KOSPISteel & Metals008350

Namsun Aluminium

₩1,072▲ 0.37%2026-10-02 close

Market Cap

₩138.2B

Turnover

₩400M

Volume

360,000 shares

Shares out.

130M

PER

—

PBR

0.5×

EPS

-₩84

Dividend Yield

0.00%

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

Report overview

Prolonged Core Business Weakness, Integration Benefits Yet to Emerge

With construction now added to its aluminum and auto parts pillars, Namsun Aluminum has posted operating losses for five straight quarters, and integration synergies have yet to show up in the numbers.

1
2025 revenue fell to KRW 258.9bn, the third straight annual decline, while operating profit swung to a loss of KRW 3.27bn
2
Operating losses persisted for five consecutive quarters from 2025Q3 through 2026Q2, though the loss narrowed from 2026Q1 to 2026Q2
3
The wholly owned subsidiary STX Construction was absorbed in September 2025, but the construction segment still showed a 0.0% revenue share as of 2026Q1
4
Operating profit and net income have frequently diverged in sign year to year, reflecting sizable non-operating swings
5
Amid rising international aluminum prices and cost pressure, the company is exploring product price increases as a countermeasure

Business structure

Namsun Aluminum, founded in 1947 and listed in 1978, is an aluminum extrusion and processing company affiliated with SM Group, with Samra Midas holding roughly a 30% stake as the largest shareholder and SM Group Chairman Woo Oh-hyun serving as an inside director.

The business is organized around two main segments—aluminum and automotive—and as of 2025, revenue was split 51.7% automotive and 48.3% aluminum.

The aluminum segment produces aluminum and PVC window frames and curtain walls under the WINDART brand, targets the high-end market with its premium X-WIDE window brand, and strengthens technical competitiveness through specialty products such as blast-resistant and double-insulated fire-rated windows.

The automotive segment supplies bumper-centered exterior parts to GM Korea, with stable volumes for the Chevrolet Trax Crossover and Trailblazer bumpers, while also pursuing enhanced ADAS radar sensor technology and customer diversification.

In September 2025, the company absorbed its wholly owned subsidiary STX Construction through a merger without new share issuance, bringing construction business in-house in a move intended to create vertical-integration synergy by supplying aluminum windows and curtain walls preferentially to STX Construction project sites.

However, as of the first quarter of 2026, the construction segment's revenue share was recorded at 0.0%, indicating that roughly six months after the merger, tangible business linkage has yet to materialize.

Competitively, the domestic aluminum industry differs by business model, with sheet-focused Chorial Aluminum and battery-foil-focused Samah Aluminum operating differently from Namsun's construction-window and auto-parts orientation, which carries a relatively low raw-material inventory ratio.

The company operates its window business through a nationwide distribution network while selling automotive parts both domestically and abroad.

Earnings trend

Quarterly revenue · Operating profit

₩73.7B₩1.2B25Q2₩53.6B-₩4.3B25Q3₩68B-₩700M25Q4₩63.1B-₩1.7B26Q1₩82.8B-₩900M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩255.7B-₩2.5B2022₩310.5B₩6.4B2023₩289.5B₩4.8B2024₩258.9B-₩3.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩73.7B	₩1.2B	1.6%
2025Q3	₩53.6B	-₩4.3B	−8.0%
2025Q4	₩68B	-₩700M	−1.0%
2026Q1	₩63.1B	-₩1.7B	−2.7%
2026Q2	₩82.8B	-₩900M	−1.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩255.7B	-₩2.5B	₩27.9B	−1.0%	9.1%	30.8%
2023	₩310.5B	₩6.4B	-₩300M	2.1%	−0.1%	42.7%
2024	₩289.5B	₩4.8B	-₩26.7B	1.7%	−9.0%	36.0%
2025	₩258.9B	-₩3.3B	₩3.6B	−1.3%	1.3%	53.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Annual revenue peaked at KRW 310.5bn in 2023 after rising from KRW 255.7bn in 2022, then declined for three straight years to KRW 289.5bn in 2024 and KRW 258.9bn in 2025. Operating profit remained positive at KRW 6.45bn in 2023 and KRW 4.82bn in 2024, but swung to a loss of KRW 3.27bn in 2025.

A notable pattern is that operating profit and net income attributable to owners frequently diverge in sign: in 2022 the company posted an operating loss of KRW 2.49bn yet a net profit of KRW 27.93bn, while in 2023 an operating profit of KRW 6.45bn coincided with a net loss of KRW 0.26bn, and in 2024 an operating profit of KRW 4.82bn coincided with a large net loss of KRW 26.73bn.

In 2025 the signs diverged again, with an operating loss of KRW 3.27bn alongside a net profit of KRW 3.63bn, underscoring how volatile non-operating items have materially shaped reported results.

On a quarterly basis, 2025Q2 was solid with operating profit of KRW 1.18bn and net profit of KRW 6.18bn, but results deteriorated sharply around the timing of the STX Construction absorption merger (effective September 10, 2025), with an operating loss of KRW 4.31bn and net loss of KRW 3.86bn in 2025Q3, followed by continued operating losses in 2025Q4 (KRW 0.68bn), 2026Q1 (KRW 1.72bn), and 2026Q2 (KRW 0.93bn)—five consecutive quarters in the red.

The combined net loss attributable to owners over the trailing four quarters (2025Q3–2026Q2) reached approximately KRW 10.97bn. Notably, the loss narrowed from KRW 1.72bn in 2026Q1 to KRW 0.93bn in 2026Q2.

On cash flow, operating cash flow was a healthy KRW 15.59bn in 2024 but turned negative at KRW 5.13bn in 2025, while the debt ratio rose from 30.8% in 2022 to 53.9% in 2025, indicating growing balance-sheet strain.

Industry analysis

The domestic aluminum window and building materials market is highly sensitive to construction starts and pre-sale activity, and prolonged weakness in Korea's construction cycle has slowed any recovery in window demand.

On the raw material side, geopolitical instability in the Middle East in the first half of 2026—including strikes on smelting facilities and concerns over Strait of Hormuz logistics—pushed London Metal Exchange three-month aluminum prices above USD 3,500 per ton, with Korean aluminum import prices rising in tandem.

However, Namsun Aluminum's inventory base is smaller than industry peers and a significant portion is tied up in construction land holdings, meaning the inventory-revaluation benefit from rising raw material prices is more limited than for sheet-focused Chorial Aluminum or battery-foil-focused Samah Aluminum.

The company is considering aluminum product price increases to offset cost pressure, but this must contend simultaneously with demand-side constraints from the weak construction cycle.

The automotive parts segment remains dependent on GM Korea's production schedule, with concentration still high toward a single automaker customer. Industry observers broadly agree that it is difficult to gauge when domestic housing starts and pre-sale indicators will emerge from their current trough.

Outlook

The company has stated it plans to pursue aluminum product price increases to offset raw material cost pressure, though the timing of demand recovery remains uncertain given construction sector weakness.

Regarding the STX Construction integration, the only project currently cited as a potential revitalization driver is 'Asan Gyeongnam Honorsville Landmark49,' a planned mixed-use complex in Asan's Oncheon-dong with four basement and 49 above-ground floors across three buildings totaling 467 units, and progress on pre-sales and groundbreaking for this project will likely be key to any turnaround in the construction segment.

Accounting experts have noted, however, that despite a substantial period having passed since the absorption merger, new order intake has been effectively absent, and that tangible business synergy has yet to be confirmed.

The automotive segment continues to maintain stable supply of Trax Crossover and Trailblazer bumpers while pursuing enhanced ADAS radar sensor technology and diversification of new bumper customers.

The window segment continues to strengthen competitiveness through its premium X-WIDE brand targeting the high-end market, US HTL certification, and Korea's first double-insulated fire-rated window product.

The narrowing of the quarterly operating loss from KRW 1.72bn in 2026Q1 to KRW 0.93bn in 2026Q2 could be an early sign of cost structure stabilization, but whether and when a full return to profitability occurs remains uncertain.

Valuation

PER

—

PBR

0.5×

ROE

-3.8%

EPS

-₩84

BPS

₩2,156

Dividend per share

₩0

The price-to-book ratio sits in a range that reflects a discount to net asset value and is also on the lower side relative to the aluminum industry average.

Looking at multi-year results, operating profit and net income have repeatedly alternated between gains and losses, and the company is currently in a clear downturn phase marked by five consecutive quarters of operating losses, making the pace of any earnings recovery a key point of market attention.

The company has not paid dividends recently, which differentiates it from other dividend-paying peers in the sector from a shareholder-return standpoint. The rising trend in the debt ratio over recent years is a factor to weigh alongside net asset value.

Investors may want to watch both whether tangible synergy from the STX Construction integration materializes and how quickly the core aluminum and automotive businesses recover profitability.

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

Bull factors

Potential Vertical Integration Benefit from STX Construction

The STX Construction absorption creates the potential for a vertical-integration structure that preferentially supplies the company's own aluminum windows and curtain walls to its own construction sites.

If the Asan Gyeongnam Honorsville Landmark49 project moves forward, it could establish an in-house revenue base for the construction segment. That said, this synergy has not yet shown up in reported revenue figures, warranting continued monitoring.

Narrowing Trend in Quarterly Operating Losses

The operating loss narrowed from KRW 1.72bn in 2026Q1 to KRW 0.93bn in 2026Q2, moderating somewhat. This could be an early sign of cost structure stabilization or an improving sales mix. However, results remain weak on a year-over-year basis, so continuity needs to be confirmed.

Product Competitiveness Enhancement and Customer Diversification Efforts

Efforts to target the high-end market through the premium X-WIDE window brand and to develop specialty products such as fire-rated and blast-resistant windows create room for higher value-added output.

In the automotive segment, the company is simultaneously pursuing enhanced ADAS radar sensor technology and diversification of new bumper customers. Volumes for the Chevrolet Trax Crossover and Trailblazer supplied to GM Korea provide a relatively stable revenue base.

Bear factors

Five Straight Quarters of Operating Losses, Prolonged Core Business Weakness

Operating losses have continued for five consecutive quarters from 2025Q3 through 2026Q2, with a combined net loss attributable to owners of approximately KRW 10.97bn over the trailing four quarters.

Annual revenue also declined for two straight years after peaking at KRW 310.5bn in 2023, marking a three-year contraction trend. With construction sector weakness and rising raw material prices acting simultaneously, a clear turnaround point is difficult to identify.

Absence of STX Construction Synergy, Rising Financial Burden

As of 2026Q1, the construction segment's revenue share stood at 0.0%, with no tangible new order intake confirmed roughly seven months after the absorption merger.

STX Construction reportedly had a debt ratio of 592.8% prior to its integration, reflecting a fragile financial structure, raising concerns that this burden could transfer to the parent company's balance sheet. Indeed, Namsun Aluminum's debt ratio rose from 30.8% in 2022 to 53.9% in 2025.

Cost Pressure from Rising Raw Material Prices

Geopolitical instability in the first half of 2026 pushed LME aluminum prices above USD 3,500 per ton, increasing cost pressure.

Namsun Aluminum has a relatively small inventory base with a significant portion tied up in construction land, making it structurally harder to benefit from inventory revaluation gains tied to rising raw material prices.

While the company plans to respond with product price increases, this must contend with simultaneous demand-side constraints from the weak construction cycle.

Risk factors

Industry and Demand Risk

Prolonged weakness in Korea's construction cycle makes it difficult to gauge when demand for aluminum windows will recover. The automotive parts segment carries high dependence on a single customer, GM Korea, meaning revenue is directly affected by that automaker's production schedule changes. If both core businesses weaken simultaneously, the capacity for an earnings rebound could be limited.

Affiliate and Financial Risk

STX Construction reportedly had a debt ratio as high as 592.8% before integration, raising concerns that this burden could transfer to parent company Namsun Aluminum through the absorption merger. Indeed, the debt ratio rose from 30.8% in 2022 to 53.9% in 2025. If the construction segment continues to lack new order intake, the financial burden could grow further.

Raw Material and Foreign Exchange Risk

International aluminum prices can swing sharply in short periods due to geopolitical factors, making cost forecasting difficult.

With a relatively low inventory ratio, Namsun Aluminum is structurally less able to benefit from inventory revaluation gains tied to rising raw material prices, and delays in product price increases could intensify margin pressure.

Given some export exposure in automotive parts, foreign exchange fluctuations are also a factor that can affect results.

What to watch next

Mid-November 2026 (expected timing of the Q3 report disclosure)
Check whether the 2026Q3 results show continued narrowing of the operating loss or extend the losing streak to six consecutive quarters.
Upcoming disclosure of new STX Construction orders or project pre-sales
Monitor progress on pre-sales and groundbreaking for the Asan Gyeongnam Honorsville Landmark49 project and whether the construction segment secures tangible new orders.
Upcoming releases of LME aluminum prices and Korean aluminum import prices
Check whether raw material price trends stabilize and whether the company's planned product price increases are actually implemented and reflected in margins.
Upcoming release of Korean construction starts and pre-sale statistics
Monitor for signs of recovery in Korea's construction cycle to gauge the trajectory of aluminum window demand.

Overall view

Namsun Aluminum added a third pillar to its long-standing aluminum window and automotive parts businesses by integrating STX Construction in September 2025, but the effects of that integration have yet to show up in revenue or profit metrics.

Annual operating profit swung to a loss in 2025, and operating losses have persisted for five consecutive quarters from 2025Q3 through 2026Q2, reflecting prolonged weakness in the core businesses.

That said, the narrowing of the loss from 2026Q1 to 2026Q2, along with product upgrade efforts such as premium windows and specialty automotive parts, are worth weighing in a balanced view.

Dual pressures from a weak construction cycle and rising aluminum raw material prices, along with concerns that STX Construction's fragile financial structure could transfer to the parent, remain unresolved risks.

The multi-year pattern of operating profit and net income frequently diverging in sign suggests that non-operating volatility should be factored into any interpretation of future results.

Investors will want to continue monitoring concrete events—third-quarter results, whether STX Construction secures new orders, and aluminum price trends—to assess integration synergy and the pace of any earnings recovery.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.