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Consumer Durables

HANKOOK TIRE Co., Ltd.

  • 46,100.00 KRW
  • +900.00
  • +1.99%
  • South Korea
    Aug 14, 2018
  • Ticker
    KRX(161390)
  • Prev. close
    45,200
  • Market cap (KRW)
    5,599.15B
  • Market cap (USD)
    4,964.00M
  • Shares
    123.87M

Company Background

Hankook Tire is the largest tire manufacturer in South Korea. By sales, it is the sixth-biggest player in the global market.

The company was established in 1941. Its name is a romanized spelling of a Korean-language word for Korea.

In 2012, the business was split into Hankook Tire Worldwide, which is a holding company, and Hankook Tire, the operating entity. Cho Yang-rai, the holding company's chairman, hails from the founding family.

As of the end of 2014, Cho owned 23.59% of the holding company and 10.5% of the operating business. Cho Hyun-sik, the holding company's CEO, is the chairman's eldest son.

Cho Yang-rai's second son, Cho Hyun-bum, is president and chief marketing officer at Hankook Tire. His wife is the third daughter of Lee Myung-bak, former president of South Korea.

In addition to its domestic plants, Hankook Tire runs factories in China, Hungary and Indonesia. A new facility in the U.S. is to come onstream in 2016.

The company has expanded its sales by undercutting major Japanese, U.S. and European rivals on price. In recent years, Hankook has improved its technology and polished its brand by sponsoring auto races. The company also supplies tires to luxury marques including Mercedes-Benz.

Business Summary

HANKOOK TIRE Co., Ltd. engages in the manufacture and sale of tires. Its operates through Automotive Parts and Others Business divisions. The Automotive Parts division provides tires and battery tubes for automobiles. The Others division offers rentals, research and development, services, and others. The company was founded on September 3, 2012 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue6,812.85B6,026.35M
Gross Profit2,243.37B1,984.39M
Operating income793,431.77M701.83M
Income before tax743,036.34M657.25M
Net income599,063.93M529.90M
EBITDA1,342.55B1,187.56M
Diluted EPS4,8374.27
Dividends Per Share4000.35
Total Assets9,518.78B8,891.49M
Total liabilities3,145.27B2,938.00M
Total equity6,358.67B5,939.63M
Operating cash flow851,731.23M753.40M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 7,069.23B 6,680.84B 6,428.17B 6,621.76B 6,812.85B
Gross Profit 2,298.50B 2,336.45B 2,287.39B 2,514.14B 2,243.37B
Operating income 1,031.00B 1,031.08B 885,024.12M 1,103.22B 793,431.77M
Income before tax 989,675.44M 935,634.49M 825,655.14M 1,047.56B 743,036.34M
Net income 737,926.60M 700,360.43M 655,427.62M 872,851.25M 599,063.93M
EBITDA 1,443.99B 1,460.08B 1,343.84B 1,606.03B 1,342.55B
Diluted EPS 5,958 5,655 5,292 7,047 4,837
Dividends Per Share 400 400 400 400 400
Total Assets 7,776.71B 8,320.08B 9,496.13B 9,621.97B 9,518.78B
Total liabilities 3,852.57B 3,803.60B 4,355.34B 3,660.49B 3,145.27B
Total equity 3,917.53B 4,510.98B 5,134.35B 5,949.38B 6,358.67B
Operating cash flow 1,047.56B 1,147.04B 1,113.69B 1,217.76B 851,731.23M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 6,457.32M 6,346.64M 5,679.58M 5,707.48M 6,026.35M
Gross Profit 2,099.54M 2,219.57M 2,021.01M 2,167.01M 1,984.39M
Operating income 941.75M 979.50M 781.95M 950.90M 701.83M
Income before tax 904.00M 888.83M 729.50M 902.92M 657.25M
Net income 674.05M 665.32M 579.10M 752.33M 529.90M
EBITDA 1,319.00M 1,387.04M 1,187.34M 1,384.28M 1,187.56M
Diluted EPS 5.44 5.37 4.67 6.07 4.27
Dividends Per Share 0.36 0.37 0.35 0.34 0.35
Total Assets 7,368.84M 7,569.55M 8,098.70M 7,966.52M 8,891.49M
Total liabilities 3,650.52M 3,460.50M 3,714.42M 3,030.71M 2,938.00M
Total equity 3,712.07M 4,104.07M 4,378.79M 4,925.80M 5,939.63M
Operating cash flow 956.88M 1,089.66M 984.00M 1,049.62M 753.40M

Valuation Measures

Dec 2017
PER11.28
ROA6.25%
ROE9.73%
Operating margin11.64%
Profit margin8.79%

Key executives

  • President & Chief Executive Officer: Soo-Il Lee
  • President, Director & Head-Operating Division: Hyun Bum Cho
  • Vice President, Head-Research & Development: Hyoung-nam Kim
  • Managing Director & Head-Manufacturing Technology: Gyeong-Gon Yu
  • Senior MD & Head-Production Technology: Yong-Hee Kim

Shareholders

  • Hankook Tire Worldwide Co., Ltd. (30%)
  • National Pension Service of Korea (8.0%)
  • CHO YANG-RAI (5.6%)
  • CHO HEE-KYUNG (2.7%)
  • Harding Loevner LP (2.0%)
  • CHO HYUN-BUM (2.0%)
  • The Vanguard Group, Inc. (1.5%)
  • Norges Bank Investment Management (1.4%)
  • BlackRock Fund Advisors (1.3%)
  • Dimensional Fund Advisors LP (0.7%)

Contact Details

  • Website:http://kr.hankooktire.com
  • Address: Hankook Tire Building, 133 Teheran-ro, Seoul, 06133, South Korea
  • Phone: +82.2.2222.1000

Related Companies

  • Hankook Tire Europe GmbH
  • Chongqing Hankook Tire Co. Ltd.
  • Hankook Tire Malaysia Sdn. Bhd.
  • Hankook Tire Manufacturing Tennessee LP
  • Hankook Tire China Ltd.
  • Reifen-Muller KG
  • Jax Quickfit Franchising Systems Pty Ltd.

Competitors

  • Kumho Tire Co., Inc.
  • Nexen Tire Corp
  • Goodyear Tire & Rubber Company
  • Bridgestone Corporation
  • Nankang Rubber Tire Corp., Ltd.
  • Compagnie Generale des Etablissements Michelin SCA
Last Updated on 14 Aug, 2018

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