KOSDAQHotel & Leisure038390

RedcapTour

₩9,940▼ 0.10%2026-10-02 close

Market Cap

₩166B

Turnover

₩100M

Volume

10,000 shares

Shares out.

16.7M

PER

6.5×

PBR

0.8×

EPS

₩1,533

Dividend Yield

8.02%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩800 per share · Prices as of the 2026-10-02 close

Report overview

Steady Rental Cash Flow, Valuation Stalls

RedCap Tour continues steady profit growth in its B2B/B2G-focused long-term rental car and corporate travel businesses, while its share price has remained subdued relative to net asset value.

1
Q2 2026 revenue reached KRW 98.2 billion with operating profit of KRW 15.7 billion, the best second quarter on record.
2
Q1 2026 operating profit of KRW 17.9 billion was the highest quarterly figure in company history.
3
The electric vehicle share of the operating fleet rose from 16.3% to 19.1% year on year, tracking public-sector demand for eco-friendly vehicle conversion.
4
Annual revenue rose steadily from 2022 to 2025, while operating margin dipped once in 2023 before recovering.
5
The debt ratio has stayed high at around 250%, reflecting heavy reliance on external financing for vehicle leasing and purchases.

Business structure

RedCap Tour began as Bumhan Travel Agency in 1977 and listed on KOSDAQ in 2007, drawing on its historical ties to the LG group's founding family to secure LG Electronics, LG CNS, and LG Energy Solution as key clients.

The business splits into a rental car segment and a travel segment; in Q2 2026, rental car revenue was KRW 87.2 billion versus KRW 11.0 billion for travel, meaning rentals account for roughly 90% of total sales.

The rental segment covers vehicle leasing, fleet management services, accident-handling agency work, and used-car sales, operated primarily through long-term B2B (corporate) and B2G (government and public-sector) contracts.

The travel segment handles airfare and hotel booking agency services and MICE (meetings, incentives, conventions, exhibitions) planning for corporate travelers, with Korean Air and Asiana Airlines also among its clients.

The company operates 25 branches and a 150-shop maintenance network, and has expanded its foreign-affiliate client base through a strategic partnership with American Express Global Business Travel.

In the Public Procurement Service's contract-performance evaluation, RedCap Tour earned the top rating in the rental car (goods) category for nine consecutive years from 2018 to 2026, and the top rating in the travel (services) category for four straight years, reinforcing its credibility in the public-procurement market.

Compared with larger rental car operators such as SK Rent-a-Car and Lotte Rental, RedCap Tour is smaller in scale but is seen as having a relatively stable contract structure given its B2B/B2G exposure exceeding 90%.

On shareholder returns, the company maintains both interim (semiannual) and year-end dividends, and in July 2026 announced an interim dividend of KRW 300 per share totaling about KRW 5.02 billion, a dividend yield of 3.1% at the time.

Earnings trend

Quarterly revenue · Operating profit

₩94.8B₩13.5B25Q2₩88.9B₩10.3B25Q3₩76.6B₩5.1B25Q4₩92.4B₩17.9B26Q1₩98.2B₩15.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩262.1B₩36.3B2022₩338.2B₩38.8B2023₩358.9B₩43.6B2024₩365.6B₩46.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩94.8B	₩13.5B	14.3%
2025Q3	₩88.9B	₩10.3B	11.6%
2025Q4	₩76.6B	₩5.1B	6.7%
2026Q1	₩92.4B	₩17.9B	19.4%
2026Q2	₩98.2B	₩15.7B	16.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩262.1B	₩36.3B	₩21.2B	13.9%	11.0%	222.7%
2023	₩338.2B	₩38.8B	₩16.6B	11.5%	8.1%	263.7%
2024	₩358.9B	₩43.6B	₩20.2B	12.1%	9.4%	223.3%
2025	₩365.6B	₩46.8B	₩23.7B	12.8%	11.8%	252.9%

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

Earnings analysis

Consolidated revenue rose for four straight years, from KRW 262.1 billion in 2022 to KRW 338.2 billion in 2023, KRW 358.9 billion in 2024, and KRW 365.6 billion in 2025. Operating margin dipped from 13.9% in 2022 to 11.5% in 2023 before recovering to 12.1% in 2024 and 12.8% in 2025.

Net income attributable to owners fell from KRW 21.2 billion in 2022 to KRW 16.6 billion in 2023, then rebounded to KRW 20.2 billion in 2024 and KRW 23.7 billion in 2025, posting double-digit growth in both of the latter years (21.7% and 17.0%, respectively).

On a quarterly basis, operating profit slowed seasonally to KRW 10.3 billion in Q3 2025 and KRW 5.1 billion in Q4 2025, before jumping to a record KRW 17.9 billion in Q1 2026 and staying elevated at KRW 15.7 billion in Q2 2026, up 16.3% year over year and the best second quarter on record.

Net income also swung sharply, falling to just KRW 0.67 billion in Q4 2025 before recovering strongly to KRW 10.9 billion in Q1 2026 and KRW 9.1 billion in Q2 2026, underscoring notable quarter-to-quarter volatility.

Combined operating profit over the trailing four disclosed quarters (Q3 2025 through Q2 2026) totaled roughly KRW 49.0 billion, consistent with an ongoing improvement in annual operating profitability.

Operating cash flow was negative at KRW -52.8 billion in 2022 and KRW -71.4 billion in 2023, swung sharply positive to KRW 76.5 billion in 2024, and normalized to KRW 24.9 billion in 2025, reflecting the timing and scale of vehicle purchases and disposals inherent to the rental business.

The debt ratio moved from 222.7% in 2022 to 263.7% in 2023, down to 223.3% in 2024, and back up to 252.9% in 2025, fluctuating in the mid-200% range, a pattern shaped by the accounting treatment of leased vehicle assets as liabilities typical of the rental car industry.

Industry analysis

Korea's long-term rental car market has grown steadily as corporate and institutional demand for renting rather than purchasing new vehicles has increased, with government and public-sector policies expanding eco-friendly vehicle adoption emerging as a new growth driver.

RedCap Tour has maintained a top rating for multiple consecutive years in the Public Procurement Service's evaluation, securing a stable position in the public-procurement market, a strategy that contrasts with larger rivals such as SK Rent-a-Car and Lotte Rental by focusing on long-term B2B/B2G contracts rather than individual leasing or short-term rentals.

The travel segment has shown modest growth on the back of recovering overseas business-travel demand from industries such as semiconductors, secondary batteries, and K-culture, though geopolitical factors including instability in the Middle East have led to some event cancellations that affected results.

Expanding used-car export demand has been cited as a positive factor for used-vehicle disposal margins across the rental car industry.

In terms of competitive positioning, RedCap Tour concentrates on long-term contract renewals with corporate and institutional clients rather than the more marketing-intensive individual leasing and short-term rental market, giving it a relatively stable margin structure relative to its revenue scale.

That said, some observers view the broader market as entering a maturing phase where growth rates have moderated from historical double digits to single digits.

Outlook

The company has stated plans to strengthen competitiveness through upgrades to its AI chatbot and Business Travel Management System (BTMS) and through enhanced ESG management, and in June 2026 it became the first in Korea's travel industry to receive Science Based Targets initiative (SBTi) approval for its greenhouse gas reduction targets.

In line with government and public-sector policies expanding eco-friendly vehicle adoption, the company has signaled continued expansion of its electric vehicle fleet, which contributed to the EV share reaching 19.1% in Q2 2026.

In the travel segment, management points to continued overseas business-travel demand driven by expanding overseas production lines among semiconductor and secondary battery companies and the global spread of K-culture as growth factors.

CEO In Yoo-sung stated the company would continue announcing dividend plans ahead of record dates to improve dividend predictability for investors, and the company has maintained year-end dividends for 17 consecutive years and interim (semiannual) dividends for six consecutive years through last year.

The company also outlined differentiated services such as RMS (an integrated corporate vehicle mobility service) and B-Lifecare (an EV battery management solution) aimed at improving client satisfaction.

However, no specific revenue or profit guidance from the company has been confirmed, so future performance may hinge on the pace of rental contract renewals, trends in used-car disposal prices, and the speed of recovery in travel demand.

Valuation

PER

6.5×

PBR

0.8×

ROE

12.4%

EPS

₩1,533

BPS

₩12,748

Dividend per share

₩800

RedCap Tour's shares have traded below net asset value for an extended period in recent years, a pattern broadly consistent with what is observed across the asset-heavy rental car industry.

On the dividend front, the company maintains a stable shareholder-return policy combining interim and year-end payouts, though the absolute dividend size has come down from years when special dividends were paid.

Brokerage reports around past earnings releases have shown net-income-based trading multiples clustering in the single digits to low teens, and where recent earnings recovery sits within that historical range can vary depending on the reference point.

Hana Securities noted in a June 2025 report that the multiple against 12-month forward earnings had at that time fallen into the mid-to-high single digits, and argued that even accounting for stable profitability and dividend payout, there was not much room for further valuation re-rating.

The fact that earnings passed a trough in 2023 and turned toward recovery in 2024-2025, together with two consecutive record quarterly operating profits in the first half of 2026, are facts worth noting for any ongoing valuation discussion.

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

Bull factors

Stable Cash Generation from Long-term B2B/B2G Contracts

The bulk of rental revenue comes from long-term contracts with corporations and government agencies, giving lower revenue volatility than individual leasing or short-term rentals.

The company has kept the top rating in the Public Procurement Service's contract-performance evaluation for nine consecutive years, cementing its position in the public-procurement market. It also holds a long-standing base of large corporate clients including LG Electronics, LG CNS, and LG Energy Solution. This contract structure provides a revenue base that is relatively less sensitive to economic cycles.

EV Transition and Policy Tailwinds

The electric vehicle share of the operating fleet expanded from 16.3% a year earlier to 19.1% in Q2 2026, positioning the company ahead of government and public-sector eco-friendly vehicle adoption policies. It is also pursuing service differentiation through EV battery management solutions such as B-Lifecare.

This shift could translate into competitiveness in winning new public-sector contracts. That said, the pace and scale of the transition will depend on future policy direction.

Earnings Recovery and Improving Quarterly Trend

Net income attributable to owners passed a trough of KRW 16.6 billion in 2023 and grew for two consecutive years to KRW 20.2 billion in 2024 and KRW 23.7 billion in 2025, both double-digit increases. Both Q1 and Q2 of 2026 set new all-time-high quarterly operating profit records, extending the recovery trend.

Operating margin also improved from 11.5% in 2023 to 12.8% in 2025. Whether this trend continues will need to be confirmed through future quarterly results.

Bear factors

High Debt Ratio and Asset-Intensive Business Structure

The debt ratio remained at a high mid-200% level of 252.9% in 2025. Heavy reliance on external financing for leasing and purchasing rental vehicles means funding costs can shift with the interest rate environment. Operating cash flow has also been volatile year to year, turning negative in both 2022 and 2023. This structure could increase the need for additional capital raising as the business expands.

Quarterly Earnings Volatility

Net income attributable to owners fell to just KRW 0.67 billion in Q4 2025, a sizable gap versus other quarters. Quarterly results are heavily influenced by factors such as the timing of used-car sales and the volume of vehicles reaching contract maturity for disposal.

This makes it difficult to judge the annual trend from any single quarter's results. Investors need to interpret quarterly swings with this volatility in mind.

Cautious View on Valuation Re-rating

Hana Securities argued in a June 2025 report that even accounting for stable profitability and dividend payout, there was not much room for further valuation re-rating at the levels seen at that time.

Some assessments have also noted that the relatively small share of travel revenue limits the appeal of the growth story. There is also a view that the rental car market itself has entered a maturing phase with slower growth than in the past. Such assessments can change over time and should be reconfirmed against the latest results.

Risk factors

Interest Rate and Funding Risk

The rental car business relies on substantial external financing for vehicle leasing and purchases, meaning interest expense burden can grow during periods of rising rates. With the debt ratio around 250%, sensitivity to financial leverage is relatively high.

Conversely, a falling-rate environment would be expected to reduce costs, but a reversal in direction could become a burden.

Geopolitical and Macroeconomic Risk

Geopolitical factors such as instability in the Middle East can lead to cancellations of corporate business trips and group events, affecting the travel segment's results. A possibility also exists that corporate travel and rental spending could shrink during an economic slowdown.

The high B2B/B2G exposure provides relative stability, but the business remains exposed to changes in public-sector budget policy.

Used-Car Market and Residual Value Risk

A meaningful portion of rental profit comes from gains on selling vehicles that have reached the end of their contract term, so a decline in used-car prices could compress disposal margins. Used-car export demand and domestic/global economic conditions have been cited as potential swing factors for disposal prices.

Uncertainty in estimating residual values for used electric vehicles, as the EV fleet share grows, could also emerge as a new variable.

What to watch next

Early November 2026
Q3 2026 (July-September) preliminary earnings disclosure. Key items to check are rental car revenue and margin, the pace of travel segment recovery, and any further increase in the EV fleet share.
Early 2027
Announcement and size of the year-end dividend for fiscal 2026. It is worth checking whether the streak of 17 consecutive year-end dividends and six consecutive interim dividends continues.
Around February-March 2027
Disclosure of confirmed full-year results for fiscal 2026 via the audit report and business report. This will show how the significant quarterly earnings volatility resolves on an annual basis.
Ongoing monitoring from Q4 2026
Changes in government EV subsidy and public-sector eco-friendly vehicle adoption policy, along with results of the Public Procurement Service's contract-performance evaluation, which could affect the company's standing in the public-procurement market.

Overall view

RedCap Tour has maintained a stable profit base built on two pillars: long-term B2B/B2G rental car contracts and corporate travel services.

Full-year 2025 revenue, operating profit, and net income all increased from the prior year, and in the first half of 2026 both Q1 and Q2 set new record quarterly operating profits, extending the recovery trend.

The expanding EV fleet share and the company's continued top rating in Public Procurement Service evaluations support its competitiveness in the public-procurement market.

That said, a debt ratio around 250%, notable quarter-to-quarter earnings volatility, and views that growth in the rental car market has moderated from past levels are factors that deserve balanced consideration.

On dividends, the company continues a policy combining interim and year-end payouts, though the absolute size has come down from years with special dividends.

Points to watch going forward include the pace of travel-segment recovery in third-quarter results, trends in used-car disposal prices, and whether the current dividend policy continues.

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.