoint.
Demand for shaped steel and plate is heavily affected by the direction of construction investment and benchmark interest rate policy. The specific details of the government's steel industry upgrade plan and tax reform proposal also remain unfinalized variables. This policy uncertainty is a factor that complicates short-term earnings forecasting.
If fluctuations in raw material prices such as steel scrap and iron ore are not immediately reflected in selling prices, spreads could narrow. Recent distribution market observations have shown a dual pressure of weakening raw material price support alongside soft product demand. This can directly affect the margins of distribution- and processing-focused businesses.
Since the implementation of anti-dumping duties on Chinese hot-rolled coil and plate, import pressure has been observed shifting toward Japanese and Southeast Asian products. If only regulated items are managed, price pressure could resurface through adjacent products or alternate supply countries. This is a variable that could affect the stability of domestic distribution prices.
Whether the steel industry will be included in the domestic production tax credit under the tax reform bill could be finalized, warranting a check on the sector-wide impact.
Once third-quarter 2026 consolidated results are disclosed, it will be possible to gauge whether the second-quarter return to profit was a temporary rebound or a trend improvement.
It will be worth checking whether rebar and shaped-steel distribution prices rebound with the seasonal peak or whether demand weakness persists.
It is worth monitoring the announcement and progress of a concrete capacity-reduction roadmap under the government's steel industry upgrade plan, to see whether supply-side restructuring leads to normalized distribution prices.
Hanil Steel experienced four consecutive years of revenue decline before seeing both revenue and operating profit improve in the first half of 2026, with attributable net income turning to a profit in the second quarter.
However, the trailing four-quarter sum still shows a net loss, and the wide swings in quarterly results are worth noting. Cash generation has weakened steadily and the debt ratio has trended slightly higher, warranting attention to financial stability as well.
Across the broader industry, forecasts of a slow construction recovery coexist with expectations of firm demand from certain industrial segments such as data centers and semiconductors. How trade regulations and tax policy are finalized could also affect spreads and profitability across the sector.
Tracking upcoming quarterly results alongside construction order indicators and policy announcements will likely help in assessing the direction of earnings ahead.
Report written 2026-09-05 · Data as of 2026-09-04
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