# Hanwha Systems (272210.KO)

Canonical: https://gigainvestors.com/s/272210.KO

Analysis as of: 2026-10-16T07:35:50.584Z. Financial observations: FY2016–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

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

Share price: KRW 75,100.00 per share; close as of 2026-10-15.

Estimated value: low KRW 22,647.32 per share, central KRW 24,601.89 per share, high KRW 27,203.83 per share. Buy at or below the central value KRW 24,601.89 per share. Valuation as of 2026-10-16T07:35:50.584Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.40×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.05×

- FY2022: 0.01×

- FY2023: 0.05×

- FY2024: 0.08×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 8.4%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 1.9 pp

- Typical gross margin (annual median): 12.6%

- Recent gross margin (lower of latest and 3-year median): 10.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 12.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.2%

- FY2017: 8.2%

- FY2018: 8.9%

- FY2019: 37.1%

- FY2020: 27.3%

- FY2021: 21.7%

- FY2022: 3.0%

- FY2023: 6.5%

- FY2024: 8.5%

- FY2025: 2.1%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.87×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 931B

- Net income, five-year total: KRW 1.07T

- Return on incremental invested capital: 9.1%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, change between three-year averages: 6.7 pp

- Working capital / revenue, final three-year average: 25.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.96×

- FY2022: 0.52×

- FY2023: 0.93×

- FY2024: 0.74×

- FY2025: 0.89×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.2% vs 6.5%

- Per-share earnings: 271.29 to 1864.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.7%

- Diluted shares, 5-year annual growth: 8.7%

- Per-share value growth: 37.9%

- Per-share value change: KRW 2K

- Per-share value, starting three-year median: KRW 271.29

- Per-share value, ending three-year median: KRW 2K

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

- Average buyback yield: 0.6%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: KRW 1.31T

- ROIC, first three-year median: 8.2%

- ROIC, last three-year median: 6.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 92.57

- FY2018: KRW 271.29

- FY2019: KRW 586.95

- FY2020: KRW 754.24

- FY2021: KRW 525.77

- FY2022: KRW -409.00

- FY2023: KRW 2K

- FY2024: KRW 2K

- FY2025: KRW 1K

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 1.6%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 16.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.33×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.3%

- FY2017: -43.8%

- FY2018: -19.3%

- FY2019: -13.9%

- FY2020: -3.0%

- FY2021: -5.6%

- FY2022: -8.7%

- FY2023: 5.9%

- FY2024: 5.6%

- FY2025: 1.6%

## Holders

## Price story

Down 36% since Apr 2026 · sales +30.7%

Story as of 2026-10-16T10:00:06.195Z; price observation 2026-10-15.

Price needs cash profits to grow 19% a year for ten years

### Sales · FY2024–2025

sales +30.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 861B 

- FY2017: KRW 859B 

- FY2018: KRW 1.13T 

- FY2019: KRW 1.55T 

- FY2020: KRW 1.64T 

- FY2021: KRW 2.09T 

- FY2022: KRW 2.19T 

- FY2023: KRW 2.45T 

- FY2024: KRW 2.80T 

- FY2025: KRW 3.66T 

### Gross margin · FY2025

gross margin 10.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 9.0% 

- FY2017: 10.5% 

- FY2018: 12.7% 

- FY2019: 15.2% 

- FY2020: 15.1% 

- FY2021: 13.6% 

- FY2022: 11.6% 

- FY2023: 12.4% 

- FY2024: 14.8% 

- FY2025: 10.7% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are KRW 3.7 trillion.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2025-12-31 (filed 2026-10-16T07:35:50.584Z); FY2025: revenue 3664150568020; grossProfit 391732299690; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 10.7% to 14.8% during 2023–25; it earns 8.4% on its capital.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2023-12-31 (filed 2026-10-16T07:35:50.584Z); FY2023: grossProfit / revenue = 12.4%.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2024-12-31 (filed 2026-10-16T07:35:50.584Z); FY2024: grossProfit / revenue = 14.8%.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2025-12-31 (filed 2026-10-16T07:35:50.584Z); FY2025: grossProfit / revenue = 10.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.584Z); 10-year return on capital observations [[2016,0.06171857910159873],[2017,0.08210953963061937],[2018,0.08887601871518598],[2019,0.37064389678604004],[2020,0.2726725072533256],[2021,0.2174173728684078],[2022,0.030011110789215603],[2023,0.06518718946983018],[2024,0.08543512088838463],[2025,0.021341085268401096]]; median 0.08377233025950201. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.584Z); Gross margin observations: [[2021,0.13573634573802326],[2022,0.11577384267869095],[2023,0.12401427715094959]]; range within 2 percentage points.

### Where the cash goes

Spends 65.4% of cash earnings on expansion; earns 9.1% on new investment.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2016-12-31 (filed 2026-10-16T07:35:50.584Z); FY2016: growth capex 0; upkeep 49786396600; owner earnings 8076737510. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2017-12-31 (filed 2026-10-16T07:35:50.584Z); FY2017: growth capex 0; upkeep 42486491210; owner earnings 453917790. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2018-12-31 (filed 2026-10-16T07:35:50.584Z); FY2018: growth capex 0; upkeep 42486491210; owner earnings 366134072910. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2019-12-31 (filed 2026-10-16T07:35:50.584Z); FY2019: growth capex 0; upkeep 42486491210; owner earnings 111204350790. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2020-12-31 (filed 2026-10-16T07:35:50.584Z); FY2020: growth capex 0; upkeep 45626428900; owner earnings 130727926700. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2021-12-31 (filed 2026-10-16T07:35:50.584Z); FY2021: growth capex 0; upkeep 80120540540; owner earnings 94232786080. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2023-12-31 (filed 2026-10-16T07:35:50.584Z); FY2023: growth capex 37413503410; upkeep 121885051000; owner earnings 325651426880. Growth capex / owner earnings = 0.11488819124316806.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2024-12-31 (filed 2026-10-16T07:35:50.584Z); FY2024: growth capex 68542466227.6752; upkeep 204370210092.3248; owner earnings 335256266197.6752. Growth capex / owner earnings = 0.20444797946673102.

- Source: https://eodhd.com/api/fundamentals/272210.KO.json#2025-12-31 (filed 2026-10-16T07:35:50.584Z); FY2025: growth capex 140669268470; upkeep 180489433000; owner earnings 215139940680. Growth capex / owner earnings = 0.6538500848581715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.584Z); Incremental return on capital 0.09079036516284461, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.584Z); Dividend observations: [[2016,5049000000],[2017,15820404220],[2018,15820404220],[2019,15820404220],[2020,34171420590],[2021,25328024350],[2022,29918921760],[2023,46748315250],[2024,52358113080],[2025,65447641350]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 60% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 272210.KO SharesStats.PercentInsiders = 59.95399999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.584Z); Ten-year compound average after fade. Initial solved rate 0.2624569405992315. Price 75100; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2019-11: KRW 8,964.38 per share

- 2019-12: KRW 9,186.27 per share

- 2020-01: KRW 8,183.32 per share

- 2020-02: KRW 7,260.26 per share

- 2020-03: KRW 6,283.94 per share

- 2020-04: KRW 7,739.54 per share

- 2020-05: KRW 7,828.30 per share

- 2020-06: KRW 7,863.80 per share

- 2020-07: KRW 8,653.73 per share

- 2020-08: KRW 9,674.43 per share

- 2020-09: KRW 10,118.21 per share

- 2020-10: KRW 9,319.40 per share

- 2020-11: KRW 10,961.39 per share

- 2020-12: KRW 15,354.82 per share

- 2021-01: KRW 14,467.26 per share

- 2021-02: KRW 18,638.80 per share

- 2021-03: KRW 19,615.12 per share

- 2021-04: KRW 17,300.00 per share

- 2021-05: KRW 17,300.00 per share

- 2021-06: KRW 17,050.00 per share

- 2021-07: KRW 16,950.00 per share

- 2021-08: KRW 19,750.00 per share

- 2021-09: KRW 17,500.00 per share

- 2021-10: KRW 16,400.00 per share

- 2021-11: KRW 14,100.00 per share

- 2021-12: KRW 16,000.00 per share

- 2022-01: KRW 14,700.00 per share

- 2022-02: KRW 15,700.00 per share

- 2022-03: KRW 16,400.00 per share

- 2022-04: KRW 15,700.00 per share

- 2022-05: KRW 15,850.00 per share

- 2022-06: KRW 13,950.00 per share

- 2022-07: KRW 14,550.00 per share

- 2022-08: KRW 15,550.00 per share

- 2022-09: KRW 11,050.00 per share

- 2022-10: KRW 11,150.00 per share

- 2022-11: KRW 11,500.00 per share

- 2022-12: KRW 10,550.00 per share

- 2023-01: KRW 13,350.00 per share

- 2023-02: KRW 12,370.00 per share

- 2023-03: KRW 13,860.00 per share

- 2023-04: KRW 14,140.00 per share

- 2023-05: KRW 14,080.00 per share

- 2023-06: KRW 14,600.00 per share

- 2023-07: KRW 15,200.00 per share

- 2023-08: KRW 13,430.00 per share

- 2023-09: KRW 12,270.00 per share

- 2023-10: KRW 12,700.00 per share

- 2023-11: KRW 16,100.00 per share

- 2023-12: KRW 17,360.00 per share

- 2024-01: KRW 15,450.00 per share

- 2024-02: KRW 16,670.00 per share

- 2024-03: KRW 17,170.00 per share

- 2024-04: KRW 19,680.00 per share

- 2024-05: KRW 17,450.00 per share

- 2024-06: KRW 18,860.00 per share

- 2024-07: KRW 18,900.00 per share

- 2024-08: KRW 18,630.00 per share

- 2024-09: KRW 17,880.00 per share

- 2024-10: KRW 18,260.00 per share

- 2024-11: KRW 23,100.00 per share

- 2024-12: KRW 22,600.00 per share

- 2025-01: KRW 25,200.00 per share

- 2025-02: KRW 30,550.00 per share

- 2025-03: KRW 32,100.00 per share

- 2025-04: KRW 39,000.00 per share

- 2025-05: KRW 45,400.00 per share

- 2025-06: KRW 58,000.00 per share

- 2025-07: KRW 59,400.00 per share

- 2025-08: KRW 50,900.00 per share

- 2025-09: KRW 59,500.00 per share

- 2025-10: KRW 59,900.00 per share

- 2025-11: KRW 46,200.00 per share

- 2025-12: KRW 54,400.00 per share

- 2026-01: KRW 94,200.00 per share

- 2026-02: KRW 113,600.00 per share

- 2026-03: KRW 114,100.00 per share

- 2026-04: KRW 117,300.00 per share

- 2026-05: KRW 105,000.00 per share

- 2026-06: KRW 73,000.00 per share

- 2026-07: KRW 62,500.00 per share

- 2026-08: KRW 73,200.00 per share

- 2026-09: KRW 75,000.00 per share

- 2026-10: KRW 78,000.00 per share

## Annual estimated value (KRW per share)

- FY2020: low KRW 14,594.39 per share, central KRW 16,029.77 per share, high KRW 17,940.56 per share

- FY2021: low KRW 17,458.02 per share, central KRW 18,669.34 per share, high KRW 20,281.87 per share

- FY2022: low KRW 15,632.76 per share, central KRW 16,899.93 per share, high KRW 18,586.80 per share

- FY2023: low KRW 12,743.63 per share, central KRW 14,162.68 per share, high KRW 16,051.72 per share

- FY2024: low KRW 14,406.78 per share, central KRW 16,198.52 per share, high KRW 18,583.71 per share

- FY2025: low KRW 14,093.03 per share, central KRW 15,818.34 per share, high KRW 18,115.10 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

Prior published observations retained from 2026-10-15T06:41:26.310Z where newer inputs omit a numeric field or fiscal period.

## 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.