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
Despite flattish top-line growth, Sewoo Global has steadily improved operating margins and net profit, with second-quarter 2026 revenue reaching a record quarterly level.
Consolidated 2025 revenue fell year-on-year to KRW 32.68 billion, yet operating margin rose to 7.4%, improving for four straight years.
Second-quarter 2026 revenue rose to about KRW 10.84 billion, up roughly 25% quarter-on-quarter and 34% year-on-year, marking a quarterly high.
The debt-to-equity ratio has stayed in the 8-13% range, indicating a relatively conservative balance sheet.
Net profit has repeatedly exceeded operating profit in recent quarters, suggesting a contribution from non-operating items.
Engineering plastics distribution is tied to automotive lightweighting and semiconductor/electronics demand cycles.
Founded in 1978 and listed on the Korea Exchange (KOSPI) in 1989, Sewoo Global is a plastics raw-material distributor whose core business centers on engineering plastics (EP) and synthetic resins.
The company serves as the domestic agent for SABIC Innovative Plastics and sources from overseas producers such as POLYPLASTICS and BASF, giving it a structured supply base.
Its stated business scope also includes sales of phenolic and other polymer petrochemical products, production and sale of ABS resin, and real-estate leasing. The company operates a low-volume, high-variety product mix, allowing it to serve diverse end demand from the automotive and electronics industries.
Headquartered in Incheon, the company has historically expanded its sales network to cover major industrial complexes including the Yeongnam region. The Korea Exchange classifies the stock under the KOSPI distribution sector, though some data providers categorize it under chemicals given its actual business substance.
The company describes its own strategy as pursuing qualitative growth through development of high-value-added, technology-based products.
Competitively, it operates as a specialized distributor holding agency and distribution rights from major domestic and overseas chemical producers, with timely supply capability and technical marketing seen as core strengths.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩8.1B | ₩700M | 9.3% |
| 2025Q3 | ₩8.2B | ₩700M | 8.0% |
| 2025Q4 | ₩8.2B | ₩500M | 6.2% |
| 2026Q1 | ₩8.7B | ₩700M | 8.3% |
| 2026Q2 | ₩10.8B | ₩900M | 8.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩28.1B | ₩1.6B | ₩1.5B | 5.6% | 3.3% | 8.8% |
| 2023 | ₩36.1B | ₩2.4B | ₩2.6B | 6.6% | 5.3% | 12.5% |
| 2024 | ₩35.9B | ₩2.5B | ₩3.5B | 6.8% | 6.7% | 9.2% |
| 2025 | ₩32.7B | ₩2.4B | ₩3.7B | 7.4% | 6.8% | 8.4% |
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
Consolidated revenue came to KRW 32.68 billion in 2025, down from KRW 35.87 billion in 2024 and KRW 36.13 billion in 2023, marking a third consecutive year of mild decline.
Operating profit, however, was broadly maintained and improved, rising from KRW 1.56 billion in 2022 to KRW 2.37 billion in 2023, KRW 2.45 billion in 2024, and KRW 2.43 billion in 2025, while operating margin climbed steadily from 5.6% to 6.6%, 6.8%, and 7.4% over the same span.
Net profit attributable to owners grew markedly from KRW 1.52 billion in 2022 to KRW 3.73 billion in 2025, and operating cash flow improved from KRW 1.86 billion in 2024 to KRW 3.43 billion in 2025.
On a quarterly basis, revenue was KRW 8.09 billion with operating profit of KRW 0.75 billion and net profit of KRW 0.44 billion in the second quarter of 2025; by the fourth quarter of 2025, revenue was KRW 8.19 billion and operating profit dipped to KRW 0.51 billion, yet net profit expanded to KRW 1.51 billion.
First-quarter 2026 revenue was KRW 8.67 billion with operating profit of KRW 0.72 billion and net profit of KRW 1.11 billion, and second-quarter 2026 revenue jumped to KRW 10.84 billion, up roughly 25% quarter-on-quarter and 34% year-on-year, the highest among the last five quarters.
Operating profit and net profit for the second quarter of 2026 also rose in tandem to KRW 0.92 billion and KRW 1.74 billion, respectively.
Notably, net profit has repeatedly exceeded operating profit by a wide margin since the third quarter of 2025, and the specific cause is not clearly identified in disclosures, warranting attention to possible non-operating contributions.
The trailing four-quarter sum (third quarter 2025 through second quarter 2026) of owner net profit was about KRW 5.46 billion, already surpassing the full-year 2025 net profit of KRW 3.73 billion.
Engineering plastics (EP) are closely tied to lightweighting and high-performance component demand in the automotive and electronics industries, with the sophistication of Korea's auto and electronics sectors seen as boosting demand for high-quality plastics.
At the same time, the relatively lower technology level of domestic injection molding equipment means machinery for high-precision products is reportedly imported entirely from Japan and Germany, a structural constraint on the industry.
According to market research, Korea's engineering plastics market was valued at roughly USD 2.6 billion in 2025 and is projected to expand to about USD 4.3 billion by 2034, with automotive lightweighting and continual product innovation cited as key growth drivers.
Another research firm noted that the electrical and electronics segment, underpinned by semiconductor and display applications, accounts for more than half of total demand, with automotive lightweighting, semiconductor packaging, and hydrogen-economy components supporting steady growth.
Domestic suppliers are said to be leveraging integrated naphtha crackers and downstream compounding facilities to cut logistics costs and strengthen competitiveness against low-cost Chinese imports.
Within this value chain, Sewoo Global operates as a raw-material distributor and agent rather than a finished-product manufacturer, meaning its results are directly exposed to whether it retains distribution rights from major overseas producers as well as to raw-material price and exchange-rate fluctuations.
On a standalone (non-consolidated) basis, cumulative revenue through the third quarter of 2025 reportedly declined 9.0% year-on-year, indicating a period of relative softness at the parent-company level even as consolidated results showed improvement.
The company has not publicly disclosed specific quantitative earnings guidance, making it necessary to track future performance through quarterly filings. Whether the marked increase in second-quarter 2026 revenue and profit relative to the prior quarter continues into subsequent quarters is a key point to watch.
The company has stated its aim of qualitative growth through development of high-value-added, technology-based products, so any expansion in the share of higher-performance EP materials could influence margin trends.
The pace of demand recovery in the automotive and electronics end markets, along with domestic automakers' and electronics makers' production plans, are variables that will feed directly into revenue.
Prices for petrochemical feedstocks such as naphtha and the won-dollar exchange rate remain ongoing factors affecting cost of sales and margins. Expanding market penetration of low-cost Chinese resin products is another variable that could affect the price competitiveness of domestic distributors.
The next regular disclosure, the third-quarter 2026 quarterly report, must be filed by the statutory deadline of November 16, 2026, which will allow confirmation of third-quarter results and second-half trends.
Working-capital metrics typical of distribution businesses, such as inventory and receivables management and cost pass-through ability, are also worth monitoring as gauges of earnings quality.
The current share price sits below the company's book value per share, meaning the stock trades at a price-to-book ratio under 1x.
This suggests the market currently assigns a value below the company's recorded equity, though such a multiple does not necessarily imply undervaluation and may instead reflect the low growth profile typical of a distribution business and its small-cap characteristics.
The steady recovery in net profit over recent years, along with an improvement in earnings measured over the most recent four quarters relative to full-year results, is a relevant reference point when assessing valuation.
On dividends, the company has a history of paying cash dividends in past fiscal years, but whether and how much it pays going forward depends on annual board resolutions, making continuity difficult to assume.
Given the relatively small market capitalization and limited trading value typical of a small-cap stock, valuation multiples can move by a relatively wide margin in response to earnings changes or supply-and-demand factors, which should also be factored in.
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
Operating margin rose steadily from 5.6% in 2022 to 7.4% in 2025. Over the same period, owner net profit expanded from KRW 1.52 billion to KRW 3.73 billion, translating margin gains into larger absolute profit. Margin discipline was maintained even as revenue was flat to declining, pointing to cost control capability.
Second-quarter 2026 revenue reached KRW 10.84 billion, up about 25% quarter-on-quarter and 34% year-on-year, the highest level among the last five quarters. Operating profit and net profit also expanded in tandem to KRW 0.92 billion and KRW 1.74 billion, respectively. If sustained, this could support second-half earnings momentum.
The debt-to-equity ratio has remained in the 8-13% range from 2022 to 2025, indicating relatively low financial leverage. Operating cash flow of KRW 3.43 billion in 2025 was close to net profit of KRW 3.73 billion, suggesting solid cash conversion. This financial stability could serve as a buffer against external shocks.
Consolidated revenue declined each year, from KRW 36.13 billion in 2023 to KRW 35.87 billion in 2024 and KRW 32.68 billion in 2025. Given the distribution business model, volume and pricing pass-through capability determine top-line size, and growth drivers were not clearly evident over this period.
Whether the rebound in the second quarter of 2026 is a one-off or a trend reversal requires confirmation over additional quarters.
In several quarters since the third quarter of 2025, net profit has significantly exceeded operating profit. The specific cause is not clearly disclosed, making it difficult to fully attribute the profit increase to core operating strength alone. If non-operating factors prove volatile, the predictability of future earnings could be reduced.
Given its relatively small market capitalization and limited trading activity, the stock may exhibit heightened price volatility. Information asymmetry or supply-and-demand factors could cause valuation multiples to move more sharply than underlying earnings changes.
Dividend policy is also subject to annual board resolutions, making stable shareholder returns difficult to count on.
Fluctuations in prices of petrochemical feedstocks such as naphtha directly affect procurement costs. Won-dollar exchange rate movements can also influence the cost of importing raw materials from overseas producers. Delayed cost pass-through could pressure margins in the short term.
Company revenue is linked to production and investment cycles in the automotive and electronics industries. A slowdown in end-market demand could reduce the volume of raw materials distributed. The three consecutive years of revenue decline may partly reflect this cyclical sensitivity.
With a relatively small market capitalization and limited free float, trading liquidity may be constrained. As a small-cap stock, the frequency and depth of information disclosure could be lower than for large-cap peers, potentially limiting investor access to information.
The discretionary, year-by-year determination of dividend and shareholder return policy also reduces predictability.
This is the statutory filing deadline for the third-quarter 2026 quarterly report, though actual disclosure often comes earlier. It will be important to check whether third-quarter revenue and profit sustain the surge seen in the second quarter.
Given that operating margin dipped temporarily in the fourth quarter of 2025, it will be worth watching whether a similar seasonal pattern recurs and how the full-year profit trend concludes.
Whether and how much cash dividend will be paid for fiscal year 2026 will be decided around this time, offering a chance to confirm continuity of the company's past dividend practice.
Full-year 2026 results along with updated equity and debt-ratio metrics will be disclosed, allowing a comprehensive check on whether the earnings improvement seen since the second quarter of 2026 held up on an annual basis.
Sewoo Global is a specialized distributor of engineering plastics supplying raw materials to the automotive and electronics industries, and while its revenue has declined mildly over the past three years, operating margin and net profit have shown a steady improving trend.
In the second quarter of 2026, revenue and profit surged together to the highest quarterly levels in five quarters, though net profit has repeatedly exceeded operating profit by a wide margin, warranting further scrutiny of the underlying cause.
The balance sheet remains relatively solid, supported by a low debt ratio and stable operating cash flow.
On the industry side, automotive lightweighting and rising semiconductor and electronics demand are cited as growth drivers for the engineering plastics market, but raw-material price and exchange-rate volatility along with competition from low-cost imports remain ongoing variables.
Given the small market capitalization and limited trading liquidity typical of this stock, the potential for wider swings in valuation multiples should also be factored in.
Upcoming quarterly and annual results will serve as important reference points for assessing whether the recent earnings improvement trend continues.
Report written 2026-09-29 · Data as of 2026-09-28
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.