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
Sungshin Cement has cushioned weak domestic cement demand through trading and overseas business expansion, but its core cement segment continues to struggle with falling prices and low utilization.
Q2 2026 revenue rose sharply on trading expansion and the consolidation of Sungshin CM, but core cement utilization stayed low.
Annual operating margin has declined from 6.6% in 2023 to 3.6% in 2025.
The acquisition of KC Industry brought the company into civil-engineering precast concrete, completing a cement-ready mix concrete-PC value chain.
Rising inventory and short-term borrowings tied to trading expansion pushed first-half operating cash flow into a net outflow.
Output from the Vietnamese ready-mix concrete unit expanded to more than half of domestic production volume.
Founded in 1967, Sungshin Cement is a large domestic cement producer centered on its Danyang plant in Chungbuk, with the parent company holding annual production capacity of 11 million tons of cement.
The business is organized into cement, ready-mix concrete, trading, and other segments, with cement historically accounting for roughly 70% of total revenue.
Subsidiary Sungshin Remicon runs the ready-mix concrete business, while Singapore-based JinSung International handles international trading, exporting construction materials such as cement, clinker and slag powder as well as metal resources including silver and molybdenum concentrate to major Asian markets from hubs in Singapore, Hanoi and Shanghai.
From 2026, Sungshin CM, a slag-cement producer with unloading facilities at Pyeongtaek Port, was newly consolidated as a major subsidiary, affecting raw-material purchase and capacity figures.
Overseas, the company operates SungShin VINA, a Hanoi-centered ready-mix concrete producer, and is the only foreign player in Vietnam's ready-mix concrete market to run local plants.
In February 2026, the company raised its stake in civil-engineering precast concrete specialist KC Industry to 86.74% together with private equity firm Genesis Private Equity, securing management control.
Competitors include Ssangyong C&E, Halla Cement, Asia Cement and Hanil Cement, and the company is working to improve cost competitiveness through expanded recycling of circulating resources and equipment efficiency while boosting sales of higher value-added products.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩335.4B | ₩22.4B | 6.7% |
| 2025Q3 | ₩318.1B | ₩12.6B | 4.0% |
| 2025Q4 | ₩334.2B | ₩14.9B | 4.5% |
| 2026Q1 | ₩285B | ₩800M | 0.3% |
| 2026Q2 | ₩503.2B | ₩18.9B | 3.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1T | ₩1.8B | -₩26.6B | 0.2% | −6.7% | 199.7% |
| 2023 | ₩1.1T | ₩73.3B | ₩66.7B | 6.6% | 12.5% | 143.5% |
| 2024 | ₩1.2T | ₩53.2B | ₩45.2B | 4.6% | 7.9% | 137.6% |
| 2025 | ₩1.2T | ₩43.7B | ₩26B | 3.6% | 4.4% | 120.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
Sungshin Cement's consolidated revenue rose for four consecutive years, from KRW 1,030.4 billion in 2022 to KRW 1,113.3 billion in 2023, KRW 1,162.6 billion in 2024, and KRW 1,216.3 billion in 2025.
Operating profit, however, recovered from KRW 1.83 billion (0.2% margin) in 2022 to KRW 73.3 billion (6.6%) in 2023, before falling for two straight years to KRW 53.2 billion (4.6%) in 2024 and KRW 43.7 billion (3.6%) in 2025, a rapid margin contraction.
Net income attributable to owners swung from a loss of KRW 26.6 billion in 2022 to a profit of KRW 66.7 billion in 2023, then declined to KRW 45.2 billion in 2024 and KRW 26.0 billion in 2025.
By quarter, revenue of KRW 318.1 billion, operating profit of KRW 12.6 billion and owners' net income of KRW 5.9 billion in Q3 2025 improved to revenue of KRW 334.2 billion, operating profit of KRW 14.9 billion and net income of KRW 12.0 billion in Q4 2025.
In Q1 2026, however, revenue fell to KRW 285.0 billion and operating profit slipped to KRW 0.8 billion, with owners' net income turning to a loss of KRW 5.8 billion.
Q2 2026 revenue jumped to KRW 503.2 billion, with operating profit of KRW 18.9 billion and owners' net income of KRW 19.3 billion, a rebound attributed to the combined effect of Sungshin CM's consolidation as a major subsidiary and a surge in trading segment external sales.
Indeed, first-half 2026 consolidated revenue reached KRW 788.2 billion, up 39.8% year on year, with operating profit up 21.9% to KRW 19.7 billion and net income up 65.5% to KRW 13.5 billion, according to the semi-annual report.
Much of this top-line growth stemmed from external trading sales centered on JinSung International surging 118.6% to approach half of total revenue, while the core cement business's first-half clinker utilization rate stayed at just 50.9% and average selling prices continued declining to KRW 92,677 per ton, showing that top-line growth and core-business profitability improvement have not moved in tandem.
Domestic cement demand has fallen to its lowest level in 34 years amid a prolonged construction downturn. Domestic shipments dropped from 43.71 million tons in 2024 to about 38 million tons in 2025, and are expected to stay near similar levels in 2026.
Against this demand backdrop, Sungshin Cement's first-half clinker utilization rate was only 50.9%, and average cement selling prices continued to decline to KRW 92,677 per ton, down from KRW 96,761 in 2024.
Because the cement industry carries heavy fixed costs, producers cannot easily halt output even as demand falls, so the industry as a whole faces simultaneous utilization declines and pricing pressure.
Competitors such as Ssangyong C&E, Hanil Cement, Asia Cement and Halla Cement face similarly weak domestic demand, and compared with rivals whose profits fell by more than half last year, Sungshin Cement is seen as having narrowed its decline relatively through trading segment expansion.
The company expects bulk cement trailer (BCT) transport cost burdens to rise by more than KRW 10 billion year on year due to the safe trucking rate system, with electricity rate hikes and environmental compliance costs such as selective catalytic reduction (SCR) equipment cited as additional cost pressures.
The company said it expects second-half cement demand to be similar to or slightly higher than the prior year, and plans to supplement profitability through overseas trading and global business expansion as the domestic construction downturn persists.
In February 2026, it secured management control of civil-engineering precast concrete specialist KC Industry by raising its stake to 86.74% together with private equity firm Genesis Private Equity, building a value chain spanning cement, ready-mix concrete and precast concrete, with plans to jointly supply all three to overseas construction projects.
In Vietnam, Hanoi-based unit SungShin VINA produced 262,000 cubic meters of ready-mix concrete in the first half, surpassing half of domestic production volume of 502,000 cubic meters, in a market seen benefiting from infrastructure and housing construction demand growth.
In trading, Singapore-based JinSung International is expanding beyond existing clinker trading into non-ferrous metal trading including silver. The company is also focusing on production efficiency improvements, including reducing equipment troubles and repair costs, to lower electricity and coal energy costs.
However, rising inventory and short-term borrowings tied to trading expansion, along with a swing to net operating cash outflow in the first half, are factors to watch going forward from a financial management perspective.
The price-to-earnings multiple calculated on the most recent four quarters (Q3 2025 through Q2 2026) of net income trades at a lower level than the elevated multiples seen when profits peaked in 2023. The share price sits well below per-share net asset value, reflecting a discount to book value.
Dividends per share have been maintained through the recent earnings downturn, but continuity of the dividend policy could come into question if loss-making quarters like Q1 2026 recur.
Market capitalization places the company among smaller names within the KOSPI construction and building materials sector, which can mean relatively greater trading liquidity constraints and price volatility.
Because seasonality and the effect of the trading and Sungshin CM consolidation have widened quarter-to-quarter earnings swings, interpreting valuation requires looking at trends across multiple quarters rather than any single quarter in isolation.
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 2026-08-22
Trading business centered on JinSung International has become a key pillar cushioning weak domestic cement demand. First-half external trading sales surged 118.6%, approaching half of total revenue.
The company is diversifying revenue sources by expanding beyond clinker and construction materials into non-ferrous metals such as silver.
By securing an 86.74% stake, the company brought in Korea's only integrated design-production-construction civil precast concrete firm as a subsidiary. It plans to apply a cement-ready mix concrete-precast concrete joint expansion model to overseas construction projects. The investment, made at a cyclical low, is seen as an attempt to secure a mid- to long-term growth foundation.
The company is the only foreign player in Vietnam's ready-mix concrete market to operate local plants. First-half production volume exceeded half of domestic production, and infrastructure and housing construction demand growth is expected. The company has stated its Vietnam business is profitable.
First-half clinker utilization was only 50.9%, and selling prices have declined for three consecutive years. Domestic shipment volume has fallen to its lowest level in 34 years. Given the industry's heavy fixed-cost structure, margin improvement is difficult without a recovery in utilization.
First-half operating cash flow swung to a net outflow of KRW 4.9 billion, from a net inflow of KRW 51.3 billion a year earlier. Inventory rose by KRW 21.1 billion and short-term borrowings also increased. Top-line growth appears to be coming at the cost of increased financial strain.
Bulk cement trailer transport costs are expected to rise by more than KRW 10 billion year on year due to the safe trucking rate system. Electricity rate hikes and environmental compliance costs such as selective catalytic reduction equipment are additional burdens. The construction downturn also makes it difficult to raise prices for construction company customers.
Prolonged construction downturn has driven domestic cement shipments to their lowest level in 34 years. No clear demand recovery signal has been confirmed for 2026. A prolonged low utilization rate could continue to weigh on results through fixed-cost burdens.
Inventory and short-term borrowings have risen alongside trading expansion, and first-half operating cash flow turned to a net outflow. If trading volume continues to grow, working capital burdens could expand further. Whether cash flow improves needs to be confirmed in coming quarterly results.
KC Industry was consolidated after its revenue fell 28% and operating profit dropped more than 90% just prior to acquisition, leaving profitability normalization as a challenge. The industry holds a cautious view on the expansion into non-core non-ferrous metal trading. If new businesses fail to generate expected synergies, only the investment burden may remain.
Check the Q3 2026 report for cement utilization and pricing, the trading segment's revenue share, and whether operating cash flow improves.
Review domestic shipment statistics published by industry bodies such as the Korea Cement Association to assess whether annual demand is recovering.
Watch for the first overseas joint project win combining cement, ready-mix concrete and precast concrete following the KC Industry consolidation.
Check how the Sungshin CM consolidation effect flows through to annual results, and how much cost burden from the safe trucking rate system and electricity rate hikes actually materializes.
Sungshin Cement has defended its top line and earnings through trading and overseas business expansion even as domestic cement demand has fallen to a 34-year low.
Q2 2026 results improved sharply on the Sungshin CM consolidation and a surge in trading, but the preceding quarter posted a loss, underscoring increased quarter-to-quarter volatility.
On an annual basis, operating margin has trended down from 6.6% in 2023 to 3.6% in 2025, meaning a recovery in core cement business profitability has yet to be confirmed.
The move into precast concrete via the KC Industry acquisition and expansion of the Vietnam ready-mix concrete business are seen as mid- to long-term value chain diversification efforts, but rising inventory, borrowings, and cash flow deterioration tied to trading expansion are variables to watch alongside them.
Cost pressures from the safe trucking rate system, electricity rates, and environmental regulations could also affect second-half results.
Investors will need to track the upcoming Q3 results, domestic shipment statistics, and execution progress at KC Industry and in Vietnam to gauge the sustainability of this diversification strategy.
Report written 2026-09-05 · Data as of 2026-09-04
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