PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩75 per share · Prices as of the 2026-10-02 close
Hanil Feed, whose sales are dominated by meat distribution, saw profits recover from 2025 onward but swung back to an operating loss in the most recent quarter (Q2 2026).
2025 consolidated revenue reached KRW 454.9bn with operating profit of KRW 5.86bn and net profit attributable of KRW 6.25bn, all up from 2024, though the operating margin remained thin at 1.3%.
Q1 2026 operating profit jumped year-on-year on a US beef supply shortfall and Australian substitute demand, but Q2 2026 swung to an operating loss of about KRW -0.38bn.
The meat distribution segment accounts for roughly 69% of sales, while the beef-cattle feed business rests on stable supply to the Seoul Milk Cooperative.
A nationwide African Swine Fever outbreak in early 2026 led to roughly 150,000 pigs being culled; new cases declined after April but have not fully disappeared.
The debt ratio fell sharply from 244.3% in 2022 to 27.2% in 2025, marking a clear improvement in the balance sheet.
Hanil Feed was established in 1968 to produce compound feed and listed on KOSDAQ in 1994 as an integrated livestock-industry company.
The business is split into a compound feed segment and a meat distribution segment: compound feed covers poultry, swine, and cattle feed, while meat distribution sells imported beef and pork through a nationwide network.
According to the Q1 2026 quarterly report, meat distribution accounted for the largest share of revenue at 69.16%, followed by cattle feed at 22.95% and poultry feed at 7.29%.
In compound feed, Seoul Milk Cooperative is the key client accounting for over 50% of sales, while meat distribution's major clients include Ollotmeat Group Korea. The company has eight consolidated subsidiaries, led by K-Meat and its seven affiliates plus a Vietnamese unit, Hanil F&F Vina.
Since the 1990s the company has pursued a 'FROM FEED TO FOOD' strategy, building a vertically integrated structure from feed to meat distribution.
Korea's compound feed market is dominated by large conglomerate affiliates such as CJ CheilJedang's bio division, Harim Group (Sunjin, Farmsco), Cargill Korea, and NongHyup Feed, placing Hanil Feed in a relatively smaller-scale category.
As a result, the company relies on stable supply relationships with specific clients and a separate meat distribution business line to secure its market position.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩107.9B | ₩1B | 1.0% |
| 2025Q3 | ₩124.5B | ₩2.5B | 2.0% |
| 2025Q4 | ₩114.1B | ₩1.9B | 1.6% |
| 2026Q1 | ₩125.5B | ₩1.5B | 1.2% |
| 2026Q2 | ₩119.8B | -₩400M | −0.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩408.3B | -₩8.2B | -₩14.2B | −2.0% | −26.3% | 244.3% |
| 2023 | ₩396.9B | ₩1.8B | ₩115.1B | 0.4% | 73.7% | 54.0% |
| 2024 | ₩431B | ₩3.7B | ₩3.7B | 0.9% | 2.4% | 32.3% |
| 2025 | ₩454.9B | ₩5.9B | ₩6.2B | 1.3% | 3.8% | 27.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
2025 consolidated revenue reached KRW 454.9bn with operating profit of KRW 5.86bn and net profit attributable of KRW 6.25bn, all improved from 2024 (revenue KRW 431.0bn, operating profit KRW 3.70bn, net profit KRW 3.69bn).
The operating margin edged up from 0.9% in 2024 to 1.3% in 2025, but remains in the low-single-digit range.
In 2022 the company posted a large loss with revenue of KRW 408.3bn, an operating loss of KRW 8.24bn, and a net loss of KRW 14.19bn, while in 2023 operating profit was only KRW 1.77bn yet net profit attributable reached KRW 115.1bn, suggesting a large one-off non-operating gain that year.
By quarter, Q3 2025 was the strongest of the recent stretch with revenue of KRW 124.5bn, operating profit of KRW 2.55bn, and net profit of KRW 2.12bn, reflecting a holiday-demand recovery and rising pork-substitution demand.
Q4 2025 moderated to revenue of KRW 114.1bn, operating profit of KRW 1.85bn, and net profit of KRW 1.74bn.
Q1 2026 recorded revenue of KRW 125.5bn, operating profit of KRW 1.48bn, and net profit of KRW 1.82bn, with management citing a US beef supply shortfall, Australian substitute demand, and expanded cattle-feed supply as drivers.
However, the most recent quarter, Q2 2026, swung to an operating loss of about KRW -0.38bn and a net loss of KRW -0.23bn despite revenue of KRW 119.8bn, raising questions about the durability of the recovery.
Cumulative net profit attributable over the most recent four quarters (Q3 2025-Q2 2026) was about KRW 5.44bn, roughly in line with full-year 2025 results.
Korea's compound feed market is a mature, growth-stalled sector sized at roughly 19 million tons annually, according to the Ministry of Agriculture, Food and Rural Affairs.
Large conglomerate affiliates such as CJ CheilJedang's bio division, Harim Group's Sunjin and Farmsco, Cargill Korea, and NongHyup Feed occupy the top tier, leaving smaller players like Hanil Feed at a relative disadvantage in economies of scale.
Feed costs are heavily weighted toward imported grains such as corn and soybean meal, making margins sensitive to global grain prices and exchange rates, with a lag before cost changes are passed through to selling prices, which can pressure short-term margins.
In 2026, an unusually severe African Swine Fever outbreak spread nationwide, with 24 farms confirmed infected and roughly 150,000 pigs culled in the first quarter alone.
New cases declined noticeably after April and some in the field describe a lull, but authorities have also flagged structural gaps in quarantine systems as transmission via feed, slaughter, and other industry channels was newly confirmed.
This dynamic directly affects domestic pork supply and pricing and can stimulate substitute demand for imported meat, which is closely tied to the earnings of a company like Hanil Feed with a large meat-distribution weighting.
In the meat distribution segment, a shortage of US beef supply combined with Australian substitute demand has kept market prices firm, reflecting higher import costs.
The company does not disclose specific quantitative revenue or profit guidance, so future performance will continue to be confirmed through quarterly filings.
In the cattle-feed segment, since transactions with Seoul Milk Cooperative account for over 50% of sales, whether that contracted volume is maintained or expanded remains a key variable for the compound feed business.
In meat distribution, both a US beef supply shortfall with Australian substitute demand and ASF-driven changes in domestic pork supply are acting simultaneously, so the ability to manage import volumes and pricing will likely determine future margins.
The ASF outbreak that spread nationwide in early 2026 saw new cases drop sharply after April, but quarantine authorities continue to monitor the possibility of transmission through feed, slaughter, and other industry channels.
According to a DART filing, the March 2026 annual general meeting approved the 58th fiscal-year financial statements, a cash dividend, and the appointment of an outside director.
CEO Cha Sang-hyeop increased his stake from 12.8% to 15.78% through an inheritance in January 2026, somewhat reinforcing governance stability. Whether the swing to an operating loss in Q2 2026 reflects a temporary factor or a trend toward margin pressure is a point that can be gauged from the next quarter's results.
The share price trades below net asset value, placing the price-to-book ratio in a sub-1x range.
By contrast, the price-to-earnings ratio calculated on the most recent four quarters of results sits in the mid-to-upper part of its historical trading band, after passing through the 2022 loss year and the 2023 one-off gain and following a gradual profit recovery.
The improvement in the 2025 operating margin and the sharp profit increase in Q1 2026 can be read as having lifted market expectations somewhat. However, the swing to an operating loss in Q2 2026 shows that this recovery trend has not yet settled into a stable pattern. Dividends remain at a conservative level despite the improving earnings trend.
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 2026-08-21
A shortage of US beef supply combined with Australian substitute demand has kept market prices firm as higher import costs pass through. ASF-driven shifts in domestic pork supply have added to this by stimulating substitute demand for imported meat.
As a result, Q1 2026 operating and net profit rose sharply year-on-year. Since meat distribution accounts for roughly 70% of sales, whether this trend continues directly affects earnings.
The debt ratio fell sharply from 244.3% in 2022 to 27.2% in 2025, while equity grew from KRW 54.5bn to KRW 164.7bn over the same period. Operating cash flow also rose from KRW 12.04bn in 2024 to KRW 15.74bn in 2025, strengthening cash generation alongside the profit improvement. This balance-sheet improvement reflects the recovery process following the large 2022 loss.
The cattle-feed segment maintains a stable supply relationship with Seoul Milk Cooperative, which accounts for over 50% of that business's sales. The meat distribution segment has secured a nationwide network through eight consolidated subsidiaries including K-Meat.
The CEO also increased his stake from 12.8% to 15.78% through an inheritance in January 2026, somewhat reinforcing governance stability.
The 2025 operating margin improved to 1.3% from 0.9% the prior year but remains in the low-single-digit range. In a market structure dominated by large affiliates such as CJ CheilJedang, Harim Group, Cargill Korea, and NongHyup Feed, the company's scale disadvantage as a smaller player persists. The pace of margin improvement has lagged behind revenue growth.
After a large profit increase in Q1 2026, Q2 2026 swung back to an operating loss of about KRW -0.38bn and a net loss of KRW -0.23bn. Revenue of KRW 119.8bn was little changed from the prior quarter, making the sharp deterioration in profitability notable. This suggests the recovery trend has not yet settled into a stable pattern.
Feed costs are heavily weighted toward imported grains such as corn and soybean meal, exposing margins to global grain prices and the won-dollar exchange rate. The meat distribution segment likewise depends on the price and volume of imported beef and pork, making it sensitive to changes in overseas supply conditions. A lag before cost changes are passed through to selling prices can compress margins in the short term.
In 2026, an unusually severe African Swine Fever outbreak spread nationwide in South Korea, with 24 farms confirmed infected and roughly 150,000 pigs culled in the first quarter alone.
Transmission through industry factors such as feed, slaughter, and shipping rather than wild boar contact was newly confirmed, highlighting structural gaps in the quarantine system.
New cases declined after April, but the risk of renewed spread remains, which could continue to affect pork supply and meat distribution results.
Both feed and imported meat costs are directly exposed to global prices and exchange rate changes, creating significant short-term margin volatility. A lag before cost increases are reflected in selling prices means margins can actually be squeezed during periods of sharp grain price increases.
Results in the meat distribution segment can also vary depending on the ability to manage import volumes and pricing for US and Australian beef.
In 2023, operating profit was only KRW 1.77bn, yet net profit attributable reached KRW 115.1bn, illustrating how a large non-operating one-off gain can dominate reported results. Quarterly results also show considerable volatility, as seen in the sharp profit increase in Q1 2026 followed by a return to loss in Q2 2026. This volatility makes it difficult to draw firm conclusions about the trend from any single quarter's results.
The Q3 2026 quarterly report is due, providing an opportunity to check whether the Q2 2026 operating loss was a temporary factor or a sign of trend margin pressure.
It is worth continuing to monitor whether ASF re-spreads and how livestock prices move, via announcements from the Ministry of Agriculture and the Animal and Plant Quarantine Agency.
A point to check whether the seasonal boost in meat distribution sales around the Chuseok holiday recurs and whether import meat price trends continue.
A point to confirm the final FY2026 results and whether a dividend is resolved.
Hanil Feed is a combined compound feed and imported meat distribution company where meat distribution accounts for about 70% of sales, having moved from a large loss in 2022 through a one-off gain in 2023 to a gradual profit recovery in 2024-2025.
Q1 2026 saw a sharp rise in operating profit on the back of a beef supply shortfall and substitute demand, but Q2 2026 reversed into an operating loss, testing the continuity of that recovery.
The balance sheet improved markedly, with the debt ratio falling from 244.3% in 2022 to 27.2% in 2025, and the stable relationship with Seoul Milk Cooperative remains a foundation of the business.
On the other hand, the operating margin remains low in the low-single-digit range, the company continues to face a scale disadvantage in a market dominated by large conglomerate affiliates, and exposure to raw material prices, exchange rates, and livestock disease remains significant.
The ASF outbreak that spread nationwide in early 2026 is described as having entered a lull since April, but it has not been fully resolved and could continue to affect pork supply and meat distribution results.
Next quarter's results along with livestock disease and price trends will be important points to watch in gauging whether the company's profit recovery is on a stable footing or merely a temporary rebound.
Report written 2026-09-05 · Data as of 2026-09-04
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