PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
PHA is a core door-moving-system supplier to Hyundai Motor Group, and while revenue has grown for four consecutive years amid the ramp-up of new plants in Georgia and Pune, operating margin has fluctuated due to initial-stage cost burdens at the new facilities.
2025 revenue reached KRW 1.2007 trillion, up year over year, but operating margin slipped to 4.0% from 4.5% a year earlier
Q1 2026 net income attributable to owners hit KRW 18.27 billion, the highest among the trailing five quarters
New plants in Georgia (PHA Georgia) and Pune, India are expanding their revenue contribution alongside Hyundai Motor Group's HMGMA and India production growth
Debt ratio stood at a low 34.7% in 2025, with operating cash flow of KRW 88.56 billion, solid relative to net income
Slowing EV market growth and intensified price competition have weighed on recent quarterly profitability
PHA, founded in 1985, specializes in automotive door-moving systems, supplying door modules, latches, hinges, and power trunk lid systems to automakers.
According to company materials, PHA received GM's Supplier Quality Excellence Award for eleven consecutive years (2014-2024) and has also won Hyundai Motor and Kia supplier awards along with a five-star quality rating.
Its principal customer is Hyundai Motor Group, and through its PHA Georgia entity built in the US state of Georgia, the company supplies door modules and tailgate and hood latches to Hyundai Motor Group's US EV plant, the Hyundai Motor Group Metaplant America (HMGMA), as well as the Hyundai Motor Manufacturing Alabama (HMMA) plant.
In 2025, PHA completed a new plant in Pune, India, and began supplying door latch-focused components to the Pune plant that Hyundai acquired from GM. Its overseas footprint also spans a Haiphong, Vietnam entity established in 2018 and a UK R&D center set up in 2015.
The company has also obtained business restructuring approval and is developing radar sensors and door control systems to expand its capabilities in autonomous driving and electrification.
Given that the door systems segment relies on long-term supply agreements with automakers, entry barriers exist, and the company is pursuing a strategy of expanding volume with existing customers while also winning orders from other global OEMs and for new EV-specific components.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩316.5B | ₩13.5B | 4.3% |
| 2025Q3 | ₩290.6B | ₩9.5B | 3.3% |
| 2025Q4 | ₩294.5B | ₩9.1B | 3.1% |
| 2026Q1 | ₩305.2B | ₩13.3B | 4.4% |
| 2026Q2 | ₩316.8B | ₩11.4B | 3.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1T | ₩22.9B | ₩28.3B | 2.2% | 4.2% | 45.6% |
| 2023 | ₩1.1T | ₩48.3B | ₩61.5B | 4.3% | 8.5% | 36.7% |
| 2024 | ₩1.2T | ₩51.5B | ₩61.9B | 4.5% | 7.7% | 33.7% |
| 2025 | ₩1.2T | ₩48.4B | ₩46.3B | 4.0% | 5.5% | 34.7% |
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
Annual revenue rose for four consecutive years, from KRW 1.0244 trillion in 2022 to KRW 1.1346 trillion in 2023, KRW 1.1529 trillion in 2024, and KRW 1.2007 trillion in 2025.
Operating margin improved from 2.2% in 2022 to 4.3% in 2023 and 4.5% in 2024, before slipping to 4.0% in 2025, a retreat attributed to rising labor costs, depreciation, and fees during the initial ramp-up of the new Georgia plant in the US.
Net income attributable to owners surged from KRW 28.26 billion in 2022 to KRW 61.51 billion in 2023, held roughly steady at KRW 61.94 billion in 2024, then declined to KRW 46.27 billion in 2025.
On a quarterly basis, operating income fell below KRW 10 billion in Q3 2025 (revenue KRW 290.6 billion, operating income KRW 9.53 billion) and Q4 2025 (revenue KRW 294.5 billion, operating income KRW 9.05 billion), both relatively weak, before recovering in Q1 2026 to revenue of KRW 305.2 billion and operating income of KRW 13.28 billion, with net income of KRW 18.27 billion marking the highest of the trailing five quarters.
In Q2 2026, revenue grew further to KRW 316.8 billion, but operating income eased to KRW 11.38 billion from the prior quarter, indicating that revenue growth and margin recovery have not moved entirely in lockstep.
On the balance sheet, equity attributable to owners expanded steadily from KRW 673.1 billion in 2022 to KRW 844.9 billion in 2025, while the debt ratio declined from 45.6% to 34.7% over the same period, reflecting improved financial stability.
Operating cash flow of KRW 101.9 billion in 2023, KRW 61.1 billion in 2024, and KRW 88.6 billion in 2025 has generally matched or exceeded net income, pointing to solid cash generation.
The auto industry is undergoing a production reorganization centered on Hyundai Motor Group, with the US and India emerging as two key pillars.
Hyundai has announced plans to invest a total of KRW 77.3 trillion over the five years from 2026 to 2030 to expand production capacity at key hubs including Ulsan, India, and the US, allocating roughly half of the total to capital expenditure.
In India, the Pune plant that Hyundai acquired from GM in 2023 is ramping up production, and the India subsidiary stated on an earnings call in July 2026 that it would move up its shift to three-shift production from an originally planned mid-2028 timeline to October 2026.
As a result, Pune's annual production capacity is set to expand in stages from the current 120,000 units to 170,000 units, then to 250,000 units by 2028 and 300,000 units by 2030.
In the US, tariff burdens have emerged as an industry-wide risk factor, prompting automakers and parts suppliers to respond by increasing local production. At the same time, slowing EV market growth and intensifying price competition are worth noting as pressures on the profitability of EV-related component suppliers.
Against this backdrop, PHA has already established new plants ahead of time in step with Hyundai Motor Group's US and India localization strategy, positioning it to respond to tariff avoidance and local sourcing requirements.
Hana Financial Investment forecast in a March 2026 report that PHA's full-year 2026 revenue and operating income would rise 5% year over year to KRW 1.26 trillion and KRW 51 billion, respectively.
The same report projected that revenue at the US subsidiaries would grow on a favorable mix effect from rising EV and hybrid production, with the Pune, India plant also beginning to contribute.
An earlier analysis had projected that the US plant would continue increasing door module deliveries in line with rising production at Hyundai Motor Group's Metaplant America and Alabama facilities, with additional orders from other automakers and new products supporting continued top-line growth.
However, such orders are said to typically take about two years to translate into revenue, meaning the effect of new orders may be reflected gradually over the medium to long term.
The Pune plant's outlook is also tied to Hyundai's accelerated shift to three-shift production starting in October 2026, raising the possibility that PHA India's volume growth could occur faster than originally planned.
On the other hand, the direction of US tariff policy and the pace of EV demand growth remain sources of uncertainty, meaning the timing and scale of the new plants' earnings contribution will need to be confirmed through quarterly results.
PHA's share price has been described in past brokerage reports as trading at a notable discount to book value.
In a March 2026 report, Hana Financial Investment assessed that, based on the share price at that time, the price-to-earnings ratio stood in the high single digits below 5x and the price-to-book ratio in the high 0.2x range, with combined net cash and liquid financial assets equal to about 75% of the market capitalization at the time.
The same report also noted a dividend yield of 3.3% and treasury share holdings of about 7% of shares outstanding. These assessments are tied to a specific point in time and may change as conditions evolve.
The company's earnings moved out of a low-margin trough in 2022 and showed a recovery trend through 2023-2024, before softening again in 2025, so valuation should be considered alongside the durability of that earnings recovery.
The share price's relationship to net assets, along with the direction of dividend policy, are factors that could be reassessed depending on how the new plants' earnings contribution evolves and whether further shareholder return measures are announced.
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 debt ratio declined steadily from 45.6% in 2022 to 34.7% in 2025, while equity expanded from KRW 673.1 billion to KRW 844.9 billion over the same period. Operating cash flow of KRW 88.6 billion in 2025 exceeded net income, demonstrating stable cash generation. This financial structure can serve as a buffer while the company continues investing in overseas new plants.
Having already established PHA Georgia and the new Pune plant in India, the company is positioned to benefit from Hyundai Motor Group's US and India production expansion strategy.
The Pune plant's shift to three-shift production has been moved up two years from the original plan to start in October 2026, raising the potential for faster volume growth. In the US market, where tariff issues have come to the fore, expanding the share of local production can serve as a response measure.
Hyundai has announced plans to invest KRW 77.3 trillion over five years from 2026 to 2030 to secure an additional 1.2 million units of production capacity.
As a core supplier, PHA could benefit from expanded door module and latch supply volumes, while also pursuing orders from other automakers and new EV products beyond its existing customer base.
Operating margin fell to 4.0% in 2025 from 4.5% the prior year, and operating income in Q3-Q4 2025 was relatively weak at KRW 9.5 billion and KRW 9.1 billion, respectively. Rising labor costs, depreciation, and fees during the initial ramp-up of the US plant have been cited as the main causes. Quarterly earnings volatility may persist until the new plants' utilization stabilizes.
In Q1 2026 results, revenue increased on higher automaker production, but profitability deteriorated due to slowing EV market growth and intensified price competition. Given the company's relatively high exposure to electrification-related components, such industry shifts can directly affect margins.
In a past quarter, a foreign currency translation loss temporarily weighed on non-operating income. Given the structurally rising share of overseas revenue, exchange rate fluctuations could have a growing impact on consolidated earnings.
US tariffs on auto parts have weighed on parts suppliers with export exposure. Expanding local production through the new plant can partly mitigate the tariff burden, but the cost structure could shift again depending on future policy changes.
With revenue heavily concentrated in Hyundai Motor Group, changes in that customer's production plans or model strategy can directly affect results. Diversification toward other automakers is underway but appears to be at an early stage.
As the share of overseas subsidiaries grows, fluctuations in the won's exchange rate against the dollar, rupee, and other currencies affect both revenue and earnings simultaneously.
Given past instances of foreign currency translation losses, it is worth continuing to monitor hedging policy and how it flows through to reported earnings.
Check whether Hyundai's Pune plant in India begins its planned shift to three-shift production as scheduled, and how quickly this is reflected in PHA India's volumes.
Review the Q3 2026 earnings disclosure to see whether rising utilization at the new US and India plants translates into improved operating margin.
Monitor any further changes in US auto parts tariff policy and the resulting shifts in the company's cost and tariff burden.
Watch for disclosures or reports on new orders from other global OEMs and for new EV-specific components, which could serve as a leading indicator for growth from 2028 onward.
PHA, a core door-moving-system supplier to Hyundai Motor Group, continues to pursue regional diversification and revenue growth through its new plants in Georgia, US and Pune, India.
However, initial ramp-up costs at these new facilities caused operating margin to slip modestly from 4.5% in 2024 to 4.0% in 2025, with quarterly margins showing repeated fluctuation.
The balance sheet remains relatively stable, supported by a 34.7% debt ratio and solid operating cash flow, which could underpin continued overseas investment.
On the industry side, Hyundai Motor Group's large-scale investment plan and the accelerated shift to three-shift production at the Pune plant are favorable factors, while slowing EV market growth and uncertainty around US tariff policy exert offsetting pressure.
Going forward, a key point to watch will be whether rising utilization at the new plants translates not only into revenue growth but also into operating margin improvement. Readers should continue to monitor quarterly earnings disclosures and news on new orders and tariff policy before forming their own judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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