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
Hankook Cosmetics, a distribution-focused cosmetics company selling over 700 basic and color cosmetics items, has shown quarterly earnings that alternate between profit and loss in recent periods.
The 2025 consolidated operating margin fell sharply to 0.6% from 4.0% in 2024.
The company posted operating losses in 2025Q4 and 2026Q2, while turning profitable in 2025Q3 and 2026Q1, showing marked quarter-to-quarter swings.
The debt ratio has steadily declined from 95.9% in 2022 to 67.6% in 2025.
The broader cosmetics industry continues to see expanding US and European exports, but competition among small and mid-sized brands and distributors has intensified.
Subsidiary The Saem International's brand-shop business and the online channel Heallib form the core of the company's distribution diversification.
Hankook Cosmetics (123690) is a comprehensive cosmetics distribution company established in 2010 through a spin-off of the cosmetics sales and real estate leasing division from Hankook Cosmetics Manufacturing (003350).
It is listed separately from the manufacturing entity, with Hankook Cosmetics focused on sales and brand operations. The company handles over 700 basic and color cosmetics products and owns proprietary brands including Sansim and Gemmiracle.
Its distribution channels are diversified across a general sales division (internet, home shopping, distributors), an H&B division (door-to-door sales), department stores, and a home-shopping division.
Through subsidiary The Saem International, it operates the roadshop brand The Saem, and through Heallib, established in 2020, it has expanded online sales channels.
The company's stated management direction includes improving distributor profitability through better distribution order, strengthening brand power via a Brand Manager system, and cultivating leading products through new product development.
Competitively, the company faces intensifying channel competition as the growth of ODM/OEM manufacturing and the expansion of online and multi-brand shops have increased the entry of small and mid-sized brands.
Its traditional door-to-door and distributor-centered distribution model appears to face structural pressure amid the strength of online channels.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩20.5B | -₩200M | −0.9% |
| 2025Q3 | ₩21.3B | ₩600M | 2.9% |
| 2025Q4 | ₩18.6B | -₩1.6B | −8.8% |
| 2026Q1 | ₩20.9B | ₩1.9B | 9.2% |
| 2026Q2 | ₩21B | -₩300M | −1.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩66B | -₩23,014,169 | ₩600M | 0.0% | 2.6% | 95.9% |
| 2023 | ₩78.7B | ₩3.1B | ₩3.5B | 3.9% | 13.7% | 91.6% |
| 2024 | ₩92.8B | ₩3.7B | ₩4.6B | 4.0% | 15.2% | 90.7% |
| 2025 | ₩85B | ₩500M | ₩1.1B | 0.6% | 3.4% | 67.6% |
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 was KRW 85.03 billion, down from KRW 92.79 billion in 2024, reversing the growth trend seen from KRW 78.71 billion in 2023 to KRW 92.79 billion in 2024.
Operating profit recovered from a loss of KRW 23 million in 2022 to KRW 3.05 billion in 2023 and KRW 3.71 billion in 2024, but then contracted sharply to KRW 528 million in 2025, with the operating margin falling from 4.0% to 0.6%.
Net income attributable to owners also fell sharply, from KRW 4.59 billion in 2024 to KRW 1.13 billion in 2025. Quarterly results show pronounced volatility.
In 2025Q2, revenue was KRW 20.5 billion with an operating loss of KRW 176 million and a net loss attributable to owners of KRW 73 million; in 2025Q3, the company turned profitable with revenue of KRW 21.3 billion, operating profit of KRW 623 million, and net income attributable to owners of KRW 893 million.
However, 2025Q4 saw revenue decline to KRW 18.6 billion with the operating loss widening sharply to KRW 1.64 billion and the net loss to KRW 1.63 billion.
In 2026Q1, the company posted a clear turnaround with revenue of KRW 20.9 billion, operating profit of KRW 1.92 billion, and net income of KRW 2.15 billion, only to swing back into a loss in 2026Q2 with revenue of KRW 21.0 billion, an operating loss of KRW 316 million, and a net loss of KRW 532 million.
Combined net income attributable to owners over the most recent four quarters (2025Q3-2026Q2) was approximately KRW 880 million, reflecting a period in which the alternating quarterly pattern makes it difficult to gauge the trajectory of cumulative annual results.
This volatility is presumed to relate to seasonal peak and off-peak periods, one-off costs, and the timing of channel-specific promotional expenses, though segment-level detail would require closer examination of quarterly filings.
The domestic cosmetics industry continues to show structural growth driven by expanding exports to the US and Europe, but Shinhan Investment Corp noted in a May 2026 report that the benefits of this growth are concentrated among large brand companies.
Shinhan Investment Corp projected that large brand companies' combined second-half 2026 sales would grow 21% year-on-year with operating margins improving by 6 percentage points, while small and mid-sized brand companies would see sales growth of only 11% and margin improvement of just 2 percentage points.
Indeed, Cosmorning's analysis of 86 cosmetics and beauty companies for the second quarter and first half of 2026 found that while most companies saw revenue growth, 26 still posted operating losses, highlighting clear polarization.
Hankook Cosmetics was classified by Cosin Korea's data as a company whose net income declined 76.3% over the past year, placing it among the underperforming group.
FnGuide attributed Hankook Cosmetics' weak performance to intensified competition from the growth of ODM/OEM manufacturing and the expansion of small and mid-sized brands through online and multi-brand shops, as well as heightened distribution channel competition amid the strength of online channels.
Asia Economy Daily reported in July 2026 that despite record-high K-beauty exports, cosmetics stocks broadly underperformed, attributing this to the fact that last year's K-beauty rally had already been substantially priced in, with stock selection becoming increasingly company-specific rather than sector-wide.
Overall, industry observers commonly note that while headline export data remain solid, the extent to which this benefit flows through to traditional roadshop- and door-to-door-centered distributors varies significantly by company.
The company continues to pursue its stated policy of improving distributor profitability through better distribution order, strengthening brand power via a Brand Manager system, and cultivating leading products through differentiated new product development.
Industry participants generally see structural growth continuing in exports centered on the US and Europe and in personal care category expansion, but Shinhan Investment Corp projected that the benefits of this growth would accrue more heavily to large brand companies and ODM manufacturers.
The general industry view is that the growth potential for smaller brand and distribution companies, the group in which Hankook Cosmetics is positioned, will be relatively more limited.
Specific new product launch schedules or capacity expansion and order plans for the company itself were not identified in recently available materials, and would require confirmation through future quarterly and annual reports.
The steady decline in the debt ratio from 95.9% in 2022 to 67.6% in 2025 is viewed as a positive change from a financial structure standpoint.
However, given that the operating margin fell sharply from 4.0% in 2024 to 0.6% in 2025, the sustainability of margin recovery in upcoming quarters will be a key observation point.
Whether growth in the online channel (Heallib) and the brand-shop business (The Saem International) can offset structural pressure on traditional distribution channels is also an important variable to watch.
The company's recent net income trend has shown a pattern of shrinking annual profit levels, with pronounced volatility on a quarterly basis as results alternate between profit and loss. This earnings instability provides useful context for assessing the valuation multiple the market assigns to this stock.
The price level relative to net assets appears to trade at a premium compared to other small and mid-sized brand and distribution companies in the industry, which may partly reflect expectations for earnings improvement.
No cash dividend was paid in the most recent fiscal year, meaning the appeal of shareholder returns through dividends remains limited for now.
Because valuation assessments could shift depending on whether the direction of quarterly earnings becomes clearer going forward, an approach that tracks the trend across consecutive quarters, rather than a short-term judgment, appears more appropriate.
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
The debt ratio has steadily declined from 95.9% in 2022 to 67.6% in 2025, reflecting improving financial stability. Total equity also grew from KRW 22.4 billion in 2022 to KRW 33.6 billion in 2025, expanding the capital base. This improvement in financial structure could serve as a buffer against future earnings volatility.
K-beauty exports centered on the US and Europe continue to hit record highs, and the industry broadly views this trend as structurally sustained.
Hankook Cosmetics is positioned within this larger industry growth trend, giving it potential to benefit from the sector if it can restore competitiveness in its distribution channels.
Its diversified distribution network (general retail, H&B, department stores, online) can be seen as a structure that partially spreads risk when any single channel underperforms.
In 2025Q3 and 2026Q1, revenue, operating profit, and net income were all clearly positive, demonstrating that profitability recovery is achievable.
In particular, 2026Q1's operating profit of KRW 1.92 billion and net income attributable to owners of KRW 2.15 billion represented the strongest results among recent quarters. This suggests the company retains an underlying business base capable of generating profit under favorable conditions.
Operating losses appeared repeatedly in 2025Q2, 2025Q4, and 2026Q2, leaving limited confidence in the sustainability of any given profitable quarter. In 2025Q4, the operating loss widened to KRW 1.64 billion, confirming that the magnitude of quarterly swings is also large. This volatility reduces visibility into annual earnings forecasts.
FnGuide has assessed that competition is intensifying due to the growth of ODM/OEM manufacturing and the expansion of small and mid-sized brands through online and multi-brand shops.
The traditional door-to-door and distributor-centered distribution model appears to be under structural pressure amid the strength of online channels. This intensifying channel competition may have contributed to the sharp drop in operating margin from 4.0% in 2024 to 0.6% in 2025.
Shinhan Investment Corp projected that in the second half of 2026, large brand companies would see far greater improvement in sales growth and operating margin than small and mid-sized brand companies.
Hankook Cosmetics belongs to the relatively smaller brand and distribution company group, suggesting its share of industry growth benefits could be relatively limited.
Cosin Korea's data also classified Hankook Cosmetics among companies whose net income fell 76.3% over the past year, placing it in the underperforming group.
Operating losses occurred in three of the most recent five quarters, making it difficult to predict the direction of profitability going forward. Confirming whether a profitable quarter will carry through to the next requires monitoring consecutive earnings releases. This volatility can reduce the reliability of business planning and financial forecasting.
Market entry by small and mid-sized brands continues to increase amid the growth of ODM/OEM manufacturing and the expansion of online and multi-brand shops. A structure dependent on traditional door-to-door and distributor distribution models may be vulnerable to this intensifying competition.
If the transition of distribution channels is delayed, both revenue and profitability could continue to face pressure.
Industry outlooks indicate that the benefits of cosmetics industry growth tend to concentrate more heavily among large brand companies and ODM manufacturers. Hankook Cosmetics, with a relatively small market capitalization and revenue scale, may be at a relative disadvantage within this large-company-centered trend.
It is also worth noting that even when overall industry export figures remain solid, the extent to which this translates into individual company performance varies significantly by firm.
The Q3 2026 quarterly report is expected to be filed around this time, allowing confirmation of whether the company returns to profit following the 2026Q2 loss and whether the pattern of quarterly swings continues.
Monthly cosmetics export statistics released by the Ministry of Food and Drug Safety and Korea Customs Service can be checked to assess whether upstream export demand remains sustained.
Year-end peak season sales trends across the H&B, home-shopping, and online channels can provide a gauge of shifts in competitiveness across distribution channels.
The 2026 annual business report is expected to be filed around this time, providing final confirmation of whether the annual operating margin recovers and whether the trend of improving financial structure metrics, such as the debt ratio, continues.
Hankook Cosmetics is a small and mid-sized cosmetics distribution company that sells over 700 basic and color cosmetics products across various distribution channels.
While its financial structure has steadily improved in recent years, its profit and loss picture shows pronounced volatility, with operating results alternating between profit and loss on a quarterly basis.
The operating margin, which stood at 4.0% in 2024, fell sharply to 0.6% in 2025, and profitable quarters in 2025Q3 and 2026Q1 alternated with losses in 2025Q4 and 2026Q2, making directional judgment difficult.
Across the broader industry, structural growth in K-beauty exports centered on the US and Europe continues, but the benefits are observed to concentrate more heavily among large brand companies and ODM manufacturers, with industry observers suggesting the extent of benefit for the smaller distribution company group to which Hankook Cosmetics belongs may be relatively limited.
The decline in the debt ratio from 95.9% in 2022 to 67.6% in 2025 can be viewed as a positive change in financial stability.
Key points to watch going forward include when the repeated pattern of quarterly earnings swings converges toward a stable direction, and how much the online and brand-shop channels can offset structural pressure on traditional channels amid intensifying distribution competition.
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.