# Hanon Systems (018880.KO)

Canonical: https://gigainvestors.com/s/018880.KO

Analysis as of: 2026-10-16T07:39:28.190Z. Financial observations: FY2000–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 3,755.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 0.49×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.08×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.05×

- FY2021: 0.04×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.01×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.5%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: 2.8 pp

- Typical gross margin (annual median): 12.1%

- Recent gross margin (lower of latest and 3-year median): 9.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.0%

- ROIC including acquisitions, ten-year median: 2.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.9%

- FY2017: 17.0%

- FY2018: 13.1%

- FY2019: 11.3%

- FY2020: 7.5%

- FY2021: 7.5%

- FY2022: 3.8%

- FY2023: 3.8%

- FY2024: 1.3%

- FY2025: 3.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW -124B

- Net income, five-year total: KRW -182B

- Return on incremental invested capital: -2.8%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 0.3 pp

- Working capital / revenue, final three-year average: 12.4%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: KRW 383B

- FY2022: KRW -28B

- FY2023: KRW 51B

- FY2024: KRW -459B

- FY2025: KRW -71B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 16.9% vs 3.7%

- Per-share earnings: 541.48 to -292.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 5.0%

- Market cap gain: KRW -2.92T

- Cumulative retained earnings: KRW -416B

- Diluted shares, 5-year annual growth: 5.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW -833.48

- Per-share value, starting three-year median: KRW 541.48

- Per-share value, ending three-year median: KRW -292.00

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.8%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 2.17T

- Cumulative net income, 10 years: KRW 1.11T

- ROIC, first three-year median: 16.9%

- ROIC, last three-year median: 3.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 546.70

- FY2017: KRW 541.48

- FY2018: KRW 520.12

- FY2019: KRW 596.44

- FY2020: KRW 206.81

- FY2021: KRW 578.10

- FY2022: KRW 34.06

- FY2023: KRW 86.05

- FY2024: KRW -605.90

- FY2025: KRW -292.00

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.58×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.5%

- FY2017: -6.8%

- FY2018: -3.6%

- FY2019: -6.5%

- FY2020: -8.8%

- FY2021: -4.0%

- FY2022: -3.9%

- FY2023: -5.0%

- FY2024: -8.8%

- FY2025: -3.0%

## Holders

## Price story

Down 71% since Oct 2021 · sales +8.9%

Story as of 2026-10-16T10:00:10.795Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +8.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 5.70T 

- FY2017: KRW 5.59T 

- FY2018: KRW 5.94T 

- FY2019: KRW 7.15T 

- FY2020: KRW 6.87T 

- FY2021: KRW 7.35T 

- FY2022: KRW 8.63T 

- FY2023: KRW 9.52T 

- FY2024: KRW 10.00T 

- FY2025: KRW 10.88T 

### Gross margin · FY2025

gross margin 9.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 15.8% 

- FY2017: 16.9% 

- FY2018: 15.4% 

- FY2019: 14.5% 

- FY2020: 12.6% 

- FY2021: 11.5% 

- FY2022: 9.8% 

- FY2023: 9.6% 

- FY2024: 8.1% 

- FY2025: 9.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are KRW 10.9 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2025: revenue 10883728406010; grossProfit 1009902336600; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 018880.KO: Hanon Systems provides automotive thermal management solutions in Korea. The company offers heating, ventilation, and air conditioning technologies, such as omnifarious HVAC designs, high-efficiency blower scrolls, visible (VR) LED photocatalyst, co2 sensor, and fragrance system; compressors, including fixed swash plate, rotary suction, variable swash plate, and electric; and fluid transport products includes refrigerant lines, coolant lines, transmission oil cooler lines, accumulators, receiver driers, and internal heat exchangers FT. In addition, the company provides ionizers; cooling module; and condenser. The company was formerly known as Halla Visteon Climate Control Corporation and changed its name to Hanon Systems in August 2015. Hanon Systems was founded in 1986 and is headquartered in Daejeon, South Korea. Hanon Systems is a subsidiary of Hankook Tire & Technology Co., Ltd.

### Why customers stay

Margins ranged from 8.1% to 9.6% during 2023–25; it earns 7.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2023: grossProfit / revenue = 9.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2024: grossProfit / revenue = 8.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2025: grossProfit / revenue = 9.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); 10-year return on capital observations [[2016,0.16947204471570013],[2017,0.17041534861942736],[2018,0.13149758169760933],[2019,0.11295343370138375],[2020,0.07525196525865073],[2021,0.07536977258303587],[2022,0.03754303905376559],[2023,0.03813504182250243],[2024,0.013455394388879681],[2025,0.03727213665757698]]; median 0.0753108689208433. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 10% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); Gross margin observations: [[2021,0.11548678573620107],[2022,0.09818095558197265],[2023,0.09552957690201333]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2016: growth capex 0; upkeep 335429748970; owner earnings 53740101770. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2017: growth capex 0; upkeep 322132161140; owner earnings 167941476010. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2018: growth capex 0; upkeep 419742242570; owner earnings 51522779380. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2019: growth capex 60621189330; upkeep 380730672000; owner earnings 278966637560. Growth capex / owner earnings = 0.21730623367807422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2020: growth capex 0; upkeep 402043028840; owner earnings 136124390700. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2021: growth capex 0; upkeep 387670072620; owner earnings 382656102890. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); FY2023: growth capex 201104567790; upkeep 598415445000; owner earnings 50985227770. Growth capex / owner earnings = 3.9443693121702808.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); Dividend observations: [[2016,203286381000],[2017,171450539340],[2018,172464885840],[2019,172674398360],[2020,152879682740],[2021,209783592060],[2022,194196761850],[2023,185020190230],[2024,46368959910],[2025,1871759160]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 66.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 018880.KO SharesStats.PercentInsiders = 66.753 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:28.190Z); Closing price 3755 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 16006.59361929902; price multiple 0.2345908248381234. FY2025 cash earnings/share -104.46604776176116. Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 9,590.50 per share

- 2016-11: KRW 8,747.97 per share

- 2016-12: KRW 9,231.97 per share

- 2017-01: KRW 8,147.44 per share

- 2017-02: KRW 8,210.18 per share

- 2017-03: KRW 8,317.74 per share

- 2017-04: KRW 7,582.77 per share

- 2017-05: KRW 9,276.79 per share

- 2017-06: KRW 9,231.97 per share

- 2017-07: KRW 9,187.16 per share

- 2017-08: KRW 10,352.36 per share

- 2017-09: KRW 11,293.48 per share

- 2017-10: KRW 11,652.00 per share

- 2017-11: KRW 11,831.27 per share

- 2017-12: KRW 12,458.68 per share

- 2018-01: KRW 11,696.82 per share

- 2018-02: KRW 11,203.85 per share

- 2018-03: KRW 10,262.73 per share

- 2018-04: KRW 9,769.76 per share

- 2018-05: KRW 9,052.71 per share

- 2018-06: KRW 9,500.86 per share

- 2018-07: KRW 9,590.50 per share

- 2018-08: KRW 10,755.70 per share

- 2018-09: KRW 11,338.30 per share

- 2018-10: KRW 9,814.57 per share

- 2018-11: KRW 9,411.23 per share

- 2018-12: KRW 9,680.13 per share

- 2019-01: KRW 11,472.74 per share

- 2019-02: KRW 11,159.03 per share

- 2019-03: KRW 10,173.10 per share

- 2019-04: KRW 11,248.67 per share

- 2019-05: KRW 10,397.17 per share

- 2019-06: KRW 10,441.99 per share

- 2019-07: KRW 10,486.80 per share

- 2019-08: KRW 10,397.17 per share

- 2019-09: KRW 10,755.70 per share

- 2019-10: KRW 10,397.17 per share

- 2019-11: KRW 9,680.13 per share

- 2019-12: KRW 9,993.83 per share

- 2020-01: KRW 9,411.23 per share

- 2020-02: KRW 9,456.05 per share

- 2020-03: KRW 7,950.25 per share

- 2020-04: KRW 8,183.29 per share

- 2020-05: KRW 8,730.04 per share

- 2020-06: KRW 8,120.55 per share

- 2020-07: KRW 8,927.23 per share

- 2020-08: KRW 11,562.37 per share

- 2020-09: KRW 11,069.40 per share

- 2020-10: KRW 10,038.65 per share

- 2020-11: KRW 13,489.44 per share

- 2020-12: KRW 14,565.01 per share

- 2021-01: KRW 14,968.34 per share

- 2021-02: KRW 13,847.96 per share

- 2021-03: KRW 15,819.84 per share

- 2021-04: KRW 14,520.19 per share

- 2021-05: KRW 15,192.42 per share

- 2021-06: KRW 14,833.90 per share

- 2021-07: KRW 13,982.40 per share

- 2021-08: KRW 14,744.27 per share

- 2021-09: KRW 14,027.22 per share

- 2021-10: KRW 12,906.84 per share

- 2021-11: KRW 11,607.19 per share

- 2021-12: KRW 12,055.34 per share

- 2022-01: KRW 9,545.68 per share

- 2022-02: KRW 10,352.36 per share

- 2022-03: KRW 10,576.43 per share

- 2022-04: KRW 10,217.91 per share

- 2022-05: KRW 10,262.73 per share

- 2022-06: KRW 9,007.90 per share

- 2022-07: KRW 9,545.68 per share

- 2022-08: KRW 9,231.97 per share

- 2022-09: KRW 7,457.28 per share

- 2022-10: KRW 6,991.20 per share

- 2022-11: KRW 7,797.88 per share

- 2022-12: KRW 7,251.13 per share

- 2023-01: KRW 8,192.26 per share

- 2023-02: KRW 8,093.66 per share

- 2023-03: KRW 7,869.58 per share

- 2023-04: KRW 8,219.14 per share

- 2023-05: KRW 8,407.37 per share

- 2023-06: KRW 8,201.22 per share

- 2023-07: KRW 7,645.51 per share

- 2023-08: KRW 8,165.37 per share

- 2023-09: KRW 8,443.22 per share

- 2023-10: KRW 6,166.60 per share

- 2023-11: KRW 6,498.23 per share

- 2023-12: KRW 6,534.09 per share

- 2024-01: KRW 5,575.04 per share

- 2024-02: KRW 5,530.22 per share

- 2024-03: KRW 5,261.33 per share

- 2024-04: KRW 5,001.40 per share

- 2024-05: KRW 4,490.50 per share

- 2024-06: KRW 4,239.54 per share

- 2024-07: KRW 3,979.61 per share

- 2024-08: KRW 3,625.57 per share

- 2024-09: KRW 3,813.79 per share

- 2024-10: KRW 3,558.34 per share

- 2024-11: KRW 3,558.34 per share

- 2024-12: KRW 3,594.20 per share

- 2025-01: KRW 3,831.72 per share

- 2025-02: KRW 3,970.64 per share

- 2025-03: KRW 3,258.08 per share

- 2025-04: KRW 3,190.86 per share

- 2025-05: KRW 2,706.85 per share

- 2025-06: KRW 2,778.55 per share

- 2025-07: KRW 2,939.89 per share

- 2025-08: KRW 3,204.30 per share

- 2025-09: KRW 2,733.74 per share

- 2025-10: KRW 3,912.38 per share

- 2025-11: KRW 3,765.00 per share

- 2025-12: KRW 2,965.00 per share

- 2026-01: KRW 3,275.00 per share

- 2026-02: KRW 4,640.00 per share

- 2026-03: KRW 3,740.00 per share

- 2026-04: KRW 4,230.00 per share

- 2026-05: KRW 5,630.00 per share

- 2026-06: KRW 3,835.00 per share

- 2026-07: KRW 3,305.00 per share

- 2026-08: KRW 3,510.00 per share

- 2026-09: KRW 3,520.00 per share

- 2026-10: KRW 3,805.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 5,194.50 per share, central KRW 5,825.83 per share, high KRW 6,666.27 per share

- FY2017: low KRW 4,325.40 per share, central KRW 4,800.33 per share, high KRW 5,432.56 per share

- FY2018: low KRW 3,434.81 per share, central KRW 3,672.86 per share, high KRW 3,989.75 per share

- FY2019: low KRW 5,454.49 per share, central KRW 6,061.46 per share, high KRW 6,869.47 per share

- FY2020: low KRW 5,037.37 per share, central KRW 5,421.77 per share, high KRW 5,933.50 per share

- FY2021: low KRW 6,905.34 per share, central KRW 7,529.52 per share, high KRW 8,360.43 per share

- FY2022: low KRW 5,239.64 per share, central KRW 5,668.80 per share, high KRW 6,240.11 per share

- FY2023: low KRW 4,495.80 per share, central KRW 4,975.44 per share, high KRW 5,613.95 per share

- FY2024: low KRW 2,909.34 per share, central KRW 3,043.93 per share, high KRW 3,223.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.