Coway (KOSPI: 021240), South Korea's dominant rental appliance company, is expected to report second-quarter 2026 operating profit of 273.3 billion won (approximately $200m), a 13% increase year on year, according to a research note published on 9 July by Hana Securities. The figure would comfortably exceed the market consensus estimate of 265.2 billion won.

Revenue for the same period is forecast to rise 14% year on year to 1.4293 trillion won.

Domestic momentum

In South Korea, revenue is expected to grow 11% year on year, buoyed by strong new rental account additions. Net new rental accounts in the second quarter are projected at 230,000 — up from 190,000 in the first quarter and 43% higher than the same period a year ago.

South-East Asia leads the charge

Coway's Malaysian subsidiary is forecast to grow revenue by 22% year on year, even against a high base from the prior year. With competitive pressures easing, the company is broadening its product range beyond water purifiers into mattresses and air conditioners. Quarterly new mattress rental sales have exceeded 35,000 units, while air-conditioner sales are set to rise from 20,000 units in the first quarter to 35,000 in the second.

Thailand is expected to deliver 38% revenue growth year on year. Rental account numbers are expanding at 40% year on year, and operating margins have climbed into the mid-single digits — around 5%.

Indonesia faced headwinds in the first half owing to changes in home-appliance certification rules, but water-purifier installations have accelerated sharply since June. Full-year growth of around 30% year on year is considered achievable.

The one soft spot is the United States, where revenues are estimated to have declined 2% year on year.

A notable contract win

Coway's water-treatment subsidiary, Coway Entech, has secured a contract to handle water-treatment operations at SK Hynix's semiconductor manufacturing facility in the United States. Hana Securities estimates the deal could generate roughly 80 billion won in additional revenue over two years.

Valuation

Despite the strong operating outlook, Coway's shares traded at 91,700 won as of 8 July, implying a 12-month forward price-to-earnings ratio of just 7.8 times — a level Hana Securities describes as significantly undervalued. The brokerage did not assign a formal investment rating or price target in this report.