PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Ilji Tech, a Tier-1 body-parts supplier to Hyundai Motor Group, has grown revenue and profit through its North American expansion, but recent quarterly results have swung sharply.
FY2025 consolidated revenue reached KRW 855.1bn (+12.9% YoY) with operating profit of KRW 48.0bn (+96.4% YoY), marking a clear earnings improvement.
Q2 2026 operating profit fell sharply to KRW 3.5bn from KRW 13.7bn in the prior quarter, highlighting increased quarter-to-quarter volatility.
Since acquiring a US subsidiary in 2023, the North American revenue share has expanded significantly, and a May 2026 follow-on investment is funding a new vehicle-model program.
The company's lightweighting and electrification component technologies have drawn market attention for potential application to Hyundai Motor Group's humanoid robot program.
After a net loss in 2022, the company has posted three consecutive years of profit, though its debt ratio remains above 200%.
Founded in 1986 and listed on KOSDAQ in 1992, Ilji Tech is a specialized manufacturer of automotive body parts. Its core products are panels that form the vehicle frame, including dash, hood, door, side, and floor components, produced through an integrated press-weld-assembly system.
The company's primary customer is Hyundai Motor Group, for which it holds Tier-1 supplier status, and it also operates a mold-making business.
Domestic production is based at two plants in Gyeongsan and one in Gyeongju, North Gyeongsang Province, while overseas operations run through a subsidiary in Beijing, China, and a US subsidiary, ILJI TECH AMERICA INC.
The company expanded its North American business in 2023 by acquiring additional equity in a US body-parts manufacturer, and according to a report by Research Alum, roughly 64% of 2025 revenue was generated in the United States.
More recently, the company has broadened its product lineup to include battery module cases and battery cooling systems for eco-friendly vehicles as part of its electrification response.
The body-parts segment has high barriers to entry due to the scale of capital investment and manufacturing know-how required, with peers such as Sungwoo Hitech, Dongwon Metal, and Myoung Shin Industrial cited as comparable players in the sector.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩216.6B | ₩6.5B | 3.0% |
| 2025Q3 | ₩203.1B | ₩7.7B | 3.8% |
| 2025Q4 | ₩230B | ₩21.9B | 9.5% |
| 2026Q1 | ₩222.2B | ₩13.7B | 6.2% |
| 2026Q2 | ₩207B | ₩3.5B | 1.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩229.1B | ₩600M | -₩9.1B | 0.3% | −9.8% | 309.3% |
| 2023 | ₩628.5B | ₩35.4B | ₩32.3B | 5.6% | 26.3% | 330.1% |
| 2024 | ₩757.3B | ₩24.4B | ₩22.5B | 3.2% | 15.0% | 282.7% |
| 2025 | ₩855.1B | ₩48B | ₩45.7B | 5.6% | 23.8% | 237.0% |
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
Ilji Tech's annual results show a clear recovery from a net loss of KRW 9.1bn in 2022.
In 2023 the company returned to profit with revenue of KRW 628.5bn and operating profit of KRW 35.4bn, and in 2024 revenue rose to KRW 757.3bn even as operating profit declined to KRW 24.4bn, pulling the operating margin down from 5.6% to 3.2%.
In 2025, revenue grew to KRW 855.1bn (+12.9%) and operating profit jumped to KRW 48.0bn (+96.4%), restoring the operating margin to 5.6%.
On a quarterly basis, revenue of KRW 216.6bn and operating profit of KRW 6.5bn in Q2 2025 improved modestly to KRW 203.1bn and KRW 7.7bn in Q3, before surging to KRW 230.0bn revenue and KRW 21.9bn operating profit in Q4.
The momentum continued into Q1 2026 with revenue of KRW 222.2bn and operating profit of KRW 13.7bn, but Q2 2026 revenue slipped to KRW 207.0bn, operating profit fell to KRW 3.5bn, and net profit attributable to owners dropped to KRW 1.6bn from KRW 17.1bn in the prior quarter.
This quarter-to-quarter volatility appears to reflect a combination of customer production schedules, foreign-exchange effects, and swings in overseas subsidiary results, making it difficult to draw a trend conclusion from a single quarter despite the improving annual trajectory.
Shareholders' equity has risen steadily from KRW 93.2bn in 2022 to KRW 191.8bn in 2025, and operating cash flow remained solid at KRW 93.5bn in 2025.
In the downstream passenger-vehicle market, expanding hybrid and electric-vehicle production is driving demand for lightweight, high-strength body parts, pushing up both unit prices and technical complexity.
Research Alum, citing market researcher Mordor Intelligence, projected the global automotive lightweight materials market to grow from USD 78.89bn in 2025 to USD 104.98bn by 2030 at a 5.9% CAGR, with the body segment—Ilji Tech's core business—expected to grow faster at a 6.1% CAGR.
The body-parts industry has high barriers to entry given the scale of capital investment and manufacturing know-how required, which is expected to keep the market position of incumbent Tier-1 suppliers relatively stable.
Ilji Tech has secured technologies including hot stamping, dissimilar-material joining, damping materials that bond thin aluminum sheets with composite resin, and Cu-Al-Cu clad busbars, positioning it to respond to vehicle electrification.
However, because results are directly tied to automaker production schedules and sales performance, the pace of new-model launches and US production expansion by its customer has an outsized influence on earnings.
The company competes within a peer group that includes Sungwoo Hitech, Dongwon Metal, and Myoung Shin Industrial.
In May 2026, Ilji Tech decided to inject an additional roughly KRW 31.7bn into its subsidiary ILJI TECH AMERICA INC., disclosed as funding for a new vehicle-model investment through a newly formed entity, CPT AMERICA LLC.
This maintains the company's 100% stake in the US subsidiary and is interpreted as an investment to support new order growth centered on North America. The company has also provided a debt guarantee of roughly KRW 11.1bn for its Chinese subsidiary in Beijing, indicating ongoing capital support for overseas operations.
In the market, some observers have noted that Ilji Tech's lightweight-material processing technology could potentially extend to robotics components, given Hyundai Motor Group's plan to mass-produce its humanoid robot 'Atlas' by 2028.
Research Alum projected 2026 consolidated revenue to rise 8.5% year over year to KRW 928.1bn and operating profit to increase 26.3% to KRW 60.6bn; these are external research-house estimates that may differ from actual disclosed results.
Given that Q2 2026 results fell short of such expectations, second-half performance will likely determine whether the annual estimates are met. The timing of new-model mass production ramp-up, the pace of volume recognition, and currency trends are expected to remain key variables for future earnings.
Following the 2025 earnings improvement, Ilji Tech's share price is assessed to have moved toward the upper end of its historical trading range.
In a June 2026 report, Research Alum stated that the company's price-to-earnings ratio stood at 1.2 times based on 2025 results and 1.6 times based on projected 2026 results, applying a target PER of 4 times drawn from the average PER of 4.5 times among peer body-parts makers.
Target prices among brokerages vary widely. On a book-value basis, the stock continues to trade below shareholders' equity, which can be interpreted as reflecting a debt ratio still above 200% and the ongoing capital burden from overseas subsidiary investments.
On dividends, the company has paid cash dividends for two consecutive years since the 2022 net loss, suggesting a gradual resumption of shareholder returns.
Given the increased quarter-to-quarter volatility in results, valuation metrics are best read alongside the annual trend and progress toward forward guidance rather than a single quarter's performance.
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
After the 2022 net loss, the company posted three straight years of profit from 2023, with 2025 operating profit nearly doubling year over year. Over the same period, shareholders' equity grew from KRW 93.2bn to KRW 191.8bn, steadily strengthening the financial base. Operating cash flow has also remained stable each year, supporting the quality of reported earnings.
Following the 2023 acquisition of a US subsidiary, the North American revenue share expanded significantly, and in May 2026 the company made a follow-on investment for a new vehicle-model program. The growth narrative remains linked to Hyundai Motor Group's expanding production in the United States.
With technologies such as hot stamping, dissimilar-material joining, and clad busbars for lightweight electrical components, the market has discussed the potential for expansion into new applications such as Hyundai Motor Group's humanoid robot program. This is viewed as an additional business opportunity distinct from core body-parts growth.
Operating profit fell sharply from KRW 13.7bn in Q1 2026 to KRW 3.5bn in Q2, and net profit attributable to owners dropped from KRW 17.1bn to KRW 1.6bn over the same period. Separate from the improving annual trend, quarter-to-quarter predictability has declined.
The bulk of revenue is concentrated with Hyundai Motor Group, so changes in the customer's production schedule or new-model launch timing directly affect results. This high dependence on a single customer can act as a constraint on bargaining power.
The debt ratio improved from 330.1% in 2023 to 237.0% in 2025 but remains above 200%. As overseas subsidiary investments continue, the burden of additional financing may persist.
As most revenue depends on volumes destined for Hyundai Motor Group, changes in the customer's production levels or new-model platform transitions can directly affect results. High dependence on a single automaker poses a risk in the event of supplier restructuring or volume reallocation.
Operating production entities in the United States and China exposes reported results to significant currency-translation effects, and part of the 2025 earnings improvement is understood to reflect such foreign-exchange effects. Continued capital injections and debt guarantees for overseas subsidiaries can add to funding burdens.
With the debt ratio above 200%, ongoing investment in new vehicle models and overseas capacity expansion means additional financing needs persist. A deterioration in the interest-rate environment or capital-market access could pressure the pace of investment or financial stability.
This is when Q3 2026 results are expected to be disclosed, as last year's Q3 results were released in mid-November. It will be a key indicator of whether the Q2 profit slowdown was temporary or persistent.
It will be important to track the progress of the new vehicle-model investment at CPT AMERICA LLC, under the US subsidiary ILJI TECH AMERICA INC., and the timing of mass-production start. The pace at which this investment translates into results could shape future earnings direction.
This is a point to compare Research Alum's estimate of KRW 928.1bn revenue and KRW 60.6bn operating profit for full-year 2026 against actual reported results. Since Q2 fell short of expectations, whether earnings recover in the second half will be the key question.
It is worth monitoring whether concrete supply-chain participation, contracts, or production news emerge regarding Hyundai Motor Group's humanoid robot 'Atlas' program. As this remains an unconfirmed potential growth driver, tracking actual progress is important.
Ilji Tech, a Tier-1 supplier to Hyundai Motor Group, has improved its financial structure through three consecutive years of profit following a net loss in 2022.
In 2025, both revenue and operating profit rose sharply, but in Q2 2026 operating profit and net profit contracted significantly from the prior quarter, reflecting increased quarterly volatility.
New vehicle-model investment through the North American subsidiary and the potential application of lightweighting technology to robotics components are cited as possible pillars of future growth, though neither has yet been confirmed through concrete contracts or production plans.
The debt ratio has improved but remains above 200%, and ongoing capital injections and debt guarantees for overseas subsidiaries warrant continued attention to funding needs.
External research houses such as Research Alum project improved 2026 results, but as these are estimates, comparison with actual Q3 and Q4 disclosures will be important.
On balance, the stock sits at a point where bullish factors—profit recovery and business expansion—coexist with bearish factors including customer concentration, currency exposure, and quarterly volatility.
Report written 2026-09-05 · Data as of 2026-09-04
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