Hanjin files debt securities registration statement amid high leverage, aiming to improve financial structure
Hanjin has submitted a securities registration statement for the issuance of debt securities. The proceeds are expected to be used for repaying existing borrowings or improving the financial structure rather than new investments.
As of end-Q1 2026 on a consolidated basis, total borrowings stood at 2.137 trillion KRW with a debt dependency ratio of 49.6% and a debt-to-equity ratio of 183.6%. The interest coverage ratio was 0.64 times, indicating operating profit is insufficient to cover interest expenses.
The company recorded a net loss of 2.3 billion KRW in Q1 2026. Operating cash flow was positive at 34.2 billion KRW, but financial burden remains heavy. The credit rating is BBB+ with a positive outlook, but deteriorating financial metrics warrant attention.
Dividend per share has been maintained at 600 KRW for three consecutive years, marking 28 consecutive years of dividends. The company holds 478,401 shares or 3.08% as treasury stock with no additional buyback plan. Outstanding convertible bonds of 8.7 billion KRW pose a potential dilution risk.
[AI Summary]Hanjin's high leverage and weak profitability underscore its financial vulnerability. While the debt issuance may improve short-term liquidity, without fundamental improvement, shareholder value remains at risk. Dividend stability contrasts with inadequate interest coverage and persistent net losses, highlighting investment risks.