KOSDAQHolding Companies003380

Harim Holdings

₩11,250▲ 2.83%2026-10-02 close

Market Cap

₩1.3T

Turnover

₩4.2B

Volume

380,000 shares

Shares out.

110M

PER

7.4×

PBR

0.3×

EPS

₩1,494

Dividend Yield

1.09%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩120 per share · Prices as of the 2026-10-02 close

Report overview

Between a Shipping Upcycle and a Holdco Discount

A Pan Ocean-led shipping upcycle has pushed consolidated revenue and operating profit to record territory, yet a large minority interest and group-wide capex and debt keep the owners' share of earnings improving far more slowly.

1
2025 consolidated revenue was 13.21 trillion won with operating profit of 887.4 billion won (6.7% margin), recovering from the 4.7% margin trough of 2023, and 2026 Q2 revenue of 4,091.4 billion won was the largest in the disclosed quarterly window.
2
Non-controlling interests are almost as large as the owners' equity, so a substantial part of the operating profit improvement accrues to minority shareholders of listed subsidiaries.
3
Key subsidiary Pan Ocean reported preliminary 2026 Q2 revenue of 1,913.7 billion won and operating profit of 193.7 billion won, with bulk, tanker and LNG all contributing (preliminary figures disclosed on July 31, 2026).
4
NS Shopping's acquisition of the Homeplus Express business was cleared by the Fair Trade Commission in June 2026, adding a proximity offline retail network to the group portfolio.
5
With ship investments, the Yangjae logistics complex and the retail acquisition overlapping, group net debt and holding-company double leverage remain key monitoring items for credit rating agencies.

Business structure

Harim Holdings is a pure holding company without its own manufacturing or sales operations, relying on dividends and fees from subsidiaries for standalone cash flow.

In its June 2026 credit opinion, Korea Investors Service noted that the Harim group operates in feed, transportation (shipping), food (poultry, pork, HMR) and distribution, and that the holding company's credit quality is tied to core subsidiaries such as Pan Ocean, NS Shopping and Sunjin.

In its June 2026 merger review, the Fair Trade Commission described the Harim business group as a poultry and food specialist vertically integrated from grain sourcing through feed, livestock, slaughtering, processing and distribution, handling pork, duck, processed meats, home meal replacements and pet food alongside chicken, with TV home shopping and e-commerce exposure through NS Shopping.

The center of gravity for consolidated revenue and profit is Pan Ocean, which runs bulk, tanker, LNG and container fleets, and the company's own 2026 Q1 materials also presented shipping as the driver of group results.

The feed and livestock arm defended profits on volume as overseas sales in markets such as Myanmar and India expanded, while the food and services arm turned to an operating profit in the first quarter on higher poultry and pork volumes, according to the company.

Distribution is handled by NS Shopping, wholly owned by Harim Holdings, which operates the NS Home Shopping TV channel. Harim Industries, which runs the HMR and instant noodle business, is likewise a wholly owned subsidiary and is the developer of the Yangjae urban high-tech logistics complex in Seoul.

On ownership, related parties including Chairman Kim Hong-guk with 21.1% held 50.3% as of end-March 2026. The result is a chain running from grain procurement through shipping, feed, livestock, processing and retail under one roof, with each unit facing a different competitive set.

Earnings trend

Quarterly revenue · Operating profit

₩3.3T₩238.9B25Q2₩3.3T₩255.2B25Q3₩3.4T₩173.5B25Q4₩3.6T₩258.3B26Q1₩4.1T₩285.9B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩13.8T₩941.3B2022₩12.1T₩567.5B2023₩12.3T₩765.5B2024₩13.2T₩887.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩3.3T	₩238.9B	7.2%
2025Q3	₩3.3T	₩255.2B	7.7%
2025Q4	₩3.4T	₩173.5B	5.1%
2026Q1	₩3.6T	₩258.3B	7.3%
2026Q2	₩4.1T	₩285.9B	7.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩13.8T	₩941.3B	₩244B	6.8%	9.0%	162.3%
2023	₩12.1T	₩567.5B	₩37.1B	4.7%	1.3%	155.1%
2024	₩12.3T	₩765.5B	₩26.4B	6.2%	0.9%	170.6%
2025	₩13.2T	₩887.4B	₩229.7B	6.7%	7.1%	170.9%

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

Earnings analysis

On an annual basis, revenue fell from 13,775.3 billion won in 2022 to 12,062.4 billion won in 2023, then recovered to 12,273.0 billion won in 2024 and 13,214.9 billion won in 2025.

Profitability bottomed in 2023 at 567.5 billion won of operating profit (4.7% margin) and improved for two consecutive years to 765.5 billion won (6.2%) in 2024 and 887.4 billion won (6.7%) in 2025.

Net profit attributable to owners stayed depressed at 37.1 billion won in 2023 and 26.4 billion won in 2024 before jumping to 229.7 billion won in 2025, showing how long it took for the operating recovery to reach the owners' line. The structural reason lies in the capital mix.

Of 6,277.6 billion won of consolidated equity at end-2025, 3,234.1 billion won belonged to owners and 3,043.5 billion won to non-controlling interests, and of 513.8 billion won of consolidated net profit in 2025 only 229.7 billion won was attributable to owners.

Quarterly, revenue and operating profit moved from 3,310.9 billion won and 238.9 billion won in 2025 Q2 down to 173.5 billion won of operating profit in 2025 Q4, then back up to 3,554.1 billion won and 258.3 billion won in 2026 Q1 and 4,091.4 billion won and 285.9 billion won in 2026 Q2.

Owners' net profit, however, moved differently: a small loss of 1.1 billion won in 2025 Q4, 71.9 billion won in 2026 Q1 and 48.1 billion won in 2026 Q2, pointing to the weight of minority interests and non-operating items.

Summing the four most recent quarters (2025 Q3 through 2026 Q2) gives revenue of 14,346.0 billion won, operating profit of 972.8 billion won and owners' net profit of 167.4 billion won.

Operating cash flow rose to 1,141.1 billion won in 2025 from 878.8 billion won in 2024, but total liabilities of 10,730.7 billion won and a debt-to-equity ratio of 170.9% left the balance sheet heavier than in 2023 (155.1%).

Industry analysis

The dry bulk shipping market, the axis of group profits, ran strong through 2026. According to Pan Ocean's 2026 Q2 release, the Baltic Dry Index rose about 88% year on year as the South American grain season peaked and Middle East tensions lifted coal volumes, with the second-quarter average BDI at 2,159 points.

Korea Investment & Securities said in an early-September 2026 report that the Q2 average BDI was the highest since 2021 and that the third-quarter average to date was running above it, adding that Clarksons had raised its 2026 bulk trade growth forecast to 3.8% from 1.9% at the start of the year.

Tanker strength carries a geopolitical premium, and the same report noted that market earnings forecasts already exclude that effect from the third quarter onward.

In feed and livestock, falling global grain prices have been cited as an easing factor for production costs, yet the company's own 2026 Q1 figures showed segment profit growth lagging far behind revenue growth, indicating a remaining lag between input costs and selling prices.

The retail end market is comparatively weak: press reports citing government data showed supermarket-format (SSM) sales down 1.3% in December 2025, 4.4% in January 2026 and 0.4% in February, three consecutive monthly declines.

In short, shipping sits near the upper part of its cycle, distribution faces structural stagnation, and feed and livestock occupy a middle ground where cost relief meets volume expansion.

Outlook

The most visible change is in the distribution portfolio. NS Shopping was named preferred bidder for Homeplus Express in April 2026, signed a business transfer agreement worth 120.6 billion won on May 7, and received Fair Trade Commission clearance on June 12.

The acquired network comprised 293 stores as of end-2025, which press reports placed third among supermarket-format operators.

According to company statements, after the June 23 relaunch, average daily sales through July 9 rose about 35% versus June 1-22 and 55% versus May, while the fresh-food fill rate recovered to around 98%.

In shipping, energy transport expansion is scheduled: brokerage commentary reported in May 2026 described five MR tankers, three newbuild VLCCs and ten secondhand VLCCs being added, while the company said all LNG vessels have been delivered, establishing a long-term contract based earnings structure.

Korea Investment & Securities forecast in an early-September 2026 report that Pan Ocean's 2026 operating profit would rise 38% year on year to 677.1 billion won.

The long-dated Yangjae urban high-tech logistics complex cleared a revised plan notification in August 2025 and moved to the building permit and pre-construction stage in Seocho-gu, with reported project costs of about 6.9 trillion won and completion targeted for 2030.

Korea Investors Service, however, flagged that ship investments, the Sunjin Anseong livestock food complex, the Yangjae development and noodle and HMR line expansions at Harim Industries, plus the Homeplus Express deal, all overlap, requiring continued monitoring of whether financial burden stays under control.

Valuation

PER

7.4×

PBR

0.3×

ROE

5.1%

EPS

₩1,494

BPS

₩35,156

Dividend per share

₩120

Valuation here rests on two structural features. First, as a pure holding company whose consolidated equity is nearly half non-controlling interests, rising consolidated operating profit translates only partially into the owners' line, and the market has typically applied a discount to net assets for such structures.

The price-to-book ratio has indeed traded well below one, consistent with the discount commonly observed across Korean holding companies.

Second, earnings amplitude is dictated by shipping cycles, so earnings-based multiples swing widely with the cycle: they expanded sharply when owners' profit bottomed in 2023 and 2024 and compressed quickly as profit recovered in 2025.

A modest cash dividend has been maintained, though the yield is not a standout, and because standalone holding-company cash flow depends on subsidiary dividends, distribution capacity is tied directly to policies at Pan Ocean and other units.

For reference, Korea Investment & Securities put Pan Ocean's expected 2026 price-earnings ratio below 7 times and its price-to-book at 0.46 times in an early-September 2026 report; those are that brokerage's estimates for the subsidiary and do not carry over directly to the holding company.

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

Bull factors

Direct exposure to a strong shipping cycle

Pan Ocean disclosed preliminary 2026 Q2 revenue of 1,913.7 billion won and operating profit of 193.7 billion won, up 47.9% and 57.4% year on year (preliminary as of July 31, 2026).

Bulk contributed 84.7 billion won, tankers 43.7 billion won and LNG 49.7 billion won, an even spread that reduces reliance on any single freight market. Harim Holdings' consolidated 2026 Q2 revenue of 4,091.4 billion won and operating profit of 285.9 billion won align with that trend.

Korea Investment & Securities cited improving supply-demand in an early-September 2026 report, pointing to Clarksons raising its 2026 bulk trade growth forecast from 1.9% to 3.8%.

Retail channel added to complete the value chain

NS Shopping acquired the Homeplus Express business for 120.6 billion won, and the Fair Trade Commission approved the deal on June 12, 2026, judging competitive concerns limited. The network comprised 293 stores as of end-2025, and press reports noted a large share had served as quick-commerce hubs.

That creates scope to link the group's poultry, processed meat and HMR production with a proximity offline channel. Company statements that average daily sales and fresh-food fill rates rebounded quickly after the relaunch also reduce early integration risk.

Recovering operating cash flow and earnings base

Operating cash flow reached 1,141.1 billion won in 2025, above 878.8 billion won in 2024 and 900.7 billion won in 2023. The operating margin recovered from 4.7% in 2023 to 6.2% in 2024 and 6.7% in 2025, close to the 6.8% of 2022.

Operating profit over the four most recent quarters totaled 972.8 billion won, tracking above the full-year 2025 figure. Rising overseas volumes in feed and livestock and higher poultry and pork sales suggest room for non-shipping units to lift their contribution.

Bear factors

Little of the profit reaches owners

Of 513.8 billion won of consolidated net profit in 2025, only 229.7 billion won was attributable to owners, less than half. In the balance sheet, non-controlling interests of 3,043.5 billion won nearly match owners' equity of 3,234.1 billion won.

In 2026 Q2, operating profit rose to 285.9 billion won while owners' net profit was just 48.1 billion won, repeating the pattern in which operating strength does not flow straight through. Any translation of subsidiary earnings into holding-company profit must account for this dilution.

Accumulated investment and debt burden

In its June 2026 assessment, Korea Investors Service noted group consolidated net debt rose from 3.9 trillion won at end-2019 to 7.4 trillion won at end-March 2026. The same document put holding-company double leverage at 162.7% as of end-March 2026, with guarantee limits for affiliates of 160.5 billion won.

On the confirmed financials, total liabilities were 10,730.7 billion won at end-2025 with a debt ratio of 170.9%, up from 155.1% in 2023. With vessels, the logistics complex and the retail acquisition proceeding at once, the rating agency's view is that internal cash alone is unlikely to shrink the burden.

Loss-making new businesses and a weak retail end market

Korea Investors Service noted that losses are widening at Harim Industries, which runs the HMR and instant noodle business, and that the HMR venture has yet to secure market position, constraining consolidated results.

The retail end market is not supportive either: press reports showed supermarket-format sales declining for three straight months from December 2025 through February 2026. Weak retail conditions were also cited as a reason the Homeplus Express price came in below the 200-300 billion won range discussed in the market. Whether post-deal store normalization and margin recovery translate into actual profit remains to be verified.

Risk factors

Freight market volatility

Bulk and tanker rates, the key swing factor for group profit, can move sharply on geopolitics and trade volumes. Much of the 2026 Q2 improvement came from a surge in the BDI and Middle East-driven tanker strength, so a reversal could cut profit just as quickly.

Analysts have flagged possible second-half tanker softening if Middle East tensions ease. Container profitability has also lagged on cost pressure, adding another variable.

Funding needs of a mega development project

The Yangjae urban high-tech logistics complex is a mega project with reported costs of about 6.9 trillion won, developed by Harim Industries, a wholly owned subsidiary of Harim Holdings.

Even after the August 2025 revised plan approval, remaining steps such as the Seocho-gu building permit, groundbreaking and pre-sales can shift both timing and funding terms. Korea Investors Service identified funding needs following the start of the Yangjae development as a key monitoring point. Property finance conditions and pre-sale results could widen swings in group financial metrics.

Livestock disease and regulation

The poultry business carries structural risk from avian influenza outbreaks in winter, which can abruptly change supply and utilization. Pork earnings track domestic and overseas hog prices, and falling hog prices were cited as a drag on group profitability in 2023.

The distribution unit operates under retail regulations, including the law governing supermarket-format stores. Grain prices and exchange rates affect feed costs and shipping revenue simultaneously.

What to watch next

Mid-November 2026
Third-quarter 2026 consolidated results. Watch whether the strong third-quarter average BDI actually converted into shipping profit, and how much of any operating profit gain reaches net profit attributable to owners.
Fourth quarter of 2026
The consolidation scale of Homeplus Express and the distribution segment's profit and loss. Key items are whether store sales keep recovering and how much assumed debt and integration cost is recognized.
Q4 2026 to H1 2027
Whether the Yangjae logistics complex obtains its Seocho-gu building permit and breaks ground, plus project financing terms. A confirmed start date would clarify the funding schedule for the following years.
February-March 2027
Full-year 2026 results, the dividend decision and the annual general meeting. Because standalone holding-company cash flow depends on subsidiary dividends, changes to payout policy at Pan Ocean and other key units matter too.
First half of 2027
The direction of group net debt and holding-company double leverage in the annual credit reviews. Whether capex declines after vessel deliveries complete will indicate if the financial burden is being contained.

Overall view

Harim Holdings is a pure holding company spanning grain sourcing, shipping, feed and livestock, processed food and distribution, with earnings centered on Pan Ocean.

On confirmed financials, the operating margin bottomed at 4.7% in 2023 and recovered to 6.2% in 2024 and 6.7% in 2025, while 2026 Q2 delivered the largest revenue and operating profit in the disclosed quarterly window at 4,091.4 billion won and 285.9 billion won.

Yet owners' net profit in that quarter was only 48.1 billion won, again showing how a large minority interest limits pass-through to shareholders of the holding company.

On the business side, strength in bulk, tanker and LNG markets and the addition of an offline retail network via Homeplus Express are supportive, while HMR losses at Harim Industries and a stagnant retail end market pull the other way.

Financially, operating cash flow of 1,141.1 billion won in 2025 sits alongside a 170.9% debt ratio and rising group net debt, and managing funding needs is highlighted as the key issue while ship investment and the Yangjae development overlap.

The items to verify next, in sequence, are how much of the freight upcycle shows up in third-quarter results, the consolidated contribution of the acquired retail business, and permit and construction progress at Yangjae. This material is for information purposes only and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.