PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Sewon Mulsan posted lower revenue in 2025 and booked operating losses in both the first and second quarters of 2026, though owner net income stayed positive thanks to non-operating items.
2025 revenue fell about 8.4% year over year to KRW 211.6 billion from KRW 230.9 billion, while the operating margin edged up from 0.6% to 1.4%, still a thin level.
Operating profit swung to losses in both Q1 2026 (-KRW 2.0 billion) and Q2 2026 (-KRW 1.7 billion), while revenue slid from KRW 54.3 billion to KRW 41.6 billion.
Owner net income remained positive at KRW 1.7 billion in Q1 2026 and KRW 2.0 billion in Q2 2026, decoupled from the operating loss.
The debt ratio fell to 22.4%, the lowest of the four years shown, while total equity grew to KRW 396.1 billion, pointing to a relatively stable balance sheet.
NICE Investors Service rated the 2026 outlook for Korea's domestic auto parts sector at the lowest of three tiers, citing Hyundai Motor Group's expanding US localization as a structural headwind.
Founded in 1985 and listed on KOSDAQ in 1994, Sewon Mulsan is a Hyundai Motor Group-affiliated body-parts specialist headquartered and manufacturing in Yeongcheon, North Gyeongsang Province.
The company works with Hyundai Motor to produce and supply body reinforcement panels for multiple models, using automated press lines and TWB laser welding equipment to raise production efficiency.
Its core products include rear floor and fender apron reinforcement panels, along with front pillar, dash panel assemblies and cowl cross members. Its business is composed of auto parts manufacturing and the associated mold-making business.
The company has a long history of supplying body parts for passenger and commercial models such as Sonata, Accent and Grandeur.
Overseas, it entered the Chinese auto parts market by establishing Samha Sewon, and it operates a US subsidiary, SEWON AMERICA, for which a debt guarantee backed by the Export-Import Bank of Korea was recently extended through April 2027.
Sewon Mulsan is part of the Sewon Group, which also includes Sewon Precision, Sewon Tech, Sewon ENI, SNI, SMT and JM Auto.
Peers in the same body-parts segment include Sungwoo Hitech, Hwashin, Dongwon Metal and Motonic, and Sewon Mulsan sits within a second-to-third-tier vendor structure that is heavily dependent on domestic production and therefore sensitive to shifts in automaker output.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩59.7B | ₩1.9B | 3.2% |
| 2025Q3 | ₩52.3B | ₩1.7B | 3.2% |
| 2025Q4 | ₩54.1B | ₩1.1B | 2.0% |
| 2026Q1 | ₩54.3B | -₩2B | −3.6% |
| 2026Q2 | ₩41.6B | -₩1.7B | −4.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩171.1B | ₩15B | ₩16.3B | 8.8% | 6.7% | 27.6% |
| 2023 | ₩193B | ₩5.9B | ₩12.7B | 3.1% | 3.6% | 29.6% |
| 2024 | ₩230.9B | ₩1.3B | ₩22B | 0.6% | 5.8% | 24.7% |
| 2025 | ₩211.6B | ₩3.1B | ₩18.6B | 1.4% | 4.7% | 22.4% |
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
Revenue rose for three straight years, from KRW 171.1 billion in 2022 to KRW 193.0 billion in 2023 and KRW 230.9 billion in 2024, before falling about 8.4% year over year to KRW 211.6 billion in 2025.
The operating margin dropped sharply from 8.8% in 2022 to 3.1% in 2023 and 0.6% in 2024, then recovered modestly to 1.4% in 2025; in absolute terms operating profit fell from KRW 15.0 billion in 2022 to KRW 1.3 billion in 2024 before rising to KRW 3.1 billion in 2025.
Owner net income came in at KRW 16.3 billion in 2022, KRW 12.7 billion in 2023, KRW 22.0 billion in 2024 and KRW 18.6 billion in 2025, moving out of step with operating profit -- notably, net income peaked in 2024, the year operating profit was weakest.
On a quarterly basis, revenue and operating profit both shrank in succession from KRW 59.7 billion and KRW 1.9 billion in Q2 2025, to KRW 52.3 billion and KRW 1.7 billion in Q3, and KRW 54.1 billion and KRW 1.1 billion in Q4.
That trend became more pronounced in 2026: Q1 revenue held at KRW 54.3 billion but operating profit turned negative at -KRW 2.0 billion, and Q2 revenue slipped further to KRW 41.6 billion with an operating loss of -KRW 1.7 billion.
Two consecutive quarters of operating losses is a pattern not seen in the 2022-2025 annual results. Owner net income nonetheless stayed positive, at KRW 1.7 billion in Q1 2026 and KRW 2.0 billion in Q2 2026, suggesting non-operating items substantially offset the operating losses.
The balance sheet has remained comparatively stable, with the debt ratio falling from 27.6% in 2022 to 22.4% in 2025, total equity rising from KRW 243.3 billion to KRW 396.1 billion, and operating cash flow staying positive in all four years.
The domestic auto parts industry is shifting toward a structure where utilization rates and fixed-cost management matter more than sales volume alone. NICE Investors Service rated the 2026 earnings outlook for domestic auto parts makers at the lowest of three tiers -- deteriorating, steady, or improving.
Parts makers' revenue is closely tied to Hyundai Motor Group, which produces about 80% of Korea's finished vehicles, so when the group's output rises, parts makers' sales tend to rise as well.
However, as automaker production shifts toward the United States, revenue volatility for domestically based parts suppliers could increase.
Even after the US tariff rate eased from 25% to 15%, Hyundai Motor Group is expanding US production to capture duty-drawback benefits, adding capacity at its Metaplant America (HMGMA) facility through 2028 on top of existing US output.
As the group plans to raise its parts localization ratio from 60% in 2025 to 80% by 2030, domestically based second- and third-tier vendors face structural pressure from intensified competition for new model allocations and downward pressure on domestic sourcing prices.
NICE Investors Service said domestically based parts makers may see limited profitability recovery due to utilization volatility and pricing pressure, while suppliers with US production capacity could benefit from reduced tariff burden and expanded local sourcing.
Separately, autos and auto parts remain subject to Section 232 tariffs but were excluded from the recently effective Section 301 forced-labor tariff on Korea (12.5%).
With much of the tariff uncertainty resolved, the exchange rate has emerged as the biggest variable for automaker and parts-industry earnings in the second half.
Sewon Mulsan's future results are likely to hinge more on the production and purchasing policies of its largest customer, Hyundai Motor Group, than on any standalone company guidance.
Hyundai's labor union and management finalized their 2026 wage agreement on August 31 via member vote, centered on a base pay increase of KRW 100,000 and a bonus of 400% plus KRW 12.7 million, after the union staged its first full-scale strike in a decade during negotiations.
Hyundai Motor CEO Jose Munoz emphasized expanding hybrid-focused production capacity at the company's CEO Investor Day on August 26, and the company raised its 2030 operating margin target to above 9% from a prior 8-9% range through an improved hybrid sales mix.
Kia is pursuing a regionally differentiated strategy as well, expanding large-SUV production capacity in the United States while introducing locally produced small EVs and hybrid models in Europe.
The Korea Institute for Industrial Economics and Trade forecast domestic auto demand would fall 1.5% year over year in the second half of 2026 due to the end of an individual consumption tax cut and a weaker economy, while still projecting annual growth of 1.0% on the back of expanding EV demand.
The won has strengthened to around KRW 1,420 per dollar, roughly KRW 60 lower than in the first half after five months, a condition flagged as unfavorable for export-oriented parts makers.
Sewon Mulsan's second-half 2026 results will likely depend on how quickly Hyundai's production normalizes, how tariff and currency conditions evolve, and whether the company's own cost structure improves.
Sewon Mulsan's shares tend to trade at a discount to net asset value, and its earnings-based price multiple also sits near the lower end of the trading band this stock has historically formed.
The dividend yield is understood to run below the sector average, and the company has continued to pay cash dividends through recent periods. The trend of expanding total equity and a declining debt ratio is worth noting as part of the balance-sheet foundation behind net asset value.
That said, the two consecutive quarters of operating losses in the first half of 2026 leave a question mark over earnings stability, and it is difficult to determine from the metrics alone how much of the net-asset discount already reflects that earnings uncertainty.
The recent pattern of owner net income moving in a different direction from operating profit is another factor worth weighing when interpreting valuation.
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
The debt ratio fell from 27.6% in 2022 to 22.4% in 2025, while total equity grew from KRW 243.3 billion to KRW 396.1 billion. Operating cash flow also stayed positive in all four years from 2022 to 2025.
This balance-sheet structure could serve as a buffer even amid the recent two consecutive quarters of operating losses.
Despite operating losses in both Q1 and Q2 2026, owner net income stayed positive at KRW 1.7 billion and KRW 2.0 billion respectively. A similar pattern occurred in 2024, when operating profit was the lowest of the four years shown yet net income was the highest. Non-operating items appear to have offset much of the earnings volatility.
Sewon Mulsan has maintained a long-standing supply relationship with Hyundai Motor, delivering body reinforcement panels for multiple models. It has also partially diversified its production base overseas through Samha Sewon in China and SEWON AMERICA in the United States. Cooperation among Sewon Group affiliates may also underpin business stability.
Operating profit turned negative in both Q1 and Q2 2026, a pattern not seen in the annual results from 2022 to 2025. Revenue also declined further, from KRW 54.3 billion in Q1 to KRW 41.6 billion in Q2, with profitability pressure accompanying the sales decline.
2025 revenue fell to KRW 211.6 billion from KRW 230.9 billion the prior year, and quarterly revenue continued sliding from KRW 59.7 billion in Q2 2025 to KRW 41.6 billion in Q2 2026.
Given the business's high exposure to shifts in automaker order volumes, this revenue contraction could magnify the burden of fixed costs.
NICE Investors Service rated the 2026 outlook for Korea's domestic auto parts industry at the lowest of three tiers.
As Hyundai Motor Group plans to raise its parts localization ratio to 80% by 2030, domestically based second- and third-tier vendors are expected to face intensified competition for new model allocations and downward pricing pressure.
Sewon Mulsan, with a vendor structure heavily weighted toward domestic production, is not insulated from this trend.
Parts makers' revenue is closely tied to Hyundai Motor Group, which produces about 80% of Korea's finished vehicles, so shifts in the group's output flow directly through to parts suppliers' sales.
As a second- to third-tier vendor, Sewon Mulsan is sensitive to changes in domestic production volume, and the simultaneous revenue and operating profit decline in the first half of 2026 illustrates this structural sensitivity.
With the US tariff on Korean autos and parts set at 15%, the tariff burden remains a fixed cost. At the same time, the won has been strengthening in the second half, creating a less favorable environment for export-exposed parts makers broadly.
During the 2026 wage negotiations, Hyundai experienced its first full-scale strike in a decade, with the resulting sales loss estimated at roughly KRW 2.3 trillion.
Disruptions to automaker production can affect the timing and volume of parts orders, and the annually recurring wage negotiation cycle remains a repeating risk factor for downstream vendors such as Sewon Mulsan.
Check Sewon Mulsan's Q3 2026 quarterly filing to see whether operating profit returns to positive territory and how quickly revenue recovers.
Monitor how the won-dollar exchange rate and the 15% US tariff burden affect automaker order volumes and parts price negotiations.
Track Hyundai Motor Group's domestic production levels and progress on raising its parts localization ratio (from 60% in 2025 toward 80% by 2030) to gauge the impact on orders for domestically based second- and third-tier vendors.
Check whether the debt guarantee for SEWON AMERICA, maturing on April 7, 2027, is extended and whether its scale changes.
Sewon Mulsan is a small-cap KOSDAQ supplier within Hyundai Motor Group's body-parts supply chain that saw revenue and operating margin fluctuate through 2025 before posting operating losses in both quarters of the first half of 2026.
Over the same period, owner net income remained positive, with operating profit and net profit moving in different directions. The balance sheet has stayed comparatively stable, with a declining debt ratio and growing total equity.
On the industry side, NICE Investors Service rated the 2026 outlook for Korea's domestic auto parts sector at the lowest tier, and Hyundai Motor Group's expanding US localization is cited as a structural headwind for domestically based second- and third-tier vendors.
On the other hand, the partial resolution of tariff uncertainty at a fixed 15% rate and automakers' expanding hybrid-focused sales could act as a buffer for parts demand.
Key things to watch going forward include whether operating profit returns to positive in the third-quarter results and how exchange-rate and localization developments affect domestic order volumes. 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.