PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,000 per share · Prices as of the 2026-10-02 close
Hanil Holdings is navigating a phase where merger-driven cost synergies at its core subsidiary Hanil Cement coexist with structurally weak construction demand, producing wide swings in quarterly results.
Core subsidiary Hanil Cement absorbed Hanil Hyundai Cement in November 2025, pushing its domestic Portland cement market share above the 20% mark.
Full-year 2025 revenue, operating profit, and owner net income all declined year over year, with owner net income turning negative in Q4 2025.
After a weak first quarter of 2026, the second quarter showed a marked rebound in revenue, operating profit, and net income, the strongest of the last five quarters.
Domestic cement shipments in the first half of 2025 fell to their lowest level in 33 years, with utilization rates for cement, ready-mixed concrete, and dry mortar all declining together.
The company is pursuing cost and environmental measures in parallel, including halting and pursuing the sale of the Busan plant and roughly KRW 370 billion in low-carbon equipment investment through 2027.
Hanil Holdings is a pure holding company created in 2018 through a spin-off from the former Hanil Cement, founded in 1961, with building-materials subsidiaries including Hanil Cement, Hanil Industrial, and Hanil L&C.
Core subsidiary Hanil Cement absorbed Hanil Hyundai Cement on November 1, 2025, re-emerging as a single entity and pushing its domestic Portland cement market share above 20%.
The merged Hanil Cement is the group's central affiliate, accounting for 72.3% of group revenue and largely determining the direction of holding-company results.
By product, cement accounts for roughly half of revenue, followed by dry mortar and ready-mixed concrete, while non-building-materials affiliates such as Seoul Land (theme park) and Hanil International (trading) round out the portfolio.
Cement production is centered in Danyang, with a nationwide network of dispatch plants and storage facilities linked to mortar and concrete factories. The company focuses on patented eco-friendly product development, including low-carbon limestone-blended cement and mortar designed to reduce interfloor noise.
Competitively, Ssangyong C&E remains the industry leader, with Hanil Cement competing alongside Sungshin Cement, Halla Cement, and Asia Cement in an oligopolistic market.
The brand has also been recognized for 23 consecutive years as the top company in the cement sector in the Korea Management Association Consulting's 'Most Respected Companies in Korea' survey.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩543.1B | ₩47.3B | 8.7% |
| 2025Q3 | ₩505B | ₩49.1B | 9.7% |
| 2025Q4 | ₩471.8B | ₩14.2B | 3.0% |
| 2026Q1 | ₩395.6B | ₩12.4B | 3.1% |
| 2026Q2 | ₩502.4B | ₩65.3B | 13.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2T | ₩132.5B | ₩89.5B | 6.7% | 6.3% | 59.6% |
| 2023 | ₩2.4T | ₩262B | ₩104.3B | 11.1% | 6.9% | 62.0% |
| 2024 | ₩2.2T | ₩279.3B | ₩118.8B | 12.4% | 7.3% | 61.0% |
| 2025 | ₩1.9T | ₩123.2B | ₩31.6B | 6.4% | 1.9% | 59.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Consolidated revenue rose from KRW 1.9656 trillion in 2022 to KRW 2.3631 trillion in 2023 and KRW 2.2487 trillion in 2024, before falling back to KRW 1.9305 trillion in 2025, tracking the construction cycle.
Operating profit likewise climbed to KRW 262.0 billion in 2023 and KRW 279.3 billion in 2024 before shrinking to less than half, KRW 123.2 billion, in 2025, with the operating margin falling from 12.4% to 6.4%.
Owner net income dropped sharply from KRW 118.8 billion in 2024 to KRW 31.6 billion in 2025, a decline attributed to the broader revenue and profit slowdown compounded by one-off factors related to the merger.
On a quarterly basis, operating profit of KRW 49.1 billion and owner net income of KRW 21.3 billion in Q3 2025 gave way to a drop in operating profit to KRW 14.2 billion and a swing to an owner net loss of KRW 5.6 billion in Q4 2025.
The weak trend continued into Q1 2026 with revenue of KRW 395.6 billion and operating profit of KRW 12.4 billion, though owner net income stayed positive at KRW 4.9 billion.
Q2 2026 showed a clear rebound, with revenue of KRW 502.4 billion, operating profit of KRW 65.3 billion, and owner net income of KRW 34.1 billion, the strongest of the last five quarters.
This quarterly volatility appears to reflect both the seasonality of the cement business, which slows in winter, and the reshaping of cost structures following the merger.
On the holding company's own separately disclosed basis, first-quarter 2026 revenue fell 3.6% year over year and operating profit fell 2.0%, while net income rose 148.4%, indicating divergent trends across line items.
Domestic cement demand is contracting structurally amid the construction downturn: first-half 2025 domestic shipments fell 17.4% year over year to 18.88 million tons, the lowest half-year figure in 33 years, since 1992.
Some analyses go further, noting that domestic construction investment has declined for two consecutive years and that cement demand has fallen to its lowest level since 1991.
Utilization rates have also weakened, with the average cement utilization rate falling to 58.3% through Q3 2025 from 65.0% a year earlier, while ready-mixed concrete utilization fell from 28.7% to 22.8% and dry mortar utilization from 42.8% to 31.4%.
A leading construction indicator, the 12-month moving average of rebar/steel-frame construction starts, saw its year-over-year decline widen from 2.6% in Q2 2025 to 11.4% in Q3.
Hyundai Motor Securities forecast in a December 2025 report that while a modest increase in pre-sale volumes in the second half of 2025 could support a rebound in construction starts, the lag between starts and shipments meant a meaningful volume recovery was unlikely before 2026.
On the supply side, industry-wide overcapacity persists, even as the combined entity created by the Hanil Cement–Hanil Hyundai Cement merger pushed its domestic Portland cement share above 20%, positioning it to pursue the market leader, Ssangyong C&E.
Common industry strategy has centered on eliminating redundant investment and consolidating facilities to strengthen cost competitiveness.
Following the merger, Hanil Cement identified building an integrated operating base across its Danyang and Yeongwol plants as a core task for raising efficiency across production, logistics, and sales.
On the cost side, the Busan plant, completed in 1978, halted operations as of December 31, 2025, and while a sale process is underway, a relocation site has not yet been determined.
Sale proceeds are expected to be directed toward mid- to long-term growth funding such as eco-friendly equipment investment, with the company committing roughly KRW 370 billion through 2027 to retrofit kiln facilities and build a low-carbon production system.
On emissions, the company reported a cumulative 26% reduction in greenhouse gas emissions in 2025 versus 2018, alongside expanded use of alternative raw materials and fuels and parallel development of carbon capture, utilization, and storage (CCUS) technology.
Financially, a stable debt ratio suggests room to direct capital toward equipment investment and new businesses rather than debt reduction.
On shareholder returns, the company has paid an annual dividend every year since 1966, extending to 57 consecutive years through fiscal year 2025, and has stated it intends to keep working to raise its dividend yield.
However, given the uncertain timing of a construction-sector recovery, how quickly merger synergies translate into improved results will need to be confirmed through upcoming quarterly earnings.
As is typical for holding companies, the market tends to price such stocks at a discount to net asset value, and Hanil Holdings has traded in a similar discounted range relative to its net assets.
Multi-year results show a recovery trend from 2022 through 2024 that reversed in 2025, followed by wider swings between quarterly losses and profits in 2026. This earnings volatility broadens the range of reasonable interpretations of where the current level sits relative to past trading bands.
On dividends, the company has a long unbroken payout history, but because the payout ratio tends to rise when profits contract, views on the sustainability of the dividend could shift depending on how quickly earnings recover.
Ultimately, valuation assessments are likely to hinge on whether the cement industry has passed its cyclical trough and on how quickly merger synergies materialize.
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 2026-09-04
The November 2025 merger of Hanil Cement and Hanil Hyundai Cement consolidated overlapping facilities and organizations, expanding room for cost savings. The improved operating margin in Q2 2026 relative to prior quarters suggests that integration effects have begun to show through. There also remains further room for the operating margin to improve relative to revenue.
Having paid an annual dividend every year since 1966, extending to 57 consecutive years through fiscal 2025, the company holds a rare track record among Korean-listed firms. It has formally stated its intention to keep working to raise its dividend yield.
Diversified cash flows from non-building-materials affiliates can also contribute to the stability of dividend funding.
The roughly KRW 370 billion low-carbon transition investment planned through 2027, including kiln retrofits, is a preemptive step that could ease future carbon credit cost burdens. A 26% reduction in greenhouse gas emissions in 2025 versus 2018 demonstrates relative preparedness amid tightening regulation. Expanded use of alternative raw materials and fuels also has potential to benefit the cost structure.
Domestic cement shipments in the first half of 2025 fell to their lowest level in 33 years, and utilization rates for cement, ready-mixed concrete, and dry mortar all declined together.
Leading indicators such as construction starts show no clear sign of improvement, and analysts suggest a near-term demand rebound is unlikely. This can weigh on both revenue and margins.
Owner net income swung to a loss in Q4 2025, and operating profit fell sharply again in Q1 2026, widening quarter-to-quarter earnings variability. Similar volatility could recur until the cost structure fully stabilizes after the merger.
Given the cement industry's high fixed-cost intensity, declines in utilization have an outsized impact on profit.
The Korea Institute of Corporate Governance and Sustainability lowered the overall 2025 ESG rating for both Hanil Holdings and Hanil Cement to B+, one notch below the prior year, with strong environmental and social scores offset by a relatively weaker governance score.
Mixed market views on a dividend policy weighted toward the controlling shareholder are also cited as a governance risk. Execution risk also remains, including the fact that a relocation site for the Busan plant has yet to be finalized.
A prolonged construction downturn is structurally weakening demand for cement, ready-mixed concrete, and dry mortar. If leading indicators such as construction starts recover later than expected, shipment volumes could also take longer to rebound. This directly affects revenue and utilization rates.
Obligations to reduce greenhouse gas emissions and the associated carbon credit costs are expanding under tightening carbon-neutrality policy. A large planned capital investment of roughly KRW 370 billion through 2027 also represents an ongoing capex burden. Energy price volatility can additionally affect the cost structure.
Uncertainty remains around the execution of restructuring steps such as the sale of the Busan plant and confirmation of a relocation site. ESG rating agencies have assigned a relatively lower score on the governance dimension.
Market concerns about a dividend policy oriented toward the controlling shareholder are also cited as a governance risk.
Third-quarter 2026 earnings are expected to be disclosed, and it will be worth checking whether the operating margin recovery seen in Q2 continues.
As the industry enters its seasonal winter slowdown, it will be important to track utilization and fixed-cost trends and whether the Busan plant sale and relocation site are finalized.
The pace of execution and capex burden of the roughly KRW 370 billion low-carbon equipment investment, including kiln retrofits, should be monitored.
Watch for a rebound in leading construction indicators such as starts area, and any resulting signs of recovery in cement shipment volumes.
Hanil Holdings sits at the intersection of two forces: its core subsidiary Hanil Cement pursuing economies of scale and market-share gains through its absorption of Hanil Hyundai Cement, and a structural demand contraction driven by the ongoing construction downturn.
Annual results showed a profit recovery in 2023-2024 before revenue, operating profit, and owner net income all retreated in 2025. Quarterly results swung widely, from a loss in Q4 2025 to a modest profit in Q1 2026 and a clear rebound in Q2.
On the industry side, first-half 2025 domestic shipments fell to their lowest level in 33 years and utilization rates declined in tandem, while the timing of a recovery in leading indicators such as construction starts remains unclear.
The company is working to strengthen cost competitiveness and environmental readiness through merger synergies, low-carbon equipment investment, and restructuring of the Busan plant.
On dividends, a long unbroken payout history continues, but because the payout ratio tends to rise when profits contract, the pace of future earnings recovery could affect assessments of dividend sustainability.
Overall, the speed at which merger synergies materialize and the timing of a construction-sector recovery are likely to be the key variables shaping future results and shareholder-return policy.
Report written 2026-09-05 · Data as of 2026-09-04
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