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Hwaseung Corporation Co., Ltd. (013520) AI Stock Analysis

KR:013520

Hwaseung Corporation Co., Ltd.

(Korea Exchange:013520)

Select Model
Rating:67Neutral
Price Target:KRW 2,582.00â–²(10.82% Upside)
Action:initiatedcoverage
Date:10/28/26

The score is driven primarily by improving financial performance (profitability and cash flow recovery) and very strong valuation support (very low P/E plus a solid dividend). These positives are tempered by above-average balance-sheet risk from elevated leverage and weak technical conditions, with the stock trading below major moving averages and negative momentum.

Positive Factors
Profitability RecoveryThe recovery in net profitability shows a materially stronger earnings base than in 2022–2023. If maintained, improved margins can support internal funding, strengthen resilience through the next several quarters, and provide greater capacity for strategic investment or shareholder returns.
Negative Factors
Elevated LeverageDebt-to-equity of roughly 1.7x leaves the company more exposed to weaker margins or cash generation than a less leveraged balance sheet would. Higher financial obligations can constrain capital allocation and reduce flexibility if operating conditions deteriorate over the next several quarters.

Hwaseung Corporation Co., Ltd. (013520) vs. SPDR S&P 500 ETF (SPY)

-20%0%20%40%60%80%KR:013520+17.03%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
KRW 109.29B
Dividend Yield
3.22%
Average Volume (3M)
75.67K
Price to Earnings (P/E)
1.2
Beta (1Y)
0.40
Revenue Growth
-8.23%
EPS Growth
184.54%
Country
KR
Employees
560
Sector
General
Sector Strength
55
Industry
Auto - Parts

Hwaseung Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

Hwaseung Corporation Co., Ltd. operates by manufacturing and distributing specialized rubber products for industrial use. This firm is headquartered in Yangsan, South Korea.

Hwaseung Corporation Co., Ltd. Financial Statement Overview

Summary

Fundamentals are improving, with a clear profitability and cash-flow rebound versus 2021–2023. However, the balance sheet remains a constraint with still-elevated leverage (~1.7x debt-to-equity), and operating profitability weakened sharply in the most recent TTM period (EBIT margin ~1.4% vs ~5.1% in 2025), raising execution and margin-risk concerns.

Income Statement

73Positive

Balance Sheet

56Neutral

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.62T1.64T1.70T1.63T1.59T1.40T
Gross Profit311.37B306.02B318.37B293.94B249.36B210.64B
EBITDA71.59B131.47B163.91B136.76B114.08B49.43B
Net Income74.14B78.03B26.69B3.47B15.66B-37.71B
Balance Sheet
Total Assets1.32T1.23T1.29T1.15T1.18T1.16T
Cash, Cash Equivalents and Short-Term Investments94.35B121.98B93.94B89.28B110.64B94.54B
Total Debt497.36B510.61B591.35B553.76B668.68B702.04B
Total Liabilities866.49B813.86B926.51B884.03B926.62B957.76B
Stockholders Equity301.00B283.30B212.06B160.63B166.59B144.32B
Cash Flow
Free Cash Flow77.25B98.03B-50.13B87.41B42.01B-50.37B
Operating Cash Flow156.72B159.81B17.26B121.17B87.88B-11.72B
Investing Cash Flow-83.31B-56.98B-26.73B-18.29B-27.04B-45.70B
Financing Cash Flow-79.36B-60.83B11.48B-123.81B-41.22B9.15B

Hwaseung Corporation Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2330.00

Price Trends

50DMA2497.60Negative
100DMA2513.70Negative
200DMA2637.93Negative

Market Momentum

MACD-40.58Positive
RSI40.15Neutral
STOCH35.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:013520, the sentiment is Negative. The current price of 2330.00 is below the 20-day moving average (MA) of 2426.50, below the 50-day MA of 2497.60, and below the 200-day MA of 2637.93, indicating a bearish trend. The MACD of -40.58 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:013520.

Hwaseung Corporation Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

KR:013520 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
KR:015230KR:01523073OutperformKRW 140.57B3.99―3.05%13.19%44.47%
KR:006660KR:00666069NeutralKRW 81.91B7.32―0.77%-3.25%-2.47%
KR:013520KR:01352067NeutralKRW 109.29B1.19―3.22%-8.23%184.54%
KR:013870KR:01387064NeutralKRW 67.90B3.18―7.02%11.17%84.50%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
KR:017370KR:01737051NeutralKRW 52.98B4.17―0.86%-42.39%-52.21%
KR:041650KR:04165051NeutralKRW 36.15B7.71―2.68%-6.73%―

* General Sector Average

Performance Comparison

-50%-25%0%25%50%KR:013520KR:006660KR:013870KR:015230KR:017370KR:041650Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
KR:013520 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
KR:013520Hwaseung Corporation Co., Ltd.2330.00305.3015.08%
KR:006660Samsung Climate Control Co., Ltd10420.00-3301.14-24.06%
KR:013870GMB KOREA Corp.3560.00-196.57-5.23%
KR:015230DAECHANG Forging Co., Ltd5910.00-473.47-7.42%
KR:017370Wooshin Systems Co., Ltd3485.00-3132.87-47.34%
KR:041650Sangsin Brake Co., Ltd.1867.00-768.46-29.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026