PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩620 per share · Prices as of the 2026-10-02 close
Hanla IMS is expanding beyond ship measurement and control equipment into ship repair (MRO) through its Gwangyang and Yeongdo sites, with revenue and operating profit rising markedly since 2025 on the back of a shipbuilding upcycle and growing China sales.
2025 consolidated revenue reached KRW 133.4 billion (+28.0%) and operating profit KRW 22.2 billion (+39.5%), with both scale and profitability improving together.
In January 2026 the company acquired Daesun Shipbuilding's Yeongdo shipyard in Busan, forming a 'two-track MRO' structure alongside its Gwangyang site.
On a cumulative basis through the third quarter of 2025, China sales rose 82.2% year over year and began to exceed domestic sales.
Second-quarter 2026 revenue of KRW 42.8 billion and operating profit of KRW 9.2 billion marked the highest quarterly figures in three years.
The ballast water treatment system (BWTS) market has seen slowing demand after the installation mandate deadline passed, with major shipyards entering the segment directly, intensifying competition.
Hanla IMS is a shipbuilding equipment specialist focused on precision measurement and integrated control systems for vessels.
Its product lineup consists of five brands: precision measurement (HX-GAUGING), gas detection and safety (HX-GAS&SAFETY), integrated control and monitoring (HX-CONTROL), eco-friendly systems (HX-ECO), and machinery (HX-MACHINERY), with core products including level gauging systems that measure cargo hold level, temperature and pressure, valve remote control systems (VRCS), and ballast water treatment systems (BWTS).
Its Busan headquarters produces measurement and control systems for shipbuilding equipment and industrial plants. The company entered the ship repair (MRO) business by acquiring its Gwangyang site in 2021 and began operating a 7,000-ton floating dock there from July 2024.
In January 2026 it acquired the Yeongdo shipyard in Busan from Daesun Shipbuilding, then under a workout process, for roughly KRW 107.1 billion, gaining infrastructure capable of repairing mid-sized vessels of up to 62,000 DWT.
Through this, the company is pursuing a 'two-track MRO' strategy linking the Gwangyang and Yeongdo sites to provide one-stop service from equipment supply to installation and repair.
Overseas, it has built a local customer base through its China subsidiary (Hanla Marine Electric & Machinery Co., Ltd.) established in 2007, and on a cumulative basis through the third quarter of 2025, China sales grew 82.2% year over year and began exceeding domestic sales.
On the competitive front, large shipbuilders such as HD Hyundai Heavy Industries have entered the BWTS business directly, intensifying competition within the shipbuilding equipment market.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩35.7B | ₩6.2B | 17.3% |
| 2025Q3 | ₩31.7B | ₩5.4B | 17.2% |
| 2025Q4 | ₩39.6B | ₩5.5B | 14.0% |
| 2026Q1 | ₩39.4B | ₩5.5B | 14.0% |
| 2026Q2 | ₩42.8B | ₩9.2B | 21.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩98.6B | ₩8.8B | ₩8.1B | 8.9% | 8.3% | 84.1% |
| 2023 | ₩78.9B | ₩5.4B | ₩71.6B | 6.8% | 44.1% | 36.6% |
| 2024 | ₩104.2B | ₩16B | ₩13.7B | 15.3% | 8.0% | 21.3% |
| 2025 | ₩133.5B | ₩22.3B | ₩25.5B | 16.7% | 12.8% | 21.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Consolidated revenue in 2025 reached KRW 133.48 billion, up 28.0% from KRW 104.24 billion the prior year, while operating profit rose 39.5% to KRW 22.27 billion, lifting the operating margin to 16.7%. Net profit attributable to owners surged 85.8% to KRW 25.49 billion from KRW 13.72 billion.
However, the 2023 net profit of KRW 71.62 billion was a one-off result reflecting a large disposal gain from selling 75% of the Gwangyang site to the POSCO group, and with that base effect gone in 2024, net profit fell sharply that year, meaning the 2025 recovery can be read as core-business improvement once the one-off effect had cycled out.
Indeed, the 2023 operating margin was only 6.8%, while it steadily improved to 15.3% in 2024 and 16.7% in 2025.
On a quarterly basis, third-quarter 2025 revenue was KRW 31.67 billion and operating profit KRW 5.44 billion, yet net profit attributable to owners was KRW 7.83 billion, exceeding operating profit, while fourth-quarter revenue rose to KRW 39.59 billion even as net profit fell to KRW 5.47 billion, reflecting continued quarter-to-quarter volatility in the net profit line.
In the first quarter of 2026 the company posted revenue of KRW 39.36 billion, operating profit of KRW 5.52 billion, and net profit attributable to owners of KRW 6.68 billion, and in the second quarter, revenue of KRW 42.84 billion, operating profit of KRW 9.19 billion, and net profit of KRW 8.36 billion, the highest quarterly figures in three years.
Over the trailing four quarters (third quarter 2025 through second quarter 2026), cumulative revenue totaled roughly KRW 153.45 billion and net profit attributable to owners about KRW 28.34 billion, continuing the year-over-year improvement trend.
Operating cash flow reached KRW 22.05 billion in 2025, a marked improvement from negative KRW 187 million in 2024, indicating stronger cash conversion of earnings as well.
The global shipbuilding industry has sustained an order upcycle in recent years, with major shipyards reportedly holding order backlogs stretching several years forward. Shinyoung Securities noted in a September 2025 report that domestic shipbuilders' order backlogs extend beyond 2027 into 2028.
Tightening IMO environmental regulations and the expansion of LNG-fueled vessels are driving demand for eco-friendly propulsion technology and integrated control and monitoring systems, a trend also reflected in the company's cumulative year-over-year growth through the third quarter of 2025 of 30.5% in revenue, 51.2% in operating profit, and 91.6% in net profit.
However, the BWTS market has entered a phase of slowing new-installation demand after the IMO's mandatory installation deadline in September 2024 passed, and competitive intensity has risen as large shipbuilders such as HD Hyundai Heavy Industries have taken over ballast water treatment businesses from affiliates to enter the market directly.
On the other hand, because shipbuilding equipment makers supply finished products rather than acting as subcontracted processors, some observers note they can hold a relatively stable position in volume allocation when domestic large shipyards reactivate idle facilities or expand overseas investment.
The United States has shown moves to strengthen MRO cooperation with Korean shipbuilders as part of rebuilding its domestic shipbuilding industry, which has been cited as a new business opportunity for domestic equipment and repair firms.
Hanla IMS, having built a long-standing sales base in China, has recently seen China sales exceed domestic sales, drawing attention both for industry tailwinds and for its geographic portfolio diversification.
The company plans to develop the Yeongdo shipyard, acquired in January 2026, into a 'two-track MRO' hub linked with its Gwangyang site.
However, near-term profitability contribution is expected to be limited initially due to acquisition-related costs, and given that the Gwangyang site gradually increased its revenue and profit contribution after introducing a floating dock, the Yeongdo site is likely to require time to stabilize as well.
The Korea IR Service noted in an April 2026 report that Hanla IMS disclosed in its business report plans to expand China-based production volume by more than 50% in 2026 compared with 2025.
The same report projected that the share of China-bound sales would expand significantly in 2026, though this figure is the report's own estimate rather than confirmed disclosed results.
On the individual order front, the company signed a dock gate manufacturing and supply contract with Haejeon Industries last December worth 9.59% of sales at the time, running through December 31, 2026, among other contracts of varying size.
Amid expected growth in equipment demand driven by environmental regulation compliance and expanding LNG-fueled vessel adoption, the company is also reported to be researching smart-ship and autonomous-navigation-related technologies.
According to a forward-looking valuation multiple band chart presented by one securities firm, the company's valuation over recent years has generally moved within roughly a 4x to 12x price multiple band and a 0.5x to 1.3x price-to-book multiple band, with the current level sitting close to the upper end of that range.
This can be read as a re-rating reflecting the fact that revenue and operating profit expanded every year from 2022 through 2025, and that net profit, excluding the 2023 one-off disposal gain, showed a gradual recovery trend.
On the dividend side, the company appears to have maintained cash dividends alongside earnings improvement, though dividends themselves do not appear to be the central investment attraction for this stock.
In terms of book value, given that total equity has grown each year as recent large investments such as the Yeongdo shipyard acquisition were reflected, the future path of the price-to-book ratio may be closely tied to how quickly the new Yeongdo site becomes profitable.
Ultimately, the current valuation level can be viewed as a range that may shift depending on two variables: the durability of the shipbuilding industry cycle and the pace at which the new MRO business becomes profitable.
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
Core equipment business expansion is evident, with 2025 revenue and operating profit rising 28.0% and 39.5% respectively, and growth continuing into the first and second quarters of 2026.
Added to this is the ship repair (MRO) business through the Gwangyang and Yeongdo sites, broadening the portfolio from equipment supply toward an integrated service company. The overlap of these two growth engines is expected to diversify the revenue base.
The sales base built through the China subsidiary established in 2007 is translating into recent results, with cumulative China sales through the third quarter of 2025 rising 82.2% year over year and beginning to exceed domestic sales.
The company reportedly stated in its business report plans to expand China-based production volume by more than 50% in 2026 compared with 2025. Progress on geographic diversification could reduce reliance on any single market.
Shinyoung Securities noted in a September 2025 report that domestic shipbuilders' order backlogs extend beyond 2027 into 2028. Because shipbuilding equipment makers operate on a product-supply basis, increased shipyard construction volumes tend to lift demand for related measurement and control systems as well. Such extended order backlogs can be viewed as supporting the visibility of the company's results.
Near-term profitability contribution from the Yeongdo shipyard acquisition is expected to be limited initially due to related costs. The Gwangyang site also took time to stabilize after its acquisition, suggesting a similar lag before Yeongdo's profit contribution becomes visible. The financial burden of executing large-scale investment spending is also a factor to weigh.
The ballast water treatment system (BWTS) market has entered a phase of slowing new-installation demand after the IMO's mandatory installation deadline passed.
Competitive intensity is also rising as large shipbuilders such as HD Hyundai Heavy Industries take over related businesses from affiliates to enter the market directly. Such shifts could affect the revenue mix and profitability of the related segment.
The large 2023 net profit stemmed from a one-off disposal gain related to the Gwangyang site sale, and with that base effect gone, 2024 net profit fell sharply. Quarterly figures also show volatility, such as the third quarter of 2025 when net profit exceeded operating profit. This pattern suggests care is needed when making simple year-over-year or quarter-over-quarter comparisons.
The company's results are closely tied to the global shipbuilding order cycle, so if the currently thick order backlog fails to persist and new orders contract, revenue growth could slow. Demand for equipment fluctuates in line with shipyards' construction volumes and pricing trends.
If integration of the Yeongdo shipyard and stabilization of utilization do not proceed as planned, the expected timing of profit contribution could be delayed. Unexpected costs during capital allocation and organizational integration following a large acquisition also cannot be ruled out.
Competition is intensifying in eco-friendly equipment markets such as BWTS as large shipbuilders enter directly, and the pace of implementation of international environmental regulations such as the IMO's could unfold differently than expected. The direction and speed of regulatory change can directly affect demand for related products.
Preliminary third-quarter 2026 results are expected to be disclosed around this time, offering an early look at the ship service segment's revenue and profit contribution following the Yeongdo shipyard acquisition.
It will be worth monitoring the stabilization of Yeongdo shipyard utilization and whether the Gwangyang-Yeongdo 'two-track MRO' structure begins to show early profitability.
This is a point to verify, via business reports and IR materials, the actual progress of the plan to expand China-based production volume by more than 50% in 2026 and any resulting change in the China sales share.
This is the year-end dividend record date, a point to check whether the dividend policy is maintained amid the improving earnings trend.
Progress in discussions on U.S. shipbuilding revitalization policy and MRO cooperation with Korean shipbuilders, along with the fulfillment status of the dock gate contract with Haejeon Industries (expiring December 31, 2026), warrants attention.
Hanla IMS is in a transitional phase, sustaining year-over-year growth in revenue and operating profit from its core ship measurement and control equipment business while simultaneously expanding into ship repair (MRO) through its Gwangyang and Yeongdo sites.
The 2025 results showed clear improvement with revenue up 28.0% and operating profit up 39.5%, and this trend continued into the first and second quarters of 2026.
Since the large 2023 net profit was a one-off effect from the Gwangyang site sale, excluding it suggests the core business's profitability has gradually improved.
Expanding China sales and extended shipbuilding order backlogs are positive variables, but intensifying competition in the BWTS market and the initial cost burden of integrating the Yeongdo shipyard are factors that also warrant attention.
Valuation is trading near the upper end of its historical band, meaning its future path could depend on how quickly the new business becomes profitable and how durable the shipbuilding cycle proves to be.
Upcoming quarterly results and the stabilization of Yeongdo shipyard utilization are likely to be key indicators for gauging the success of this business transition.
Report written 2026-09-05 · Data as of 2026-09-04
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