PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Hyundai BNG Steel, whose business is concentrated in cold-rolled stainless steel sheet, has seen revenue contract over recent years, though quarterly revenue and operating profit showed a gradual recovery in the first half of 2026.
2025 revenue of KRW 741.2bn and operating profit of KRW 25.9bn declined year-on-year, but both revenue and operating profit rose for two consecutive quarters in 1H 2026.
Cold-rolled stainless steel sheet accounts for over 95% of revenue in a single-business structure, with the company holding the No.2 domestic market position behind POSCO.
The company is pursuing the sale of its Dangjin plant, once central to its auto parts business, while investment capacity at the remaining Gwangju plant also appears constrained.
The company holds an equity stake in rare-earth permanent magnet maker Sungrim Advanced Materials, gaining exposure to the EV drive-motor materials value chain.
A stainless steel price hike was reported in February 2026, but low-priced Chinese imports and nickel price volatility remain persistent cost pressures.
Hyundai BNG Steel began as Samyang Special Steel in 1966 and, after being absorbed by Hyundai Steel in 2000, became a Hyundai Motor Group affiliate producing cold-rolled stainless steel sheet.
The company marked its 60th anniversary in April 2026 and is regarded within the domestic steel industry as a firm with distinctive cold-rolling and thin-sheet technology in stainless steel.
Cold-rolled stainless steel sheet accounts for over 95% of total revenue, and with an annual production capacity of 300,000 tons, the company makes wide bright-annealed products, decorative patterned sheets, ultra-thin sheets, and surface-finished products.
The company has maintained a single-business model of sourcing hot-rolled stainless steel strip from suppliers such as POSCO and processing it into cold-rolled sheet, holding the No.2 position domestically behind POSCO.
Its main customer industries are appliances, construction, automotive, and electrical equipment, and its 60th-anniversary event was attended by major partners including POSCO, Hyundai Motor, Samsung Electronics, LG Electronics, JFE Steel, and Nippon Steel.
The auto parts business, centered on sand-core casting, contributed only about 6-7% of total revenue and has been shrinking amid slowing finished-vehicle exports and the shift to electric vehicles, prompting the planned sale of the Dangjin plant.
In addition, the company has sought a new growth avenue through its 2022 investment in Sungrim Advanced Materials, a maker of rare-earth permanent magnets for EV drive motors.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩188.5B | ₩9.8B | 5.2% |
| 2025Q3 | ₩193.1B | ₩7.8B | 4.0% |
| 2025Q4 | ₩172.2B | ₩5.8B | 3.4% |
| 2026Q1 | ₩199.7B | ₩8.4B | 4.2% |
| 2026Q2 | ₩202.8B | ₩9.5B | 4.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.3T | ₩33.5B | ₩26.1B | 2.6% | 5.0% | 63.5% |
| 2023 | ₩1T | -₩35.2B | -₩30.2B | −3.4% | −6.1% | 60.5% |
| 2024 | ₩795.4B | ₩30.6B | ₩25B | 3.9% | 4.8% | 46.0% |
| 2025 | ₩741.3B | ₩25.9B | ₩14.8B | 3.5% | 2.8% | 36.9% |
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
Annual results have shown pronounced swings. From revenue of KRW 1,281.2bn and operating profit of KRW 33.5bn (operating margin 2.6%) in 2022, revenue fell to KRW 1,045.3bn in 2023, yet the company swung to an operating loss of KRW 35.2bn (margin -3.4%) and a net loss of KRW 30.2bn.
In 2024, revenue declined further to KRW 795.4bn, but the company returned to profit with operating profit of KRW 30.6bn (margin 3.9%) and net income of KRW 25.0bn. In 2025, however, revenue slipped to KRW 741.3bn, operating profit to KRW 25.9bn (margin 3.5%), and net income to KRW 14.8bn, all down from the prior year.
On a quarterly basis, revenue of KRW 188.5bn and operating profit of KRW 9.8bn in Q2 2025 gave way to KRW 193.1bn and KRW 7.8bn in Q3, before Q4 revenue fell to KRW 172.2bn and operating profit to KRW 5.8bn, the weakest quarter of the year.
Since early 2026, however, revenue and operating profit have risen for two consecutive quarters: KRW 199.7bn and KRW 8.4bn in Q1, and KRW 202.8bn and KRW 9.5bn in Q2. Net income also recovered to KRW 5.3bn in Q2 2026, the highest level since Q4 2025's KRW 5.65bn.
While overall revenue scale remains well below 2022 levels, the trailing four quarters (Q3 2025 through Q2 2026) show a sequential improvement in quarterly performance.
The domestic cold-rolled stainless steel industry is in a low-growth phase amid a sluggish domestic economy and continued inflows of low-priced Chinese imports, with tariff-related risks recently adding to market uncertainty and pressuring sales volumes and earnings.
The pace of recovery in downstream demand from appliances, construction, and automotive shapes the overall industry cycle, while volatility in alloy input prices such as nickel and chromium directly affects costs and margins.
China's longstanding stainless steel overcapacity has repeatedly flowed into domestic and overseas markets as low-priced volume, making trade measures such as anti-dumping duties an important variable for industry profitability.
In February 2026, reports indicated the company raised stainless steel prices by KRW 200,000 per ton, reflecting continued efforts to pass on cost pressure through pricing actions.
In the competitive landscape, POSCO holds the top position domestically with Hyundai BNG Steel ranking second, and companies with a higher weighting toward energy-use steel pipe and stainless products are seen as showing relatively stable trends.
As a capital-intensive industry requiring large-scale investment, barriers to new entry remain high, but competition on market share and pricing among existing players continues.
The company has stated its intention to accelerate development of ultra-thin and higher value-added products and to strengthen competitiveness through cost-structure innovation to secure a leading position in the future stainless steel materials market.
The auto parts business is effectively contracting as the company pursues the sale of its Dangjin plant, and the continued operation and investment level of the remaining Gwangju plant is likely to be a key variable shaping the future portfolio direction.
Given the multi-year decline in capital expenditure, a conservative strategy focused on improving profitability within the existing stainless steel business, rather than large new investments, appears more likely than an expansion push.
The equity stake in Sungrim Advanced Materials carries potential for mid- to long-term value realization tied to growing demand for rare-earth permanent magnets used in EV drive motors, and POSCO International's large-scale magnet supply agreements with North American and European automakers illustrate the growth potential of this value chain.
However, reports on Sungrim Advanced Materials' listing plans date back to early 2024, and further disclosure is needed to confirm the current status of that process.
The two consecutive quarters of rising revenue and operating profit in 1H 2026 may partly reflect pricing actions and a recovery in sales volume, but structural variables such as low-priced Chinese imports and nickel price volatility remain in place.
The current share price trades at a substantial discount to the company's per-share net asset value, indicating the market is assigning a multiple below book value.
The earnings-based valuation multiple sits toward the lower-to-middle end of the valuation band this stock has historically traded within, which can be interpreted as reflecting the earnings volatility seen in the 2023 loss and the 2025 profit slowdown.
Dividends have been paid annually, but the absolute amount is not large, so while the dividend yield is relatively stable, it is not notably high compared with larger peers in the sector.
Profitability over the trailing four quarters shows a pattern of turning from loss to profit on an annual basis followed by alternating mild improvement and slowdown, warranting continued monitoring of quarterly indicators rather than drawing a definitive directional conclusion.
The gap between asset value and earnings multiple suggests the market may be pricing in concerns over the company's single-product dependence and its contracting business scope.
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
Both revenue and operating profit rose sequentially in Q1 and Q2 2026, marking a departure from the weak Q4 2025. Net income also recovered to KRW 5.3bn in Q2 2026, among the strongest recent quarters. This may partly reflect pricing actions and a recovery in sales volume.
The company maintains the No.2 domestic position in cold-rolled stainless steel behind POSCO, supplying products to appliance, construction, and automotive end markets. It has a 300,000-ton production capacity and a lineup of higher value-added products including ultra-thin and surface-finished sheets. Its long-established customer base underpins business stability.
The company holds a stake in Sungrim Advanced Materials, the sole domestic mass producer of rare-earth permanent magnets, which supplies magnets for EV drive motors.
POSCO International has signed large-scale magnet supply agreements with North American and European automakers, supporting the growth case for this value chain.
However, the exposure is primarily an equity investment, meaning its significance lies more in equity-method gains and potential stake value than in direct revenue contribution.
Revenue has declined steadily from KRW 1,281.2bn in 2022 to KRW 741.3bn in 2025. High dependence on the single product line of cold-rolled stainless steel exposes earnings directly to swings in selling prices and volumes. During this business restructuring period, expectations for top-line growth remain limited.
The Dangjin plant, once central to the auto parts business, is being sold, and the remaining Gwangju plant is also reported to have limited investment capacity. Capital expenditure is understood to have fallen from around KRW 30bn in 2022 to about KRW 10bn in 2024. This suggests securing new growth drivers is unlikely to happen quickly.
A low-growth environment persists, with sales volumes and margins pressured by a sluggish domestic economy and continued inflows of low-priced Chinese imports. Sharp swings in alloy input prices such as nickel directly affect costs and inventory valuation, and can trigger earnings declines similar to that seen in 2023. Trade policy shifts are also an external variable determining the scale of import inflows.
Sharp swings in alloy input prices such as nickel and chromium directly affect manufacturing costs and inventory valuation gains or losses. The large operating loss in 2023 can be interpreted as reflecting the impact of such raw material and market swings. Similar price shocks in the future could again significantly disrupt margins.
The scale of low-priced Chinese stainless steel imports is heavily influenced by trade policy such as anti-dumping duties. Changes or relaxation of tariff policy could negatively affect domestic selling prices and volumes. Recent assessments note that tariff-related risk has been adding to steel market uncertainty.
With the sale of the Dangjin plant and limited investment at the Gwangju plant, the auto parts business is contracting, moving the company toward even greater dependence on its single stainless steel product line. Financial capacity to secure new growth drivers is also reported to be limited. The timing and method of realizing value from the Sungrim Advanced Materials stake also remain uncertain.
The Q3 2026 quarterly report filing is due around this time, warranting a check on whether the recent two-quarter recovery trend continues.
Further disclosure should be checked regarding the completion of the Dangjin plant sale and the operating and investment plans for the Gwangju plant.
Related disclosures should be monitored to check the progress of Sungrim Advanced Materials' KOSDAQ listing plans and any changes in Hyundai BNG Steel's equity stake.
Trends in nickel and other raw material prices, along with any further stainless steel price adjustments, are key indicators for gauging margin direction.
Hyundai BNG Steel has seen its revenue base shrink over multiple years within a single-business structure centered on cold-rolled stainless steel, but following a return to profit in 2024, both revenue and operating profit improved for two consecutive quarters in 1H 2026.
While the auto parts business is effectively contracting due to the Dangjin plant sale, exposure to the rare-earth permanent magnet value chain through the Sungrim Advanced Materials stake remains a potential mid- to long-term value factor.
The company's No.2 domestic stainless steel position and long-standing customer base provide a foundation for business stability, but structural pressures from low-priced Chinese imports and nickel price volatility persist.
The steady decline in capital expenditure suggests a conservative strategy focused on efficiency within the existing business rather than pursuing new growth drivers.
The future earnings trajectory warrants continued monitoring through quarterly sales volume and pricing responses, raw material price trends, and disclosures related to Sungrim Advanced Materials.
Report written 2026-09-05 · Data as of 2026-09-04
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