KOSPIRetail & Consumer009240

Hanssem

₩39,650▲ 1.67%2026-10-02 close

Market Cap

₩935.5B

Turnover

₩900M

Volume

20,000 shares

Shares out.

23.5M

PER

51.7×

PBR

1.5×

EPS

₩724

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

B2C-Led Turnaround, Construction Cycle Remains a Swing Factor

Hanssem has posted thirteen consecutive quarters of operating profit on the back of its B2C-focused restructuring around Rehouse and home furnishing, even as its B2B contract business continues to face direct pressure from the prolonged construction downturn, resulting in a period of simultaneous top-line contraction and profit recovery.

1
Second-quarter 2026 operating profit reached KRW 11.28 billion, up roughly 400% year-on-year, marking thirteen consecutive quarters of operating profit.
2
Rehouse segment revenue grew 13% year-on-year in the second quarter, driving the earnings recovery, with premium kitchen and bath lineups showing especially strong growth.
3
Hanssem completed the absorption merger of its wholly owned subsidiary Hanssem Nexus in August 2026, restructuring its B2B business to target premium redevelopment and residence contract markets.
4
Annual revenue has declined for four consecutive years since 2022, and the operating margin remains in the low single digits, meaning a top-line recovery has yet to be confirmed.
5
Treasury shares of roughly 30% of shares outstanding and discussions around mandatory retirement under revised commercial law have emerged as a shareholder-return variable.

Business structure

Hanssem operates through three core business units: Rehouse (whole-home remodeling), home furnishing (general furniture and accessories), and B2B contract sales (furniture supply to apartment complexes).

The Rehouse unit provides whole-space remodeling, the home furnishing unit offers general furniture and accessories, and the B2B contract division supplies furniture to the multi-family housing market.

Kitchen, bath, and storage are the core product categories, and recently upgraded premium lineups such as the 'Kitchenbach' and 'Euro Kitchen' premium kitchens, the 'Easy Bath 5' bathroom solution, the 'Signature' storage furniture line, and the 'Swivel' sofa series have been driving results.

Online, the company revamped its proprietary platform Hanssem Mall around private-brand products to strengthen channel competitiveness.

In August 2026, Hanssem completed the absorption merger of its wholly owned subsidiary Hanssem Nexus, a premium imported kitchen and appliance distributor, combining it with the headquarters' contract sales division to target premium redevelopment and high-end residence contract markets in core Seoul areas.

The B2C segment benefits from a recovery in home sales transactions and remodeling demand, while the B2B segment is directly exposed to the prolonged construction downturn and declining move-in volumes.

This contrasts with competitor Hyundai Livart, which has a higher B2B exposure and has thus been hit harder by the construction slump, while online the company also competes with digital platforms such as Ohouse.

The controlling shareholder is private equity firm IMM Private Equity, and a large treasury share position alongside affiliated holdings is a distinctive feature of the governance structure.

Earnings trend

Quarterly revenue · Operating profit

₩459.4B₩2.3B25Q2₩441.4B₩6.8B25Q3₩400.3B₩3B25Q4₩399.4B₩10.1B26Q1₩417.2B₩11.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩2T-₩21.7B2022₩2T₩1.9B2023₩1.9T₩31.2B2024₩1.7T₩18.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩459.4B	₩2.3B	0.5%
2025Q3	₩441.4B	₩6.8B	1.6%
2025Q4	₩400.3B	₩3B	0.7%
2026Q1	₩399.4B	₩10.1B	2.5%
2026Q2	₩417.2B	₩11.3B	2.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩2T	-₩21.7B	-₩71.3B	−1.1%	−16.0%	146.9%
2023	₩2T	₩1.9B	-₩62.2B	0.1%	−18.1%	206.8%
2024	₩1.9T	₩31.2B	₩151.1B	1.6%	43.1%	204.4%
2025	₩1.7T	₩18.5B	₩46.3B	1.1%	11.6%	148.4%

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 declined for four straight years, from KRW 200.09 billion equivalent scale in 2022 (actually KRW 2.0009 trillion) to KRW 1.9669 trillion in 2023, KRW 1.9084 trillion in 2024, and KRW 1.7445 trillion in 2025.

Operating profit, by contrast, swung from a loss of KRW 21.69 billion in 2022 to a narrow profit of KRW 1.95 billion in 2023, before rising to KRW 31.23 billion in 2024 and KRW 18.49 billion in 2025, maintaining a small but consistent operating profit.

The owners' net income trend is more dramatic: from losses of KRW 71.32 billion in 2022 and KRW 62.16 billion in 2023 to profits of KRW 151.14 billion in 2024 and KRW 46.28 billion in 2025.

However, the large 2024 net income figure is understood to reflect a substantial one-off gain, reportedly linked to a headquarters building sale, which explains the wide gap versus the much smaller operating profit of KRW 31.23 billion that year.

On a quarterly basis, owners' net income in the second quarter of 2025 stood unusually high at KRW 32.15 billion, far exceeding the KRW 2.26 billion operating profit for that quarter, suggesting a one-off non-operating gain.

This high base makes second-quarter 2026 net income of KRW 4.77 billion appear to decline year-on-year, even though operating profit surged from KRW 2.26 billion in the second quarter of 2025 to KRW 11.28 billion in the second quarter of 2026, an increase of roughly 400%.

Over the trailing four quarters from the third quarter of 2025 through the second quarter of 2026, quarterly revenue fluctuated between roughly KRW 399.4 billion and KRW 441.4 billion, while operating profit improved from KRW 6.84 billion and KRW 2.95 billion in late 2025 to KRW 10.07 billion and KRW 11.28 billion in the first half of 2026, showing a clear improving trend in 2026.

Balance sheet metrics also improved over this period, with the debt ratio falling to 148.4% in 2025 from 204.4% in 2024 and 206.8% in 2023, while operating cash flow reached KRW 69.37 billion in 2025, a marked turnaround from the negative KRW 21.28 billion recorded in 2022.

Industry analysis

The domestic home interior and furniture industry is in a dual-track phase where housing transaction recovery and construction downturn are occurring simultaneously.

Driven by end-user demand for existing homes, nationwide housing transaction volume rose 24.6% month-on-month to 71,975 units in March, and Seoul metropolitan area transactions in May increased 18.9% year-on-year, signaling improving buying sentiment.

In contrast, building permits, a longer-term leading indicator for the construction cycle, fell 10.6% year-on-year on a cumulative basis through May, indicating the construction downturn is persisting.

In this environment, Hanssem, with its high B2C exposure, benefits comparatively more from the recovery in existing-home remodeling demand, while competitors with heavier B2B exposure tied to new move-ins and contract sales face greater pressure from the construction slump.

An industry source assessed that Hanssem's strong remodeling-focused sales network allowed it to capture a larger share of the market recovery effect.

Online, competition continues with digital platforms such as Ohouse, and both major players are strengthening B2C competitiveness through experiential stores and enhanced consultation services to meet remodeling and home furnishing demand.

In the second half, rising raw material and freight costs remain an external risk factor shared across the industry.

Outlook

Hanssem stated it plans to sustain its growth momentum in the second half by continuing to strengthen product competitiveness centered on premium grades, upgrading distribution and channel strategy, and pursuing brand value enhancement alongside marketing focused on core products.

At the '2026 Korea Build' exhibition held recently at Coex in Seoul, the company previewed key new Rehouse products in kitchen, bath, and storage categories set to launch in the second half.

In the B2B business, the company plans to strengthen its push into premium redevelopment and reconstruction complexes and high-end residence contract markets in Seoul, leveraging synergies with the newly merged Hanssem Nexus, with core Han River-belt areas such as Apgujeong, Seongsu, and Hannam cited as priority targets.

The company noted that housing market uncertainty and rising raw material and freight costs remain external risk factors in the second half, while reaffirming its intent to consistently execute proven core strategies to solidify its position as an industry leader.

Offline, the company is closing inefficient stores and focusing new openings and renovations on core commercial districts, reshaping its distribution network to prioritize store-level profitability over sheer expansion.

Online, Hanssem plans to continue reorganizing Hanssem Mall around private-brand products and to keep investing in digital infrastructure, including a Salesforce-based sales management system and the mobile platform 'Interior Planner.' However, the KRW 2 trillion revenue target for the home remodeling segment by 2026, which the company set out in its 2023 sustainability report, still leaves a considerable gap given the company's current revenue scale.

Valuation

PER

51.7×

PBR

1.5×

ROE

3.0%

EPS

₩724

BPS

₩24,344

Dividend per share

₩0

Hanssem's net income turned from losses in 2022-2023 to profits in 2024-2025, but the operating margin remains in the low single digits, indicating that the qualitative recovery in earnings is still in progress.

The current share price trades at a level that carries a degree of premium relative to net asset value, and given that net income over the trailing four quarters has not been large on an annualized basis, the price-to-earnings level warrants comparison against the trading band that prevailed before the loss-making period.

The company has not paid a dividend in the most recent fiscal year, so shareholder returns are currently focused more on potential changes to treasury share policy than on dividends. iM Securities noted in an August 2026 report that Hanssem held treasury shares equal to 30.2% of shares outstanding as of the end of June, and that it had signed a KRW 50 billion treasury share acquisition trust agreement, with further purchases continuing through December 9.

The durability of the earnings recovery and the concreteness of shareholder-return measures such as treasury share retirement are cited as key variables for future valuation assessment.

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

B2C Restructuring Delivering Visible Results

Rehouse segment revenue grew 13% year-on-year in the second quarter, driving thirteen consecutive quarters of operating profit.

Combined revenue from premium kitchen lines 'Kitchenbach' and 'Euro Kitchen' rose 40% year-on-year in the second quarter, while June revenue for the 'Easy Bath 5' bathroom solution grew 80% versus its February launch month.

The strategy of raising average order value through a higher-grade product mix is contributing to operating margin improvement.

Improving Balance Sheet and Treasury Share Variable

The debt ratio fell sharply to 148.4% in 2025 from levels above 200% in 2023-2024, and operating cash flow was a stable KRW 69.37 billion in 2025.

Treasury shares equal to roughly 30% of shares outstanding and ongoing discussion of mandatory retirement under revised commercial law are cited as a potential catalyst for a shift in shareholder-return policy. iM Securities assessed that treasury share retirement could serve as a foundation for enhancing shareholder value.

B2B Repositioning Toward the Premium Market

Through the absorption merger of Hanssem Nexus, the company is combining its headquarters contract sales division with Nexus's high-end expertise to strengthen its push into premium redevelopment, reconstruction, and high-end residence contract markets in core Seoul districts such as Apgujeong, Seongsu, and Hannam.

The move aims to reduce duplicate costs from operating a separate legal entity while enhancing competitiveness in the high-value-added contract market.

Bear factors

B2B Weakness Amid Construction Downturn

Building permits fell 10.6% year-on-year on a cumulative basis through May, indicating the construction downturn is persisting.

Given the business's exposure to B2B, declining new move-in volumes directly weigh on contract sales, and observers note that fundamental improvement in this segment is difficult without a recovery in the real estate market.

Four Straight Years of Revenue Contraction

Annual revenue has declined every year from over KRW 2 trillion in 2022 to KRW 1.7445 trillion in 2025, marking four consecutive years of contraction.

Growth in the Rehouse segment has not yet been sufficient to offset the overall top-line decline, and the operating margin was just 1.1% in 2025, keeping absolute profitability levels low.

Reliance on One-off Gains and Net Income Volatility

The large 2024 net income figure of KRW 151.14 billion far exceeded operating profit of KRW 31.23 billion, reportedly reflecting a substantial one-off gain related to a headquarters building sale.

Second-quarter 2025 net income of KRW 32.15 billion likewise showed a large gap versus operating profit of KRW 2.26 billion, and this base effect can cause year-on-year net income growth rates to diverge from the operating profit trend, requiring careful interpretation of the metrics.

Risk factors

Housing Market and Interest Rate Policy Risk

Housing transaction volumes are highly sensitive to policy variables such as interest rates and lending regulations, and it remains uncertain whether the recovery will continue.

Since B2C revenue is heavily dependent on the recovery of existing-home transactions, a renewed slowdown driven by policy changes could increase earnings volatility.

Raw Material and Freight Cost Risk

The company has stated that rising raw material and freight costs remain an external risk factor in the second half. Given a cost structure with a high proportion of fixed costs, if cost increases cannot be fully passed through to selling prices, the improvement in operating margin could be constrained.

Intensifying Competition Risk

In the furniture and interior market, both traditional competitors such as Hyundai Livart and digital platforms such as Ohouse are exerting simultaneous competitive pressure.

As online penetration accelerates, the company faces an ongoing burden to invest in channels and marketing, and intensifying competition could translate into margin pressure.

What to watch next

Early to mid-November 2026
Watch the third-quarter 2026 preliminary earnings release to confirm whether operating profit extends to fourteen consecutive quarters and to track revenue trends across the Rehouse and B2B segments.
December 9, 2026
This is the end date for the KRW 50 billion treasury share acquisition trust agreement; investors should check the resulting change in treasury share ratio and whether any follow-up policy such as retirement is announced.
During the fourth quarter of 2026
This is the point to check the formal launch and early sales performance of the kitchen, bath, and storage products previewed at '2026 Korea Build.'
During the second half of 2026
Housing transaction and building permit statistics released by authorities should be checked to reassess whether the dual pattern of B2C recovery and B2B contraction is continuing.
Around February 2027
This is the expected timing for the fourth-quarter and full-year 2026 confirmed earnings release, when the continuation of the annual profit trend and any dividend policy disclosures should be reviewed.

Overall view

Hanssem has sustained thirteen consecutive quarters of operating profit through its shift toward a B2C-centered model built around Rehouse and home furnishing, showing a clear directional improvement in earnings.

However, annual revenue has declined for four consecutive years and the operating margin remains in the low single digits, meaning a top-line recovery has not yet been confirmed.

Net income turned positive in 2024 and 2025, but a substantial portion is reported to stem from large one-off gains, so the pace of recovery in purely operational profitability warrants separate examination.

The B2B segment remains directly exposed to the construction downturn, and how much the Hanssem Nexus merger's push into the premium contract market can offset this pressure is a key point to watch.

Treasury shares of roughly 30% and discussions of retirement under revised commercial law suggest potential changes to shareholder-return policy, but concrete execution has not yet been confirmed.

Investors should monitor third-quarter earnings, follow-up measures after the treasury share trust agreement expires, and trends in housing transaction and construction permit data together to assess how the dual dynamic of B2C recovery and B2B weakness continues to unfold.

Sources

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

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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.