KOSPISteel & Metals012160

Youngwire

₩2,235▲ 7.71%2026-10-02 close

Market Cap

₩33.7B

Turnover

₩24,695,595

Volume

10,000 shares

Shares out.

15.6M

PER

—

PBR

0.2×

EPS

-₩2,341

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

Youngwire: Q2 Profit Turn Amid Balance-Sheet Cleanup

Youngwire returned to operating profit in Q2 2026 after five consecutive quarters of operating losses, but revenue has continued a multi-year contraction while the company pursues balance-sheet cleanup through asset sales.

1
Q2 2026 operating profit of KRW 2.17bn marked a turn after five straight loss quarters; owners' net profit also turned marginally positive (about KRW 41mn)
2
Annual revenue fell for four straight years, from KRW 527.4bn in 2022 to KRW 433.5bn in 2025, with operating margin deteriorating to -3.0% in 2025
3
Over the trailing four quarters (Q3 2025-Q2 2026), cumulative owners' net loss remained at roughly KRW 29.6bn
4
The company has pursued liquidity and balance-sheet improvement through the sale of Changwon plant land parcels (KRW 34.5bn and KRW 20.4bn) and the divestment of its Vietnam subsidiary
5
A 5-for-1 share consolidation completed around May 2026 reduced shares outstanding from roughly 78.1 million to 15.6 million

Business structure

Youngwire was founded in 1977 and listed on the KOSPI in 2010, operating primarily as a steel wire processor producing wire, wire rope, and PC steel strand.

The company runs several business lines including steel products, automotive parts, logistics, anti-corrosion packaging materials, and cold-heading quality (CHQ) wire and steel bar manufacturing and sales.

In 2024 it spun off its automotive parts division into a wholly owned subsidiary, YH Auto, through a physical split. Its subsidiary Daeho Special Steel operates a two-plant system in Chungju and Pohang producing CHQ wire used in automotive fasteners, maintaining a position in the cold-heading wire market.

The rebar the company handles is a bar-type reinforcing steel product whose demand is closely tied to the construction cycle.

The company has been pursuing AI and big-data based smart factory construction and eco-friendly technology development in response to digitalization and green-transition trends in the steel industry.

Given this business mix, the company is highly exposed to domestic construction and automotive demand as well as raw material (steel scrap) price swings.

Competitively, unlike large integrated blast-furnace players such as POSCO and Hyundai Steel, it operates as a small-to-mid-sized bar-steel and secondary-processing specialist where cost and price competitiveness are key variables.

Earnings trend

Quarterly revenue · Operating profit

₩116.3B-₩2.4B25Q2₩109.9B-₩7B25Q3₩96.3B-₩2.2B25Q4₩96.4B-₩1.4B26Q1₩106.8B₩2.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩527.4B₩4.2B2022₩500B₩1.3B2023₩480.3B₩3.1B2024₩433.5B-₩13.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩116.3B	-₩2.4B	−2.0%
2025Q3	₩109.9B	-₩7B	−6.3%
2025Q4	₩96.3B	-₩2.2B	−2.3%
2026Q1	₩96.4B	-₩1.4B	−1.5%
2026Q2	₩106.8B	₩2.2B	2.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩527.4B	₩4.2B	-₩300M	0.8%	−0.2%	170.3%
2023	₩500B	₩1.3B	-₩6.4B	0.3%	−3.3%	136.7%
2024	₩480.3B	₩3.1B	-₩7.8B	0.6%	−4.2%	136.8%
2025	₩433.5B	-₩13.2B	-₩52.3B	−3.0%	−38.5%	143.3%

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

Youngwire's annual revenue declined for four consecutive years, from KRW 527.37bn in 2022 to KRW 500.01bn in 2023, KRW 480.35bn in 2024, and KRW 433.48bn in 2025.

Operating profit stayed marginally positive in 2022-2024 at KRW 4.23bn, KRW 1.25bn, and KRW 3.07bn respectively, before swinging to an operating loss of KRW 13.17bn in 2025, with the operating margin falling to -3.0%.

Owners' net loss widened each year, from KRW 0.33bn in 2022 to KRW 6.40bn in 2023, KRW 7.82bn in 2024, and KRW 52.33bn in 2025.

On a quarterly basis, the company posted four consecutive operating losses from Q2 2025 through Q1 2026 (KRW -2.38bn, KRW -6.97bn, KRW -2.24bn, and KRW -1.44bn), before turning to an operating profit of KRW 2.17bn on revenue of KRW 106.77bn in Q2 2026.

Owners' net loss over the same span narrowed from KRW -24.67bn in Q2 2025, to KRW -17.13bn in Q3 2025, KRW -11.59bn in Q4 2025, and KRW -0.89bn in Q1 2026, before turning marginally positive at roughly KRW 41mn in Q2 2026.

Still, cumulative owners' net loss over the trailing four quarters (Q3 2025-Q2 2026) stood at about KRW 29.57bn, meaning a single quarter of profit did not fully offset the accumulated loss structure.

Operating cash flow, meanwhile, rose to KRW 41.42bn in 2025 from KRW 19.95bn in 2024, a contrast to the widening net loss that likely reflects asset disposals and working-capital changes.

Owners' equity fell from KRW 186.05bn in 2024 to KRW 135.77bn in 2025, while the debt ratio edged up from 136.8% to 143.3%, indicating that accumulated losses are weighing on the balance sheet.

Industry analysis

Rebar, the product Youngwire handles, is a bar-type reinforcing steel product whose demand is directly tied to the construction sector according to company disclosures.

Domestic construction investment is estimated to have fallen about 9.0% in 2025, and forecasts point to only a limited recovery of around 2% in 2026, suggesting a gradual pace of recovery for the bar-and-rod steel end market.

Across the broader steel industry, major players including POSCO, Hyundai Steel, and Dongkuk Steel improved profitability in Q2 2026 despite weak construction demand and inflows of low-priced Chinese steel, with attention now turning to AI data centers and semiconductor cluster mega-projects as new demand sources in the second half.

Hyundai Steel, however, has said that while bar-and-rod steel conditions would see modest improvement, a large increase in demand is unlikely, and that even if construction orders recover, the annual rebound in construction activity could be limited.

Youngwire's cold-heading quality wire business has continued to face weaker demand and softer prices amid economic slowdown and rising trade protectionism, a pressure shared broadly across the automotive fastener material market.

In this competitive landscape, Youngwire and Daeho Special Steel operate as smaller specialized processors rather than integrated blast-furnace producers, making cost management and customer responsiveness key performance variables.

Outlook

The company has prioritized balance-sheet repair and liquidity, continuing to dispose of non-core assets.

The Changwon plant site was sold in two stages, Parcel A for KRW 34.5bn to Geumahide Power and Parcel B for KRW 20.4bn to AMS, while the 100% stake in Vietnam subsidiary Youngwire VINA was divested with the deal closing in February 2025.

Subsidiary Daeho Special Steel has similarly sold part of its idled Yangsan plant site to fund debt repayment, part of a broader group-level asset slimming effort.

In May 2026, the company approved a 5-for-1 share consolidation aimed at optimizing the number of shares outstanding and enhancing corporate value, reducing total shares issued from roughly 78.1 million to 15.6 million.

The Q2 2026 swing to operating profit occurred alongside this restructuring effort and drew market attention as a potential sign of earnings improvement.

Industry participants expect steel price normalization and AI/semiconductor-related infrastructure investment to emerge as new demand drivers in the second half, which could affect the company's bar-steel and CHQ wire segments.

Still, since the construction sector recovery is expected to remain gradual, whether the operating profit turn continues into the following quarters will need to be confirmed.

Valuation

PER

—

PBR

0.2×

ROE

-19.8%

EPS

-₩2,341

BPS

₩10,618

Dividend per share

₩0

Because Youngwire has posted owners' net losses for four consecutive years (2022-2025), conventional price-to-earnings comparisons are difficult to apply to its valuation at this stage.

Its price-to-book ratio sits well below 1, indicating the shares trade at a discount to net asset value, though this needs to be considered alongside the erosion of equity from years of accumulated losses. No recent dividend payment has been confirmed, making dividend-yield comparisons of limited relevance for now.

The 5-for-1 share consolidation implemented in May 2026 also changed the basis for share count and per-share metrics, which warrants care when comparing against historical figures.

The simultaneous swing to operating and net profit in Q2 2026 could mark a starting point for renewed valuation discussion, but because the trailing four-quarter total remains a net loss, further confirmation is needed on whether the earnings recovery proves durable.

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

Q2 Operating Profit Turnaround

Q2 2026 operating profit reached KRW 2.17bn, ending five consecutive quarters of operating losses, with owners' net profit also turning marginally positive. Revenue also rose from KRW 96.43bn in Q1 2026 to KRW 106.77bn in Q2, suggesting the multi-year revenue decline paused temporarily.

This shift coincided with the company's ongoing restructuring efforts including asset sales, and whether it marks a genuine inflection point can be further assessed in upcoming quarterly results.

Liquidity Gains from Non-Core Asset Sales

The company has continued monetizing non-core assets to improve its balance sheet, selling the Changwon plant site in two parcels (KRW 34.5bn and KRW 20.4bn) and fully divesting its Vietnam subsidiary stake.

Subsidiary Daeho Special Steel has also sold idled plant land to fund debt repayment, part of a broader group-level self-rescue effort. This asset slimming could ease near-term liquidity pressure.

Sector-Wide H2 Rebound Hopes and New Demand Sources

The steel industry is watching for price normalization and new demand from AI data center and semiconductor cluster mega-projects in the second half of 2026. Major steelmakers already improved profitability in Q2 despite weak construction activity, pointing to a broader sector-wide improvement trend. Youngwire's bar-steel and CHQ wire segments could be partially affected by these industry-wide developments.

Bear factors

Multi-Year Revenue Contraction and Structural Margin Erosion

Annual revenue declined for four straight years, from KRW 527.37bn in 2022 to KRW 433.48bn in 2025, with the 2025 operating margin worsening to -3.0%. Given the business's heavy reliance on the construction-linked rebar and bar-steel segment, a near-term revenue rebound is not straightforward.

A single profitable quarter in Q2 2026 is not sufficient to conclude that the structural issues have been resolved.

Accumulated Losses, Shrinking Equity, Rising Debt Ratio

Cumulative owners' net loss over the trailing four quarters (Q3 2025-Q2 2026) stood at roughly KRW 29.57bn, still in loss territory. Owners' equity fell from KRW 186.05bn in 2024 to KRW 135.77bn in 2025, while the debt ratio rose from 136.8% to 143.3% over the same period. Continued loss accumulation could constrain future investment capacity or funding flexibility.

Subsidiary Liquidity Strain and Weak Cold-Heading Wire Demand

Subsidiary Daeho Special Steel has previously faced liquidity strain with short-term borrowings well in excess of cash holdings, which could weigh on the group's overall financial stability.

The cold-heading quality wire business continues to see softer demand and pricing amid economic slowdown and rising trade protectionism, suggesting a slow recovery pace for that segment. These sub-level risks could constrain the durability of any improvement at the parent level.

Risk factors

Industry and Demand Risk

Demand for rebar and other bar-steel products is heavily tied to the construction cycle, and domestic construction investment is estimated to have fallen roughly 9% in 2025 with only a limited recovery of about 2% forecast for 2026.

The cold-heading quality wire segment faces a dual pressure of intensifying trade protectionism and economic slowdown. A delayed recovery in end-markets could test the durability of the recent swing to operating profit.

Financial and Liquidity Risk

The debt ratio rose to 143.3% in 2025 from the prior year, and owners' equity has continued to shrink.

Subsidiary Daeho Special Steel has previously faced liquidity pressure with short-term borrowings well exceeding cash holdings, and continued reliance on group-level asset sales raises the question of how much further non-core assets remain available to monetize.

Equity Structure and Governance Risk

The 5-for-1 share consolidation implemented in May 2026 changed the number of shares outstanding and float structure, which warrants caution when interpreting per-share metrics against historical data.

The company has a history of raising funds via convertible bonds, so the possibility of equity dilution from future fundraising cannot be ruled out. No recent dividend payment has been confirmed, adding uncertainty on the shareholder-return side.

What to watch next

Around November 2026 (expected Q3 earnings disclosure)
Check whether the Q2 2026 swing to operating profit continues into Q3 and whether the revenue uptick persists.
Q4 2026
Monitor whether the remaining Changwon plant land sale proceeds and ownership transfer are completed, and when the related cash inflow is reflected in the balance sheet.
At the next quarterly report disclosure
Check changes in subsidiary Daeho Special Steel's short-term borrowings and liquidity metrics, and progress on debt repayment.
Second half of 2026
Track government SOC budget execution pace, construction order indicators, and whether data center or semiconductor cluster projects are expanding bar-steel demand, as industry-level indicators.

Overall view

Youngwire posted a simultaneous swing to operating profit and owners' net profit in Q2 2026 for the first time in five quarters, but this occurred against a backdrop of multi-year revenue contraction and accumulated losses.

The trailing four-quarter total remains a net loss, and rising debt ratios alongside shrinking equity make the completion of balance-sheet repair an important point to watch.

The company has bolstered liquidity by monetizing non-core assets such as the Changwon plant site and its Vietnam subsidiary stake, and it restructured its share base through a 5-for-1 consolidation.

On the industry side, construction sector recovery is expected to remain gradual, while AI and semiconductor-related infrastructure investment is emerging as a new demand driver across the broader steel sector.

The cold-heading quality wire segment faces a dual pressure from trade protectionism and economic slowdown, suggesting uneven recovery paces across business lines.

Overall, the positive signals from the Q2 earnings turn and ongoing balance-sheet improvement efforts coexist with structural challenges from years of declining revenue and profit and subsidiary-level liquidity pressure.

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.