PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩10 per share · Prices as of the 2026-10-02 close
Taeyang Metal has shown improving operating profit and net income since turning profitable in 2023 through 2025, but heavy dependence on Hyundai-Kia and high financial leverage remain structural challenges.
2025 consolidated revenue reached KRW 620.1bn with operating profit of KRW 22.4bn, a sharp improvement in operating margin versus the prior year.
After a large net loss in 2025Q2, the company posted four consecutive quarters of owner net profit from 2025Q3 through 2026Q2.
The firm holds roughly a 35% share of the domestic automotive bolt-and-nut market as the No.1 player, though its share has narrowed versus prior years amid competitor gains.
Through subsidiary Primax, the company is developing steering system components as a new growth driver, supplying global automakers including Tesla.
The debt ratio remains high at roughly 260-380%, and Korea Ratings assigned a BB- credit rating, underscoring ongoing financial leverage burden.
Taeyang Metal originated in 1954 as a bicycle parts maker, renamed itself Taeyang Metal Industrial in 1964, and listed on the KOSPI in 1976 as an automotive parts specialist.
Its core business is cold-forged fastening parts such as high-strength automotive bolts and nuts, alongside electronics screws, bicycle components, electrolytic copper foil, and plating/coating equipment manufacturing.
According to company profile information on industrial platforms such as Komachine, the firm supplies steering, braking, drivetrain and suspension components along with high-strength fasteners to domestic and overseas customers, and it is described as the leading domestic player with roughly a 35% share of the automotive bolt-and-nut market.
However, reports indicate the company's share of the cold-forged parts market fell from 40.1% in 2017 to 35.5% in a later year, with the gap versus the No.2 rival Jinhap also narrowing, suggesting intensifying competition.
The revenue structure is heavily tied to Hyundai and Kia, making results closely correlated with the automakers' production and sales cycles.
The company operates seven subsidiaries including Primax Co., Ltd. and a Yantai joint venture, among which Primax produces core steering components such as rack-and-pinion housings, tie rods, and cylinder tubes reportedly supplied to Mando, Nexteer, Hyundai Mobis, and Tesla.
Management has indicated that as electrification reduces the relevance of engine-related bolt-and-nut share, the group is focusing on expanding the steering business through Primax. The headquarters is located in the Banwol National Industrial Complex in Ansan, Gyeonggi Province.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩156.9B | ₩1.2B | 0.8% |
| 2025Q3 | ₩153.7B | ₩2.5B | 1.6% |
| 2025Q4 | ₩155B | ₩11.1B | 7.2% |
| 2026Q1 | ₩151.1B | ₩6.1B | 4.1% |
| 2026Q2 | ₩159.3B | ₩3.9B | 2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩569.5B | ₩15.9B | -₩600M | 2.8% | −0.6% | 338.2% |
| 2023 | ₩617.2B | ₩22.2B | ₩65,426,502 | 3.6% | 0.1% | 359.5% |
| 2024 | ₩620B | ₩16.1B | ₩2.5B | 2.6% | 2.2% | 378.8% |
| 2025 | ₩620.2B | ₩22.4B | ₩3.5B | 3.6% | 2.1% | 266.4% |
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
Consolidated revenue in 2025 was KRW 620.1bn, virtually unchanged from KRW 620.0bn in 2024, while operating profit surged to KRW 22.4bn from KRW 16.1bn, lifting the operating margin from 2.6% to 3.6%.
Owner net profit rose to KRW 3.49bn in 2025 from KRW 2.45bn in 2024 and KRW 65mn in 2023, marking a clear recovery trajectory from a net loss of KRW 626mn in 2022, effectively a swing from loss to profit over roughly three years.
On a quarterly basis, the company posted a large owner net loss of KRW 8.09bn in 2025Q2, but turned profitable from 2025Q3 onward with KRW 442mn, KRW 7.69bn, KRW 3.83bn, and KRW 5.48bn in owner net profit across 2025Q3, 2025Q4, 2026Q1, and 2026Q2 respectively, four consecutive profitable quarters.
Operating profit likewise rose from KRW 1.22bn in 2025Q2 to KRW 11.12bn in 2025Q4 before moderating to KRW 6.13bn and KRW 3.89bn in 2026Q1 and 2026Q2, illustrating notable quarter-to-quarter volatility.
According to FnGuide data, the 27.6% year-on-year decline in operating profit in the 2024 settlement was attributed to higher selling and administrative expenses from increased export-related costs and freight, while net profit rose sharply due to lower income tax expense.
Shinhan's company monitor (Wisereport) noted that consolidated revenue in 2026Q1 fell 2.2% and operating profit fell 19.1% year-on-year, attributing this to reduced automaker production stemming from rising global oil prices and a fire at a domestic parts supplier, which weighed on cold-forged product sales.
The same source noted that net profit still rose 11.4% year-on-year thanks to higher foreign currency translation gains from a stronger exchange rate.
Annual operating cash flow swung between positive and negative each year - KRW 34.67bn inflow in 2022, -KRW 9.17bn in 2023, KRW 6.60bn in 2024, and -KRW 7.47bn in 2025 - indicating that profit improvement has not consistently translated into stronger cash generation.
The automotive cold-forged fastening parts industry that Taeyang Metal operates in is a classic supply business directly linked to automaker production and sales volumes.
FnGuide projected that global automotive demand in 2025 would grow year-on-year as price stability and rate cuts improved purchasing conditions, while domestic demand in Korea would see limited growth due to household debt and asset market instability.
In practice, in 2026Q1 rising global oil prices and a fire at a domestic parts supplier weighed on automaker production, which was cited as a factor reducing Taeyang Metal's cold-forged product sales.
In the domestic bolt-and-nut market, Taeyang Metal retains the leading position, but reports indicate the share gap versus the No.2 player Jinhap has narrowed compared with prior years, pointing to intensifying competition.
Given the relatively low value-added, low-barrier nature of the bolt-and-nut business, price competition with existing and new rivals is a persistent structural risk.
Meanwhile, the shift to electrification is structurally shrinking demand for engine-related fastening parts while simultaneously creating new demand for precision components used in steering and drivetrain systems for electric vehicles.
Against this backdrop, the steering business run through Primax, which has a supply track record with global EV makers including Tesla, represents an attempt to chart a growth path distinct from the traditional bolt-and-nut business.
However, industry sources have noted that the profitability of the steering business still requires further validation.
The company has stated it will continue pursuing cost reduction and sales expansion within its core cold-forged fastening business, alongside efforts to improve its cost structure such as expanding local sourcing of raw materials.
Primax has previously stated in interviews a goal of expanding lightweight EV steering component development to grow supply to the North American market, and mentioned in 2022 a target of growing revenue from roughly KRW 100bn at the time to KRW 200bn by 2027, making the pace of the steering business's expansion an important factor to monitor for future group results.
The company decided on cash dividends for both common and preferred shares for fiscal year 2025 and passed related agenda items at its 61st annual general meeting, continuing its shareholder return policy.
However, the BB- credit rating assigned by Korea Ratings can be interpreted as reflecting relatively high financial leverage and interest expense burden, meaning any future rating change could affect funding costs.
Given that external variables such as fires, exchange rates, and oil prices have repeatedly affected results in the automaker supply chain, whether these factors recur will likely be a key determinant of performance direction going forward.
Supply-and-demand volatility tied to the stock's status as a political theme play also remains a factor that can move the share price independent of fundamentals, warranting a clear distinction between fundamental and flow-driven factors.
Taeyang Metal's net profit swung from a loss in 2022 to profitability from 2023 through 2025, with an improving trend and four consecutive profitable quarters from 2025Q3 through 2026Q2, suggesting somewhat reduced earnings volatility.
That said, given that net profit hovered near breakeven in some past years, it is worth noting that the price-to-earnings ratio has passed through periods of wide year-to-year variation.
In terms of price-to-book, the shares appear to trade at a discount to net asset value, which can be interpreted as reflecting relatively low profitability and a high debt ratio.
The dividend policy maintains cash payouts on both common and preferred shares, though the dividend yield level appears to sit below the industry average.
Overall, even as recent earnings recovery continues, financial leverage and the low-value-added nature of the core business appear to be reflected together in the 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 rose sharply in 2025 versus the prior year, and the company posted four consecutive quarters of owner net profit from 2025Q3 through 2026Q2, contrasting with the net loss recorded in 2022.
The operating margin also improved from 2.6% in 2024 to 3.6% in 2025, showing a directional improvement in profitability metrics. Whether this trend persists will need to be confirmed through future quarterly results.
Subsidiary Primax produces core steering components such as rack-and-pinion housings and tie rods supplied to Mando, Nexteer, Hyundai Mobis, and Tesla, representing an attempt to diversify growth paths beyond the low-value-added bolt-and-nut business.
Rising demand for lightweight EV components is cited as the backdrop for this business. That said, the scale and profitability of this business remain at an early stage of validation.
As the leading player with roughly a 35% share of the domestic automotive bolt-and-nut market, the company is positioned to leverage economies of scale.
Beyond bolts and nuts, its product range is diversified into electronics screws, bicycle parts, electrolytic copper foil, and plating/coating equipment, which partially spreads exposure across end markets. That said, a substantial portion of revenue remains concentrated in automotive parts supplied to Hyundai and Kia.
The revenue structure is heavily dependent on supply to Hyundai and Kia, directly linking results to the automakers' production and sales cycles.
In 2026Q1, rising oil prices and a fire at a domestic parts supplier reduced automaker production, which was cited as a factor behind declines in both revenue and operating profit. This exposure to external variables could continue to amplify earnings volatility going forward.
Taeyang Metal's share in the cold-forged parts market has reportedly declined from around 40% to roughly 35%, with the gap versus the No.2 competitor also narrowing. Given the relatively low value-added and limited differentiation in the bolt-and-nut business, price competition can act as a persistent pressure. This could limit the extent of long-term profitability improvement.
The debt ratio has remained high, in the 260-380% range between 2022 and 2025, and annual operating cash flow has flipped between positive and negative each year, indicating instability. Korea Ratings assigned a BB- credit rating reflecting this financial structure.
A high interest expense burden is cited as a factor that could offset a meaningful portion of profit improvement.
A company representative previously stated that reliance on domestically sourced raw materials purchased in dollars created cost burdens, and noted a structural issue whereby overseas subsidiaries' supply prices are not linked to cost pass-through.
Conversely, in 2026Q1, foreign currency translation gains from a stronger exchange rate contributed to improved net profit, showing that currency movements can affect earnings in either direction. Ongoing monitoring of exchange rate and raw material price trends is therefore warranted.
Weaker results in 2026Q1 were attributed in part to reduced automaker production stemming from rising global oil prices and a fire at a domestic parts supplier. This illustrates the company's vulnerability to supply-chain variables outside its direct control. A recurrence of similar production disruptions could again negatively affect revenue and operating profit.
Taeyang Metal has been classified as a so-called political theme stock because Chairman Han Woo-sam shares a clan lineage with a specific politician, and reports have noted cases where the share price swung sharply on related political news independent of fundamentals.
Such theme-driven flows can amplify short-term volatility unrelated to underlying business changes. If the political narrative fades, the associated flow effects could dissipate as well.
The Q3 2026 report is expected to be filed around this time; it will be important to check whether the revenue and operating profit softness seen in 2026Q1-Q2 persisted into Q3.
This is when the fiscal year 2026 annual results, dividend proposal, and the annual general meeting are expected, allowing confirmation of whether the annual earnings recovery continued and whether shareholder return policy changed.
Monitoring Hyundai-Kia's monthly domestic production and sales figures, along with global oil price and won-dollar exchange rate trends, will help gauge shifts in the automaker demand base underlying Taeyang Metal's sales.
Credit rating agencies such as Korea Ratings typically conduct periodic reviews around this time; it will be worth checking whether the BB- rating, which reflects the high debt ratio, changes.
Watching for disclosures or IR materials on new steering component orders or expanded North American supply through Primax will help gauge the pace of growth in the diversification business.
Taeyang Metal has shown a trajectory of earnings recovery, turning from a net loss in 2022 to profitability from 2023 through 2025, and sustaining four consecutive quarters of owner net profit from 2025Q3 through 2026Q2.
However, this recovery has occurred atop structural constraints including a revenue structure heavily dependent on Hyundai and Kia, a high debt ratio in the 260-380% range, and operating cash flow that has flipped sign year to year.
The company retains its position as the domestic No.1 in the bolt-and-nut market, but its share itself has declined versus prior years, and the gap with competitors has reportedly narrowed, reflecting persistent competitive pressure.
Diversification into steering components through subsidiary Primax is meaningful given its supply track record with global automakers including Tesla, but whether the scale and profitability of this business can meaningfully move group-level results remains to be validated.
The stock's classification as a political theme play, which creates flow-driven volatility unrelated to fundamentals, is another factor that warrants separate consideration when interpreting price action.
Overall, this appears to be a phase in which an improving earnings trend and diversification efforts coexist with structural burdens from financial leverage and intensifying competition.
Report written 2026-09-05 · Data as of 2026-09-04
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