PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩170 per share · Prices as of the 2026-10-02 close
Hwashin posted record 2025 revenue of KRW 1.9625 trillion and operating profit of KRW 102.4 billion on Hyundai-Kia chassis parts, but quarterly operating margins have wobbled again in 2026 under new US-plant depreciation and tariff costs.
2025 consolidated revenue reached KRW 1.9625tn and operating profit KRW 102.4bn, a sharp improvement with operating margin recovering to 5.2%
Operating margin slid to 3.4% in Q1 2026 and 1.2% in Q2 2026, mainly attributed to depreciation from the new US plant
US sales share of about 35% has overtaken Korea's 33.6% as the largest market, with tariff costs reimbursed through an OEM compensation structure
Battery pack case revenue surged from KRW 20bn in 2024 to KRW 80bn (+304%) in 2025, with robot body-module entry also being discussed
Samsung Securities stated in a May 2026 report that it maintained a target price of KRW 16,000 (Buy) — an analyst view, not our opinion
Founded in 1975 and headquartered in Yeongcheon, North Gyeongsang Province, Hwashin is a KOSPI-listed specialist in automotive chassis and body parts.
Its primary customer base is Hyundai Motor and Kia, Korea's largest carmaker group, for which it supplies Chassis & Body Part and Electrification Part products in modular or individual form. The Chassis segment accounts for roughly 71.2% of sales, Body about 13.4%, and other products about 13.5%.
Key products include steering-related components such as members, control arms and CTBA, chassis items such as fuel tanks and panels, and battery pack cases for electric vehicles.
Through its in-house R&D center, the company participates across the full vehicle development chain from design and testing to mold-making, giving it independent order-winning capability. Overseas production sites span the United States, India, China, Brazil and Vietnam, forming a global manufacturing network.
As of 2025, US sales share of about 35% overtook Korea's roughly 33.6% to become the largest market, reflecting Hyundai-Kia's expanding US production. More recently, the company has broadened its portfolio toward EV-platform battery pack cases while also exploring a possible entry into robot body-module business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩490.8B | ₩26.5B | 5.4% |
| 2025Q3 | ₩485.9B | ₩11.6B | 2.4% |
| 2025Q4 | ₩512.4B | ₩33.9B | 6.6% |
| 2026Q1 | ₩505.6B | ₩17B | 3.4% |
| 2026Q2 | ₩498.4B | ₩5.8B | 1.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.7T | ₩87.4B | ₩74.2B | 5.2% | 20.8% | 181.5% |
| 2023 | ₩1.8T | ₩83.7B | ₩77.3B | 4.6% | 17.4% | 168.9% |
| 2024 | ₩1.7T | ₩65.3B | ₩53.6B | 3.8% | 10.4% | 155.4% |
| 2025 | ₩2T | ₩102.4B | ₩66.7B | 5.2% | 11.7% | 172.9% |
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 moved from KRW 1.6903tn revenue and KRW 87.4bn operating profit in 2022, to KRW 1.8028tn revenue (KRW 83.7bn operating profit) in 2023 — revenue rose while operating profit slipped slightly — before revenue fell to KRW 1.7123tn and operating profit dropped further to KRW 65.3bn in 2024, pushing operating margin to a low of 3.8%.
In 2025, revenue rebounded sharply to KRW 1.9625tn with operating profit of KRW 102.4bn, restoring operating margin to 5.2%, while owners' net income rose to KRW 66.7bn. Quarterly trends, however, have been far less smooth.
Operating margin was 5.4% in Q2 2025 but plunged to 2.4% in Q3 before rebounding to 6.6% in Q4, showing considerable seasonal swings. Into 2026, operating margin fell further to 3.4% in Q1 (operating profit of KRW 17.0bn) and to 1.2% in Q2 (KRW 5.8bn), extending the margin pressure.
Net income has at times diverged from the operating profit trend: owners' net income was just KRW 0.24bn in Q2 2025 but jumped to KRW 18.0bn in Q3, then to KRW 28.3bn in Q1 2026, before falling back to KRW 7.0bn in Q2 2026 — a pattern consistent with one-off non-operating items such as FX gains materially swaying quarterly net income.
Operating cash flow also dropped sharply from KRW 136.9bn in 2024 to KRW 42.0bn in 2025, illustrating that profit recovery and cash generation have not always moved in tandem.
Hwashin's earnings are directly linked to Hyundai-Kia's production cycle. At the Hyundai Motor Group Metaplant America (HMGMA) in Georgia, the Kia Sportage Hybrid began production from May, with a Hyundai hybrid model slated to follow from 2027, implying a phased improvement in utilization.
In India, Hyundai's Pune plant is planned to expand capacity to 150,000 units annually in 2026 and 250,000 units by 2028, which ties into Hwashin's position as the exclusive chassis supplier to Hyundai-Kia in both the US and India.
Hyundai Motor Group has announced a three-year, USD 26 billion investment plan to expand Physical AI businesses including robotics, robotaxis and data centers, raising the possibility that the parts industry's scope could extend beyond conventional vehicle manufacturing.
That said, fixed-cost burdens are unavoidable during early ramp-up of new plants; Hana Securities projected in a May 2025 report that the Georgia plant would take more than a year and a half to reach breakeven.
Regional performance can diverge sharply, as illustrated by a 14% drop in China revenue around the same period due to reduced client production.
Among domestic peers, large chassis and electronics-parts makers such as SL Corp are often mentioned alongside Hwashin, reflecting a competitive landscape shaped by the automaker group's push into electrification and robotics.
Samsung Securities, in a report dated February 13, 2026, projected 2026 revenue of KRW 2.1tn (+9.4% YoY), operating profit of KRW 119.2bn (+16% YoY) and operating margin of 5.6% (+0.4pp).
The same report estimated that battery pack case revenue, which rose from KRW 20bn (1.2% of sales) in 2024 to KRW 80bn (4.1%, +304%) in 2025, would grow further to around KRW 170bn (8%, +112%) in 2026 on expanded PV5/EV4 exports and GV90 supply.
Samsung Securities analyst Lim Eun-young, who authored the report, argued that Hwashin's design and materials technology could serve as a foundation for entry into robot limb and body-module manufacturing, noting that the Georgia plant built in 2024 alongside the Metaplant construction leaves the company with spare capacity.
In a report dated May 18, 2026, Samsung Securities stated it maintained a target price of KRW 16,000 with a Buy rating, unchanged from the target it had set on February 20, 2026.
The same report attributed the sharp miss in Q1 2026 operating profit versus its own estimate to a KRW 4.0bn depreciation burden from the new US plant, while noting that non-operating income rose on a KRW 3.0bn foreign-exchange gain.
It added that utilization should improve as the Kia Sportage Hybrid entered the Metaplant from May and a Hyundai hybrid model is scheduled to follow in 2027.
On tariffs, the report noted that 2025 costs of about KRW 20bn were reimbursed by the automaker in the fourth quarter, and expected most of the 2026 tariff cost to be similarly reimbursed.
The target multiple Samsung Securities applied in deriving its price target referenced Hwashin's five-year post-pandemic average and the small-cap parts sector average, and the multiple implied by recent trading levels has tended to sit below that reference band.
The share price also trades below the company's per-share net asset value, placing it in a discount range relative to book value. Dividends are paid annually, but the yield sits on the lower side compared with some other auto-parts names that offer relatively higher payouts.
Earnings moved from a period of profit softness in 2023-2024 into a 2025 recovery, yet quarterly results in the first half of 2026 have again come under margin pressure, so valuation assessment needs to weigh quarterly volatility alongside annual figures.
Taken together, the pricing metrics can be read as reflecting both the earnings-recovery narrative and the drag from new-plant startup costs simultaneously.
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
Battery pack case revenue jumped from KRW 20bn (1.2% of sales) in 2024 to KRW 80bn (4.1%, +304% YoY) in 2025. Samsung Securities projected further growth to about KRW 170bn (8%, +112% YoY) in 2026, supported by expanded PV5/EV4 exports and GV90 supply.
Tied to the rollout of EV-dedicated platforms, this segment's revenue contribution could keep expanding alongside new-model launch schedules.
Samsung Securities analyst Lim Eun-young argued that Hwashin's design capability and materials technology could underpin an entry into robot limb and body-module manufacturing. The rationale also cited spare production capacity at the Georgia plant, built in 2024 alongside the Metaplant construction.
It should be noted, however, that this remains an early-stage potential without confirmed orders or mass-production plans.
Hwashin holds an exclusive chassis-supply position to Hyundai-Kia in both the US and India. Its US sales share of about 35% has overtaken Korea's 33.6% as its largest market, and Hyundai-Kia generates roughly 60% of its automotive profit in the US while continuing large-scale investment there.
The company is directly exposed to its customers' growth plans, including the expansion of Hyundai's Pune plant (150,000 units in 2026 rising to 250,000 by 2028) and Kia's raised sales target for the second-generation Telluride (from 127,000 to 177,000 units).
Operating margin fell to 3.4% in Q1 2026 and 1.2% in Q2 2026, down sharply from 6.6% in Q4 2025.
Samsung Securities attributed this to a KRW 4.0bn depreciation burden from the new US plant, while Hana Securities projected in a May 2025 report that the Georgia plant would take more than a year and a half to reach breakeven. Quarterly margin volatility could persist until the new plant's utilization fully normalizes.
US tariff costs in 2025 totaled about KRW 20bn and were reimbursed by the automaker in the fourth quarter.
Most of the 2026 tariff cost is expected to be similarly reimbursed, but because compensation is structured with a lag, the gap between when tariffs are incurred and when reimbursement is booked can distort margins in specific quarters. Changes in tariff policy or in the terms of the OEM compensation arrangement could also disrupt this structure.
Most of Hwashin's revenue depends on the Hyundai-Kia group, making its results highly sensitive to the customer's production plans and model cycles. In Q1 2025, China revenue fell 14% due to reduced client production, illustrating how regional swings can flow directly into results.
High revenue dependence on a single automaker group means that any slowdown in that group's sales or production could immediately affect the company's overall performance.
With US sales accounting for about 35% of revenue, the company has significant exposure to KRW/USD exchange rate movements. While US import tariffs are structured to be reimbursed by the automaker, changes in policy or in the compensation agreement terms could increase the cost burden.
Quarterly FX gains and losses have also materially affected net income, making currency risk management an important variable for earnings stability.
Revenue and profit are directly tied to Hyundai-Kia's new model launches, plant utilization rates, and SUV/EV sales trends. If the pace of utilization improvement at the Metaplant or the Pune facility falls behind schedule, growth in parts orders could also be delayed.
Any shift in the automaker's electrification strategy or production allocation could ripple through Hwashin's revenue structure.
The expansion of battery pack case business and the possible entry into robot body-module manufacturing remain at an early stage, without confirmed orders or mass-production schedules. Additional investment and depreciation for these new businesses tend to precede revenue contribution, creating a potential time lag.
If commercialization is slower than hoped, the related capital spending could weigh on near-term margins instead.
The Q3 2026 quarterly report is due — a key point to check whether operating margin recovers as the new US plant's depreciation burden eases.
Time to check progress toward the Pune plant's annual 150,000-unit utilization target and whether battery pack case sales reach the roughly KRW 170bn annual estimate.
Check whether 2026 US tariff costs were reimbursed by the automaker as expected, and whether full-year results align with Samsung Securities' estimate of KRW 2.1tn revenue and KRW 119.2bn operating profit.
Monitor whether concrete orders or mass-production plans for the robot body-module business are formalized — currently this remains at the potential-only stage.
Hwashin confirmed an earnings recovery with record 2025 results, but first-half 2026 quarterly performance has come back under margin pressure from new US-plant depreciation, leaving recovery and cost drag coexisting in the current phase.
High growth in battery pack case revenue and a possible entry into robot body-module manufacturing are cited as medium-to-long-term growth options, though both remain at an early stage without confirmed orders or mass-production timelines.
The exclusive chassis-supply structure to Hyundai-Kia in the US and India directly exposes the company to its customers' production expansion and new-model launches — a strength that simultaneously represents high customer concentration risk.
Tariff costs are structured to be reimbursed by the automaker, but the timing lag in that reimbursement remains a factor that can sway quarterly margins.
Valuation metrics show a discount to book value and a trading multiple below the reference target multiple, reflecting both recovery expectations and cost-burden concerns at once. Key points to watch going forward are the pace of new-plant utilization normalization and whether the new business lines become concrete.
Report written 2026-09-05 · Data as of 2026-09-04
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