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
Sammi Metal Products, a forging specialist centered on commercial vehicle and heavy equipment parts, is expanding into nuclear turbine blades, defense, and AI data center generator components while showing a recovery in earnings.
2025 consolidated revenue reached KRW 73.8 billion with operating profit of KRW 5.8 billion (7.9% margin), continuing a recovery from the 2022 operating loss
Revenue and operating profit rose sequentially in Q1-Q2 2026, with the operating margin improving to about 11.7% in Q2 2026
The company exclusively supplies large nuclear turbine blades to Doosan Enerbility and signed an additional KRW 10.8 billion contract in March 2026
The company issued KRW 30 billion in zero-coupon convertible bonds (conversion price KRW 13,043) to fund capacity expansion including a marine engine parts plant
The debt-to-equity ratio declined from 195.1% in 2022 to 103.6% in 2025, indicating a gradual improvement in the balance sheet
Founded in 1977 with about 49 years of operating history, Sammi Metal Products is a forging specialist headquartered in Changwon, South Gyeongsang Province, and is an affiliate of the Kumkang Kind group.
Its core business centers on commercial vehicle parts made from special steel, including front axle beams, crankshafts, and steering knuckles, which according to industry reporting accounted for roughly 44.7% of 2025 revenue, the largest share.
This is followed by heavy equipment parts, such as bulldozer end bits and excavator bosses, at about 22.6%, marine engine parts, including connecting rods and crankshafts, at about 21.6%, and defense parts at roughly 3.2%.
In the marine engine segment, four-stroke medium-speed engine connecting rods are the flagship product, with customers including Everance (formerly MAN Energy Solutions), STX Engine, and Hanwha Engine.
In heavy equipment, the company has been designated a preferred supplier to Caterpillar, the world's largest construction equipment maker, and has diversified its customer base to include Komatsu and HD Hyundai Infracore.
In automotive, it supplies front axles and crankshafts to Hyundai Motor, while in defense it supplies mid-to-large forged components including warhead housings for Hanwha Aerospace's 'Chunmoo' multiple rocket launcher.
Notably, after localizing nuclear turbine blades domestically for the first time in Korea in 1994, the company has exclusively supplied Doosan Enerbility, with reference deliveries for projects including Shin-Hanul Units 3 and 4 and the Barakah nuclear plant in the UAE.
As of year-end 2025, revenue was split between roughly KRW 51.4 billion in domestic sales and KRW 22.4 billion in exports, and since September of last year the company has been developing commercialized gas turbine blades with U.S. gas turbine MRO firm PSM (now Hanwha Power), further diversifying its product portfolio.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | — | — |
| 2025Q3 | ₩17.6B | ₩900M | 5.3% |
| 2025Q4 | ₩16B | ₩1.5B | 9.1% |
| 2026Q1 | ₩18.3B | ₩1.6B | 8.8% |
| 2026Q2 | ₩22.3B | ₩2.6B | 11.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩70.8B | -₩1.5B | -₩1.1B | −2.1% | −2.2% | 195.1% |
| 2023 | ₩76.8B | ₩6B | ₩900M | 7.8% | 1.7% | 167.3% |
| 2024 | ₩76.4B | ₩4.5B | ₩3.5B | 5.8% | 4.7% | 134.0% |
| 2025 | ₩73.8B | ₩5.8B | ₩1.7B | 7.9% | 1.8% | 103.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Sammi Metal's annual results moved from an operating loss in 2022, with revenue of KRW 70.8 billion and an operating loss of KRW 1.5 billion (margin of -2.1%), to a profit turnaround in 2023, with revenue of KRW 76.8 billion and operating profit of KRW 6.0 billion (7.8% margin).
In 2024, revenue declined slightly to KRW 76.4 billion while operating profit came in at KRW 4.5 billion (5.8% margin), and owners' net profit rose sharply year-over-year to KRW 3.5 billion.
In 2025, revenue was KRW 73.8 billion and operating profit KRW 5.8 billion (7.9% margin), an improvement in operating margin, yet owners' net profit fell to KRW 1.7 billion, revealing a divergence between operating performance and net income.
On a quarterly basis, Q3 2025 posted revenue of KRW 17.6 billion, operating profit of KRW 0.9 billion (5.3% margin), and owners' net profit of KRW 0.6 billion; Q4 2025 saw revenue fall to KRW 16.0 billion while operating profit rose to KRW 1.5 billion (9.1% margin), yet owners' net profit swung to a loss of KRW 0.9 billion, suggesting non-operating factors were at play.
Q1 2026 showed recovery with revenue of KRW 18.3 billion, operating profit of KRW 1.6 billion (8.8% margin), and net profit of KRW 1.3 billion, and Q2 2026 revenue rose to KRW 22.3 billion with operating profit of KRW 2.6 billion, lifting the operating margin to about 11.7%, the highest of the recent four quarters.
However, Q2 net profit of KRW 1.3 billion did not rise proportionally with the operating profit gain. Over the trailing four quarters from Q3 2025 through Q2 2026, cumulative owners' net profit totaled roughly KRW 2.3 billion, reflecting quarter-to-quarter volatility within an overall recovering trend.
On the balance sheet, the debt-to-equity ratio steadily declined from 195.1% in 2022 to 103.6% in 2025, while operating cash flow swung between positive (KRW 5.4 billion inflow in 2024) and negative in 2022, 2023, and 2025, showing year-to-year variability.
The forging and heavy metal components industry that Sammi Metal operates in supplies parts to multiple downstream sectors, including commercial vehicles, heavy equipment, shipbuilding, defense, and power generation, meaning results vary with the cycles of each end market.
The commercial vehicle and heavy equipment segments are influenced by global infrastructure investment and the shift toward eco-friendly vehicles, while the shipbuilding segment is reported to benefit from rising new-build orders and growing demand for eco-friendly vessels.
Domestically, the nuclear MRO (maintenance, repair, and overhaul) market is expanding alongside government policy to raise nuclear utilization rates, and Sammi Metal, as the sole domestic supplier of large turbine blades to Doosan Enerbility, holds a structurally favorable position in this market.
In defense, cooperation with companies such as Hanwha Aerospace positions the company to benefit indirectly from expanding K-defense exports.
More recently, demand for backup generator and power infrastructure engine parts tied to AI data center expansion has emerged as a new growth axis, with Sammi Metal supplying crankshafts for large generator engines to North America through HD Hyundai Construction Equipment.
In terms of competitive positioning, the company's possession of a 50-ton hammer, described as the largest among domestic forging companies, is cited as a strength in production capacity.
That said, despite diversification across end markets, the commercial vehicle and heavy equipment segments still account for more than half of revenue, leaving the company exposed to cyclicality in those industries.
Sammi Metal moved its listing to KOSDAQ in December 2025 through a merger with IBKS 22nd SPAC, and on the day of listing announced a nuclear turbine blade supply contract with Doosan Enerbility.
In March 2026, the contract for turbine blades covering Hanul Units 3 and 4 and Hanbit Units 3 and 4 was expanded to a total of KRW 10.8 billion, with a disclosed contract period running through March 2028.
The company has stated that this contract, covering one of four domestic reactors due for nuclear MRO work, could be followed by additional orders, though this reflects the company's own outlook rather than a confirmed contract.
In shipbuilding, the company is constructing a dedicated marine engine parts machining plant of about 7,260 square meters at its Changwon headquarters site, targeting completion within 2026, which management expects to strengthen production capacity and order competitiveness for medium-speed engine connecting rods.
To fund this, the company issued KRW 30 billion in zero-coupon convertible bonds in 2026 (conversion price of KRW 13,043, no refixing clause, maturing June 2031), with institutional investors including Timefolio Asset Management reportedly participating.
In gas turbines, the company is developing commercialized gas turbine blades with U.S.-based PSM (now Hanwha Power), and successful commercialization is expected to provide recurring maintenance-related revenue upon value chain entry.
Korea Investment & Securities analyst Kim Geon-woo noted in May 2026 reporting that the company could see additional benefit if medium-speed engines become established as a primary power source for data centers, though he did not provide a specific target price.
The current share price trades at a considerably high multiple relative to the sum of net profit over the trailing four quarters (Q3 2025 through Q2 2026), which can be interpreted as partly reflecting growth expectations tied to the nuclear, defense, and data center businesses given that the absolute profit base remains modest.
Relative to net asset value, the stock carries only a modest premium, suggesting the valuation burden is less pronounced on a book-value basis than on an earnings basis. The company has not recently paid a dividend, limiting its appeal from an income perspective.
Looking at multi-year results, the company moved from an operating loss in 2022 to profitability from 2023 through 2025, with a quarter-by-quarter earnings recovery continuing since, though net profit has shown greater volatility than operating profit, a factor worth considering alongside the valuation multiples.
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 2026-09-05
Since localizing nuclear turbine blades in 1994, Sammi Metal has been the sole domestic supplier to Doosan Enerbility.
It signed a KRW 10.8 billion contract in March 2026 for the Hanul and Hanbit units, and if MRO demand continues under government policy to raise nuclear utilization, there is room for the related revenue base to expand. The company has also stated plans to extend its technology into SMR and gas turbine applications.
In response to growing demand for backup generator engine parts tied to AI data center expansion, the company supplies crankshafts and related components to North America through HD Hyundai Construction Equipment.
In shipbuilding, it supplies medium-speed engine connecting rods to STX Engine and Hanwha Engine, and plans to complete a dedicated processing plant in Changwon within 2026. Both segments have the potential to form demand drivers distinct from the existing commercial vehicle and heavy equipment cycle.
The debt-to-equity ratio has steadily declined, from 195.1% in 2022 to 103.6% in 2025, indicating a gradual improvement in financial structure. The convertible bond issued in 2026 carries no interest and no refixing clause, a structure designed to relatively limit dilution pressure on existing shareholders. Operating margins also showed a sequential improving trend in Q1-Q2 2026.
In Q4 2025, operating profit rose to KRW 1.5 billion from the prior quarter, yet owners' net profit posted a loss of KRW 0.9 billion. Even for full-year 2025, the operating margin improved year-over-year, but owners' net profit declined. This earnings volatility driven by non-operating factors adds uncertainty to forecasting future results.
More than half of revenue is reported to come from the commercial vehicle and heavy equipment segments, leaving significant exposure to global demand cycles in those industries.
Revenue contribution from newer businesses such as nuclear, shipbuilding, and defense remains relatively small, so it may take time before these growth axes contribute meaningfully to overall results.
The KRW 30 billion convertible bond issued in 2026 carries a conversion price of KRW 13,043, and future conversion could dilute existing shareholders.
With a maturity of June 2031, a potential share overhang exists over an extended period, with the timing and likelihood of conversion depending on the stock's price path.
The nuclear segment relies heavily on an exclusive supply relationship with Doosan Enerbility, meaning results could be affected by changes in that customer's ordering policy or shifts in nuclear energy policy.
The shipbuilding segment is also reported to depend on a small number of customers, including STX Engine and Hanwha Engine.
Given the nature of the forging business, which uses special steel as its main raw material, fluctuations in steel raw material prices can directly affect costs. With a meaningful export share, movements in the won-dollar exchange rate are also a factor that can influence results.
If new business investments, such as expanding the marine engine parts plant or developing commercialized gas turbine blades, do not proceed as planned or are delayed beyond expectations, anticipated growth effects could be pushed back.
The possibility that returns on capital raised through the convertible bond diverge from plan cannot be ruled out.
The Q3 2026 quarterly report is expected to be filed, providing a chance to check whether the operating margin improvement seen through Q2 continued and whether net profit normalized.
This is the targeted completion window for the dedicated marine engine parts machining plant at the Changwon headquarters; upon completion, it will be worth monitoring changes in production capacity and order competitiveness in the shipbuilding segment.
It will be important to check whether the additional nuclear MRO order potential mentioned by the company materializes into actual contracts, and whether further disclosures regarding Doosan Enerbility emerge.
Progress on the commercialization development of power-generation gas turbine blades with U.S.-based PSM (Hanwha Power) should be checked to determine whether commercialization is achieved.
Sammi Metal Products is expanding beyond its traditional forging business centered on commercial vehicle and heavy equipment parts into exclusive nuclear turbine blade supply, defense components, and AI data center generator engine parts.
After turning from an operating loss in 2022 to profitability from 2023 through 2025, revenue and operating margin showed a sequential improving trend in Q1-Q2 2026, though earnings volatility is also observed, including divergence between operating profit and net income in some quarters.
Several new business events remain to be confirmed, including additional nuclear MRO contracts with Doosan Enerbility, completion of the shipbuilding processing plant expansion, and commercialization of gas turbine blades.
The balance sheet has gradually improved, evidenced by a declining debt ratio, though a potential dilution factor exists from the KRW 30 billion convertible bond.
Customer concentration, raw material and foreign exchange volatility, and execution risk on new business investments are factors that warrant continued observation. Before making any investment decision, it is important to review upcoming quarterly results and new order announcements as they are disclosed.
Report written 2026-09-05 · Data as of 2026-09-04
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