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HWASEUNG ENTERPRISE Co., Ltd. (241590) AI Stock Analysis

KR:241590

HWASEUNG ENTERPRISE Co., Ltd.

(Korea Exchange:241590)

Select Model
Rating:43Neutral
Price Target:$2,485.00â–¼(-2.55% Downside)
Action:initiatedcoverage
Date:10/28/26

The score is weighed down primarily by weakened profitability and higher leverage (loss-making TTM/2025, declining margins, and debt-to-equity ~2.40x). Technicals also detract due to a clear downtrend (price below major moving averages and negative MACD). Valuation provides only limited support: a modest dividend yield is offset by a negative P/E tied to current losses.

Positive Factors
Strong TTM Revenue GrowthThe 70.6% TTM revenue increase indicates a substantial rebound in sales and expands the operating base supporting future earnings recovery. If retained, this scale can improve customer relevance and provide greater capacity to absorb fixed operating costs.
Negative Factors
Margin Compression and LossesFalling gross margin and losses in both TTM and 2025 show that higher sales are not currently translating into durable profitability. Continued cost pressure or unfavorable mix could constrain reinvestment, weaken earnings resilience, and delay a sustained recovery.

HWASEUNG ENTERPRISE Co., Ltd. (241590) vs. SPDR S&P 500 ETF (SPY)

-50%-40%-30%-20%-10%0%10%20%KR:241590-48.38%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
KRW 154.50B
Dividend Yield
1.96%
Average Volume (3M)
41.13K
Price to Earnings (P/E)
-5.0
Beta (1Y)
0.04
Revenue Growth
-10.73%
EPS Growth
-267.30%
Country
KR
Employees
5
Sector
General
Sector Strength
55
Industry
Apparel - Footwear & Accessories

HWASEUNG ENTERPRISE Co., Ltd. Business Overview & Revenue Model

Company Description

Hwaseung Enterprise Co., Ltd. primarily focuses on the creation and commercialization of athletic footwear. In addition to its core business of shoe manufacturing, the company engages in the procurement and distribution of various raw materials, incl...

HWASEUNG ENTERPRISE Co., Ltd. Financial Statement Overview

Summary

Despite strong TTM revenue growth (+70.6%), profitability has weakened: gross margin fell (13.8% in 2024 to 11.7% in TTM) and results turned loss-making in TTM/2025. Balance sheet risk is elevated with higher leverage (debt-to-equity rising from ~1.31x to ~2.40x), while cash flow is a partial offset with positive operating cash flow and positive free cash flow in 2023–TTM.

Income Statement

44Neutral

Balance Sheet

33Negative

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.50T1.56T1.61T1.21T1.65T1.14T
Gross Profit175.45B200.20B221.76B163.34B199.24B116.50B
EBITDA58.32B108.13B152.39B89.20B126.11B74.75B
Net Income-30.66B-28.91B33.11B-26.28B-7.54B-6.85B
Balance Sheet
Total Assets1.38T1.32T1.54T1.36T1.48T1.33T
Cash, Cash Equivalents and Short-Term Investments140.88B128.15B140.76B164.97B244.11B185.97B
Total Debt802.41B729.35B684.99B593.64B653.89B509.12B
Total Liabilities1.04T964.14B973.85B801.19B884.65B779.84B
Stockholders Equity333.87B347.73B524.23B364.10B537.45B536.52B
Cash Flow
Free Cash Flow45.52B74.64B26.01B1.78B-36.28B-106.17B
Operating Cash Flow81.71B129.89B80.86B59.13B96.85B-8.34B
Investing Cash Flow-48.50B-72.08B-40.96B-55.92B-206.20B-119.77B
Financing Cash Flow-972.18M-58.22B-56.48B-66.69B118.44B47.51B

HWASEUNG ENTERPRISE Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2550.00

Price Trends

50DMA2789.70Negative
100DMA3000.45Negative
200DMA3870.25Negative

Market Momentum

MACD-62.70Positive
RSI31.75Neutral
STOCH18.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:241590, the sentiment is Negative. The current price of 2550.00 is below the 20-day moving average (MA) of 2670.50, below the 50-day MA of 2789.70, and below the 200-day MA of 3870.25, indicating a bearish trend. The MACD of -62.70 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:241590.

HWASEUNG ENTERPRISE Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

KR:241590 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
KR:002150KR:00215055NeutralKRW 168.14B19.07―5.94%10.68%―
KR:084010KR:08401046NeutralKRW 243.65B53.87―4.74%4.47%-83.27%
KR:004380KR:00438045NeutralKRW 147.29B-9.76―0.69%-3.31%53.68%
KR:241590KR:24159043NeutralKRW 154.50B-5.04―1.96%-10.73%-267.30%

* General Sector Average

Performance Comparison

0%100%200%300%400%KR:241590KR:002150KR:004380KR:024840KR:036560KR:084010Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
KR:241590 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
KR:241590HWASEUNG ENTERPRISE Co., Ltd.2550.00-2395.09-48.43%
KR:002150Dohwa Engineering Co., Ltd.5050.00-691.14-12.04%
KR:004380Samik THK Co., Ltd.7220.00-2640.00-26.77%
KR:024840KBI METAL Co., Ltd.4010.002077.00107.45%
KR:036560KZ Precision Corporation10810.00-3496.53-24.44%
KR:084010Daehan Steel Co., Ltd8450.00-114.32-1.33%
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