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
Choil Aluminum, a single-business aluminum rolling company, saw operating profit rise sharply in the first half of 2026, marking a profit recovery trend, while still facing challenges from its fully import-dependent raw material structure and demand volatility among its secondary battery customers.
2025 consolidated revenue was KRW 486.7 billion, operating profit KRW 13.8 billion (operating margin 2.8%), and owners' net income KRW 8.0 billion, down from the prior year but still profitable.
Operating profit surged to KRW 13.1 billion in Q1 2026 and KRW 10.0 billion in Q2 2026, breaking away from the low-margin phase seen from Q2 to Q4 of 2025.
The share of revenue from secondary battery cathode foil aluminum materials reportedly expanded to 45% as of Q3 2025, up from 37% a year earlier.
The company imports all its aluminum ingot and processes it via rolling before delivery, giving it the capital-intensive industry trait where both revenue and cost rise together when raw material prices increase.
The company held an 11.4% share of the domestic aluminum rolling market, according to its 2025 business report.
Founded in 1975, Choil Aluminum is a mid-sized domestic materials company that has continuously operated a single business of aluminum rolling, importing all its aluminum ingot before processing it through rolling for sale.
Its main products are wide-width rolled sheets supplied as materials to construction interior and exterior finishes, automotive components, insulation, and electronic parts.
Its core competitiveness lies in owning continuous casting lines, slab casting equipment, and hot rolling lines, enabling integrated process response from raw material to finished sheet production.
More recently, the company has been shifting its portfolio from general sheet products toward aluminum materials for secondary battery cathode foil, maintaining long-term raw material supply relationships with cathode foil manufacturers such as Lotte Aluminum and Dongwon Systems.
Secondary battery materials require higher thickness uniformity and surface quality standards than general rolled products, requiring additional processing that serves as a differentiating factor for profitability.
The company holds an 11.4% share of the domestic aluminum rolling market, and it is said to maintain competitive advantage through delivery responsiveness and thickness uniformity technology amid ongoing competition with imported materials.
Development of new technologies such as high-strength aluminum alloys for automotive heat exchangers and expansion of high-value-added product mix remain the company's stated mid- to long-term policy.
Its competitive position sits between large integrated aluminum makers such as Lotte Aluminum and imported materials, relying on small-batch, multi-product, fast-delivery strengths to maintain market standing.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩117.4B | -₩300M | −0.3% |
| 2025Q3 | ₩113.6B | ₩1B | 0.9% |
| 2025Q4 | ₩118.4B | ₩1.1B | 1.0% |
| 2026Q1 | ₩150.9B | ₩13.1B | 8.7% |
| 2026Q2 | ₩154.1B | ₩10B | 6.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩562.4B | ₩15.8B | ₩17.8B | 2.8% | 9.5% | 96.7% |
| 2023 | ₩465.8B | ₩8.5B | -₩100M | 1.8% | −0.1% | 104.2% |
| 2024 | ₩498.4B | ₩20.1B | ₩11B | 4.0% | 5.5% | 111.2% |
| 2025 | ₩486.7B | ₩13.8B | ₩8B | 2.8% | 3.8% | 96.2% |
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
2025 consolidated revenue was KRW 486.7 billion, a slight decrease from KRW 498.4 billion in the prior year, while operating profit fell sharply to KRW 13.8 billion (2.8% operating margin) from KRW 20.1 billion (4.0%) a year earlier. Owners' net income also declined to KRW 8.0 billion from KRW 11.0 billion.
In 2023, despite revenue of KRW 465.8 billion and operating profit of KRW 8.5 billion, owners' net income posted a loss of KRW 0.13 billion, indicating that cost pressures and one-off factors weighed on the bottom line during that period.
By contrast, 2022 showed the highest profitability of the past four years, with revenue of KRW 562.4 billion, operating profit of KRW 15.8 billion, and net income of KRW 17.8 billion.
Looking at quarterly trends, Q2 2025 posted an operating loss of KRW 0.3 billion and a net loss of KRW 1.1 billion, and the net loss continued into Q3 2025 at KRW 0.4 billion.
Q4 2025 turned profitable with operating profit of KRW 1.1 billion and net income of KRW 1.0 billion, and this trend strengthened notably heading into 2026.
Q1 2026 operating profit surged to KRW 13.1 billion with net income of KRW 10.0 billion, and Q2 2026 recorded operating profit of KRW 10.0 billion and net income of KRW 7.5 billion, showing a clear profit recovery compared to the second half of 2025.
The sum of owners' net income over the most recent four quarters (Q3 2025 through Q2 2026) reached KRW 18.1 billion, contrasting with the loss phase that persisted through Q2 2025.
On the cash flow side, 2025 operating cash flow of KRW 17.7 billion improved notably compared to KRW 1.5 billion in 2024 and negative KRW 3.7 billion in 2023.
Aluminum rolled products serve as an essential basic material across manufacturing industries broadly, making the sector directly sensitive to global and domestic economic conditions.
It was reported that after attacks on major Middle East smelters EGA Al Taweelah and Alba, LME aluminum prices surged to $3,672 per ton, reaching roughly a four-year high.
At the same time, the United States is reportedly considering reducing import tariffs on Canadian aluminum from 50% to 25%, indicating shifting trade conditions as well.
In periods of sharp raw material price increases, profit can actually be squeezed if cost inflation outpaces price hikes, and Choil Aluminum, which imports all its raw material before rolling, is exposed to this timing lag effect.
On the secondary battery end-market side, the electric vehicle demand slowdown known as the chasm continued through 2025, leading to production adjustments among cathode foil customers, which reportedly partly offset the benefit of Choil Aluminum's expanded high-value-added material mix.
Competitively, large integrated aluminum makers such as Lotte Aluminum along with imported materials continue to exert competitive pressure in the domestic market.
Over the mid to long term, growing demand for aluminum sheet driven by expanding electric vehicle and energy storage system markets is cited as a structural growth driver, though its timing and pace depend on recovery in end-market demand.
First-half 2026 operating profit surged to KRW 13.1 billion in Q1 and KRW 10.0 billion in Q2, showing a departure from the low-margin phase of the second half of 2025, and third-quarter results will serve as the next test of whether this recovery trend continues.
The company reaffirmed in its 2025 business report its policy of developing new technologies such as high-strength aluminum alloys for automotive heat exchangers and expanding its high-value-added product mix.
With the share of revenue from cathode foil materials reportedly having expanded to 45% by Q3 2025, the pace at which cathode foil customers normalize production going forward is cited as a variable that could affect earnings.
With LME aluminum prices remaining elevated amid Middle East supply disruption concerns, the pace of price pass-through and cost management capability are likely to be key to margin recovery.
Changes in trade conditions, such as discussions over adjusting U.S. tariffs on Canadian aluminum, could act as an indirect variable affecting global aluminum prices and supply-demand structure rather than a direct revenue exposure.
Based on the company's integrated process response capability and domestic market share, whether the expansion of high-value-added material mix translates into actual profitability improvement remains a point to monitor going forward.
The price-to-book ratio tends to trade at a discount to net asset value, suggesting the market still reflects much of the valuation from the prior period of weak performance.
The price-to-earnings ratio appears to have moved toward the lower end of its historical trading band as the first-half 2026 profit recovery was reflected, though quarterly earnings volatility means this could shift again depending on future trends.
On the dividend side, recent dividend payment history has not been clearly established, so it may be more reasonable to focus on the sustainability of the profit recovery rather than approaching the stock through dividend yield.
The pattern from a loss in 2023, to modest profits in 2024-2025, and then to a profit recovery in the first half of 2026 provides a basis for observing how the market's confidence in earnings is being reflected in valuation.
Ultimately, how to interpret the current price level is a matter to be judged by tracking quarterly earnings releases together with raw material price trends.
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 profit in Q1 and Q2 2026 reached KRW 13.1 billion and KRW 10.0 billion respectively, marking a clear departure from the loss phase seen in Q2-Q3 2025. The sum of owners' net income over the most recent four quarters recovered to KRW 18.1 billion, showing an improving earnings structure. Whether this trend continues beyond Q3 remains the next point to watch.
Based on long-term raw material supply relationships with companies such as Lotte Aluminum and Dongwon Systems, the revenue share from secondary battery cathode foil materials reportedly expanded to 45% as of Q3 2025.
This represents a higher-value segment requiring additional processing beyond general sheet products, with expansion of electric vehicle and ESS markets cited as a mid- to long-term demand base. However, the timing of realizing this expansion effect could vary depending on the pace of end-market demand recovery.
The integrated process system encompassing continuous casting, slab casting, and hot rolling lines forms the basis for maintaining an 11.4% share of the domestic aluminum rolling market.
Small-batch, multi-product, fast-delivery responsiveness is cited as a differentiating factor in competition against imported materials and large competitors. Thickness uniformity technology is also being leveraged for high-value-added products including secondary battery materials.
The structure of importing all aluminum ingot before rolling gives the company a capital-intensive industry trait where revenue and cost rise together during periods of raw material price increases.
If cost inflation outpaces price hikes, a situation similar to the cumulative Q3 2025 pattern, where revenue rose but operating profit declined, could recur. With LME aluminum prices remaining elevated due to Middle East supply disruptions, this structural risk warrants continued observation.
It was reported that the electric vehicle demand slowdown known as the chasm continued through 2025, leading to production adjustments among cathode foil customers.
This has reportedly partly offset the profitability improvement effect of the high-value-added material mix expansion strategy that Choil Aluminum has been pursuing. Since the timing of end-market demand recovery remains uncertain, this impact may not resolve in the short term.
Net income posted losses of KRW 1.1 billion and KRW 0.4 billion in Q2 and Q3 of 2025 respectively, reflecting relatively high quarterly earnings volatility. The debt ratio fluctuated between 96% and 111% between 2022 and 2025, and operating cash flow posted a loss of KRW 3.7 billion in 2023.
It is worth noting that earnings can swing significantly depending on raw material prices and end-market demand.
Due to its structure of importing all aluminum ingot, the company is directly exposed to fluctuations in LME aluminum prices and the KRW-USD exchange rate.
It was reported that LME aluminum prices recently rose to roughly a four-year high following attacks on Middle East smelters, raising the possibility of renewed cost pressure. Since price pass-through typically involves a lag of several months, margins could be squeezed during periods of rapid price change.
The strategy of expanding secondary battery cathode foil material share is dependent on the pace of demand recovery in the electric vehicle market. As the EV chasm persisted through 2025, customer production adjustments were observed, and similar volatility could recur going forward.
Failure to keep pace with tightening quality standards in the battery materials market could also constrain customer diversification.
The global trade environment remains fluid, with the United States reportedly considering lowering tariffs on Canadian aluminum from 50% to 25%. Such tariff adjustments are likely to affect Choil Aluminum indirectly by altering global aluminum supply-demand and pricing structures rather than through a direct channel.
Since the pace and direction of trade policy changes are difficult to predict, continued monitoring is warranted.
The 2026 Q3 quarterly report is expected to be disclosed around this time, and it will be important to check whether the operating profit recovery trend seen in the first half continued into the third quarter.
It will be worth checking LME aluminum price trends and whether the U.S. proceeds with adjusting tariffs on Canadian aluminum, to assess how changes in cost and trade conditions might affect earnings.
It will be important to check whether secondary battery cathode foil customers normalize production and how the related revenue share changes, to gauge the pace at which the high-value-added material strategy is being realized.
Choil Aluminum is a mid-sized domestic materials company that has continuously operated a single aluminum rolling business for over four decades, simultaneously carrying the capital-intensive industry structure of importing all raw material before rolling and the ongoing business transition toward secondary battery cathode foil materials.
In 2025, revenue and profit declined from the prior year but the company remained profitable, and in the first half of 2026 operating profit showed a clear recovery trend.
The expanding revenue share from cathode foil materials illustrates progress in the business transition, but this structure remains heavily dependent on external variables such as the pace of electric vehicle demand recovery and raw material price fluctuations.
Debt ratio and quarterly earnings volatility remain metrics worth continued observation from a financial stability standpoint.
Going forward, third-quarter results, LME aluminum price trends, and whether cathode foil customers normalize production are likely to be the key points to watch in assessing the sustainability of this profit recovery. This report is provided for informational purposes and does not include a buy or sell recommendation.
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.