PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Yoosung Enterprise posted operating losses for two straight years through 2025, with a sharp net loss spike in Q4 2025, though net income has stayed marginally positive through the first half of 2026.
2025 revenue was KRW 304.6bn with an operating loss of KRW 30.0bn, an operating margin of -9.9%
After a one-off net loss of KRW 32.2bn in Q4 2025, net income turned marginally positive in Q1-Q2 2026
Despite operating losses, operating cash flow has remained positive for four consecutive years
Debt-to-equity ratio rose from 30.5% in 2022 to 44.8% in 2025, indicating rising leverage
Shares trade well below book value per share, with no dividend yield metric currently formed
Yoosung Enterprise is a KOSPI-listed auto parts maker whose core business is the manufacture and sale of internal combustion engine components. Its main products include piston rings, cylinder liners, camshafts, valve guides, and tappets, and the company also supplies related parts produced by affiliated companies.
The corporate purpose clause also covers real estate leasing and domestic/overseas trading, indicating some ancillary business alongside the core operation. In terms of sales mix, domestic and export sales are relatively balanced, with exports carrying a slightly larger share.
These product lines are core consumable components used in internal combustion and hybrid powertrains, tied to both new vehicle production and aftermarket replacement demand.
Competitively, there are multiple domestic engine-parts specialists, and while a slower-than-expected EV transition has helped sustain demand for the existing engine-parts supply chain, the company remains exposed to longer-term structural shifts tied to electrification.
On a standalone basis the company has also recorded operating losses for two consecutive years, underscoring core profitability as the central challenge going forward.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩82.3B | -₩1.6B | −1.9% |
| 2025Q3 | ₩74.9B | -₩3.6B | −4.7% |
| 2025Q4 | ₩69.2B | -₩24.4B | −35.3% |
| 2026Q1 | ₩67.4B | -₩3.4B | −5.1% |
| 2026Q2 | ₩69.8B | -₩7.5B | −10.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩296.8B | ₩6.7B | ₩19B | 2.3% | 6.5% | 30.5% |
| 2023 | ₩311.5B | ₩8B | ₩9.8B | 2.6% | 3.3% | 31.2% |
| 2024 | ₩324.6B | -₩500M | -₩11.1B | −0.1% | −3.9% | 33.4% |
| 2025 | ₩304.6B | -₩30B | -₩28.2B | −9.9% | −11.0% | 44.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
On an annual basis, the company posted revenue of KRW 296.8bn, operating profit of KRW 6.7bn (2.3% margin), and net income attributable to owners of KRW 19.0bn in 2022, remaining profitable.
In 2023, revenue rose to KRW 311.5bn and the operating margin improved slightly to 2.6%, yet owners' net income fell to KRW 9.8bn. Revenue peaked at KRW 324.6bn in 2024, but operating profit turned negative at KRW -0.47bn and owners' net income swung to a loss of KRW -11.1bn.
In 2025, revenue declined to KRW 304.6bn while the operating loss widened sharply to KRW 30.0bn, pushing the operating margin down to -9.9%, and owners' net loss expanded to KRW -28.2bn.
On a quarterly basis, losses were relatively contained through Q2 2025 (revenue KRW 82.3bn, operating loss KRW 1.6bn) and Q3 2025 (revenue KRW 74.9bn, operating loss KRW 3.6bn), but Q4 2025 saw revenue fall to KRW 69.2bn while the operating loss ballooned to KRW 24.4bn and the owners' net loss reached KRW 32.3bn, suggesting a one-off item was booked.
Subsequently, in Q1 2026 (revenue KRW 67.4bn, operating loss KRW 3.4bn, owners' net income KRW 0.08bn) and Q2 2026 (revenue KRW 69.8bn, operating loss KRW 7.5bn, owners' net income KRW 0.66bn), operating losses continued but net income turned marginally positive, hinting that non-operating items or tax effects contributed to the bottom-line recovery.
Notably, even as operating losses persisted, operating cash flow stayed positive throughout, at KRW 25.3bn in 2022, KRW 21.3bn in 2023, KRW 37.2bn in 2024, and KRW 19.8bn in 2025, suggesting a meaningful portion of the reported losses stemmed from non-cash items such as depreciation and impairment.
The debt-to-equity ratio climbed steadily from 30.5% in 2022 to 44.8% in 2025, pointing to a gradually rising leverage burden.
Korea's domestic auto market is expected to continue a gradual recovery in 2026, though household debt burdens and demographic shifts are projected to keep domestic sales volume below 1.69 million units, near a 10-year low.
Exports, however, are expected to turn positive on eased tariff uncertainty and strong eco-friendly vehicle exports, helping production emerge from two consecutive years of contraction.
For parts suppliers, plant utilization and fixed-cost management—rather than vehicle sales volume alone—have become the key variable driving performance, given the chain from vehicle sales to production, utilization, parts orders, and operating margins.
Globally, the rapid expansion of Chinese automakers' overseas exports is reshaping supply chain dynamics across Europe, Latin America, and Africa, presenting both risks and opportunities for domestic parts suppliers.
Meanwhile, the European Union's move to reconsider its planned 2035 ban on internal combustion engine vehicle sales, alongside some European automakers reexpanding hybrid model lineups, is seen as a favorable signal for under-the-hood parts suppliers.
In Korea, a fire at a domestic parts supplier disrupted some automaker production in May 2026 before normalizing from June, illustrating that supply chain risk remains a persistent industry-wide variable.
The core engine-parts market in which Yoosung operates continues to see sustained demand as the EV transition proceeds more slowly than earlier expected, though it remains exposed to medium- to long-term shifts in electrification direction.
No concrete capacity expansion or order-backlog guidance from the company has been clearly identified in currently available disclosures, and the most notable observable change to date is that net income has stayed marginally positive through the first half of 2026 following the large Q4 2025 net loss.
Industry-wide, domestic vehicle production is expected to emerge from two straight years of decline and turn to modest growth, and if the individual consumption tax reduction policy is extended into 2026, it could positively affect domestic sales and, indirectly, parts order volumes.
The re-expansion of hybrid model shares in Europe and the review of the planned combustion-engine sales ban may help sustain demand for the company's core engine-parts business for the time being.
However, given that operating margins were negative in both 2024 and 2025, the key performance variable going forward is less about revenue recovery and more about whether fixed-cost management and cost structure improvements can drive an operating-profit turnaround.
The fact that net income remained marginally positive in Q1-Q2 2026 can serve as a reference point for the trend following the resolution of the Q4 one-off loss factor.
Whether the scale of operating losses narrows in coming quarters, and whether operating cash flow continues to stay positive, are the key financial-health variables to monitor.
With operating losses in both 2024 and 2025 and a large net loss in 2025, earnings-based valuation metrics are difficult to compute for the company, and net losses have persisted even when the most recent four quarters are combined, leaving profit-based ratios unformed.
The stock trades at a substantial discount to book value per share, suggesting the market is weighting future profitability recovery more heavily than current asset value.
As the company has not paid a recent dividend, no dividend yield metric is currently formed, a point of contrast with the average payout policies of peer parts makers.
Compared with the profitable 2022-2023 period, operating results currently remain in loss territory, meaning the gap between asset value and earnings value could persist until a profit recovery is confirmed.
The gradually rising debt-to-equity ratio is another variable to weigh alongside the book-value-based reading of the stock.
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 2026-08-23
Even after rising to 44.8% in 2025, the debt-to-equity ratio remains in the low-to-mid 40% range, meaning absolute financial leverage is not excessive. Operating cash flow staying positive for four consecutive years despite ongoing operating losses reduces the likelihood of an extreme liquidity crisis. This could support a faster balance-sheet recovery if profitability improves going forward.
Following the large KRW 32.2bn net loss in Q4 2025, owners' net income turned marginally positive in both Q1 and Q2 2026. While operating losses have continued, the shift to positive net income can serve as a reference indicator that the one-off loss factor has been resolved.
However, the scale of the surplus is modest at around KRW 0.1bn per quarter, so sustainability requires further confirmation.
The EU's review of its planned 2035 ban on internal combustion engine vehicle sales, along with some European automakers re-expanding hybrid model lineups, is viewed as a favorable signal for core engine-parts suppliers.
Domestic vehicle production is also expected to emerge from two straight years of decline into modest growth, and a slower-than-expected EV transition could sustain the value of the existing ICE parts supply chain.
This supports demand for the company's core products, including piston rings and cylinder liners, for the time being.
The operating margin deteriorated sharply from -0.1% in 2024 to -9.9% in 2025, with two consecutive years of operating losses also confirmed on a standalone basis. As revenue declined from KRW 324.6bn in 2024 to KRW 304.6bn in 2025, the relative burden of fixed costs appears to have increased. Until an operating-profit turnaround is confirmed, doubts about core profitability could persist.
In Q4 2025, revenue fell to KRW 69.2bn while the operating loss expanded sharply to KRW 24.4bn and the owners' net loss reached KRW 32.3bn, presumably reflecting one-off items such as impairment charges.
Such a large loss suggests a reassessment of asset quality was necessary, and the possibility of similar impairment recognition recurring in the future cannot be ruled out. The potential for recurring one-off items reduces the predictability of financial results.
The debt-to-equity ratio has risen for four consecutive years, from 30.5% in 2022 to 44.8% in 2025, indicating a gradually growing leverage burden.
The domestic vehicle market is projected to stay below 1.69 million units, near a 10-year low, due to household debt burdens and demographic shifts, which could constrain growth in parts order volumes.
The company also carries significant exposure to external variables such as changes in automaker production plans and whether the individual consumption tax reduction policy is extended.
Two consecutive years of operating losses and the large Q4 2025 net loss reveal vulnerabilities in cost structure or asset quality. If revenue declines and fixed-cost burdens act simultaneously, an operating-profit improvement could be delayed. The possibility of similar one-off losses recurring in future quarters cannot be ruled out.
While the EV transition has been slower than expected, the long-term direction remains intact, and an ICE-parts-centered business model remains exposed to medium- to long-term shifts in demand structure. Demand could contract faster than expected depending on automaker strategy shifts or policy changes.
Growing local assembly production (KD) in emerging markets provides similar spillover effects for parts exports but could constrain domestic vehicle production volumes themselves.
If the debt-to-equity ratio continues its four-year rising trend, it could affect future interest expense burdens or financing conditions.
As seen in the May 2026 case where a fire at a domestic parts supplier disrupted some automaker production, unexpected supply chain incidents can have short-term impacts on revenue and profitability.
Global trade uncertainty and changes in tariff policy are also variables that could affect a company with meaningful export exposure.
Check whether the scale of operating losses narrows in Q3 2026 results, and whether a one-off loss similar to Q4 2025 recurs.
If a decision is made on extending the individual consumption tax reduction policy beyond 2026, its impact on domestic vehicle sales and parts order volumes should be monitored.
Check how changes in major automakers' production and utilization plans affect parts order volumes and company revenue.
Check whether full-year 2026 operating results turn positive, the trend in the debt-to-equity ratio, and whether a year-end dividend resumes.
Yoosung Enterprise went through a difficult period with operating losses in both 2024 and 2025 and a large one-off net loss in Q4 2025, but operating cash flow remained positive throughout, and net income has stayed marginally positive through the first half of 2026.
The debt-to-equity ratio rose from 30.5% in 2022 to 44.8% in 2025, indicating a gradually growing leverage burden, though the absolute level itself is not excessive.
From an industry perspective, a slower-than-expected EV transition may sustain demand for core ICE parts for the time being, but the company remains exposed to external variables such as structural stagnation in the domestic vehicle market and shifts in automaker production strategy.
The stock trades at a substantial discount to book value per share, and with net losses continuing, no earnings-based valuation metric is currently formed. Key points to watch going forward include the durability of any operating-profit turnaround, whether one-off losses recur, and changes in automaker order volumes. This report contains no investment recommendation and presents no buy/sell opinion or target price.
Report written 2026-09-05 · Data as of 2026-09-04
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