PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩220 per share · Prices as of the 2026-10-02 close
Yuhwa Securities is a small-cap brokerage combining commission business, proprietary trading and real-estate rental income; annual net profit rose for three straight years through 2024 and stayed positive in 2025, but quarterly operating results have swung frequently between profit and loss.
Quarterly earnings swung sharply, with net profit attributable to owners falling from KRW 11.17 billion in Q1 2026 to KRW 0.71 billion in Q2 2026.
Annual net profit attributable to owners rose from KRW 4.20 billion in 2022 to KRW 17.78 billion in 2024 before easing to KRW 14.06 billion in 2025.
Treasury shares account for 19.3% of shares outstanding, among the highest ratios of listed financial firms, and a recent filing showed major shareholder holdings had decreased.
The net capital ratio stood at 1,113.95% as of Q1 2026, well above regulatory requirements.
Company materials describe a history of continuous dividend payments since the firm's founding in 1962.
Yuhwa Securities is a domestic securities firm established in June 1962 and listed on the KOSPI market in 1987. Its core businesses consist of brokerage commissions, proprietary trading and securities investment, and real-estate rental income from its headquarters building.
According to a TheBell report, there were periods when, aside from proprietary trading which had historically been a meaningful contributor, brokerage fee income was practically the only remaining revenue source.
The same report noted that rental income from the headquarters building, booked as non-operating income, played a substantial role in supporting net profit.
This illustrates a structural feature in which brokerage commissions remain a modest contributor while proprietary trading and rental income drive a large share of results.
The investment portfolio includes stakes in listed companies such as automotive display maker TopRun Total Solution, so valuation gains or losses on these holdings flow through to quarterly earnings.
Treasury shares represent 19.3% of shares outstanding, the second-highest ratio among listed financial companies after Mirae Asset Securities, and a recent disclosure showed that the major shareholder's holdings had decreased from the prior report.
Unlike large integrated financial investment firms, capital constraints appear to limit the scope for expanding into new businesses such as investment banking or wealth management.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | -₩1.2B | — |
| 2025Q3 | — | ₩5.2B | — |
| 2025Q4 | — | -₩3.9B | — |
| 2026Q1 | — | ₩10.6B | — |
| 2026Q2 | — | -₩2.4B | — |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | — | -₩2.9B | ₩4.2B | — | 0.8% | 38.3% |
| 2023 | — | -₩400M | ₩7.3B | — | 1.4% | 58.7% |
| 2024 | — | ₩12.2B | ₩17.8B | — | 3.5% | 50.9% |
| 2025 | — | ₩5.9B | ₩14.1B | — | 2.6% | 50.7% |
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
On an annual basis, net profit attributable to owners rose from KRW 4.20 billion in 2022 to KRW 7.34 billion in 2023 and KRW 17.78 billion in 2024, before easing to KRW 14.06 billion in 2025.
Operating profit posted losses of KRW -2.88 billion in 2022 and KRW -0.43 billion in 2023, turned positive at KRW 12.20 billion in 2024, and came in at KRW 5.92 billion in 2025, lower than the prior year but still positive.
Equity attributable to owners grew steadily from KRW 498.38 billion in 2022 to KRW 537.90 billion in 2025, while the debt ratio rose from 38.3% in 2022 to 58.7% in 2023 before stabilizing in the 50% range in 2024-2025.
Operating cash flow alternated in sign — KRW +40.84 billion (2022), KRW -41.71 billion (2023), KRW -13.85 billion (2024) and KRW +68.03 billion (2025) — reflecting the timing of trading-asset purchases and sales typical of a brokerage.
Quarterly figures show even greater volatility: an operating loss of KRW 1.18 billion and net profit of KRW 1.26 billion in Q2 2025 improved to an operating profit of KRW 5.17 billion and net profit of KRW 6.31 billion in Q3 2025, before reverting to an operating loss of KRW 3.91 billion and a net loss of KRW 0.50 billion in Q4 2025.
Q1 2026 marked the strongest quarter of the recent five-quarter window with an operating profit of KRW 10.61 billion and net profit of KRW 11.17 billion, while Q2 2026 posted an operating loss of KRW 2.43 billion even as net profit remained positive at KRW 0.71 billion.
For context, FnGuide data indicate that on a standalone basis, Q1 2026 revenue rose 57.6% year on year, operating profit rose 82.0%, and net profit rose 59.9%, driven by an increase in other operating revenue and fair-value financial asset valuation gains, higher gains from equity trading and disposals, and increased brokerage commissions (note this is on a standalone basis and may differ from consolidated figures).
The domestic securities industry is cyclical, with brokerage fee compression and swings in trading gains and losses tied to interest-rate and equity-market movements.
Large integrated financial investment firms are diversifying revenue into investment banking and wealth management on the back of greater capital, while smaller brokerages such as Yuhwa Securities face relatively limited room to expand into new business lines given their capital base.
The company's net capital ratio stood at 1,113.95% as of Q1 2026, well above regulatory requirements, and it manages market, credit, operational and liquidity risks through an integrated risk-management system.
That said, such a high soundness metric can also be read as a byproduct of conservative asset management rather than business expansion. The relatively high treasury-share ratio among listed financial companies is also linked to broader policy discussions around float and capital efficiency at listed firms.
Given its small scale, the company's brokerage market share is likely modest, and a large portion of results continues to depend on proprietary investment (PI) and rental income rather than core operating activities.
No explicit earnings guidance from the company was found in publicly available materials. First-half 2026 results showed a strong Q1 followed by a weaker Q2, consistent with the recent pattern of operating results alternating in sign each quarter on a consolidated basis.
Future results are likely to remain sensitive to volatility in domestic and overseas equity and bond markets, as well as to valuation changes in equity investments such as the stake in TopRun Total Solution.
How the 19.3% treasury-share stake is ultimately used (retirement, disposal, etc.) and the trend in major shareholder ownership remain variables to monitor from a shareholder-return and governance perspective.
Results for Q3 2026 onward have not yet been disclosed, so the next regular filing will be needed to confirm the direction.
The price-to-book ratio appears to trade in a range comparable to the company's five-year average band of roughly 0.28x (per Itooza data), which can be viewed as partly reflecting steady equity growth and the return to and maintenance of positive net profit.
The price-to-earnings ratio also appears to sit below the five-year average PER of 17.8x, which can be interpreted as a result of the profit recovery that took place in 2024-2025. Dividends have continued over a long period, and the five-year average dividend yield band of around 6.0% is also a useful reference point.
Relative to net asset value, the shares have tended to trade at a discount, which may partly reflect the earnings volatility and reliance on proprietary trading characteristic of a small-cap brokerage.
The high treasury-share ratio, which limits the free float, is another factor that can influence trading characteristics in the market.
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
As of Q1 2026, the net capital ratio stood at 1,113.95%, well above regulatory requirements. The debt ratio also eased to 50.7% in 2025 from 58.7% in 2023, showing stabilization. This capital buffer is viewed as a potential cushion against market shocks.
Net profit attributable to owners rose for three consecutive years from KRW 4.20 billion in 2022 to KRW 17.78 billion in 2024, and remained positive at KRW 14.06 billion in 2025. Operating profit also turned positive in 2024 after losses in 2022-2023 and stayed positive through 2025. In Q1 2026, standalone revenue, operating profit and net profit all rose by double digits or more year on year.
According to company materials, Yuhwa Securities has pursued sound management since its 1962 founding, maintaining continuous profitability and uninterrupted dividend payments. This history of dividend continuity is a factor worth noting from a shareholder-return perspective.
Over the recent five quarters (Q2 2025 to Q2 2026), operating results alternated between profit and loss. Operating profit swung from KRW 5.17 billion in Q3 2025 to a loss of KRW 3.91 billion in Q4 2025, and from KRW 10.61 billion in Q1 2026 to a loss of KRW 2.43 billion in Q2 2026.
This pattern reflects a structure in which proprietary trading and equity-investment gains and losses heavily influence results depending on market conditions.
According to a TheBell report, there were periods when, aside from brokerage commissions, fee income was practically nonexistent, and rental income from the headquarters building played a significant role in supporting net profit in at least one such instance. This structure can be favorable in bullish markets but may offer limited earnings defense during downturns.
Treasury shares stand at 19.3% of shares outstanding, the second-highest ratio among listed financial companies, with disposal plans reportedly still undetermined. A recent filing showed major shareholder holdings had decreased from the prior report, indicating ongoing changes in the ownership structure.
A high reliance on proprietary trading and equity-investment gains and losses means quarterly results can shift sharply with domestic and overseas equity and bond market movements. Recent quarters have shown repeated reversals in the sign of operating results.
As a small-cap brokerage, capital constraints limit expansion into new businesses such as investment banking or wealth management, potentially leaving it at a scale disadvantage relative to large integrated financial investment firms.
Given the high treasury-share ratio and observed changes in major shareholder holdings, future decisions on how treasury shares are handled, or shifts in governance, could affect shareholder-return policy.
Q3 2026 earnings are expected to be disclosed around this time, warranting a check on whether proprietary trading and equity-investment gains and losses turn positive or negative again.
Any additional disclosures regarding the disposal or retirement of the 19.3% treasury stake, as well as filings on major shareholder ownership changes, should continue to be monitored.
Full-year 2026 results and year-end dividend disclosures are expected, providing an opportunity to confirm whether dividend continuity and the annual profit trend are maintained.
Yuhwa Securities is a small-cap brokerage combining commission business, proprietary trading and real-estate rental income; annual net profit attributable to owners rose for three straight years through 2024 and remained positive at KRW 14.06 billion in 2025.
On a quarterly basis, however, operating results alternated clearly between profit and loss from Q2 2025 through Q2 2026. Financial soundness is very stable, with a net capital ratio of 1,113.95% as of Q1 2026, though this can also be read as a result of conservative asset management rather than business expansion.
Governance-related factors also merit attention, including a treasury-share ratio of 19.3% — among the highest of listed financial companies — and a recent decrease in major shareholder holdings.
The company has a history of continuous dividend payments since its 1962 founding, but given its structural reliance on proprietary trading and equity-investment gains and losses, future results are likely to remain sensitive to market volatility.
The upcoming Q3 and annual disclosures will be important for confirming the direction of profit and the continuity of dividends.
Report written 2026-09-05 · Data as of 2026-09-04
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