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Hanjoo Light Metal Co (198940) Fair Value & Analysis

Consumer Cyclical · KR · Market cap 25.9B KRW

HL Hanjoo Light Metal Co 198940 · KQ
Price1,479 KRW
Fair Value865.18 KRW
Upside-41.5%
Quality42/100
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Expensive Growth
Loss-making · -1.3% net margin
Low debt · negative free cash flow
Trails peers (1/9)
Narrow moat 18/100
Evidence: Low Range 562.44 KRW – 1,168 KRW Share as image

Fair value as of: Aug 13, 2026

From 4 valuation models · updated today

Fair value updated Aug 13, 2026, revised from 6,645 KRW to 865.18 KRW (−87.0%) since Jul 22, 2026. Share price +7.9% over the past month.

Below-average quality, and screening another 42% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (1,168 KRW). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (562.44 KRW to 1,168 KRW) leaves room in how you read the outcome.
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Price vs Fair Value (4 years)

10,660 KRW 1,184 KRW Fair Value 865.18 KRW Jan 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

43‑month range 1,184 KRW – 10,660 KRW · fair‑value band 562.44 KRW – 1,168 KRW · the 1,479 KRW price screens above the 865.18 KRW fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hanjoo Light Metal Co (198940) currently trades at 1,479 KRW, while our model-based Fair Value estimate is 865.18 KRW, implying the stock looks roughly 41.5% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Hanjoo Light Metal Co generated revenue of 260B KRW at a net margin of -1.3%. Revenue grew 1.5% year over year. It earns a return on equity of -7.0%. Net debt stands at 84.6B KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 562.44 KRW (bear case) to 1,168 KRW (bull case); at 1,479 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 55% below its 52-week high and 157% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at -42%, 198940 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EV/EBITDA 10,672 KRW 14,477 KRW 18,281 KRW 54
EV/EBIT 492.75 KRW 903.92 KRW 1,315 KRW 53
NCAV (Graham) 1,195 KRW 1,601 KRW 2,390 KRW 50
All 4 models by family
Multiples
EV/EBIT 492.75 KRW 903.92 KRW 1,315 KRW 53
EV/EBITDA 10,672 KRW 14,477 KRW 18,281 KRW 54
EV/Revenue 150.11 KRW 417.37 KRW 43
Asset-Based
NCAV (Graham) 1,195 KRW 1,601 KRW 2,390 KRW 50

Widest divergence: Asset-Based (1,601 KRW) versus Multiples (903.92 KRW). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) 260B KRW
Revenue growth (YoY) +1.5%
Net margin -1.3%
Return on equity -7.0%
Free cash flow −5.1B KRW FY2025
Operating margin 1.9%
More key figures
Net debt 84.6B KRW FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 39 · Market factors (momentum, volatility) 29

Profitability 25
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 7
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 22
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hanjoo Light Metal Co., Ltd. manufactures and sells automobile parts. It offers EV components, lightweight components, engine components, and marine propulsion components. The company was formerly known as Hanjoo Metal Co., Ltd. and changed its name to Hanjoo Light Metal Co., Ltd. in January 1996. Hanjoo Light Metal Co., Ltd.

Full company description

Hanjoo Light Metal Co., Ltd. manufactures and sells automobile parts. It offers EV components, lightweight components, engine components, and marine propulsion components. The company was formerly known as Hanjoo Metal Co., Ltd. and changed its name to Hanjoo Light Metal Co., Ltd. in January 1996. Hanjoo Light Metal Co., Ltd. was incorporated in 1987 and is headquartered in Ulsan, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanjoo Light Metal Co reported revenue of 259B KRW in FY2025 versus 189B KRW in FY2021, a compound +8.2%/yr. Reported net income was −2.7B KRW in FY2025.

Growth Quality 20/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
259B KRW
Latest YoY
+3.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.7%
Revenue +8.2%/yr
FY21 189B KRW
FY22 232B KRW
FY23 221B KRW
FY24 251B KRW
FY25 259B KRW
Net income
FY21 4.0B KRW
FY22 93.2M KRW
FY23 −15.3B KRW
FY24 −7.3B KRW
FY25 −2.7B KRW

198940 screens 42% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Hanjoo Light Metal Co Fair Value". https://www.fairvalue-calculator.com/stock/198940

Peer Group

Auto Parts · 643 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 42 · Bottom 25%
Fair Value upside −42% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) -1% · Bottom 25%
Operating margin (TTM) 2% · Bottom 25%
Revenue growth 2% · Below median
Debt / equity 0.48× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

EV/EBITDA 0.9× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 8 · sector 23
PAST 0 · sector 26
HEALTH 76 · sector 95
DIVIDEND 0 · sector 30

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 511,000 KRW 643,909 KRW +26%
Magna International Inc MGAN 1,122 MXN 1,142 MXN +2%
Samvardhana Motherson International Limited MOTHERSON ₹169.50 ₹80.63 -52%
Bosch Limited BOSCHLTD ₹46,750 ₹13,061 -72%
Bharat Forge Limited BHARATFORG ₹2,082 ₹393.20 -81%
Uno Minda Limited UNOMINDA ₹1,232 ₹426.57 -65%
Schaeffler India Limited SCHAEFFLER ₹4,126 ₹1,412 -66%
Hankook Tire & Technology Co 161390 71,500 KRW 196,479 KRW +175%
Sona BLW Precision Forgings Limited SONACOMS ₹799.90 ₹207.06 -74%
Balkrishna Industries Limited BALKRISIND ₹2,497 ₹1,211 -51%

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Frequently asked questions

Is Hanjoo Light Metal Co (198940) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 865.18 KRW versus a price of 1,479 KRW, about −42% (overvalued).
What is the fair value of 198940?
Our model-based fair value for Hanjoo Light Metal Co is 865.18 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price is 1,479 KRW.
What is the quality score of 198940?
Hanjoo Light Metal Co has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hanjoo Light Metal Co (198940)?
Hanjoo Light Metal Co reported trailing-twelve-month revenue of about 260B KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 198940?
The net profit margin of Hanjoo Light Metal Co is about -1.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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