PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Yeonghwa Metal, a KOSPI-listed automotive casting parts maker, has posted four consecutive years of revenue and profit growth since a 2022 operating loss, supported by recovering OEM vehicle production and cost structure improvements.
After a 2022 operating loss of about KRW 1.1 billion, operating profit expanded each year to reach KRW 15.2 billion in 2025.
2025 revenue rose to KRW 351.4 billion from KRW 301.7 billion a year earlier, while operating margin improved from 3.3% to 4.3%.
Over the latest four quarters (2025Q3-2026Q2), operating margin moved 3.7%→2.6%→3.4%→4.6%, showing a recovery through the first half of 2026 after a late-2025 dip.
The company has pursued diversification into secondary battery electrolyte additives and semiconductor-related materials since 2022, though specific revenue contribution has not been disclosed.
At an extraordinary general meeting in July 2026, shareholders approved a par-value consolidation from KRW 500 to KRW 2,000 per share.
Yeonghwa Metal was founded in 1977 and is headquartered in Jinhae-gu, Changwon, South Gyeongsang Province, manufacturing cast metal components for automobiles. The company produces and sells automotive casting parts, and it also manufactures and sells building materials such as pipe fittings.
Its core products are cast metal parts used in engines, brake systems, and powertrains, with revenue closely tied to production volumes at domestic OEM automakers.
The company pursues a strategy of securing stable order volumes through aftermarket parts demand driven by new model launches and a growing vehicle fleet, alongside expanding export sales channels.
Production is spread across multiple plants, and improved profitability at its Haman plant along with operating profit contribution from a second plant appear to have supported recent earnings improvement.
In 2022, the company added secondary battery electrolyte additive and semiconductor-related businesses as part of a diversification push, and it continues to explore new opportunities tied to the growth of eco-friendly energy and autonomous driving markets.
However, the revenue contribution or specific progress of these new businesses has not been disclosed in publicly available materials. Competitively, numerous similar automotive casting and materials suppliers operate domestically, making cost competitiveness and OEM order acquisition key differentiators.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩97B | ₩6.7B | 6.9% |
| 2025Q3 | ₩85.4B | ₩3.2B | 3.7% |
| 2025Q4 | ₩84.7B | ₩2.2B | 2.6% |
| 2026Q1 | ₩90.1B | ₩3.1B | 3.4% |
| 2026Q2 | ₩92.2B | ₩4.2B | 4.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩284.9B | -₩1.1B | ₩500M | −0.4% | 0.7% | 252.0% |
| 2023 | ₩292.3B | ₩9.4B | ₩7.5B | 3.2% | 11.2% | 211.0% |
| 2024 | ₩301.7B | ₩9.9B | ₩8.7B | 3.3% | 11.9% | 197.1% |
| 2025 | ₩351.4B | ₩15.2B | ₩12.2B | 4.3% | 14.9% | 189.5% |
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
Yeonghwa Metal's annual results turned from an operating loss of KRW 1.1 billion in 2022 to operating profit of KRW 9.4 billion in 2023, then KRW 9.9 billion in 2024 and KRW 15.2 billion in 2025, expanding each year.
The company disclosed that its 2025 standalone operating profit rose 54.1% year-on-year, with revenue reaching KRW 351.4 billion, up 16.5% from KRW 301.7 billion in 2024. Net income also grew 40.5% to KRW 12.2 billion, with the company citing revenue growth and cost-structure improvement efforts as the main drivers.
Operating margin improved gradually from -0.4% in 2022 to 3.2% in 2023, 3.3% in 2024, and 4.3% in 2025.
On a quarterly basis, operating margin peaked at 6.9% in the second quarter of 2025 within the recent window, before falling to 3.7% in the third quarter and 2.6% in the fourth quarter, then recovering to 3.4% in the first quarter of 2026 and 4.6% in the second quarter.
Owner net income followed a somewhat different pattern, dipping from KRW 3.42 billion in Q2 2025 to KRW 2.84 billion in Q3, before rising steadily to KRW 3.29 billion in Q4, KRW 3.47 billion in Q1 2026, and KRW 3.59 billion in Q2 2026, suggesting non-operating factors helped stabilize net income.
Equity grew from KRW 62.7 billion in 2022 to KRW 81.5 billion in 2025, while the debt ratio declined from 252.0% to 189.5%, indicating a parallel improvement in financial structure.
Separately reported cumulative nine-month 2025 standalone figures also showed revenue up 15.5%, operating profit up 110.8%, and net income up 60.8%, supporting the view that rising OEM vehicle production drove the revenue expansion behind the profit improvement.
The automotive casting parts industry that Yeonghwa Metal operates in is directly linked to OEM vehicle production cycles. Over recent years, a recovery in domestic OEM production appears to have supported demand for casting components.
However, as the shift toward electric vehicles progresses, the long-term structure of demand for internal-combustion-engine-related casting parts remains a variable that depends on OEMs' powertrain strategies.
Domestically, numerous similar casting- and materials-based auto parts suppliers compete continuously on cost and quality.
According to market reports, in the fourth quarter of 2025 Yeonghwa Metal's revenue growth outpaced peers while its operating profit growth was relatively lower, which could reflect cost pressure or product-mix factors affecting profit conversion.
The secondary battery electrolyte additive and semiconductor-related businesses the company has pursued since 2022 are areas where a number of domestic chemical and materials firms are already established, making the successful establishment of this business as a later entrant a point worth monitoring.
The upstream automotive market's casting parts demand can fluctuate depending on new model launch cycles and the scale of export volumes.
The company has stated a direction of maintaining stable order volumes through aftermarket parts demand tied to new model launches and a growing vehicle fleet, alongside expanding overseas export channels.
Since improved operating efficiency at the Haman plant and a second plant contributed to recent earnings gains, plant-level profitability management is likely to remain an important variable for future profit trends.
At the July 2026 extraordinary general meeting, an amendment to consolidate par value from KRW 500 to KRW 2,000 was approved, meeting the special resolution requirement with 34.6% of total voting shares and 98.9% of shares voted in favor.
This move can be interpreted as an effort to raise the per-share price unit and streamline the share structure, and how the resulting trading pattern evolves will be worth observing.
The secondary battery electrolyte additive and semiconductor-related businesses announced since 2022 have not yet had a specific revenue timeline or scale disclosed in public materials, so further disclosure on actual commercialization progress is needed.
OEM production plans and progress in securing global export accounts remain key variables for future revenue growth.
Yeonghwa Metal's share price trades below its per-share net asset value, placing it in a discounted range relative to book equity.
This can be interpreted as reflecting both the possibility that the market has not yet fully priced in the company's recovery from a 2022 operating loss to a sustained profit-improvement trend, and the broader tendency of smaller-cap KOSPI auto parts names to trade at relatively low multiples.
The multiple calculated on the basis of the latest four quarters of net income is being formed in a period where the earnings base looks more stabilized compared with the loss-making period around 2022.
Dividend-related disclosure figures showed inconsistencies across reference sources, so this report does not address dividend metrics separately. Because the share price, market capitalization, and specific multiples change daily, readers should refer to the real-time figures shown on screen.
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
Operating profit expanded for three consecutive years from 2023 to 2025 after a 2022 loss, with operating margin improving from -0.4% to 4.3%. Over the same period, the debt ratio fell from 252.0% to 189.5%, indicating parallel stabilization of the financial structure. The company itself attributes this to both revenue growth and cost-structure improvement efforts.
Rising production at domestic OEMs, new model launches, and growing aftermarket parts demand are cited as backdrops for revenue growth. The company continues efforts to secure overseas export accounts to reduce reliance on the domestic market.
Improved operating efficiency at the Haman plant and a second plant also appears to have positively contributed to recent results.
Since 2022, the company has pursued secondary battery electrolyte additive and semiconductor-related businesses, seeking new growth avenues beyond automotive castings. It is also exploring opportunities tied to the growth of eco-friendly energy and autonomous driving markets. However, revenue contribution has not been disclosed to date, so further confirmation of progress is needed.
Operating margin over the last four quarters fell to 3.7% and 2.6% in the third and fourth quarters of 2025 from a prior high, before recovering to 3.4% and 4.6% in the first half of 2026. This suggests continued sensitivity to costs, product mix, or seasonal factors. Whether margins can be sustained needs to be confirmed through subsequent quarterly results.
While the debt ratio declined from 252.0% in 2022 to 189.5% in 2025, liabilities remain elevated relative to equity. Interest expense burden could expand under a shifting rate environment or rising raw material costs. Balance sheet improvement is ongoing but not yet complete.
The specific revenue or progress stage of the secondary battery electrolyte additive and semiconductor-related businesses pursued since 2022 has not been confirmed through publicly disclosed materials.
A number of chemical and materials companies have already entered this space, suggesting competitive intensity is not low. It may take time before these new businesses account for a meaningful share of revenue relative to the core casting business.
Casting parts manufacturing is exposed to fluctuations in raw material prices such as iron and non-ferrous metals, and as export share grows, currency volatility can also affect results. Quarter-to-quarter swings in operating margin can be interpreted as reflecting these cost factors.
Revenue is closely tied to domestic OEM production plans, so a slowdown in vehicle production could directly affect results. The long-term structure of demand for internal-combustion-engine-related casting parts may also shift depending on the pace of the EV transition.
With a relatively small market capitalization, trading liquidity may be limited, and changes in float and trading patterns following the July 2026 share consolidation decision should be monitored. As a smaller-cap stock, the frequency of disclosure and market information updates may also be relatively lower.
Check the Q3 2026 quarterly report to see whether the recently recovering operating margin trend continues.
Monitor monthly domestic OEM production and sales figures to track upstream demand trends and changes in casting parts order volumes.
Watch for any disclosure confirming actual revenue generation or investment progress in the secondary battery electrolyte additive and semiconductor-related businesses.
Observe how the outstanding share structure and trading volume actually evolve following the July share consolidation decision.
Yeonghwa Metal is an automotive casting parts maker that has grown revenue and operating profit for four consecutive years since recovering from a 2022 operating loss, alongside a parallel improvement in financial structure such as a declining debt ratio.
However, operating margin over the latest four quarters swung from the 6% range down to around 2% before recovering to around 4%, indicating that earnings stability still needs to be confirmed through further quarterly results.
The secondary battery electrolyte additive and semiconductor-related businesses pursued since 2022 have a stated direction, but actual revenue realization has not yet been confirmed through public materials.
The July 2026 share consolidation decision appears to be aimed at adjusting the per-share price unit to streamline the trading structure, and subsequent changes in trading patterns warrant observation.
The domestic OEM production cycle and progress in expanding export accounts remain key variables for future revenue growth. On balance, the company appears to combine a positive trend of improving profit structure with the ongoing challenges of earnings volatility and uncertainty around its new businesses.
Report written 2026-09-05 · Data as of 2026-09-04
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