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Consumer Durables

HANKOOK TIRE & TECHNOLOGY Co., Ltd.

Company Background

Hankook Tire & Technology 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 & TECHNOLOGY Co., Ltd. engages in the manufacture and sale of tires. It 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 2020 KRWUSD
Revenue6,453.07B5,469.22M
Gross Profit1,769.42B1,499.65M
Operating income627,968.26M532.22M
Income before tax573,077.44M485.70M
Net income372,337.20M315.56M
EBITDA1,255.49B1,064.07M
Diluted EPS3,031.812.56
Dividends Per Share6500.55
Total Assets10,658.54B9,811.78M
Total liabilities3,246.40B2,988.49M
Total equity7,377.49B6,791.39M
Operating cash flow1,291.45B1,094.55M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 6,621.76B 6,812.85B 6,795.08B 6,883.26B 6,453.07B
Gross Profit 2,514.14B 2,243.37B 2,025.13B 1,791.89B 1,769.42B
Operating income 1,103.22B 793,431.77M 702,650.59M 539,532.20M 627,968.26M
Income before tax 1,092.41B 743,036.34M 697,700.24M 543,910.85M 573,077.44M
Net income 872,851.25M 599,063.93M 522,214.84M 419,513.11M 372,337.20M
EBITDA 1,606.03B 1,342.55B 1,281.67B 1,171.17B 1,255.49B
Diluted EPS 7,047 4,837 4,216 3,387.19 3,031.81
Dividends Per Share 400 400 450 550 650
Total Assets 9,621.97B 9,518.78B 9,796.44B 10,164.60B 10,658.54B
Total liabilities 3,660.49B 3,145.27B 3,006.12B 2,977.39B 3,246.40B
Total equity 5,949.38B 6,358.67B 6,765.54B 7,156.76B 7,377.49B
Operating cash flow 1,217.76B 851,731.23M 1,123.53B 760,189.62M 1,291.45B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,707.48M 6,026.35M 6,174.44M 5,902.38M 5,469.22M
Gross Profit 2,167.01M 1,984.39M 1,840.16M 1,536.54M 1,499.65M
Operating income 950.90M 701.83M 638.47M 462.64M 532.22M
Income before tax 941.58M 657.25M 633.97M 466.40M 485.70M
Net income 752.33M 529.90M 474.51M 359.73M 315.56M
EBITDA 1,384.28M 1,187.56M 1,164.61M 1,004.27M 1,064.07M
Diluted EPS 6.07 4.27 3.83 2.90 2.56
Dividends Per Share 0.34 0.35 0.40 0.47 0.55
Total Assets 7,966.52M 8,891.49M 8,779.74M 8,789.49M 9,811.78M
Total liabilities 3,030.71M 2,938.00M 2,694.14M 2,574.59M 2,988.49M
Total equity 4,925.80M 5,939.63M 6,063.40M 6,188.56M 6,791.39M
Operating cash flow 1,049.62M 753.40M 1,020.91M 651.86M 1,094.55M

Valuation Measures

Dec 2020
PER12.99
ROA3.57%
ROE5.12%
Operating margin9.73%
Profit margin5.76%

Key executives

  • Co-President, Co-CEO & Director: Hyun Bum Cho
  • Co-President, Co-CEO, COO & Director: Soo-Il Lee
  • Vice President, Head-Finance & Economy: Jong-Ho Park
  • Managing Director & Head-G.OE Technology: Heon-Jun Kim
  • Chairman-Executive Board: Yang-Rai Cho

Shareholders

  • Hankook & Company Co., Ltd. (30.6%)
  • National Pension Service of Korea (7.2%)
  • CHO YANG-RAI (5.6%)
  • CHO HEE-KYUNG (2.7%)
  • CHO HYUN-BUM (2.0%)
  • BlackRock Fund Advisors (1.6%)
  • HANKOOK TIRE & TECHNOLOGY Co., Ltd. (1.5%)
  • The Vanguard Group, Inc. (1.4%)
  • Samsung Asset Management Co., Ltd. (1.4%)
  • Dimensional Fund Advisors LP (1.0%)

Contact Details

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

Related Companies

  • MK Technology (Chongqing) Mould Co., Ltd.
  • Model Solution, Inc.
  • Hankook Tire doo
  • Hankook Tire Middle East & Africa FZE.
  • Hankook Tire Vietnam. Co., Ltd.
  • PT Hankook Tire Sales Indonesia
  • RU Verwaltungs GmbH
  • Hankook Tire Austria GmbH
  • Hankook Tire Ukraine LLC
  • Hankook Tire Latin America Distribution Center SA
  • Hankook Tire Latam SA
  • JAX Quickfit Properties Pty Ltd.
  • JAX Quickfit Franchising Systems Unit Trust
  • Hankook Tyre Australia Retail Pty Ltd.
  • Hankook Donggeurami Partners Co., Ltd
  • Hankook Tire Ceska Republika sro
  • Hankook Tire America Holdings II LLC
  • Hankook Tire America Holdings I LLC
  • Hankook Tire de Colombia Ltda.
  • Hankook Tire Thailand Co., Ltd.
  • Hankook Tire Polska Sp zoo
  • Hankook Lastikleri AS
  • Hankook Tire Sweden AB
  • Hankook Tire India LLP
  • Hankook Tire de Mexico SA de CV
  • Hankook Tire Rus LLC
  • Hankook Tire Budapest Kereskedelmi Kft
  • Hankook Tire Hungary Ltd.
  • Hankook Tire France SARL (France)
  • RM Verwaltungs GmbH

Competitors

  • Kumho Tire Co., Inc.
  • Nexen Tire Corp
  • Nexen Corporation
  • Nankang Rubber Tire Corp., Ltd.
  • Nizhnekamskshina PJSC
  • Triangle Tyre Co., Ltd. Class A
  • Goodyear Tire & Rubber Company
  • Compagnie Generale des Etablissements Michelin SCA
  • Giti Tire Corporation Class A
Last Updated on 15 Oct, 2021

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