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
Ajin Electronics Components posted sharply higher 2025 revenue and net profit versus the prior year, moving away from losses, but quarterly operating profit has declined for several consecutive quarters since late 2025.
2025 consolidated revenue reached KRW 151.8bn, operating profit KRW 6.3bn, and owners' net profit KRW 4.4bn, all up year over year
Operating profit has stepped down sequentially over five quarters from 2025Q2 to 2026Q2, from KRW 2.64bn to KRW 0.63bn
PTC heaters and radar are core products, with US-based heater expansion and a new current-sensor line at the Suzhou, China subsidiary underway
Global auto demand growth is slowing in 2026, but stronger hybrid preference and new domestic EV plant startups are supporting parts demand
Owners' net profit swung negative in 2025Q4 (-KRW 0.46bn) and 2026Q2 (-KRW 0.11bn), showing wider quarterly earnings volatility
Ajin Electronics Components was established in 1973 and listed on the KOSPI in 1989, transitioning into a dedicated automotive electronics parts maker after acquiring Ajin Industry in 2010. Its core products today are PTC heaters and RADAR units, supplied to major domestic and overseas automakers and parts customers.
The company operates a joint development system with customers to meet fuel-efficiency and safety regulations, while directing R&D investment toward expanding its export mix.
Through a US subsidiary, it is expanding heater deliveries and broadening its product lineup, and it is mass-producing next-generation EV heaters, mood-lamp controllers, and AAU units. In China, it has built a current-sensor production line at its Suzhou subsidiary to target the domestic Chinese market.
Under its former name, Daewoo Parts, the company was selected in 2023 as a supplier of high-voltage PTC heaters to Hyundai and Kia, securing a roughly KRW 113.4 billion, ten-year supply agreement equal to 112.8% of the prior year's revenue at the time.
As automakers push toward parts commonization and larger, longer-term orders, the company's position as a scale-capable Tier 1 supplier has helped stabilize its revenue base.
Competing suppliers such as Woory Industrial also supply PTC heaters to Hyundai, Kia, and overseas automakers and parts makers, meaning competition within the same product category continues.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩41.4B | ₩2.6B | 6.4% |
| 2025Q3 | ₩41.2B | ₩2B | 4.8% |
| 2025Q4 | ₩35.8B | ₩1.1B | 3.0% |
| 2026Q1 | ₩36.5B | ₩900M | 2.4% |
| 2026Q2 | ₩38.6B | ₩600M | 1.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩100.5B | -₩5.8B | -₩8.7B | −5.7% | −34.1% | 255.6% |
| 2023 | ₩113.4B | ₩2B | ₩200M | 1.8% | 0.8% | 239.1% |
| 2024 | ₩143.5B | ₩5.9B | ₩900M | 4.1% | 3.2% | 254.7% |
| 2025 | ₩151.8B | ₩6.3B | ₩4.4B | 4.1% | 13.2% | 228.7% |
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
2025 consolidated revenue was KRW 151.8 billion, up from KRW 143.5 billion in 2024, while operating profit rose modestly to KRW 6.3 billion from KRW 5.9 billion. The operating margin held at 4.1% in both years.
Owners' net profit jumped to KRW 4.4 billion in 2025 from KRW 0.9 billion in 2024, marking a clear recovery after a loss of KRW 8.7 billion in 2022 and a thin profit of KRW 0.2 billion in 2023. Quarterly trends, however, have been uneven.
After posting revenue of KRW 41.4 billion, operating profit of KRW 2.64 billion, and net profit of KRW 2.59 billion in 2025Q2, operating profit fell in 2025Q3 (revenue KRW 41.2bn, operating profit KRW 1.96bn, net profit KRW 1.69bn) and again in 2025Q4 (revenue KRW 35.8bn, operating profit KRW 1.09bn, net loss KRW 0.46bn).
The decline continued into 2026, with operating profit of KRW 0.88bn and net profit of KRW 0.41bn in 2026Q1, and operating profit of KRW 0.63bn with a net loss of KRW 0.11bn in 2026Q2.
Revenue itself recovered modestly from KRW 35.8bn in 2025Q4 to KRW 36.5bn in 2026Q1 and KRW 38.6bn in 2026Q2, yet operating profit shrank further over the same period, indicating that cost pressure has outpaced the pace of revenue recovery.
Operating cash flow was KRW 13.2 billion in 2024, well above net profit, but fell to KRW 4.5 billion in 2025, closer to the net profit level, showing year-to-year variability in cash generation.
Global auto demand in 2026 is projected at roughly 87.93 million units, with year-over-year growth of only 0.2%, constrained mainly by slowdowns in the two largest markets, the US and China.
The EV/PHEV market is also in an adjustment phase; after strong growth in 2025, base-effect comparisons and demand weakness in the US and China are expected to push 2026 growth down to around 10%.
In Korea, however, new EV-capable plants — Hyundai's Ulsan facility starting in Q1 2026 and Kia's Gwangmyeong and Hwaseong EVO plants — are expanding eco-friendly vehicle production capacity, while aging-vehicle replacement demand and a wave of new model launches are expected to support recovery.
The rollback of US EV tax credits is also boosting hybrid preference, keeping underlying demand for thermal-management and electrification components intact.
Because rising per-vehicle content of thermal-management, electrification, and electronic-control parts can lift parts suppliers' revenue more directly than automakers' profits, the earnings sensitivity of electronics component makers has drawn attention.
At the same time, aggressive overseas expansion by Chinese brands and their inroads into the domestic market are cited as a threat to Korean suppliers broadly, and competitors such as Woory Industrial continue to win new PTC heater orders from Hyundai, Kia, and overseas automakers and suppliers, keeping competitive intensity elevated in the same product segment.
The company is expanding heater deliveries through its US subsidiary and diversifying its product lineup, while mass-producing next-generation EV heaters, mood-lamp controllers, and AAU units.
In China, it is preparing to enter the domestic market by building a current-sensor production line at its Suzhou subsidiary, meaning new product categories and new market entry are proceeding in parallel.
On a nine-month cumulative basis through Q3 2025, consolidated revenue reportedly rose 17.3% year over year, with operating profit up 73.3% and net profit up 1,465.9%, which the company attributed to development and mass production of EV and fuel-efficiency-related electronics parts along with expanded application in new Hyundai and Kia models.
That improvement trend, however, reversed starting in 2025Q4, when quarterly operating profit began declining again, a pattern that has persisted through 2026Q2 — meaning whether performance turns higher again in the second half will need to be confirmed through upcoming quarterly results.
On the industry side, expanded eco-friendly vehicle production from new domestic plants and stronger hybrid demand are supportive factors, while US tariffs and the expanding supply reach of Chinese brands are simultaneous headwinds.
The specific startup timing and initial revenue contribution of the Suzhou current-sensor line have not yet been detailed, warranting monitoring through future disclosures.
Net profit moved from a loss in 2022 to a gradual recovery through 2023-2025, but the company posted net losses again in 2025Q4 and 2026Q2, meaning the direction of earnings has not been consistent quarter to quarter.
As a result, profitability metrics calculated over the most recent four quarters should be read as carrying more volatility than the annual figures suggest.
The stock tends to trade at a certain premium to net asset value, a pattern that can partly be attributed to steady capital accumulation as the company moved past its earlier loss period. No dividend has been paid in the most recent fiscal year, so dividend-related metrics are not currently formed.
Given the sizable quarter-to-quarter swings in earnings, valuation levels may be better assessed alongside whether profitability recovers over the coming quarters rather than from a single period's earnings figure alone.
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
The company moved from an operating loss of KRW 5.8bn and net loss of KRW 8.7bn in 2022 to operating profit of KRW 6.3bn and net profit of KRW 4.4bn in 2025, improving for four consecutive years and exiting the loss zone. Revenue also rose every year, from KRW 100.5bn in 2022 to KRW 151.8bn in 2025. This pattern reflects multi-year improvement rather than a one-off quarterly factor.
The company holds Tier-1 supplier status for high-voltage PTC heaters and RADAR units to Hyundai and Kia, and has previously secured a roughly KRW 113.4bn, ten-year supply agreement.
Automakers' shift toward parts commonization and large, long-term orders is creating a favorable environment for suppliers with scale and technical capability. This can be viewed positively for the sustainability of the revenue base.
The company is simultaneously pursuing multiple growth avenues: expanding its heater lineup through a US subsidiary, mass-producing next-generation EV heaters, mood-lamp controllers, and AAU units, and building a current-sensor line at its Suzhou, China subsidiary. This diversification can help reduce dependence on any single customer or product.
Operating profit fell for five straight quarters, from KRW 2.64bn in 2025Q2 to KRW 1.96bn in Q3, KRW 1.09bn in Q4, KRW 0.88bn in 2026Q1, and KRW 0.63bn in 2026Q2. Over the same period revenue recovered past its Q4 trough, yet profit kept shrinking, suggesting rising cost pressure. Whether this pattern persists needs to be confirmed with upcoming quarterly results.
Owners' net profit swung to a loss twice — KRW -0.46bn in 2025Q4 and KRW -0.11bn in 2026Q2. While annual results remain profitable, the frequent quarter-to-quarter reversals make it difficult to draw firm trend conclusions from any single quarter.
The debt ratio has stayed well above 200% every year — 255.6% in 2022, 239.1% in 2023, 254.7% in 2024, and 228.7% in 2025. Shareholders' equity of KRW 33.3bn at end-2025 is also small relative to revenue, which could leave a relatively limited buffer against external shocks.
Global auto demand growth is projected at just 0.2% in 2026, and EV/PHEV market growth is expected to slow to around 10% amid base effects and weaker US-China demand. If end-market demand growth stalls, the scope for parts-volume-driven revenue growth could also be constrained.
The five-quarter streak of declining operating profit suggests cost or expense pressure has outpaced the revenue recovery. External variables such as raw material prices and exchange rates could further affect margins, making it important to check whether the cost structure improves in coming quarters.
In the PTC heater and radar segment, competitors such as Woory Industrial continue to win new orders from Hyundai, Kia, and overseas automakers and suppliers, keeping competitive intensity elevated.
The company's revenue is also heavily reliant on a small number of customers such as Hyundai and Kia, meaning changes in a key customer's order policy could directly affect results.
The 2026Q3 quarterly report is due, and it will be important to check whether the five-quarter decline in operating profit continues or turns toward recovery.
Preliminary full-year 2026 results are expected to be disclosed, allowing a comparison of annual revenue, operating profit, and net profit against 2025.
Watch for additional disclosures or reports on whether the Suzhou, China subsidiary's current-sensor production line has started operating and is beginning to contribute revenue.
It is worth monitoring whether expanded eco-friendly vehicle production from Hyundai and Kia's new domestic plants (Ulsan, Gwangmyeong and Hwaseong EVO) translates into higher parts supply volumes, and whether related order or supply-contract disclosures follow.
Ajin Electronics Components has shown a multi-year recovery, moving from a loss in 2022 to 2025 revenue of KRW 151.8bn, operating profit of KRW 6.3bn, and net profit of KRW 4.4bn, improving for four consecutive years.
On a quarterly basis, however, operating profit has declined for five straight quarters since 2025Q2, and net losses appeared in both 2025Q4 and 2026Q2, meaning the direction of earnings has not been fully consistent.
On the business side, the company continues to supply PTC heaters and radar units as a Tier-1 partner to Hyundai and Kia, while pursuing product diversification and new-market entry in the US and China simultaneously.
The industry backdrop features global auto demand growth of just 0.2% projected for 2026, with new domestic plant startups and stronger hybrid preference as supportive factors, offset by US tariffs and expanding Chinese-brand competition as headwinds.
A debt ratio well above 200% and revenue concentration among a small number of customers remain factors to continue monitoring. Upcoming quarterly results and progress on new products and markets will be key variables in assessing whether profitability recovers going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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