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
HHIC Holdings is a pure holding company with city gas, district energy, and golf course subsidiaries, and its 2025 consolidated operating profit rose sharply, extending a multi-year earnings recovery.
As a pure holding company, it manages stakes in city gas (Daeryun E&S), district energy (Daeryun Power), and golf course (Hanil Leisure) subsidiaries, with trademark and lease income as key revenue sources.
2025 consolidated revenue was KRW 1.2017 trillion with operating profit of KRW 73.3 billion (6.1% margin), marking steady margin improvement since 2022.
Net income attributable to owners recovered clearly from KRW 7.6 billion in 2023 to KRW 56.5 billion in 2024 and KRW 59.1 billion in 2025.
Earnings show clear winter-season (Q4-Q1) concentration, with net income of KRW 33.3 billion in Q1 2026 versus just KRW 0.4 billion in Q2.
Daeryun Power's fuel cell generation project is targeting commercial operation in 2026, making its progress a key point to watch for a new revenue stream.
HHIC Holdings was established in 2007 through the spin-off of the former Hanjin Heavy Industries as a pure holding company whose principal purpose is owning and controlling stakes in other companies.
After divesting the shipbuilding and construction business that was once the group's core (now HJ Shipbuilding & Construction), the portfolio has been restructured around energy and leisure businesses.
Its main subsidiaries are Daeryun E&S, which supplies city gas; Daeryun Power, which operates district energy and combined-heat-and-power plants; and Hanil Leisure, which operates a golf course (Solmoro Country Club).
Daeryun E&S supplies residential, industrial, and commercial city gas across Seoul's Seongbuk, Gangbuk, Dobong, and Nowon districts and Gyeonggi's Uijeongbu, Yangju, Dongducheon, Pocheon, and Yeoncheon areas, securing a stable customer base through regionally exclusive franchise rights.
Daeryun Power runs combined-heat-and-power plants in Yangju's Okjeong and Hoecheon districts and expanded its northeastern Gyeonggi energy business by absorbing Byeollae Energy in December 2022.
At the holding company level, trademark licensing income from the group brand and real estate leasing form the basis of a stable cash flow together with subsidiary dividends.
The city gas segment operates under a regulated regional monopoly structure with low competitive intensity, while the golf and leisure segment is more exposed to weather and consumption-trend volatility.
Because group revenue is concentrated in a small number of subsidiaries, the operating conditions of each subsidiary flow directly through to the holding company's consolidated results.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩201.2B | ₩800M | 0.4% |
| 2025Q3 | ₩160.9B | ₩10.4B | 6.5% |
| 2025Q4 | ₩346.4B | ₩23.6B | 6.8% |
| 2026Q1 | ₩484B | ₩49.6B | 10.3% |
| 2026Q2 | ₩205.7B | ₩3.1B | 1.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩37.1B | ₩14.7B | 2.6% | 4.3% | 444.2% |
| 2023 | ₩1.2T | ₩39.4B | ₩7.6B | 3.2% | 2.2% | 407.3% |
| 2024 | ₩1.2T | ₩45.9B | ₩56.5B | 3.9% | 14.5% | 339.8% |
| 2025 | ₩1.2T | ₩73.3B | ₩59.1B | 6.1% | 13.3% | 278.7% |
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 fell from KRW 1.4401 trillion in 2022 to KRW 1.2426 trillion in 2023 and KRW 1.1649 trillion in 2024, before rebounding to KRW 1.2017 trillion in 2025.
Operating profit, by contrast, rose steadily throughout the revenue downturn, from KRW 37.1 billion in 2022 to KRW 39.4 billion in 2023, KRW 45.9 billion in 2024, and KRW 73.3 billion in 2025, with operating margin improving each year from 2.6% to 3.2%, 3.9%, and 6.1%.
Net income attributable to owners contracted to KRW 14.7 billion in 2022 and KRW 7.6 billion in 2023 before jumping sharply to KRW 56.5 billion in 2024; since this increase far exceeded the concurrent rise in operating profit (from KRW 39.4 billion to KRW 45.9 billion), a substantial non-operating or one-off gain appears to have been reflected in that year's results.
Owners' net income improved further to KRW 59.1 billion in 2025, continuing the earnings recovery.
Quarterly results display pronounced seasonality: in Q2 2025 revenue was KRW 201.2 billion with operating profit of only KRW 0.8 billion and a net loss of KRW 0.6 billion, before turning profitable in Q3 2025 with net income of KRW 5.6 billion, then surging in Q4 2025 to revenue of KRW 346.4 billion, operating profit of KRW 23.6 billion, and net income of KRW 27.7 billion.
This pattern continued into Q1 2026, the strongest quarter in the recent four-quarter window with revenue of KRW 484.0 billion, operating profit of KRW 49.6 billion, and net income of KRW 33.3 billion, before sharply moderating again in Q2 2026 to revenue of KRW 205.7 billion, operating profit of KRW 3.1 billion, and net income of just KRW 0.4 billion.
This reflects the industry characteristic that city gas and district energy demand concentrates in the winter season (Q4-Q1).
On the balance sheet side, the debt ratio declined steadily from 444.2% in 2022 to 407.3% in 2023, 339.8% in 2024, and 278.7% in 2025, while operating cash flow, after dipping to KRW 69.2 billion in 2023, recovered to KRW 104.5 billion in 2024 and KRW 124.0 billion in 2025, showing that the earnings improvement was accompanied by stronger cash generation.
The city gas industry is expected to see rising consumption driven by energy diversification policy and the expansion of clean-energy mandatory-use zones, though the increase in sales volume is assessed as limited due to the spread of electric heating appliances and the effects of global warming.
Daeryun E&S's service areas benefit from a regionally exclusive franchise covering a wide supply zone across Seoul and northern Gyeonggi, allowing it to operate on a stable customer base.
The golf leisure business showed sensitivity to seasonal and weather variables, with visitor numbers declining in 2025 due to unusual temperatures. In contrast, the power generation (district energy) segment improved over the same period, highlighting a clear divergence in performance across subsidiaries.
The district energy industry is structured around competition between public entities such as Korea District Heating Corp. and private combined-heat-and-power operators, with fuel cost fluctuations and power-exchange-determined sale prices directly affecting profitability.
Having divested its shipbuilding and construction businesses in the past and restructured around energy and leisure, the group is now more exposed to the supply-demand cycles of city gas, district heating, and leisure services than to shipbuilding or heavy-industry conditions.
According to company materials, Daeryun Power is pursuing commercial operation of its fuel cell generation project targeted for 2026, supported by rising city gas sales, which if realized could add a renewable-energy-based revenue stream alongside its existing combined-heat-and-power operations.
The city gas segment faces structural tailwinds from energy diversification policy and expanding clean-energy mandatory-use zones, but also structural headwinds from the spread of electric heating and global warming, suggesting a moderate pace of sales volume growth.
The golf course segment may continue to see visitor volatility tied to weather variables, implying seasonal divergence could persist in future results.
Given the holding company's seasonal earnings pattern of winter strength and summer weakness, the second half of 2026 could see improvement resuming from the fourth quarter after passing through a seasonally weaker third quarter.
This is an observation based on disclosed business direction and past seasonal patterns rather than any separate revenue or profit guidance released by the company.
Under the current equity and dividend structure, individual performance swings at Daeryun Power, Daeryun E&S, and Hanil Leisure are expected to continue flowing directly through to the holding company's consolidated results.
Reflecting the clear recovery in owners' net income since its 2023 trough, the metric expressing share price relative to recent earnings size sits in a lower range than during the prior earnings downturn.
The share price is understood to trade below the company's per-share net asset value, consistent with the discount-to-net-asset-value tendency typical of pure holding companies.
The company has a track record of paying an annual cash dividend, with dividends received from subsidiaries plus trademark and lease income forming the basis for dividend funding.
However, given the small market capitalization and low trading liquidity characteristic of this stock, valuation metrics warrant interpretation alongside the company's distinct seasonal earnings pattern and subsidiary-level performance swings rather than simple comparison to sector averages. The steadily declining debt ratio is a notable change worth monitoring from a balance-sheet-health perspective.
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 improved every year from 2.6% in 2022 to 6.1% in 2025, while owners' net income rose clearly from KRW 7.6 billion in 2023 to KRW 59.1 billion in 2025.
That profit rose steadily even as revenue first declined and then recovered suggests improved cost structure or a growing share of higher-margin business. The debt ratio also improved for four consecutive years.
Daeryun Power is targeting commercial operation of its fuel cell generation project in 2026, supported by rising city gas sales. If realized, this could add a renewable-energy-based revenue stream beyond its existing combined-heat-and-power business. This remains a target date, however, and actual startup needs confirmation through future disclosures.
Daeryun E&S holds a regionally exclusive franchise across a wide supply zone in Seoul and northern Gyeonggi, operating on a stable customer base. This franchise-type business structure carries low competitive intensity, contributing to the underlying stability of the holding company's consolidated results. Subsidiary dividends and brand trademark income form the source of the holding company's cash flow.
Both Q2 2025 and Q2 2026 saw net income drop to a KRW 0.6 billion loss and KRW 0.4 billion, respectively, repeating a pattern of summer results being much weaker than winter. This stems from the inherently seasonal nature of city gas and district energy demand.
The golf segment is also exposed to weather variables, with visitor numbers falling due to unusual temperatures.
2025 revenue of KRW 1.2017 trillion remains below the KRW 1.4401 trillion recorded in 2022, meaning the scale from three years earlier has not been recovered. The spread of electric heating appliances and global warming are cited as structural factors limiting city gas sales volume growth.
If profit continues improving without revenue growth over an extended period, questions about growth potential could persist.
Group revenue is concentrated in a small number of subsidiaries—Daeryun E&S, Daeryun Power, and Hanil Leisure—so individual subsidiary performance swings flow directly into consolidated results.
Given the small market capitalization and low trading liquidity typical of this stock, price volatility can be relatively elevated. As seen in the 2024 profit surge, one-off or non-operating factors can materially affect results, warranting caution in year-over-year comparisons.
City gas and district energy demand depend heavily on winter temperatures, and warming trends could structurally slow heating demand over time. Golf course visitor numbers are also volatile with unusual temperatures, which led to a visitor decline in 2025. This weather dependency raises uncertainty in forecasting annual and quarterly results.
City gas tariffs are subject to government approval and cost-linked pricing mechanisms, which may delay full pass-through of raw material cost changes to sale prices. The district energy segment is also exposed to a power-exchange-based pricing structure, making it sensitive to energy policy shifts.
While expansion of clean-energy mandatory-use zones is a demand-side positive, tighter tariff regulation could conversely pressure margins.
Because consolidated results depend on a small number of subsidiaries, a downturn at any single subsidiary can immediately affect overall performance.
As seen in 2024, when net income rose far more than operating profit, non-operating or one-off items can materially influence results, requiring careful separation of such factors when making year-over-year comparisons. As a small-cap stock, information asymmetry and low liquidity are also factors to consider.
Check the Q3 2026 consolidated earnings disclosure to see the seasonally weaker third-quarter results and whether they improve versus the prior-year quarter's KRW 5.6 billion net income.
Confirm through disclosures or news whether Daeryun Power's fuel cell generation project enters commercial operation in 2026 as targeted.
Track seasonal peak indicators such as city gas sales volume and combined-heat-and-power utilization to see whether the historical Q4-Q1 earnings strength pattern repeats.
Check the full-year 2026 earnings disclosure alongside the annual cash dividend decision announcement to see how the earnings recovery is reflected in dividend policy.
HHIC Holdings is a pure holding company with city gas, district energy, and golf course subsidiaries that has seen operating margin improve every year since 2022 and owners' net income recover clearly from its 2023 trough.
However, revenue has not yet returned to its 2022 level, and results show pronounced winter-season concentration, producing large quarter-to-quarter swings.
The 2024 net income surge appears to include non-operating or one-off factors well beyond the concurrent rise in operating profit, a distinction worth keeping in mind for year-over-year comparisons.
Daeryun Power's fuel cell generation project is targeting commercial operation in 2026, making its realization a key point to watch for a potential new revenue stream. The balance sheet shows improved stability, with the debt ratio declining for four consecutive years and operating cash flow recovering.
That said, the dependence on a small number of subsidiaries and the low trading liquidity typical of a small-cap stock remain factors to weigh.
Report written 2026-09-05 · Data as of 2026-09-04
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