PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Hankook Cosmetics Manufacturing has shown a clear improvement in revenue and operating margin since 2022, but quarter-to-quarter volatility, illustrated by the sharp slowdown in the fourth quarter of 2025, has also increased.
Revenue grew from 103.9 billion won with a 4.2% operating margin in 2022 to 184.6 billion won and a 17.8% margin in 2025, four straight years of improvement
Q2 2026 posted record quarterly revenue of 71.2 billion won and operating profit of 14.0 billion won, though Q4 2025 revenue had dropped more than 30% quarter-on-quarter
The company ranked among the top 10 domestic cosmetics ODM firms by 2025 revenue of 184.6 billion won, though a scale gap remains versus large peers such as Kolmar Korea and Cosmax
The broader industry continues to grow on the back of expanding non-China exports, with a rising preference for domestically manufactured, 'Made in Korea' products
The debt ratio rose sharply to 89.8% in 2025 from 47.2% a year earlier, reflecting a balance-sheet shift in which liabilities grew alongside expanding equity
Hankook Cosmetics Manufacturing is a cosmetics ODM (original development manufacturing) company that researches, develops, and produces cosmetics on behalf of brand companies.
Its product lineup spans core cosmetics categories including basic skincare (creams, essences, sun care) and color cosmetics (foundation, eye makeup, lip products), as well as sheet masks.
According to industry trade publication Cosin Korea, the company posted 184.6 billion won in revenue in 2025, ranking among the top ten domestic cosmetics OEM/ODM companies by sales, following firms such as Kolmar BNH, C&F, Encos, Englewood Lab, and Intercos Korea.
The company's revenue scale grew over the long term, from 88.2 billion won in 2018 and a pandemic-affected 62.0 billion won in 2020 to 167.5 billion won in 2024.
Korea's cosmetics ODM industry, first introduced by Kolmar Korea in 1990, has since consolidated around large players such as Cosmax, Cosmecca Korea, and C&C International, whose revenue scales range from hundreds of billions to trillions of won, creating a considerable size gap versus mid-tier players.
Within this structure, Hankook Cosmetics Manufacturing operates as a mid-sized player relative to the largest incumbents.
A notable recent theme in the K-beauty industry is the growing preference among overseas buyers for products actually manufactured in Korea, which is cited as a favorable environment for domestically based ODM manufacturers.
The structural tendency of brand companies without their own production facilities to rely on ODM partners to enter markets quickly also underpins the company's business base.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩53.8B | ₩10.8B | 20.1% |
| 2025Q3 | ₩54.8B | ₩11.9B | 21.6% |
| 2025Q4 | ₩38B | ₩4.2B | 11.1% |
| 2026Q1 | ₩52.2B | ₩8.6B | 16.4% |
| 2026Q2 | ₩71.2B | ₩14B | 19.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩103.9B | ₩4.3B | ₩4B | 4.2% | 8.5% | 75.0% |
| 2023 | ₩109.3B | ₩9B | ₩7.3B | 8.3% | 13.8% | 69.5% |
| 2024 | ₩167.5B | ₩26.5B | ₩23.1B | 15.9% | 31.2% | 47.2% |
| 2025 | ₩184.6B | ₩32.9B | ₩27.4B | 17.8% | 26.1% | 89.8% |
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
Annual revenue rose for four straight years, from 103.9 billion won in 2022 to 109.3 billion won in 2023, 167.5 billion won in 2024, and 184.6 billion won in 2025.
Operating profit surged from 4.3 billion won in 2022 to 9.0 billion won in 2023, 26.5 billion won in 2024, and 32.9 billion won in 2025, lifting the operating margin from 4.2% to 8.3%, 15.9%, and 17.8% over the same period.
Net income attributable to owners likewise grew sharply, from 4.0 billion won in 2022 to 27.4 billion won in 2025. On a quarterly basis, revenue of 53.8 billion won and operating profit of 10.8 billion won in Q2 2025 improved further in Q3 2025 to 54.8 billion won and 11.9 billion won respectively.
Revenue then fell sharply to 38.0 billion won in Q4 2025, with operating profit dropping to 4.2 billion won, a period that industry research has associated with reduced working days around the Chuseok holiday and customer inventory adjustments across the sector.
Performance recovered in Q1 2026 to 52.2 billion won in revenue and 8.6 billion won in operating profit, before Q2 2026 set a record quarterly high with 71.2 billion won in revenue, 14.0 billion won in operating profit, and 10.8 billion won in net income attributable to owners.
Net income attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) totaled roughly 32.0 billion won, exceeding the full-year 2025 figure.
On the balance sheet, equity attributable to owners expanded from 74.2 billion won in 2024 to 104.7 billion won in 2025, but liabilities grew as well, pushing the debt ratio up from 47.2% to 89.8%, while operating cash flow expanded from 6.3 billion won in 2022 to 36.3 billion won in 2025, alongside the growth in earnings and cash generation.
Korea's cosmetics OEM/ODM industry has continued to grow broadly on the back of the K-beauty export boom.
According to a survey by industry trade publication Cosin Korea, combined 2025 revenue for 81 domestic firms reached 11.08 trillion won, up 11.8% year-on-year, while operating profit rose 24.5% and net income increased 9.8% over the same period.
The two largest players, Kolmar Korea and Cosmax, both surpassed 2 trillion won in revenue, widening the scale gap with other firms.
A clear shift in the growth axis has occurred over the past few years, moving from China toward non-China regions such as Europe and the Middle East, indicating reduced dependence on any single export market.
In a January 2026 report, Kiwoom Securities projected that Korea's cosmetics industry would continue to be led by export growth in 2026 and that domestic ODM companies' domestic revenue could grow 10-15% year-on-year.
Within this trend, a strengthening overseas-buyer preference for 'Made in Korea' products is notable, prompting large ODM firms to expand domestic production capacity.
Against this industry backdrop, Hankook Cosmetics Manufacturing sits as a mid-sized player ranked among the top ten by revenue scale, with a gap remaining versus the largest incumbents even as it participates in the broader sector growth trend.
No specific quantitative revenue or profit guidance from the company itself is publicly confirmed, but recent quarterly performance showed consecutive recovery in Q1 and Q2 2026 following the temporary slowdown in Q4 2025.
Industry sentiment generally favors continued export growth toward non-China regions in 2026, a factor cited as potentially supporting higher order volumes for domestic ODM firms.
However, with the Chuseok holiday again falling in late September in 2026, Q3 results may see a working-day effect similar to what was observed in Q4 2025. There are also views that continued overseas expansion by K-beauty indie brands will sustain the industry structure in which ODM order volumes keep rising.
At the same time, some observers note that quarterly performance variance across individual companies may widen depending on customer mix and order timing.
Against this backdrop, Hankook Cosmetics Manufacturing's future results warrant attention to both the degree of its own customer diversification and the influence of seasonal factors.
The company's earnings scale has expanded for four consecutive years since 2022, clearly transitioning from an earlier period of weak profitability into a phase of earnings recovery.
The current share price appears to already reflect a substantial portion of the improvement seen over the trailing four quarters, and it trades at a premium relative to book value per share.
However, the sharp rise in the 2025 debt ratio compared with the prior year suggests that qualitative changes in the balance sheet should be considered alongside the growth in equity.
Dividend-related disclosure history is limited, and further confirmation through future periodic filings would be needed to assess this aspect. Overall, the current valuation level appears to be one that should be weighed against both the sustainability of earnings and the degree of quarter-to-quarter volatility.
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
The operating margin rose for four consecutive years, from 4.2% in 2022 to 17.8% in 2025. Over the same period, revenue also expanded from 103.9 billion won to 184.6 billion won, indicating economies of scale accompanying the profitability gains. Q2 2026 posted record quarterly revenue and operating profit, showing the improvement trend continuing.
Domestic cosmetics exports have undergone a structural shift over recent years, with China's share declining while non-China regions such as Europe and the Middle East gain share.
Kiwoom Securities projected in a January 2026 report that this trend would continue in 2026, with domestic ODM companies' domestic revenue potentially growing 10-15%. A company with a domestic production base could be positioned among the beneficiaries of this export-led growth.
Operating cash flow expanded more than fivefold, from 6.3 billion won in 2022 to 36.3 billion won in 2025. Equity also grew from 74.2 billion won in 2024 to 104.7 billion won in 2025, reflecting capital accumulation from retained earnings. This could be interpreted as expanded capacity for future investment or financial flexibility.
Revenue plunged more than 30% from 54.8 billion won in Q3 2025 to 38.0 billion won in Q4 2025, with operating profit dropping sharply from 11.9 billion won to 4.2 billion won.
Industry research attributed part of this slowdown to reduced working days around the Chuseok holiday combined with customer inventory adjustments. With Chuseok also falling in 2026, a similar pattern cannot be ruled out.
The debt ratio rose sharply from 47.2% in 2024 to 89.8% in 2025. Total liabilities over the same period grew from 35.1 billion won to 94.1 billion won, with the pace of liability growth outstripping the expansion in equity.
The background and persistence of this balance-sheet shift warrant further confirmation through future disclosures.
Top industry players Kolmar Korea and Cosmax have each surpassed 2 trillion won in revenue, widening the scale gap.
These large firms are reinforcing their competitiveness through multiple domestic and overseas production sites and large-scale capital investment, while mid-sized Hankook Cosmetics Manufacturing must compete in this capital-intensive environment with comparatively limited resources.
Given the ODM business structure, changes in a specific customer's order timing or inventory policy can directly affect quarterly results. As illustrated by the sharp earnings decline in Q4 2025, customer inventory adjustments can significantly sway revenue and profit over a short period.
A substantial portion of cosmetics raw materials is often imported, meaning exchange rate movements and global raw material price fluctuations can affect costs. If cost pressure increases, this could affect the sustainability of the recently improved operating margin.
Changes in tariff policy in major export markets such as the United States, or shifts in regulation and consumption patterns in specific markets such as China, could affect export volumes for domestic ODM companies.
While the industry is diversifying exports away from China, uncertainty tied to policy changes in any single market remains.
Watch how the reduction in working days around Chuseok affects Q3 results; whether a pattern similar to Q4 2025 recurs will be a key point to observe.
Preliminary Q3 2026 earnings are expected to be disclosed, allowing confirmation of whether the margin and revenue trends continue following the record Q2 result.
Monthly cosmetics export statistics from Korea's trade ministry and customs authority can be checked to see whether growth in non-China export regions continues.
The FY2026 annual and audit reports are expected to be disclosed, allowing confirmation of whether the debt ratio and equity trends observed in the balance sheet persist.
Hankook Cosmetics Manufacturing has clearly entered an earnings recovery phase, with revenue and operating margin improving for four consecutive years since 2022.
Q2 2026 delivered record quarterly revenue and profit, but the sharp slowdown in Q4 2025 illustrates that quarter-to-quarter volatility tied to seasonality and customer inventory adjustments remains present.
On the industry side, the structural trend of expanding non-China exports is cited as a favorable environment for domestic ODM firms, though the company remains positioned as a mid-sized player amid a scale gap with the largest incumbents.
Financially, while equity and operating cash flow have expanded, the sharp rise in the 2025 debt ratio is a factor that warrants continued attention.
Going forward, the Q3 seasonal effect, non-China export statistics, and annual changes in the financial structure will likely serve as important checkpoints for assessing earnings and business trends.
This report does not include an investment opinion or a buy/sell recommendation and is provided for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.