PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Sewon Precision has maintained profitability in 2024-2025 after posting losses in 2022-2023, though 2025 saw operating margin and net profit soften even as revenue grew.
2025 revenue rose year over year, but operating profit and owner net income declined
After an operating loss in Q3 2025, both revenue and profit rebounded clearly in Q4
The company has a US subsidiary (SARE) in Georgia co-located with Hyundai Motor Group's EV-dedicated plant (HMGMA)
Automakers' push to expand local US parts sourcing is cited as a pressure factor on Korean parts exporters overall
The debt ratio remains in the single digits, indicating a relatively stable financial structure
Sewon Precision, founded in 1985 as a core affiliate of the Sewon Group, is a KOSPI-listed auto parts maker focused on body/chassis components.
Its main products are core body parts such as front side members, cowl cross members, and dash panel assemblies, supported by process technologies including laser welding and closed-section composite forming.
Beyond body parts, the company has expanded into interior/exterior injection-molded plastic parts and lamp components (design modules), molds needed for parts production, and high-performance multilayer sheets.
Its body-parts lineup includes front side members, cowl cross members, dash panel assemblies, radiator panel assemblies, and rear floor components, supported by closed-section composite forming systems and precision laser welding technology.
Its primary customer is the Hyundai Motor Group, and domestically Sewon Precision shares body/design-part production with affiliates Sewon Mulsan, Sewon Tech, and Sewon ENI.
Founded in 1985, Sewon Group has maintained competitiveness through cooperation with Hyundai Motor Group, producing body and design parts domestically via Sewon Precision, Sewon Mulsan, Sewon Tech, and Sewon ENI.
Its overseas manufacturing network spans China (Samha Sewon, Huanghua Sewon) and the United States (Sewon America), with Sewon America established in LaGrange, Georgia in 2008 to supply body parts to North American automakers.
Sewon America was established in LaGrange, Georgia in 2008 to supply body parts to the North American market. More recently, the company built a dedicated Georgia production base timed to Hyundai's US EV-dedicated plant startup.
Hyundai Motor Group's US EV-dedicated plant, HMGMA, was completed in early 2025, and Sewon Group co-located there to fully launch parts supply. Given its heavy reliance on a single automotive group, results are highly sensitive to industry cycles and shifts in the customer's production and sourcing policies.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2024Q4 | ₩43.1B | ₩2.5B | 5.8% |
| 2025Q1 | ₩39.2B | ₩7.9B | 20.1% |
| 2025Q2 | ₩42B | ₩5.1B | 12.2% |
| 2025Q3 | ₩37.6B | -₩4.1B | −10.9% |
| 2025Q4 | ₩60.6B | ₩8.1B | 13.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩115.2B | -₩10.9B | -₩11.3B | −9.5% | −2.5% | 14.1% |
| 2023 | ₩159.2B | ₩12B | -₩9.5B | 7.6% | −1.9% | 16.0% |
| 2024 | ₩162.5B | ₩19.2B | ₩55.4B | 11.8% | 9.4% | 9.5% |
| 2025 | ₩179.4B | ₩17B | ₩46.5B | 9.5% | 7.3% | 9.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-22
Consolidated revenue in 2025 reached KRW 179.35 billion, up from KRW 162.53 billion in 2024, yet operating profit fell to KRW 17.03 billion from KRW 19.21 billion, and owner net income declined to KRW 46.46 billion from KRW 55.35 billion. As a result, the operating margin dropped from 11.8% in 2024 to 9.5% in 2025.
On a quarterly basis, Q1 2025 posted revenue of KRW 39.16 billion, operating profit of KRW 7.88 billion, and net income of KRW 11.01 billion, while Q2 showed revenue of KRW 41.97 billion, operating profit of KRW 5.12 billion, and net income of KRW 13.22 billion, reflecting a stable profitable run in the first half.
In Q3, however, revenue slipped to KRW 37.60 billion and operating profit turned negative at KRW -4.11 billion, though net income remained positive at KRW 6.94 billion despite the operating loss.
Q4 saw revenue surge to KRW 60.62 billion with operating profit of KRW 8.14 billion and net income of KRW 15.29 billion, largely offsetting the Q3 weakness.
This quarterly volatility suggests seasonal and transitory factors—automaker production schedules, cost inputs, and currency movements—materially affect operating results.
Separately, in 2022-2023 consolidated net losses were KRW -27.86 billion and KRW -31.27 billion respectively, and the wide gap versus owner net losses (KRW -11.30 billion and KRW -9.49 billion) indicates substantial losses attributable to non-controlling interests.
Notably, while operating profit itself was negative at KRW -10.94 billion in 2022, it turned positive at KRW 12.04 billion in 2023 even as net losses persisted.
On cash generation, operating cash flow surged to KRW 60.36 billion in 2025 from KRW 19.00 billion in 2024, showing cash-flow improvement even as headline profit softened.
Korea's auto/parts industry is navigating a broad shift toward US local production and local parts sourcing following US tariffs on imported vehicles and parts.
According to the Korea Institute for Industrial Economics and Trade, the local parts sourcing rate for vehicles Hyundai and Kia produce in the US stands at 48.6%, and further localization is expected to directly hurt Korean parts exporters' US-bound shipments.
Indeed, per the Korea Automotive Industry Cooperative Association, Korea's auto parts exports to the US last year totaled USD 7.666 billion, down 6.7% year over year—the first decline since 2020—while total auto parts exports fell 5.9% to USD 21.2 billion.
Finished-vehicle exports, however, have remained resilient, as vehicle exports rose 7.0% year over year to a record high, with North America-bound exports up 18.0%.
The US government extended a credit system that offsets part of the parts tariff for automakers assembling locally, with the relief program extended for five years through April 30, 2030.
Against this backdrop, Hyundai Motor Group is accelerating US capacity expansion, and reports indicate Hyundai is reviewing plans to expand HMGMA's annual capacity to 700,000-800,000 units by 2028, up from the currently planned 500,000 units.
Sewon Precision is among the few Korean parts suppliers with its own Georgia-based subsidiary co-located with HMGMA, a position that could be relatively favorable amid the localization shift, though heavy revenue dependence on a single automotive group remains an industry-cycle risk.
The company's future earnings trajectory appears tied to two main axes: the allocation of automaker production volume to its domestic plants, and expansion of North American supply through its US subsidiary (SARE).
Hyundai Motor Group's US EV-dedicated plant, HMGMA, was completed in early 2025, and Sewon Group co-located there to fully launch parts supply.
Hyundai Motor Group's leadership, including Chairman Euisun Chung, has visited Sewon Group's North American production base, as Chairman Euisun Chung and other senior Hyundai executives officially visited Sewon Group's North American EV body-parts plant, SARE, marking Chung's second visit following his 2009 trip to the Sewon America LaGrange plant.
This can be read as evidence of Sewon Group's position within Hyundai's North American EV supply chain.
Externally, Sewon Precision has also been recognized for export performance, as at the 62nd Trade Day ceremony held late last year, Sewon Precision received a USD 30 million Export Tower award, with the awards to Sewon Precision and Sewon Tech regarded as especially notable export achievements for the year.
That said, if automakers continue expanding local sourcing, domestic plant volumes could face pressure, making the company's adjustment of its US production mix an important point to monitor.
No specific quantitative revenue or order guidance from the company itself was confirmed, so future results should be tracked sequentially through quarterly disclosures and Hyundai Motor Group's production/sourcing policy announcements.
The current share price trades at a considerable discount to the company's net asset value, and also sits at a low multiple relative to earnings over the most recent four quarters.
This can be interpreted as the market pricing in the company's high revenue dependence on a single automaker group, quarter-to-quarter earnings volatility, and medium-term uncertainty tied to automakers' expanding US local sourcing.
The shift from losses in 2022-2023 to profit recovery in 2024-2025 could be cited as grounds for a valuation re-rating, but the fact that profit levels eased somewhat in 2025 versus the prior year leaves questions about the strength of that recovery.
The company has a track record of paying annual cash dividends, suggesting continuity in shareholder return policy. As views on valuation levels can differ across investors, this report does not offer a specific judgment.
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 2026-09-22
After posting consolidated net losses in 2022-2023, the company has sustained profitability since 2024. Operating cash flow surged to KRW 60.36 billion in 2025 from KRW 19.00 billion in 2024, showing improved cash generation independent of headline earnings.
Q4 (revenue of KRW 60.62 billion, operating profit of KRW 8.14 billion) largely offset the Q3 weakness, demonstrating resilience.
Sewon Precision has co-located in Georgia via its Sewon America and SARE subsidiaries with Hyundai Motor Group's US EV-dedicated plant (HMGMA). Already having a local production base amid automakers' push for expanded US local sourcing could be relatively favorable.
Visits by Hyundai Motor Group's top executives to the local plant offer additional context on its supply-chain standing.
The debt ratio at end-2025 stood at 9.5%, remaining in the single digits, and has been managed stably within a 9.5-16.0% range since 2022-2024. This represents relatively low leverage even within the auto parts sector, supporting capacity to withstand industry swings.
Hyundai and Kia's move to expand local US parts sourcing weighs on Korean parts exporters' overall US-bound shipments. Last year, Korea's auto parts exports to the US declined for the first time since 2020. Even with a US subsidiary, the possibility of reduced export allocation from domestic plants cannot be ruled out.
Operating profit turned negative at KRW -4.11 billion in Q3 2025, breaking the steady profitable run seen in the first half. Although it recovered in Q4, this quarter-to-quarter swing highlights sensitivity to transitory cost and currency factors. Similar volatility could recur going forward.
While 2025 revenue rose year over year, the operating margin fell from 11.8% to 9.5%, and owner net income declined from KRW 55.35 billion to KRW 46.46 billion. The disconnect between revenue growth and profitability improvement suggests a need to monitor cost structure or product mix changes.
The company's revenue structure is highly dependent on Hyundai Motor Group. Changes in the customer's production plans, model allocation, or sourcing policy can directly affect results, and the pool of alternative customers to diversify into is limited.
US tariff policy on imported vehicles and parts, along with the tariff-offset credit system, can change based on policy decisions. If automakers intensify demands for local sourcing, this could affect export volumes and pricing terms for domestic plants.
Operating multiple overseas subsidiaries in China, the US, and elsewhere exposes the company to currency fluctuations that can affect results. Raw material price swings, such as in steel, also directly impact cost structure and can contribute to transitory operating losses like the one seen in Q3 2025.
Check the Q3 2026 earnings disclosure for whether revenue recovery continues and how the operating margin trends.
Monitor the progress of Hyundai/Kia's expanded US local parts sourcing policy and its impact on Sewon Precision's domestic plant volumes.
Confirm whether plans to expand HMGMA's annual capacity to 700,000-800,000 units are finalized, and whether Sewon Precision discloses any accompanying capacity expansion.
Check the FY2026 annual settlement and cash dividend disclosure to confirm finalized annual results and the continuity of shareholder returns.
Sewon Precision emerged from losses in 2022-2023 to sustain profitability through 2024-2025, though 2025 saw operating margin and net income soften from the prior year despite revenue growth, raising questions about the consistency of the recovery.
Quarterly results showed pronounced volatility, with the stable profitable run in the first half interrupted by an operating loss in Q3 before recovering in Q4.
On the business side, its co-located US subsidiary in Georgia alongside Hyundai Motor Group's EV-dedicated plant stands out as a positive factor, but the broader trend of automakers expanding US local sourcing also weighs on the domestic parts industry as a whole.
Financially, the single-digit debt ratio and the sharp increase in 2025 operating cash flow stand out as stability strengths. The shares trade at a discount to net asset value and at a low multiple relative to recent earnings, though how that is assessed can vary by investor perspective.
Q3 results, potential HMGMA capacity expansion, and progress on localization policy appear to be key variables for gauging the earnings trajectory ahead.
Report written 2026-09-23 · Data as of 2026-09-22
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.