PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
Ilshin Spinning has moved from operating losses in 2022-2023 to operating profit in 2024-2025, though quarterly net income remains volatile and the redevelopment of its former Gwangju plant site is a separate project led by third-party developers.
Operating profit turned from a loss of about KRW 16.0 billion in 2022 to a profit of about KRW 12.4 billion in 2025, extending an improving trend.
Net income attributable to owners jumped to roughly KRW 30.0 billion in Q2 2026, far exceeding the quarter's operating profit of about KRW 12.5 billion.
The former Imdong plant site in Gwangju became idle after production moved to the Pyeongdong industrial complex in 2020, and is now being redeveloped by third parties, led by Shinyoung and Woomi Construction, as the 'Champions City' complex.
Tariff hikes and US-China trade tension have affected orders and pricing, and the company is diversifying production through investment in Guatemala and its Vietnam subsidiary.
The share price trades below book value per share, and the company has maintained an annual cash dividend.
Ilshin Spinning traces its origin to Jeonnam Spinning, founded in 1951, and was reorganized under its current name in 1961 as a leading Korean cotton spinning company.
Its core business is the manufacture of yarn products including cotton yarn, blended yarn, and dyed yarn, alongside diversified non-manufacturing operations such as cosmetics sales, liquor imports, real estate leasing, and investment partnership management.
To respond to US buyers' near-shoring demand and diversify its global supply chain, the company has invested in Guatemala to expand a Central American production base, while also operating production through its Vietnam subsidiary.
The real estate segment generates stable rental income from urban properties in areas including Yeouido, Hannam-dong, and Cheongdam-dong. This leasing business should be viewed separately from the former production plant site in Gwangju.
The old plant site in Imdong, Buk-gu, Gwangju, held jointly with Chonbang Co., covered about 296,000 square meters of general industrial land, and became idle after both companies relocated production to the Pyeongdong industrial complex in 2020.
The site is now being reborn through the 'Champions City' mixed-use redevelopment project, led by developers Shinyoung and Woomi Construction, envisioned as a large-scale urban development combining residential, commercial, office, and cultural facilities.
However, this is a separate undertaking led by third-party developers and contractors, with no direct link to Ilshin Spinning's current operations.
Competitively, Korea's cotton spinning industry faces structural contraction amid price competition from lower-cost overseas production bases, and the company is responding by expanding sales of higher-margin specialty products and diversifying its overseas production footprint.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩121.9B | ₩1.7B | 1.4% |
| 2025Q3 | ₩124.3B | ₩900M | 0.7% |
| 2025Q4 | ₩134.6B | ₩6.9B | 5.1% |
| 2026Q1 | ₩140.5B | ₩3B | 2.1% |
| 2026Q2 | ₩138.5B | ₩12.5B | 9.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩593.1B | -₩16B | ₩114.3B | −2.7% | 12.9% | 30.1% |
| 2023 | ₩539.4B | -₩1B | ₩7.8B | −0.2% | 0.9% | 20.3% |
| 2024 | ₩523.7B | ₩9.1B | ₩28.1B | 1.7% | 3.2% | 22.9% |
| 2025 | ₩517.2B | ₩12.4B | ₩33.2B | 2.4% | 3.6% | 18.0% |
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
Annual revenue moderately declined from about KRW 593.1 billion in 2022 to KRW 539.4 billion in 2023, KRW 523.7 billion in 2024, and KRW 517.2 billion in 2025.
Operating profit, however, swung from losses of about KRW 16.0 billion (operating margin -2.7%) in 2022 and KRW 1.0 billion (-0.2%) in 2023 to profits of about KRW 9.1 billion (1.7%) in 2024 and KRW 12.4 billion (2.4%) in 2025, an improving trend.
Net income attributable to owners rose to about KRW 7.8 billion in 2023 and KRW 28.1 billion in 2024, reaching KRW 33.2 billion in 2025, while the KRW 114.3 billion figure in 2022 stands apart, reflecting large non-operating items even amid an operating loss.
On a quarterly basis, operating profit was about KRW 0.9 billion and net income about KRW 1.1 billion in Q3 2025, both low, before improving sharply to roughly KRW 6.9 billion in operating profit and KRW 12.1 billion in net income in Q4 2025.
Q1 2026 recorded operating profit of about KRW 3.0 billion and net income of about KRW 3.9 billion, while Q2 2026 showed operating profit of about KRW 12.5 billion against net income of roughly KRW 30.0 billion, a notably larger increase in net income relative to operating profit.
This recurring gap between operating profit and net income across quarters suggests non-operating factors have a substantial influence on reported results. According to FnGuide, cumulative revenue through Q3 2025 rose 0.8% year-on-year, operating profit rose 34.7%, while net income fell 12.9%.
The same source noted that tariff hikes and hegemonic trade tension caused price declines and order reductions, but the company defended sales through pre-emptive sales of core products and expanded sales of high-margin items, and it expected revenue and profit improvement in the fourth quarter on demand recovery.
Korea's cotton spinning industry has structurally shifted production overseas due to lower cost competitiveness relative to low-wage countries, with the number of domestic spinning companies continuing to decline.
Changes in the trade environment, including US tariff hikes and US-China hegemonic competition, have directly affected orders and pricing decisions among major demand-side companies, an effect that was reflected in 2025 results.
In response, domestic spinning companies are restructuring supply chains toward overseas production bases in Vietnam and Central America, and Ilshin Spinning is likewise responding to near-shoring demand through its Guatemala investment and Vietnam subsidiary operations.
Vietnam's industrial production maintained double-digit year-on-year growth in the first half of 2026, expanding the regional manufacturing base, which creates a favorable environment for companies that have relocated production there.
In the domestic market, positioning around higher-value-added specialty products such as dyed yarn and blended yarn is used to avoid direct competition with low-cost commodity yarn.
In terms of cycle position, the industry appears to have moved from a downturn in 2022-2023 into a gradual recovery phase from 2024-2025 onward, although volatility tied to shifts in the trade environment remains present.
The company expected revenue and profit improvement in Q4 2025 on demand recovery and stated it was focusing on securing profitability through early order capture from major clients and expanded sales of new products.
The expansion of a Central American production base through the Guatemala investment is aimed at meeting US buyers' near-shoring demand and is understood as part of a supply chain diversification strategy to reduce tariff risk.
Separately, market news reported that the former Gwangju plant site redevelopment project, 'Champions City,' led by developers Shinyoung and Woomi Construction, began sales of its first phase (3,216 units) in September 2026; this is a project run by third-party developers and contractors, not Ilshin Spinning, and is not directly reflected in the company's profit and loss.
Nonetheless, the progress of development and real estate conditions in that area may serve as market reference points for valuing similar types of real estate assets the company has held in the past.
In the spinning segment, structural pressure from shrinking domestic demand and intensifying low-cost overseas competition is expected to continue, with the company's shift toward a higher-margin product mix and efficiency gains at overseas production bases likely to be key variables for future margin improvement.
Whether the recurring quarterly gap between operating profit and net income continues, and what drives it, will require further confirmation through upcoming quarterly disclosures.
The current share price trades below the company's book value per share, reflecting a discount to net assets in market pricing.
On the earnings side, the shift from operating losses in 2022-2023 to operating profit in 2024-2025 changes the basis for interpreting earnings multiples compared with the earlier loss-making period.
The company has a history of maintaining an annual cash dividend, and whether this shareholder return policy continues remains a point of investor interest. However, given large quarter-to-quarter swings in net income, assessing earnings stability requires looking at the operating profit trend alongside net income. As a small-cap stock, limited trading volume is another factor worth considering when interpreting valuation.
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
Operating profit moved from losses of about KRW 16.0 billion in 2022 and KRW 1.0 billion in 2023 to profits of about KRW 9.1 billion in 2024 and KRW 12.4 billion in 2025, two consecutive profitable years.
Into 2026, operating profit reached about KRW 3.0 billion in Q1 and about KRW 12.5 billion in Q2, extending the improving trend. This suggests cost and profitability management has continued even as revenue declined.
The company has invested in Guatemala to expand a Central American production base in response to US buyers' near-shoring demand, while also operating production through its Vietnam subsidiary. This is understood as a supply chain diversification strategy that reduces exposure to tariff hikes and trade friction. Vietnam's continued solid industrial production growth is also a favorable backdrop.
Equity attributable to owners rose steadily from about KRW 857.7 billion in 2023 to KRW 883.9 billion in 2024 and KRW 925.3 billion in 2025. The current share price trades below this level of net assets. The company has a track record of maintaining annual cash dividends, indicating continuity in shareholder returns.
Annual revenue declined for four consecutive years, from about KRW 593.1 billion in 2022 to KRW 539.4 billion in 2023, KRW 523.7 billion in 2024, and KRW 517.2 billion in 2025. This is understood to reflect structural factors including shrinking domestic spinning demand and intensifying low-cost overseas competition. Continued revenue decline could pressure the sustainability of recent operating profit gains.
In Q2 2026, operating profit was about KRW 12.5 billion while net income attributable to owners was about KRW 30.0 billion, a large gap, and in Q4 2025 net income (KRW 12.1 billion) also exceeded operating profit (KRW 6.9 billion).
Recurring gaps like this make it harder to judge core operating profitability from net income alone. The underlying cause will need ongoing confirmation through future disclosures.
According to FnGuide, tariff hikes and hegemonic competition previously caused price declines and reduced orders. While the company responded through pre-emptive sales of core products and expanded sales of high-margin items, a renewed deterioration in the trade environment could reproduce similar pressure. Exposure to external policy variables remains an ongoing risk factor.
US tariff hikes and US-China hegemonic competition already directly affected orders and pricing in 2025. Further shifts in trade policy could again pressure the export profitability of yarn and related products. The company's diversified overseas production bases partly cushion this, but full avoidance is unlikely.
Raw cotton is a commodity whose price fluctuates with international market conditions, directly affecting spinning companies' cost of goods sold. If cotton prices rise and cannot be fully passed through to selling prices, margins could be squeezed. This is a risk shared broadly across the industry.
According to a January 2023 report, Ilshin Spinning received a failing ESG grade from the Korea Institute of Corporate Governance and ESG, and minority shareholders at the time strongly demanded expanded shareholder returns such as share buybacks and higher dividends. Such governance-related controversy could resurface in future decisions on shareholder value policy.
Check the subscription results for the 'Champions City' first phase on the former Chonbang-Ilshin Spinning site. This is not directly tied to Ilshin Spinning's profit and loss but serves as a reference indicator of the former site's redevelopment progress.
Review the Q3 2026 quarterly report disclosure to check whether the operating profit improvement trend continues and to examine the cause of the gap between operating profit and net income.
Monitor follow-up disclosures or news regarding changes in US tariff policy and utilization rates at the Guatemala and Vietnam production bases.
Check the FY2026 annual results and dividend disclosure to assess whether the cash dividend policy is maintained.
Ilshin Spinning has moved from operating losses in 2022-2023 to operating profit in 2024-2025, extending an improving profitability trend.
However, recurring large gaps between operating profit and net income attributable to owners across quarters mean that assessing the quality of results requires examining the operating profit trend alongside net income.
The core cotton spinning business faces structural pressure from shrinking domestic demand and intensifying low-cost overseas competition, and the company is responding by diversifying overseas production bases in Guatemala and Vietnam and shifting toward a higher-margin product mix.
The 'Champions City' mixed-use redevelopment on the former Gwangju plant site is a separate project led by third-party developers and is not directly reflected in Ilshin Spinning's current operating results.
Changes in the tariff and trade environment and raw material price volatility are likely to remain ongoing variables for future results. Investors should continue to monitor upcoming quarterly disclosures, production base utilization, and trade policy developments.
Report written 2026-09-05 · Data as of 2026-09-04
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