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
SJG Sejong, formerly Sejong Industrial, has posted three consecutive years of earnings recovery centered on exhaust-system parts, while facing structural EV-transition challenges and customer/product concentration risk.
2025 consolidated revenue reached KRW 1,896.9 billion with operating profit of KRW 85.4 billion (OPM 4.5%), extending a steady profit expansion since 2022.
Core products—catalytic converters and mufflers—account for the bulk of revenue, with high customer concentration in the Hyundai Motor Group.
The company is diversifying into hydrogen fuel-cell parts, EV battery system assemblies (BSA), and electronics through subsidiary Asentec.
The firm changed its name from Sejong Industrial to SJG Sejong in April 2024 to signal its intent to pivot the business.
Quarterly earnings show high volatility, with a sharp operating-profit drop in 4Q2025 followed by a rebound in 1Q–2Q2026.
SJG Sejong was founded in 1976 as an automotive exhaust-system specialist and listed on the KOSPI in 2002; in April 2024 it changed its corporate name from Sejong Industrial to SJG Sejong.
Its core products are catalytic converters, which purify exhaust gas, and mufflers, which reduce noise and vibration, giving the company roughly a 28% share of the domestic market.
Its largest customer is the Hyundai Motor Group, and one analysis found that sales to group affiliates including Hyundai, Kia, and Hyundai Wia account for as much as 84% of total revenue, indicating high customer concentration.
Since 2016 the company has pursued eco-friendly diversification, adding hydrogen-vehicle metal separator plates, hydrogen and pressure sensors, and EV battery system assembly (BSA) business in stages.
However, as of the first quarter of 2024, converters and mufflers still accounted for 93.72% of revenue, even higher than the 92.60% recorded in 2016 when the diversification vision was first unveiled, showing that revenue diversification remains limited.
Its automotive-electronics subsidiary Asentec produces wheel speed sensors (WSS) and shift-by-wire (SBW) levers, counting Hyundai Motor Group and Stellantis among its customers, and signed a lead-underwriting agreement with Hyundai Motor Securities targeting a 2025 KOSDAQ listing.
The company operates a global production network of 22 subsidiaries across Korea, India, Vietnam, China, and Mexico. In 2024 it stated it obtained the top TISAX AL3 grade, a quality and security standard required by European automakers, to strengthen its global competitiveness.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩481.5B | ₩37.2B | 7.7% |
| 2025Q3 | ₩468.8B | ₩24.7B | 5.3% |
| 2025Q4 | ₩493.1B | ₩1.3B | 0.3% |
| 2026Q1 | ₩484.8B | ₩36.2B | 7.5% |
| 2026Q2 | ₩524.6B | ₩34B | 6.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.9T | ₩32.1B | ₩200M | 1.7% | 0.0% | 186.4% |
| 2023 | ₩1.8T | ₩51.9B | ₩4B | 2.9% | 1.0% | 179.6% |
| 2024 | ₩1.8T | ₩60.6B | ₩33.7B | 3.3% | 7.4% | 170.1% |
| 2025 | ₩1.9T | ₩85.4B | ₩68.7B | 4.5% | 13.2% | 150.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
SJG Sejong's consolidated revenue rose modestly from KRW 1,858.9 billion in 2022 to KRW 1,792.3 billion in 2023, KRW 1,816.6 billion in 2024, and KRW 1,896.9 billion in 2025.
Operating profit expanded for three straight years, from KRW 32.1 billion in 2022 to KRW 51.9 billion in 2023, KRW 60.6 billion in 2024, and KRW 85.4 billion in 2025, with the operating margin gradually improving from 1.7% to 2.9% to 3.3% to 4.5%.
Net income attributable to owners moved from a near-breakeven KRW 0.2 billion in 2022 to KRW 4.0 billion in 2023, KRW 33.7 billion in 2024, and KRW 68.7 billion in 2025, tracing a clear recovery curve.
Operating cash flow (CFO) also grew from KRW 70.2 billion in 2024 to KRW 92.7 billion in 2025, showing that the earnings recovery translated into actual cash generation.
On a quarterly basis, operating profit was KRW 37.2 billion in 2Q2025 and KRW 24.7 billion in 3Q2025 before dropping sharply to KRW 1.28 billion in 4Q2025; the specific cause was not separately disclosed, so only seasonal cost factors can be noted qualitatively as a possibility.
Operating profit then rebounded strongly to KRW 36.2 billion in 1Q2026 and KRW 34.0 billion in 2Q2026, reaffirming a pattern of significant quarterly volatility.
Cumulative net income attributable to owners over the most recent four quarters (3Q2025–2Q2026) reached KRW 96.3 billion, indicating the annual profit scale has moved up a level. The debt ratio also declined from 186.4% in 2022 to 150.9% in 2025, reflecting a parallel improvement in the balance sheet.
SJG Sejong is classified under the KOSPI transportation equipment/parts industry and, per FICS classification, the auto-parts sector, meaning its results are directly tied to trends in the downstream finished-vehicle market.
In the first half of 2025, robust sales at Hyundai and Kia along with government consumption-stimulus measures boosted domestic sales, while EV production localization and tariffs constrained exports.
In the first quarter of 2026, both domestic sales and exports increased in the muffler and converter segments, and expanded production at major automakers lifted both revenue and profit.
Structurally, however, industry analysis suggests EVs require up to nearly 40% fewer parts than internal-combustion vehicles, creating a persistent risk that demand for exhaust-system parts could shrink as electrification accelerates.
Some observers note that the recent EV demand slowdown, or chasm, has temporarily bought parts makers more time to adapt, suggesting the industry is navigating both a cyclical upswing and a structural transition pressure simultaneously.
As one example of brokerage estimates, Eugene Investment & Securities forecast 2025 operating profit of KRW 101.7 billion in a November 2025 report, whereas the confirmed actual figure came in lower at KRW 85.4 billion, illustrating a gap between estimates and results.
At the time of its name change, the company stated its plan to expand its eco-friendly exhaust business into Asian and Indian markets while steadily growing its EV battery and hydrogen fuel-cell core parts businesses.
It also outlined a regional expansion plan covering Vietnam, Indonesia, Kazakhstan, and the broader Asian region, including India.
Its automotive-electronics subsidiary Asentec has signed a lead-underwriting agreement with Hyundai Motor Securities targeting a 2025 KOSDAQ listing, which, if realized, could allow the group's electronics business to be separately valued by the market.
However, as of September 2026 no disclosure confirming a finalized listing schedule for Asentec has been identified, so the timing and terms will need to be confirmed through future filings.
If expanded automaker production and simultaneous growth in domestic sales and exports continue, the exhaust-parts segment could sustain solid results, and the market view is that expanded eco-friendly vehicle purchase subsidies and charging infrastructure investment could serve as growth drivers for the EV-related new businesses.
These prospects remain fluid depending on government policy and automakers' production plans, however, and will require confirmation through upcoming quarterly results and order disclosures.
SJG Sejong's share price tends to trade at a discount to its book value per share, and whether the earnings recovery of recent years has been fully reflected in market value can be interpreted differently depending on the metric used.
Compared with the upper end of price-to-earnings bands formed during past periods of weak profitability, the multiple has moved lower as profit scale has expanded.
The dividend yield appears to sit below the auto-parts sector average, which is not unrelated to the company prioritizing resources toward new-business investment and balance-sheet improvement.
Looking at both the price-to-book level and the price-to-earnings level together, whether the recent shift from losses to profit and the subsequent profit expansion can be sustained appears to be a key variable determining how the market re-rates the shares going forward.
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 2026-08-21
The operating margin improved from 1.7% in 2022 to 4.5% in 2025, with profit scale expanding steadily. Expanded automaker production alongside simultaneous growth in domestic sales and exports underpinned the improvement, and operating cash flow also grew, pointing to improving earnings quality.
The company is expanding eco-friendly new businesses such as hydrogen-vehicle parts and EV battery system assemblies (BSA).
Its electronics subsidiary Asentec, with Hyundai Motor Group and Stellantis as customers, is pursuing a KOSDAQ listing, which if realized would give the group's electronics business a separate market valuation.
The debt ratio fell from 186.4% in 2022 to 150.9% in 2025, improving financial stability. Operating cash flow also rose from KRW 70.2 billion in 2024 to KRW 92.7 billion in 2025, which is positive for financing new-business investment.
Converters and mufflers make up the bulk of revenue, and one analysis found sales to the Hyundai Motor Group account for as much as 84% of the total. Results are directly exposed to changes in automakers' production and sales policies, while new-business revenue contribution remains limited.
Industry analysis suggests EVs require up to nearly 40% fewer parts than internal-combustion vehicles, meaning accelerating electrification could reduce underlying demand for exhaust-system parts, while new-business diversification has yet to change the revenue mix.
Operating profit fell sharply in 4Q2025 versus the prior quarter before rebounding again in 1Q–2Q2026, reflecting large quarter-to-quarter swings that reduce the predictability of results.
If the EV transition accelerates, demand for core exhaust products—converters and mufflers—could decline structurally, and it remains unconfirmed whether new businesses can sufficiently offset this.
High revenue dependence on the Hyundai Motor Group ties results to that group's production and sales policy changes and tariff issues, and reliance on a specific customer can also constrain bargaining power.
The Asentec KOSDAQ listing has no confirmed schedule disclosed yet and could be delayed or have its terms changed depending on market conditions, while the hydrogen and EV new businesses remain at an early stage with limited revenue contribution.
Check the 3Q2026 earnings disclosure to see whether the 1Q–2Q2026 rebound continues or a sharp drop similar to 4Q2025 recurs.
Watch for disclosures on Asentec's KOSDAQ preliminary review or listing schedule; concrete progress could increase market attention on the electronics subsidiary's valuation.
Monitor disclosures of new orders or supply contracts related to hydrogen-vehicle parts and EV BSA business to track changes in the revenue contribution of new businesses.
Continue tracking domestic and overseas production and sales trends, as well as tariff-related issues, at key customers Hyundai and Kia, as these directly affect revenue and utilization rates.
SJG Sejong has extended three consecutive years of earnings recovery since 2022, with steady improvement in revenue and operating margin alongside a strengthening balance sheet and cash generation.
However, the majority of revenue still comes from internal-combustion exhaust parts such as converters and mufflers, and heavy dependence on the Hyundai Motor Group leaves the company exposed to structural demand risk should the EV transition accelerate.
New-business diversification into hydrogen-vehicle parts, EV battery system assemblies, and the Asentec electronics subsidiary is underway but has yet to materially change the revenue mix. Quarterly earnings volatility remains high, and a repeat of the unexpected profit drop seen in 4Q2025 cannot be ruled out.
Whether and when Asentec proceeds with its KOSDAQ listing is a separate matter that will need to be confirmed through future disclosures.
Overall, the company is navigating a phase combining a positive earnings recovery trend with the ongoing challenge of business-model transition, warranting continued monitoring of upcoming quarterly results and new-business progress.
Report written 2026-09-05 · Data as of 2026-09-04
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