PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
SJM Holdings, centered on automotive bellows unit SJM Corp, saw flat revenue and lower operating profit in 2025, but quarterly net profit attributable to owners has shown a recovery trend into 2026.
2025 consolidated revenue was KRW 205.8 billion, similar to the prior year, while operating profit fell to KRW 10.6 billion, pushing the operating margin down to around 5%.
After an operating loss in Q4 2025, both operating profit and net profit attributable to owners improved for two consecutive quarters in Q1 and Q2 2026.
The stock trades at a level below net asset value per share, and a treasury stock position combined with a high founding-family stake limits the free float.
Subsidiary SJM Corp is diversifying beyond automotive exhaust bellows into LNG carrier expansion joints and aerospace components, expanding localization cooperation with KAI on civil and defense aircraft parts.
The shift toward electrified vehicles pressures demand for legacy internal-combustion exhaust components, but the company is responding with new technology such as EV cooling tubes.
SJM Holdings is a pure holding company established through a spin-off in 2010, whose core function is controlling and managing subsidiaries through equity ownership. It holds more than 20 subsidiaries, with the key ones being SJM Corp (automotive parts manufacturing), Akers Co.
(investment business), and SJM Prewell (telecom semiconductor manufacturing). Business segments are broadly divided into automotive bellows, industrial bellows, and telecom semiconductors, with overseas production bases in South Africa and China, among others.
Core subsidiary SJM Corp supplies major automakers with bellows (flex tubes) that connect the engine and muffler to prevent exhaust gas leakage and absorb vibration and noise, and it is reported to hold a leading global market share in LNG carrier expansion joints, which it was the first in Korea to localize.
More recently, the company has signed a series of memoranda of understanding with Korea Aerospace Industries (KAI) for localizing aerospace materials and parts, including gimbal joints for the KF-21 fighter jet and civil aircraft engine components, expanding into the defense and aerospace segment.
In terms of governance, Kim Hwi-jung, the eldest son of founder Kim Yong-ho, holds the largest shareholder position in the holding company, and according to a large shareholding report, related parties including Kim Yong-ho held a combined stake of around 62% as of December 2025.
Competitively, the automotive bellows market is characterized by a small number of specialized parts makers supplying automakers directly, with the pace of the shift toward vehicle electrification acting as a key variable reshaping the business portfolio.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩49.8B | ₩4.5B | 9.1% |
| 2025Q3 | ₩51.1B | ₩3.1B | 6.0% |
| 2025Q4 | ₩50.4B | -₩1B | −2.0% |
| 2026Q1 | ₩54.3B | ₩3.2B | 5.9% |
| 2026Q2 | ₩53.6B | ₩4.9B | 9.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩184.2B | ₩8.2B | ₩1.7B | 4.5% | 1.1% | 24.7% |
| 2023 | ₩202.8B | ₩14.7B | ₩9.6B | 7.2% | 6.2% | 23.4% |
| 2024 | ₩206.2B | ₩13.7B | ₩9.5B | 6.7% | 5.7% | 22.3% |
| 2025 | ₩205.8B | ₩10.6B | ₩8.4B | 5.1% | 4.9% | 19.8% |
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 came in at KRW 205.799 billion, nearly flat versus 2024's KRW 206.195 billion, while operating profit fell 23.1% year over year to KRW 10.551 billion from KRW 13.719 billion in 2024.
As a result, the operating margin narrowed from 6.7% in 2024 to 5.1% in 2025, extending a two-year margin contraction from 7.2% in 2023.
Net profit attributable to owners also declined 11.1% to KRW 8.420 billion in 2025 from KRW 9.466 billion in 2024, though it remains well above the KRW 1.725 billion posted in 2022, suggesting the company is still on a multi-year earnings recovery path.
On a quarterly basis, Q4 2025 revenue slipped modestly to KRW 50.395 billion and operating profit swung to a loss of KRW 0.997 billion, the main driver behind the full-year operating profit decline.
This was followed by improvement in Q1 2026, with revenue of KRW 54.3 billion, operating profit of KRW 3.197 billion, and owners' net profit of KRW 4.418 billion, and further gains in Q2 2026, when revenue reached KRW 53.593 billion, operating profit KRW 4.908 billion, and owners' net profit KRW 6.975 billion, the highest in the observed window.
Summed over the most recent four quarters (Q3 2025 through Q2 2026), owners' net profit totals approximately KRW 16.086 billion, already exceeding the full 2025 confirmed figure of KRW 8.42 billion, reflecting how holding-company net profit is heavily influenced by equity-method gains and dividends from subsidiaries separate from operating profit.
On the cash flow side, operating cash flow rose sharply to KRW 39.856 billion in 2025 from KRW 21.440 billion in 2024 and KRW 22.451 billion in 2023, indicating improved cash generation despite the drop in operating profit.
It should also be noted that the non-controlling interest share of consolidated net profit continues to exceed the owners' share, so total consolidated net profit and owners' attributable net profit can move in different directions in a given year.
The auto parts industry is in a transitional period marked by stagnant internal-combustion vehicle sales alongside an ongoing shift toward hybrids and electric vehicles, and demand for exhaust-related bellows is structurally tied to the pace of automakers' powertrain transition.
Reported results from the company's automotive subsidiary indicate that the shrinking share of internal-combustion vehicles amid the EV transition and a broader economic slowdown have constrained revenue in that segment.
By contrast, the higher-value-added commercial vehicle segment is reported to be delivering relatively better results, highlighting its comparative resilience versus passenger vehicles.
The industrial bellows and expansion joint segment, unlike automotive, is underpinned by diversified end markets including shipbuilding (LNG carriers), construction, petrochemicals, and defense, functioning as a separate revenue source with low correlation to auto sector conditions.
In defense and aerospace, localization projects tied to national programs such as the KF-21 fighter and the Nuri space launch vehicle are underway, and cooperation has recently expanded to civil aircraft engine part localization.
Results at telecom semiconductor subsidiary SJM Prewell are exposed to the semiconductor industry cycle, giving it a different volatility profile from the automotive and industrial segments.
Competitively, specialized bellows manufacturers are few, and long-term supply relationships with automakers, shipbuilders, and plant operators are considered to function as a barrier to entry.
The company is reported to be advancing a technology roadmap (TRM) for advanced development in its automotive segment, expanding its product lineup using ZLTube technology aimed at improving EV cooling efficiency.
In October 2025, subsidiary SJM Corp signed an MOU with KAI for localizing aircraft parts including civil engine components, extending a 2023 agreement on defense part localization such as the KF-21 gimbal joint into the civil aviation segment.
Such agreements represent early-stage technology development and certification cooperation, and the timing and scale of any eventual mass-production contracts or revenue contribution have not been confirmed.
In the industrial bellows segment, the continuity of orders in existing strength areas such as LNG carrier expansion joints remains a key variable for earnings stability.
Given that operating profit and net profit improved for two consecutive quarters in the first half of 2026 following the Q4 2025 operating loss, whether this trend continues into the second half will be a key point to watch for gauging the full-year earnings direction.
On dividends, a cash dividend of KRW 250 per share was resolved for fiscal year 2025, and the sustainability of future dividend policy could be linked to the scale of dividends received from subsidiaries and the holding company's own cash flow.
The pace of automakers' electrification transition and the order cycle in the commercial vehicle and plant segments are cited as key variables that will determine future earnings trends.
The current share price appears to trade at a substantial discount to the company's net asset value per share, which can be interpreted as reflecting both a typical holding-company discount to net asset value and limited trading liquidity.
Compared with the historical five-year average trading multiple, the recent earnings-based multiple appears to sit in a relatively lower range, suggesting that the recent quarterly profit recovery may not yet be fully reflected in the market price despite the 2025 operating profit decline.
On dividends, the continuation of payouts in the most recent fiscal year suggests that a shareholder return policy through dividends remains in place, though assessing the absolute level of the dividend yield requires comparison against the broader market and industry peers.
The ownership structure, with a high combined stake held by the founding family and treasury shares, limits the free float, which can create distinctive supply-and-demand dynamics for the stock.
Overall, the stock presents a combination of a discount to net assets and a recent earnings recovery trend trading at a comparatively low market value, and interpretation of this combination may vary by investor perspective.
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
Following an operating loss in Q4 2025, both operating profit and owners' net profit improved in Q1 and Q2 2026, with Q2 2026 owners' net profit reaching KRW 6.975 billion, the highest in the observed window.
The sum of owners' net profit over the most recent four quarters already exceeds the full 2025 figure, indicating improving near-term earnings momentum. Whether this trend continues into the second half remains a point to watch.
Subsidiary SJM Corp is expanding beyond automotive exhaust parts into LNG carrier expansion joints, EV cooling tubes, and aerospace and defense components. The series of MOUs signed with KAI shows localization development cooperation expanding from defense into civil aviation. This diversification could reduce exposure to a single automotive-sector risk.
The founding family holds an overwhelming majority stake in the holding company, keeping governance-related uncertainty relatively low, and 2025 operating cash flow reached KRW 39.856 billion, the highest of the past three years.
The fact that cash generation improved even in a year of declining operating profit can be read as a positive signal on earnings quality. Dividend policy has also been maintained through the most recent fiscal year.
The automotive segment faces structural pressure from a shrinking share of internal-combustion vehicles and the shift to hybrids and EVs, which reduces demand for legacy exhaust bellows. The decline in the 2025 operating margin to 5.1% from 7.2% in 2023 shows this pressure is already showing up in results.
The pace and scale at which new businesses can offset the decline in legacy revenue have not yet been confirmed.
The Q4 2025 operating loss was the key factor dragging down full-year results, suggesting seasonal or one-off volatility remains a factor.
Given the holding-company structure, net profit is heavily influenced by non-operating items such as equity-method gains, which can cause operating profit and net profit to move in opposite directions in a given year.
The structurally large share of net profit attributable to non-controlling interests also makes it harder to predict changes in the owners' portion of profit.
The high combined stake of the founding family together with treasury shares limits the free float, which can constrain the stock's supply-demand conditions. Holding companies generally tend to trade at a discount to the net asset value of their subsidiaries, and this structural characteristic may persist.
As a small-cap stock with limited trading volume, the speed at which new information is reflected in the price may also be slower than average.
Changes in automakers' production and sales plans, particularly the pace of internal-combustion vehicle production cuts and the shift to EVs, directly affect demand for automotive bellows. High revenue dependence on specific automakers means volume adjustments by those clients could materially affect results.
The pace at which growth in the commercial vehicle and industrial segments offsets this also needs to be monitored.
Bellows manufacturing requires metal raw materials such as steel and special alloys, and fluctuations in raw material prices can directly affect cost burdens. Operating overseas production bases in South Africa and China also exposes profitability to foreign exchange fluctuations. These factors could underlie the volatility seen in quarterly operating margins.
Aerospace and defense part localization requires lengthy development and certification periods, and it is uncertain whether MOUs will translate into actual mass-production contracts or revenue.
Results at semiconductor subsidiary SJM Prewell are exposed to the telecom semiconductor industry cycle, an additional variable separate from the automotive segment. New business investments may require significant time and cost before generating profitability comparable to existing operations.
Q3 2026 earnings are expected to be disclosed around this time, and it will be important to check whether the profit recovery trend seen in Q1 and Q2 2026 continues.
Progress on follow-up development under the civil aircraft engine part localization MOU with KAI, and whether it converts into mass-production contracts, should be monitored.
Q4 and full-year 2026 results, along with the dividend decision for fiscal year 2026, will reveal whether a Q4 loss recurs and whether the dividend policy continues.
The pace of automakers' electrification transition and order trends in the commercial vehicle and plant (LNG carrier expansion joint) segments should be tracked continuously.
SJM Holdings, centered on automotive bellows subsidiary SJM Corp, experienced flat revenue and declining operating profit in 2025, but has shown two consecutive quarters of earnings improvement in the first half of 2026.
The recovery followed a temporary setback in the form of a Q4 2025 operating loss, though whether this trend will persist through the second half remains unconfirmed.
Operationally, the company is diversifying beyond legacy automotive exhaust parts into LNG carrier expansion joints and aerospace/defense part localization, broadening its medium-to-long-term growth avenues.
That said, the electrification transition among automakers continues to pose a structural pressure on the core legacy business, and the timing and scale of revenue contribution from new businesses remain unconfirmed.
In terms of ownership, the founding family's strong control combined with treasury shares limits the free float, which can influence the stock's supply-demand characteristics. The stock appears to trade at a discount to net asset value, and interpretation of this pattern is left to each investor's own judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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