PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩110 per share · Prices as of the 2026-10-02 close
Samwon Steel holds a unique domestic position as Korea's sole hot-rolled spring steel producer, though its operating margin has shown a gradual downward trend over the past three years.
2025 revenue rose slightly to KRW 359.3 billion, but operating profit fell to KRW 9.88 billion, pushing the operating margin down to 2.7%.
Revenue and operating profit recovered sequentially in the first and second quarters of 2026, signaling a quarterly earnings rebound.
The joint-venture structure between major shareholder Daewon Kangup (roughly 49.99% stake) and POSCO combines raw material sourcing with automaker sales channels.
Cash generation, measured by operating cash flow, steadily improved from KRW 6.2 billion in 2022 to KRW 33.3 billion in 2025.
Management saw a change in March 2026 when new co-CEOs were appointed at the annual general meeting.
Samwon Steel is an automotive spring material specialist established in 1992 as a joint venture between Daewon Kangup and POSCO. Its main products include hot-rolled items such as flat bar, round bar, and round steel, along with peeled bar, cold-drawn ground products, lightweight pipe, and finished leaf springs.
Revenue is composed of roughly 53-54% material processing products, 44-45% spring products, and about 2% other items.
The company holds a monopoly position in the domestic hot-rolled spring steel market as the sole producer, and operates in an oligopoly with major shareholder Daewon Kangup in the finished leaf spring segment.
Products are largely supplied to automakers such as Hyundai and Kia through Daewon Kangup, while the company also exports directly to Southeast Asia, Japan, China, India, the United States, Europe, and South America.
In response to the vehicle lightweighting trend, the company has developed new materials including hollow pipe and ultra-fine-grain, corrosion-resistant, and low-density spring steel. It has secured a partial global supply footprint by holding an equity stake in a US-based affiliate for overseas production. At the March 2026 annual general meeting, new co-CEOs were appointed, marking a change in management.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩95.8B | ₩2.5B | 2.6% |
| 2025Q3 | ₩93.2B | ₩4.2B | 4.5% |
| 2025Q4 | ₩82.5B | ₩1.7B | 2.0% |
| 2026Q1 | ₩84.8B | ₩2.4B | 2.9% |
| 2026Q2 | ₩93.3B | ₩2.6B | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩364.1B | ₩16.5B | ₩13B | 4.5% | 5.6% | 27.3% |
| 2023 | ₩359.1B | ₩16.5B | ₩16.6B | 4.6% | 6.8% | 25.2% |
| 2024 | ₩343.6B | ₩11.8B | ₩13.2B | 3.4% | 5.3% | 16.0% |
| 2025 | ₩359.3B | ₩9.9B | ₩10.7B | 2.7% | 4.1% | 18.9% |
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
Annual revenue declined from KRW 364.1 billion in 2022 to KRW 359.1 billion in 2023 and KRW 343.6 billion in 2024, before recovering to KRW 359.3 billion in 2025.
Operating profit, however, stayed around KRW 16.5 billion in both 2022 and 2023 before falling to KRW 11.8 billion in 2024 and KRW 9.9 billion in 2025, with the operating margin declining from 4.5% in 2022 to 2.7% in 2025.
Net income attributable to owners followed a similar pattern, peaking at KRW 16.6 billion in 2023 before falling to KRW 13.2 billion in 2024 and KRW 10.7 billion in 2025.
Operating cash flow, by contrast, rose steadily from KRW 6.2 billion in 2022 to KRW 17.8 billion in 2023, KRW 19.2 billion in 2024, and KRW 33.3 billion in 2025, diverging from the profit trend.
On a quarterly basis, revenue and operating profit improved from KRW 95.8 billion and KRW 2.5 billion in Q2 2025 to KRW 93.2 billion and KRW 4.2 billion in Q3 2025, before easing to KRW 82.5 billion and KRW 1.7 billion in Q4 2025.
In 2026, revenue and operating profit recovered sequentially to KRW 84.8 billion and KRW 2.4 billion in Q1 and KRW 93.3 billion and KRW 2.6 billion in Q2.
Notably, owners' net income in Q2 2026 reached KRW 4.3 billion, well above operating profit of KRW 2.6 billion for the same quarter, suggesting a contribution from non-operating items.
Owners' net income summed over the most recent four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 13.2 billion, indicating the annual earnings adjustment phase is still unfolding.
Domestic automobile production, the key downstream market for Samwon Steel, is expected to increase year over year in 2026 helped by easing US trade risk and growing hybrid vehicle preference. However, ongoing steel cost pressure is seen limiting the extent of profitability improvement for parts suppliers.
Domestic automakers are relying on foreign exchange effects, improved sales mix, and rising hybrid sales to defend earnings, which indirectly affects tier-one supplier Daewon Kangup and its material supplier Samwon Steel.
In the hot-rolled spring steel market, Samwon Steel maintains a de facto monopoly as the sole domestic producer, keeping the threat of new entrants low. The finished leaf spring segment has long operated under a stable oligopoly with Daewon Kangup, keeping competitive intensity relatively contained.
That said, the ongoing vehicle lightweighting trend, which is gradually shifting demand from traditional leaf springs toward coil springs and lightweight materials, is a structural change worth monitoring over the long term.
Fluctuations in hot-rolled coil raw material prices remain a key variable with a direct impact on the company's cost structure.
According to market analysis related to the company, domestic auto production in 2026 is expected to rise year over year on easing US trade risk and growing global hybrid preference, though profitability improvement is seen as limited due to cost burdens.
The sequential recovery in first and second quarter 2026 results is broadly consistent with this market view.
The company continues to develop new materials such as hollow pipe and ultra-fine-grain, corrosion-resistant, and low-density spring steel in response to the vehicle lightweighting trend, representing an effort to diversify beyond its traditional leaf-spring-centered business model.
Global supply chain diversification also continues, including an equity stake in a US-based affiliate to secure overseas production capacity. With a new co-CEO leadership team installed in March 2026, it will be worth monitoring whether management strategy shows continuity or change going forward.
Hot-rolled coil raw material prices and the pace of automaker production normalization are likely to be key variables for second-half results.
The current share price trades below the company's net asset value per share, which can be viewed as a discount relative to book value.
The multiple at which the stock trades relative to its earnings base needs to be considered alongside the gradual decline in net income since 2023, and whether the recent quarterly rebound continues will be a factor affecting how that multiple is read going forward.
The company has a track record of paying consistent cash dividends in recent years, and the continuity of that dividend policy itself is a point worth noting.
That said, dividend size has tended to track the year's net income level, so the recent decline in net income is a factor that could affect future dividend capacity.
On the capital structure side, the debt-to-equity ratio fell from 27.3% in 2022 to 16.0% in 2024 before ticking up slightly to 18.9% in 2025, reflecting an overall stable financial structure.
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
Samwon Steel operates as the sole domestic producer of hot-rolled spring steel, giving it a business structure with high entry barriers. Its finished leaf spring segment also maintains a stable revenue base through an oligopoly with Daewon Kangup.
This monopoly-oligopoly position can act as a relative buffer against pricing pressure from intensifying competition.
Operating cash flow rose steadily from KRW 6.2 billion in 2022 to KRW 33.3 billion in 2025 over four years. This suggests the company's actual cash-generating capacity has been improving separately from the profit-and-loss adjustment phase. Stable cash flow can serve as a resource for dividend payments or new investment.
Following a trough in Q4 2025, revenue and operating profit improved sequentially in Q1 and Q2 2026. In particular, owners' net income in Q2 2026 reached its highest level among the past five quarters. Whether this recovery trend continues into the second half is a key point to watch.
The operating margin declined for three consecutive years, from 4.5% in 2022 to 2.7% in 2025. The fact that margins kept falling despite relatively stable revenue suggests structural pressure on cost structure or pricing power. Whether this trend reverses will need to be confirmed through future quarterly results.
A significant portion of revenue depends on sales to automakers channeled through major shareholder Daewon Kangup, making results highly sensitive to trends in downstream vehicle production and sales. Production disruptions or weak sales at automakers can transmit to parts and materials suppliers like Samwon Steel. This concentrated customer structure can be pointed to as a weakness in terms of diversification.
Owners' net income peaked at KRW 16.6 billion in 2023 before declining in both 2024 and 2025. Given that dividends tend to track net income levels, a continued decline in net income could affect future dividend policy. If earnings recovery is delayed, this could create constraints on shareholder returns.
Fluctuations in raw material prices such as hot-rolled coil directly affect Samwon Steel's cost structure. If raw material costs rise and are not immediately reflected in selling prices, the operating margin could face additional pressure. This is cited as one of the main factors behind the margin decline already observed over the past three years.
A slowdown in automaker production and sales could reduce Samwon Steel's supply volume of materials and springs. In particular, US trade policy or global economic variables can affect automaker production plans and transmit to parts supplier results.
Because the company's revenue structure is concentrated among specific customer groups, it is relatively exposed to this risk.
A new management team took over following a CEO change at the March 2026 annual general meeting. The company sits within a complex ownership structure involving major shareholder Daewon Kangup and affiliated companies, meaning group-level governance changes could indirectly affect Samwon Steel's management direction.
In the early stages of a management transition, it is necessary to confirm whether strategic continuity is maintained.
Check for the 2026 Q3 earnings disclosure and whether the revenue and operating profit recovery seen in Q1 and Q2 continues.
Monitor hot-rolled coil raw material price trends and monthly production/sales releases from automakers such as Hyundai and Kia to gauge downstream demand changes.
Track progress in US trade and tariff policy negotiations and their impact on automaker production plans and parts supplier demand.
Review the management performance of the CEO team newly appointed in March 2026 and the dividend policy decisions made at the meeting.
Samwon Steel holds a monopoly position as Korea's sole hot-rolled spring steel producer while also maintaining an oligopoly with Daewon Kangup in the finished leaf spring segment.
Over the past three years, the operating margin declined from 4.5% to 2.7%, while operating cash flow steadily improved over the same period, showing profit and cash generation moving in different directions.
Following a trough in Q4 2025, results recovered sequentially in Q1 and Q2 2026, and whether this trend continues will be central to interpreting future performance.
Downstream auto production is expected to increase in 2026 amid easing trade risk and growing hybrid preference, though profitability improvement for parts suppliers is seen as limited due to cost pressure. Dependence on automaker demand and raw material price volatility remain risk factors worth continued monitoring.
With a new management team in place since March 2026, strategic continuity and future dividend policy also warrant attention.
Report written 2026-09-05 · Data as of 2026-09-04
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