PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩350 per share · Prices as of the 2026-10-02 close
SP Samhwa, the 80-year-old paint maker formerly known as Samhwa Paint Industrial, has renamed itself and is expanding into semiconductor and battery materials, even as a founder's death has introduced governance uncertainty alongside earnings volatility.
At its March 2026 annual general meeting, the company changed its name from Samhwa Paint Industrial to SP Samhwa and declared a shift toward becoming a comprehensive chemical materials firm.
The company is cultivating epoxy molding compound (EMC) for semiconductor packaging and thermal control materials for batteries as new growth pillars.
Full-year 2025 revenue and operating profit both declined year over year, but Q2 2026 operating profit and net profit rebounded sharply from the prior quarter.
Following the December 2025 death of chairman and largest shareholder Kim Jang-yeon, an ownership realignment is underway, with Japanese partner Chugoku Marine Paint emerging as the second-largest shareholder.
With core paint business growth stalling amid a prolonged construction downturn, whether new materials can meaningfully expand their revenue share will be a key point to watch.
SP Samhwa is a leading Korean paint manufacturer founded in 1946 and listed on the KOSPI in 1993, with its headquarters and production facilities in Ansan, Gyeonggi Province.
Its core business is architectural and industrial paint, distributed through roughly 800 domestic agencies, with overseas subsidiaries in China, Vietnam, and India supporting international expansion.
The company continues to broaden its traditional paint lineup, including the new automotive refinish paint line 'KAROCLE' and expanded supply of its energy-saving heat-shielding paint 'Cool & Save' aimed at data centers and large plants.
At its March 2026 annual general meeting, the company formally renamed itself from Samhwa Paint Industrial to SP Samhwa, declaring its transition into a comprehensive chemical materials company.
One pillar of its new business is epoxy molding compound (EMC), a core semiconductor packaging material that protects chips from heat, moisture, and shock, with supply to mobile device components already underway.
The other pillar is battery 'thermal control materials,' comprising heat-dissipating adhesives, flame-retardant intumescent coatings, and insulating potting materials designed to address thermal runaway risks in EVs and energy storage systems.
New materials development is carried out in collaboration with subsidiaries Inno F&I and Samhwa Daelim Chemical, which have also produced derivative products such as functional double-sided tapes.
This expansion is described as an application of eighty years of accumulated paint chemistry—epoxy resin, dispersion, and curing technology—to semiconductor and battery materials.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩177.5B | ₩8.1B | 4.6% |
| 2025Q3 | ₩155.5B | ₩1.3B | 0.9% |
| 2025Q4 | ₩150.8B | ₩3.6B | 2.4% |
| 2026Q1 | ₩144.3B | ₩1.8B | 1.3% |
| 2026Q2 | ₩177.5B | ₩13.8B | 7.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩646B | ₩19.9B | ₩5.6B | 3.1% | 1.9% | 95.9% |
| 2023 | ₩631.4B | ₩25.8B | ₩16.2B | 4.1% | 5.2% | 91.1% |
| 2024 | ₩628.3B | ₩19B | ₩15.5B | 3.0% | 4.7% | 87.9% |
| 2025 | ₩617.1B | ₩9.5B | ₩7.7B | 1.5% | 2.3% | 82.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
SP Samhwa's annual revenue declined for four consecutive years, from KRW 646.0 billion in 2022 to KRW 631.4 billion in 2023, KRW 628.3 billion in 2024, and KRW 617.1 billion in 2025.
Operating profit swung more sharply, improving from KRW 19.9 billion (a 3.1% margin) in 2022 to KRW 25.8 billion (4.1%) in 2023, before shrinking again to KRW 19.0 billion (3.0%) in 2024 and KRW 9.5 billion (1.5%) in 2025.
Net profit attributable to owners rose sharply from KRW 5.6 billion in 2022 to KRW 16.2 billion in 2023, held roughly steady at KRW 15.5 billion in 2024, then fell by nearly half to KRW 7.7 billion in 2025.
On a quarterly basis, revenue and profit both contracted through the second half of 2025, moving from KRW 177.5 billion in revenue and KRW 8.1 billion in operating profit in Q2 2025 to KRW 155.5 billion/KRW 1.3 billion in Q3 and KRW 150.8 billion/KRW 3.6 billion in Q4.
Revenue fell further to KRW 144.3 billion in Q1 2026 with operating profit of just KRW 1.8 billion, yet net profit of KRW 2.9 billion exceeded operating profit, suggesting a possible one-off item.
Revenue then rebounded to KRW 177.5 billion in Q2 2026, with operating profit jumping to KRW 13.8 billion and owner net profit to KRW 9.5 billion, marking a clear turnaround from the prior quarter.
Because a large portion of the trailing four-quarter (Q3 2025–Q2 2026) owner net profit of KRW 13.9 billion was concentrated in Q2 2026 alone, quarter-to-quarter results have shown considerable variability.
Operating cash flow rose from KRW 32.2 billion in 2022 to KRW 43.6 billion in 2023, then gradually declined to KRW 30.2 billion in 2024 and KRW 22.2 billion in 2025.
Korea's paint industry has faced prolonged weakness in architectural paint demand amid a persistent construction downturn, a structural backdrop cited as pressuring the core business results of paint makers including SP Samhwa.
Competitors in the sector include KCC, Noroo Paint, and Kangnam Jevisco, while SP Samhwa's strengths include its roughly 800-agency domestic distribution network and overseas subsidiaries in China, Vietnam, and India.
By contrast, the semiconductor packaging materials market is growing on rising demand for advanced chips driven by AI industry development, and SP Samhwa is at an early market-entry stage, already mass-producing three of five EMC product variants with the remaining two having reached mass-production-level quality.
In battery materials, demand for thermal-runaway-prevention materials is expanding alongside growing EV and energy storage system adoption, and the company reports development achievements spanning 14 battery materials, two electrical infrastructure materials, and four dispersion technologies.
Its energy-saving heat-shielding paint 'Cool & Save' targets AI data centers and large plants facing rising industrial electricity costs, aligning with demand for energy cost reduction.
However, the semiconductor and battery new materials businesses remain at an early stage with no publicly disclosed revenue contribution figures, meaning the success of the company's transformation into an advanced materials firm will ultimately hinge on future revenue contribution.
Alongside its name change, SP Samhwa has laid out a direction to maintain the competitiveness of its traditional paint business while accelerating expansion into semiconductor and battery new materials.
In semiconductor materials, three of five EMC product variants are already in mass production, with the remaining two having reached mass-production-level quality, making future supply expansion and customer diversification key items to monitor.
In battery materials, the three core thermal control material lines—heat-dissipating adhesives, flame-retardant coatings, and insulating potting materials—along with derivative products such as functional double-sided tape, have already launched, with the company aiming to supply comprehensive solutions across the battery lifecycle. 2025 R&D spending of KRW 16.2 billion, equal to 3.1% of revenue, indicates continued investment in new materials development.
On the governance front, inheritance procedures and shareholding realignment have been underway since the founder-chairman's death in December 2025, with the company having disposed of its entire treasury stake, partly to friendly Japanese partner Chugoku Marine Paint, to reinforce its management defense.
Whether additional shares are sold to fund inheritance tax payments, how the co-founding Yoon family responds, and the possibility of a shareholder vote contest at future general meetings are variables that will shape governance stability going forward.
On the earnings front, it will be important to confirm in coming quarters whether the sharp Q2 2026 rebound reflects a one-off item or a sustained improvement trend.
SP Samhwa's share price has been influenced by earnings that have swung considerably year to year even after net profit turned from loss to sustained profitability.
Its price-to-book ratio has traded at a notable discount to net asset value, which can be read as reflecting both the stagnant low-single-digit operating margin of the core paint business and the early-stage nature of new materials businesses whose revenue contribution has yet to become visible.
Given the volatility in earnings, the price-to-earnings ratio has ranged across a wide band over recent years, and where it settles next will depend on whether the recent quarterly rebound proves durable.
The dividend policy has maintained a consistent annual cash payout, with continuity preserved even as profit levels have fluctuated. It is also worth considering that governance-related uncertainty has been a separate factor amplifying share price volatility apart from earnings fundamentals.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
New businesses such as EMC for semiconductor packaging and thermal control materials for batteries have already reached mass production and commercialization stages. The expansion draws on eighty years of accumulated epoxy resin, dispersion, and curing technology, lending it a degree of technical continuity.
There is room to benefit from demand growth in expanding industries such as AI data centers and electric vehicles.
Q2 2026 operating profit surged to KRW 13.8 billion from KRW 1.8 billion in the prior quarter, and owner net profit rebounded to KRW 9.5 billion. Revenue also expanded to KRW 177.5 billion from the prior quarter, hinting at both seasonal and potentially structural recovery. The durability of this rebound will need to be confirmed in subsequent quarterly results.
The company disposed of its entire treasury stake, partly to friendly Japanese partner Chugoku Marine Paint, raising the effective control of the Kim Hyun-jung side. Analysts note this secured a shareholding structure that exceeds the threshold needed to block special resolutions at shareholder meetings. This can be viewed as a factor mitigating business instability from an abrupt change in control.
Annual revenue declined for four consecutive years from 2022 through 2025, and the operating margin fell sharply from 4.1% in 2023 to 1.5% in 2025. Structurally, this is attributed to weakening architectural paint demand amid a prolonged construction downturn. How much the new businesses can offset the earnings gap in the core business remains a key question to watch.
Following the December 2025 death of the largest shareholder, successor Kim Hyun-jung's personal stake of only 3.04% is seen as a weak equity base for control.
The combined stake of co-founder Yoon Hee-jung's family stands at around 20%, and if additional shares are sold to fund inheritance tax payments, the balance of power could shift. This is a variable that could affect both management stability and share price volatility.
While the company states that semiconductor EMC and battery thermal control materials have entered mass production and commercialization, their specific revenue contribution has not yet been publicly confirmed.
It may take time for new business revenue contribution to become visible, during which core paint business weakness could persist. The success of the transformation into an advanced materials company will need to be verified with actual future revenue data.
Following the largest shareholder's death, inheritance procedures and shareholding realignment are ongoing, and the balance of power with the co-founding family has not yet been settled. If additional shares are sold to fund inheritance tax obligations, the direction of control could shift again. This could also affect the consistency of management decision-making and the pace of new business investment.
Architectural paint demand is closely tied to the domestic construction cycle, so a delay in construction investment recovery could prolong weakness in the core business. Fluctuations in raw material prices (resins, pigments) and exchange rates are also factors that can affect cost burdens.
Since new materials businesses do not yet represent a large share of revenue, dependence on the core business remains high.
The semiconductor and battery materials markets are highly competitive and customer qualification can take considerable time, so readiness for mass production does not automatically translate into expanded sales.
If R&D spending for new businesses continues while core business profit weakens, financial strain could increase. Until the actual revenue share of new businesses is disclosed, it remains difficult to gauge the results of the business transformation.
The Q3 2026 quarterly report should be checked to see whether the Q2 2026 earnings rebound persists and to what extent new materials businesses are contributing to revenue.
Ongoing large-shareholding disclosure filings from the controlling family and the co-founding Yoon family should be monitored to track the direction of governance realignment.
This is a point to check for additional disclosures or news on new business progress, including the mass-production conversion of the remaining two EMC variants and new customer acquisitions for battery thermal control materials.
The FY2026 annual earnings disclosure and the annual general meeting should be checked for the year's overall earnings direction and whether any shareholder vote contest over control materializes.
SP Samhwa is in a transitional period, building semiconductor packaging materials and battery thermal control materials as new growth pillars atop eighty years of paint technology, even changing its corporate name in the process.
Confirmed financials show clear stagnation in the core paint business and declining operating margins, yet Q2 2026 saw a sharp rebound in both operating and net profit from the prior quarter, leaving uncertainty about the earnings trajectory.
The new materials businesses are said to have reached mass-production and commercialization stages, but specific revenue contribution has not yet been publicly confirmed, so the success of the transformation must be verified with future data.
Governance risk stemming from the inheritance and shareholding realignment following the December 2025 death of the largest shareholder is a significant variable surrounding this stock, separate from earnings.
The company has built a management defense structure by disposing of treasury shares to a friendly party, but the co-founding family's stake and the process of funding inheritance tax remain fluid.
Investors will need to weigh upcoming quarterly results, new materials revenue contribution, and governance-related disclosures together in forming a view.
Report written 2026-09-05 · Data as of 2026-09-04
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