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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 2019 KRWUSD
Revenue6,883.26B5,902.38M
Gross Profit1,791.89B1,536.54M
Operating income539,532.20M462.64M
Income before tax543,910.85M466.40M
Net income419,513.11M359.73M
EBITDA1,171.17B1,004.27M
Diluted EPS3,387.192.90
Dividends Per Share5500.47
Total Assets10,164.60B8,789.49M
Total liabilities2,977.39B2,574.59M
Total equity7,156.76B6,188.56M
Operating cash flow760,189.62M651.86M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 6,428.17B 6,621.76B 6,812.85B 6,795.08B 6,883.26B
Gross Profit 2,287.39B 2,514.14B 2,243.37B 2,025.13B 1,791.89B
Operating income 885,024.12M 1,103.22B 793,431.77M 702,650.59M 539,532.20M
Income before tax 839,373.90M 1,092.41B 743,036.34M 697,700.24M 543,910.85M
Net income 655,427.62M 872,851.25M 599,063.93M 522,214.84M 419,513.11M
EBITDA 1,343.84B 1,606.03B 1,342.55B 1,281.67B 1,171.17B
Diluted EPS 5,292 7,047 4,837 4,216 3,387.19
Dividends Per Share 400 400 400 450 550
Total Assets 9,496.13B 9,621.97B 9,518.78B 9,796.44B 10,164.60B
Total liabilities 4,355.34B 3,660.49B 3,145.27B 3,006.12B 2,977.39B
Total equity 5,134.35B 5,949.38B 6,358.67B 6,765.54B 7,156.76B
Operating cash flow 1,113.69B 1,217.76B 851,731.23M 1,123.53B 760,189.62M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 5,679.58M 5,707.48M 6,026.35M 6,174.44M 5,902.38M
Gross Profit 2,021.01M 2,167.01M 1,984.39M 1,840.16M 1,536.54M
Operating income 781.95M 950.90M 701.83M 638.47M 462.64M
Income before tax 741.62M 941.58M 657.25M 633.97M 466.40M
Net income 579.10M 752.33M 529.90M 474.51M 359.73M
EBITDA 1,187.34M 1,384.28M 1,187.56M 1,164.61M 1,004.27M
Diluted EPS 4.67 6.07 4.27 3.83 2.90
Dividends Per Share 0.35 0.34 0.35 0.40 0.47
Total Assets 8,098.70M 7,966.52M 8,891.49M 8,779.74M 8,789.49M
Total liabilities 3,714.42M 3,030.71M 2,938.00M 2,694.14M 2,574.59M
Total equity 4,378.79M 4,925.80M 5,939.63M 6,063.40M 6,188.56M
Operating cash flow 984.00M 1,049.62M 753.40M 1,020.91M 651.86M

Valuation Measures

Dec 2019
PER9.90
ROA4.20%
ROE6.02%
Operating margin7.83%
Profit margin6.09%

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 Technology Group Co., Ltd. (30.6%)
  • National Pension Service of Korea (9.2%)
  • CHO YANG-RAI (5.6%)
  • CHO HEE-KYUNG (2.7%)
  • CHO HYUN-BUM (2.0%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.5%)
  • Dimensional Fund Advisors LP (1.5%)
  • HANKOOK TIRE & TECHNOLOGY Co., Ltd. (1.5%)
  • Norges Bank Investment Management (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

  • Shanghai Hankook Tire Sale Co., Ltd.
  • Hankook Tire Europe GmbH
  • Hankook Tire Singapore Pte Ltd.
  • Chongqing Hankook Tire Co. Ltd.
  • Hankook Tire Malaysia Sdn. Bhd.
  • Hankook Tire Manufacturing Tennessee LP
  • Hankook Tire China Ltd.
  • Hankook Tire Japan Corp.
  • Reifen Muller GmbH & Co. KG
  • Jax Quickfit Franchising Systems Pty Ltd.

Competitors

  • Kumho Tire Co., Inc.
  • Nexen Tire Corp
  • Nexen Corporation
  • Nankang Rubber Tire Corp., Ltd.
  • Triangle Tyre Co., Ltd. Class A
  • Nizhnekamskshina PJSC
  • Goodyear Tire & Rubber Company
  • Compagnie Generale des Etablissements Michelin SCA
Last Updated on 20 Oct, 2020

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