PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩300 per share · Prices as of the 2026-10-02 close
In 2025, revenue and operating profit expanded sharply, yet net profit attributable to owners declined and the debt ratio rose steeply.
2025 consolidated revenue rose about 50% year over year to KRW 1.179 trillion, yet net profit attributable to owners fell to KRW 20.6 billion.
Growth in the trading segment (aluminum, tin ingot, and steel import-export) and press orders drove revenue, with Q2 2026 revenue marking the highest among recent quarters.
The debt ratio jumped to 99.0% in 2025 from 78.4% a year earlier, significantly increasing leverage relative to equity.
Following the KDA acquisition, the company has begun mass production of drivetrain and EV powertrain components, broadening its portfolio into auto parts.
The domestic ferroalloy industry continues to face structural pressure from low capacity utilization and rising import penetration.
SIMPAC operates a diversified business structure spanning press equipment, ferroalloy, rolls, trading, and auto parts. The largest revenue contributor is the ferroalloy segment, followed by press, casting, and industrial machinery sales.
The press segment has built its competitive position through build-to-order, high-mix low-volume manufacturing, and the company is known to have long held a leading position in Korea's press machinery market.
The ferroalloy segment produces ferromanganese, ferrosilicon, and silicomanganese, sourcing raw materials such as manganese ore and silica ore under annual contracts, with Hyundai Steel and POSCO as principal customers.
The roll segment supplies rolls for paper and steel manufacturing, while the trading segment handles intermediary import-export trade in aluminum, tin ingots, and steel.
The auto parts segment emerged as a new growth pillar after the acquisition of KDA, which brought drivetrain component revenue into the group, and the company is expanding production capacity for EV powertrain component output.
Competitively, the ferroalloy business shares the domestic market with DB Metal, Dongil Industry, Taekyung Industrial, and POSCO-affiliated producers, while the press business competes in a niche, high-mix, low-volume segment against a handful of domestic and overseas players.
In sum, SIMPAC runs a combined portfolio spanning materials (ferroalloy, roll), equipment (press), distribution (trading), and components (auto parts).
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩301.5B | ₩5.2B | 1.7% |
| 2025Q3 | ₩300.9B | ₩9.6B | 3.2% |
| 2025Q4 | ₩346.5B | ₩23.6B | 6.8% |
| 2026Q1 | ₩315.3B | ₩21.6B | 6.9% |
| 2026Q2 | ₩461.1B | ₩26.8B | 5.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩672.2B | ₩118.9B | ₩76.1B | 17.7% | 12.7% | 60.9% |
| 2023 | ₩609.4B | ₩17.5B | -₩6.5B | 2.9% | −1.1% | 81.6% |
| 2024 | ₩785.1B | ₩24.5B | ₩27.5B | 3.1% | 4.5% | 78.4% |
| 2025 | ₩1.2T | ₩46B | ₩20.6B | 3.9% | 3.1% | 99.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Consolidated revenue rose sharply to KRW 1.179 trillion in 2025 from KRW 785.1 billion in 2024, while operating profit expanded to KRW 46.0 billion, roughly 1.9 times the KRW 24.5 billion recorded in 2024.
The operating margin improved gradually to 3.9% in 2025 from 3.1% in 2024 and 2.9% in 2023, though it remains well below the 17.7% posted in 2022. That 2022 margin reflected a temporary surge in ferroalloy prices, and margins collapsed in 2023 when the company posted a net loss of KRW 6.5 billion.
Net profit turned positive at KRW 27.5 billion in 2024, but in 2025, despite revenue and operating profit growth, net profit attributable to owners actually declined to KRW 20.6 billion, exposing a gap in earnings quality.
On a quarterly basis, operating profit rose from KRW 5.2 billion in Q2 2025 and KRW 9.6 billion in Q3 to KRW 23.6 billion in Q4, then continued at KRW 21.6 billion in Q1 2026 and KRW 26.8 billion in Q2 2026, marking three consecutive quarters in the KRW 20 billion-plus range.
Net profit attributable to owners, however, was far more volatile on a quarterly basis, moving from KRW 1.4 billion in Q3 2025 to KRW 4.6 billion in Q4, KRW 1.7 billion in Q1 2026, and KRW 17.1 billion in Q2 2026.
Revenue reached KRW 461.1 billion in Q2 2026, the largest among the recent five quarters, which appears linked to expanded intermediary trading activity.
Operating cash flow improved to a positive KRW 48.4 billion in 2025 after being negative KRW 20.8 billion in 2024, suggesting considerable swings tied to inventory and settlement cycles in the trading business.
Total equity grew from KRW 599.7 billion in 2022 to KRW 670.3 billion in 2025, but total liabilities grew faster over the same period, from KRW 365.4 billion to KRW 663.5 billion, pushing the debt ratio up from 60.9% to 99.0%.
Korea's domestic ferroalloy industry has recently faced structural pressure. Ferroalloy imports rose for a third consecutive year in the first quarter of 2026, and industry media have raised concerns about the erosion of the domestic production base despite weak demand.
Forecasts suggested 2025 ferroalloy output would fall short of 300,000 tons, a result attributed to both import penetration and shrinking manufacturing capacity.
A 2024 industry survey found the average capacity utilization rate among domestic ferroalloy producers had fallen to around 33%, with SIMPAC's own utilization rate at roughly 18%, a decline mainly attributed to weakened cost competitiveness from rising electricity rates.
Amid this backdrop, SIMPAC appears to have partly cushioned downside pressure by diversifying revenue sources beyond ferroalloy into press equipment, trading, and auto parts.
By contrast, the press equipment industry retains entry barriers due to its high-mix, low-volume production characteristics, with results tied to the capital expenditure cycles of downstream industries such as automotive and electronics.
The EV powertrain component market remains a growth area marked by active M&A and joint-venture activity among automakers and parts suppliers, and SIMPAC's incorporation of KDA can be viewed as part of that broader trend.
In the auto parts segment, the company has incorporated drivetrain component revenue through the KDA acquisition and is understood to be expanding production capacity for EV powertrain component output.
Expansion of intermediary import-export trading in aluminum, tin ingots, and steel, along with increased orders for metal forming machinery in the press segment, have been cited as the main drivers of recent earnings improvement.
The fact that operating profit has registered in the KRW 20 billion-plus range for three consecutive quarters suggests the improvement in trading and press operations has persisted for a period of time.
The ferroalloy segment, however, remains subject to industry-wide declines in utilization and rising imports, and the pace of recovery in this segment could be a key swing factor for overall results.
The company carried out a common-stock cash dividend in March 2026, and whether this dividend policy continues will likely track the trajectory of annual earnings.
Given the sharp rise in the debt ratio, the impact of the trading segment's inventory and funding structure on future financial stability also warrants continued attention.
The current share price trades below the company's net asset value, placing its price-to-book ratio in a sub-1x range.
On the earnings side, results have moved from a net loss in 2023 to profitability in 2024 and 2025, showing a recovery trend, though the sizable swings in quarterly net profit attributable to owners mean the durability of that recovery has yet to be confirmed.
The company has a recent history of common-stock cash dividends, suggesting it maintains a degree of shareholder return policy, though how that level compares with sector averages can vary by period.
The recent sharp rise in the debt ratio is a factor that should be weighed alongside any assessment of share price relative to net assets.
Overall, the stock is being evaluated by the market amid a mix of positive signals from earnings recovery and revenue growth, and offsetting signals from net profit volatility and balance-sheet leverage.
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
2025 revenue rose about 50% year over year, and operating profit expanded roughly 1.9-fold. Notably, operating profit has registered in the KRW 20 billion-plus range for three consecutive quarters (Q4 2025 through Q2 2026), indicating the profitability improvement is not a one-off. Expanded orders and trading volume in the trading and press segments are cited as the main drivers.
The KDA acquisition brought drivetrain component revenue into the group, and production capacity is being expanded for EV powertrain component manufacturing. This diversification is expected to reduce dependence on the single ferroalloy business.
The share price trades below the company's net asset value. Total equity has steadily increased since 2022, reaching approximately KRW 670 billion by 2025, indicating an expanding asset base.
Despite growth in revenue and operating profit in 2025, net profit attributable to owners actually declined to KRW 20.6 billion from 2024.
Quarterly net profit has at times moved in a different direction from the revenue and operating profit improvement, making it difficult to infer genuine improvement from top-line metrics alone.
The debt ratio jumped from 78.4% in 2024 to 99.0% in 2025. This reflects total liabilities growing much faster than total equity, likely tied to funding needs from the expanding trading business.
Korea's domestic ferroalloy industry continues to face structural issues from low utilization and rising import penetration, with reports indicating imports have risen for a third straight year into 2026. This could constrain margin recovery in the ferroalloy segment, one of SIMPAC's core revenue sources.
The debt ratio rose sharply to 99.0% in 2025. Operating cash flow was negative in 2024, and funding pressure tied to the trading business's inventory and settlement cycle could affect financial stability.
Korea's domestic ferroalloy industry faces combined pressure from weakened cost competitiveness due to rising electricity rates, falling utilization, and expanding imports. If this trend persists, the pace of profitability recovery in the ferroalloy segment could be constrained.
The ferroalloy segment is known to be heavily reliant on a small number of large customers, including Hyundai Steel and POSCO.
In addition, the expansion of EV powertrain component production through the KDA acquisition remains at an early stage, and returns on this investment could be delayed if planned capacity expansion and order intake do not proceed as expected.
The Q3 2026 quarterly report is expected. It will be worth checking whether the operating profit improvement in the trading and press segments continues and whether the volatility in net profit attributable to owners eases.
Additional industry statistics on ferroalloy import-export volumes and capacity utilization (from the Korea Iron & Steel Association and industry trade press) are expected. These will help gauge changes in the operating environment for the ferroalloy segment.
It will be worth monitoring for follow-up disclosures on EV powertrain component capacity expansion and new orders through KDA.
The 2026 annual business report and regular shareholders' meeting are expected to disclose the annual dividend policy and segment-level revenue contributions.
SIMPAC posted sharply higher revenue and operating profit in 2025, yet net profit attributable to owners declined in a notable divergence, while operating profit has stabilized in the KRW 20 billion-plus range in recent quarters even as the debt ratio climbed to 99.0%.
Growth has been driven by expanded orders in the trading and press segments and entry into EV powertrain components through KDA, which is helping diversify the business away from sole reliance on ferroalloy.
The ferroalloy segment, however, remains under structural pressure from industry-wide declines in utilization and rising imports, and a slower recovery there could weigh on overall results.
Financially, the sharp rise in the debt ratio and cash-flow volatility tied to the nature of the trading business warrant continued attention alongside the sustainability of revenue and operating-profit growth.
The share price trades below net asset value, and the market appears to be weighing both the stability of the earnings recovery and the burden of the balance-sheet structure. This report contains no investment opinion or buy/sell recommendation and is provided for informational purposes only.
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.