PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩130 per share · Prices as of the 2026-10-02 close
Hyundai Livart preserved profitability after its 2024 turnaround, but sales continue to decline across both B2B and B2C channels, leaving the company balancing top-line contraction against margin defense.
2025 revenue fell 17.3% year over year to KRW 1,546.2 billion, with operating profit down 34.6% to KRW 15.7 billion
After two consecutive years of operating losses in 2022-2023, the company turned profitable in 2024 and stayed in the black in 2025, though at a smaller scale
Q2 2026 operating profit of KRW 5.56 billion was the highest of the trailing five quarters, reflecting cost-improvement efforts
Prolonged construction and housing downturn continues to depress B2B built-in furniture sales, while B2C also softened on fewer housing move-ins
The debt-to-equity ratio improved from 123.5% in 2023 to 85.0% in 2025, indicating a gradual strengthening of the balance sheet
Founded in 1999, Hyundai Livart is a comprehensive furniture and interior company with production bases in Yongin and Anseong in Gyeonggi Province and Gyeongju in North Gyeongsang Province, and it became part of Hyundai Department Store Group in 2012.
The business is broadly split between B2B and B2C, with built-in furniture supplied for kitchens and closets at the time of apartment sales accounting for more than 70% of revenue and forming the core of the B2B business.
The B2B segment also includes raw material distribution, overseas temporary construction work, office furniture, and industrial materials wholesale.
The B2C segment consists of household furniture sold through online malls and offline directly operated stores, and the company also distributes premium overseas brands such as Williams Sonoma and Pottery Barn.
Overseas, the company operates furniture production and distribution subsidiaries in Vietnam, China, and Canada.
In the competitive landscape, rival Hansem generates more than half of its sales from B2C and is relatively stronger in consumer channels, while Hyundai Livart has historically relied more heavily on B2B, particularly built-in volumes tied to construction companies.
This gives the company a comparatively higher sensitivity to the housing sale and construction-start cycle than its peers.
More recently, the company has been expanding XR (extended reality) experience stores and pushing premium furniture and high-end built-in offerings to strengthen its B2C business and diversify channels.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩409.9B | ₩5.1B | 1.2% |
| 2025Q3 | ₩340.7B | ₩3.7B | 1.1% |
| 2025Q4 | ₩357.9B | -₩2.6B | −0.7% |
| 2026Q1 | ₩355.9B | ₩1.1B | 0.3% |
| 2026Q2 | ₩373.1B | ₩5.6B | 1.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.5T | -₩27.9B | -₩50.8B | −1.9% | −11.6% | 94.8% |
| 2023 | ₩1.6T | -₩19.9B | -₩34.1B | −1.3% | −8.5% | 123.5% |
| 2024 | ₩1.9T | ₩24B | ₩15.2B | 1.3% | 3.7% | 108.5% |
| 2025 | ₩1.5T | ₩15.7B | ₩7.4B | 1.0% | 1.8% | 85.0% |
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
Consolidated revenue in 2025 fell 17.3% to KRW 1,546.2 billion from KRW 1,870.7 billion in 2024, while operating profit dropped 34.6% to KRW 15.7 billion from KRW 24.0 billion.
The operating margin edged down from 1.3% in 2024 to 1.0% in 2025, though this compares favorably with the loss-making margins of -1.9% and -1.3% posted in 2022 and 2023, respectively.
Net profit attributable to owners more than halved, from KRW 15.2 billion in 2024 to KRW 7.4 billion in 2025, reflecting both the shrinking operating base and other non-operating factors on a net basis.
On a quarterly basis, operating profit was KRW 3.74 billion in Q3 2025, swung to a loss of KRW 2.61 billion in Q4 2025, then recovered to KRW 1.05 billion in Q1 2026 and KRW 5.56 billion in Q2 2026.
Notably, Q2 2026 delivered the highest operating profit of the trailing five quarters (Q2 2025 through Q2 2026) even as revenue of KRW 373.1 billion fell from KRW 409.9 billion a year earlier, indicating that cost improvements cushioned earnings despite the top-line decline.
Total equity dipped from KRW 438.5 billion in 2022 to KRW 402.4 billion in 2023 before recovering to KRW 418.1 billion in 2025, a gradual rebuilding pattern. The debt ratio declined for three straight years, from 123.5% in 2023 to 108.5% in 2024 and 85.0% in 2025, pointing to improving financial stability.
Operating cash flow swung from a negative KRW 42.7 billion in 2022 to positive territory of KRW 2.8 billion in 2023, KRW 40.6 billion in 2024, and KRW 38.0 billion in 2025, marking a clear and sustained turnaround.
The domestic furniture and interior industry is shaped by two demand streams: B2B demand that lags apartment pre-sale and construction-start volumes, and B2C demand that is driven by move-in seasons and consumer sentiment.
According to the Korea Housing Institute's 2026 housing market outlook, housing permits this year are expected to decline from the prior year, signaling a contraction in the permit and construction-start data that serve as leading indicators for the furniture market.
Compounding this, a prolonged strong-dollar environment with the won trading in the 1,400s per dollar has increased raw-material cost burdens for furniture makers, most of which rely heavily on imported timber.
Industry data show that import prices for timber used by domestic furniture companies edged higher between November 2024 and November 2025.
In the competitive landscape, Hansem has secured a relatively stable consumer revenue base through a B2C-focused strategy, while Hyundai Livart and Shinsegae Casa are viewed as more exposed to the construction cycle given their greater reliance on B2B.
Industry participants note that profitability has been squeezed as rising raw material and logistics costs have not been fully passed through to product prices.
Against this backdrop, companies across the sector are pursuing online channel expansion, premium line reinforcement, and overseas business growth to diversify their earnings structure.
In an August 2026 report, Mirae Asset Securities analyst Kim Ki-ryong projected that Hyundai Livart's 2026 consolidated revenue would fall 4% and operating profit 29% year over year, attributing the profit decline mainly to sales weakness across both B2B and B2C channels.
Heungkuk Securities analyst Choi Jong-kyung, in a May 2026 report, raised the target price from KRW 8,500 to KRW 9,000, citing cost-improvement gains across business segments and a reduction in outstanding shares from treasury stock retirement.
The same report judged that while the B2B market remains difficult amid slowing new housing supply, the B2C market has passed its trough, and that distribution-channel improvements and a resumption of overseas temporary construction work could translate into visible results once the broader market recovers.
The company has stated it is strengthening its B2C business through the expansion of XR experience stores and a push into premium furniture and high-end built-in offerings.
Industry observers note that cost cutting alone is unlikely to be sufficient and that a more fundamental transformation of the core business may be needed, given concerns that prolonged economic weakness could erode medium-term growth drivers without such a shift.
Room for further expansion in the company's overseas subsidiaries in Vietnam, Canada, and China also remains a variable for future results.
The stock trades at a notable discount to the company's net asset value, with market capitalization running well below total shareholders' equity on a price-to-book basis.
On the other hand, given the recent sharp contraction in profit, the price-to-earnings multiple sits closer to the upper end of the range seen during past profitable periods.
Dividends remain modest in absolute terms, reflecting the still-early stage of the earnings recovery, and the dividend yield is not notably high relative to the sector.
The direction from losses in 2022-2023 to profitability in 2024 and continued profitability through 2025 is clear, but the fact that profit size itself has been shrinking since 2024 is a factor worth weighing alongside any valuation reading.
Overall, the combination of a discount to book value alongside a relatively elevated earnings multiple is a dynamic worth watching as the pace of any earnings recovery unfolds.
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
Q2 2026 operating profit of KRW 5.56 billion was the highest of the trailing five quarters, showing that cost controls have protected earnings even as revenue declined. The debt ratio has also improved, falling from 123.5% in 2023 to 85.0% in 2025, strengthening the balance sheet. Operating cash flow has stabilized around KRW 40 billion in 2024-2025 after being negative in 2022.
The company continues efforts to reduce B2B dependence by expanding XR experience stores and pursuing premium furniture and high-end built-in offerings. Heungkuk Securities assessed that the B2C market has passed its trough and that distribution-channel improvements could translate into future results.
A strategy combining online channels with offline directly operated stores could also help expand consumer touchpoints.
Overseas furniture production and distribution subsidiaries in Vietnam, Canada, and China provide a channel for demand that is independent of the domestic construction cycle.
The Canadian subsidiary has posted double-digit growth in the past, suggesting overseas operations could partially offset domestic weakness, though recent detailed disclosure on their contribution to results is limited.
The B2B segment, which includes built-in furniture accounting for more than 70% of revenue, continues a prolonged downturn alongside weaker new housing sales. The Korea Housing Institute expects 2026 housing permits to decline year over year, which could delay the recovery of B2B revenue given its lagging nature. Heungkuk Securities also assessed that the B2B market remains difficult.
2025 operating profit fell 34.6% to KRW 15.7 billion from KRW 24.0 billion in 2024, and net profit attributable to owners more than halved, from KRW 15.2 billion to KRW 7.4 billion. Q4 2025 posted an operating loss of KRW 2.61 billion, underscoring continued quarterly volatility. Mirae Asset Securities projected a further 29% decline in operating profit for 2026.
With the won trading persistently in the 1,400s per dollar, cost burdens have increased for furniture makers that rely heavily on imported timber. Import timber prices rose between November 2024 and November 2025.
If cost increases cannot be sufficiently passed through to product prices, profitability could deteriorate further.
Given the structure in which fewer new pre-sales and construction starts feed into B2B built-in furniture sales with a lag, a delayed housing market recovery risks prolonging the revenue decline. The Korea Housing Institute forecasts housing permits will decline year over year in 2026.
Because the company relies heavily on imported raw materials such as timber, a rise in the won-dollar exchange rate translates directly into higher costs. A prolonged strong-dollar environment could offset the benefits of cost-improvement efforts.
Market share competition with B2C-focused rival Hansem continues, while Shinsegae Casa and others also compete across both B2B and B2C. If consumer sentiment remains weak, the effectiveness of channel expansion strategies could be limited.
Q3 2026 preliminary earnings are due to be disclosed, a point to check whether the B2B/B2C revenue decline persists and whether cost-driven margin defense continues.
Monthly housing permit and pre-sale statistics from the Ministry of Land, Infrastructure and Transport and the Korea Housing Institute should be checked to gauge whether the leading indicators for B2B built-in furniture demand are recovering.
Tracking the won-dollar exchange rate and imported timber price trends will help assess whether cost pressure is easing and whether gross margin improvement can be sustained.
Additional disclosures or IR materials on the number of expanded XR experience stores and the sales contribution of premium built-in offerings should be monitored.
Follow-up shareholder return measures, such as further treasury stock retirement, should be checked through official disclosures.
Hyundai Livart turned profitable in 2024 after losses in 2022-2023 and remained profitable through 2025, but both revenue and operating profit declined from 2024 levels, suggesting the recovery has lost some momentum.
The core B2B built-in furniture business continues to suffer from the lagged effects of the housing downturn, and the B2C segment has also softened amid fewer housing move-ins.
That said, Q2 2026 operating profit reached the highest level of the trailing five quarters, showing that cost-improvement efforts are translating into actual margin defense. Improvements in the balance sheet, including a lower debt ratio and more stable operating cash flow, are also evident.
The company continues to expand XR stores and strengthen premium lines in an effort to raise its B2C mix, and securities analysts have noted that while B2B remains difficult, the B2C market appears to have passed its trough.
Key points to watch going forward include the timing of any recovery in leading housing indicators, the trajectory of cost pressure tied to the won-dollar exchange rate, and whether channel diversification translates into an actual revenue recovery.
Report written 2026-09-05 · Data as of 2026-09-04
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