PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
Sambo Motors has posted four consecutive years of revenue and operating profit growth, but non-operating factors—including a net loss in the fourth quarter of 2025—have widened net income volatility.
From 2022 to 2025, revenue rose from KRW 1.20 trillion to KRW 1.68 trillion, while the operating margin steadily improved from 1.9% to 3.7%.
In the fourth quarter of 2025, operating profit was a solid KRW 13.58 billion, yet net income attributable to owners swung to a loss of KRW 13.74 billion, reflecting a significant non-operating impact.
The company is expanding into EV components such as rotor assemblies, busbars, and oil coolers, with Hana Securities projecting meaningful profit contribution from 2026 onward.
The plastic parts business has customer concentration risk, with Hyundai Motor and Kia accounting for over 80% share, while OEM competitive bidding and expanding global sourcing continue to pressure margins.
A Korea Exchange notice in January 2026 flagging a pre-designation for investment warning status is a relevant fact regarding share price volatility.
Founded in 1987, Sambo Motors is an automotive parts specialist whose core products include plates for automatic transmissions, engine and fuel-system piping, and exterior components such as bumpers and spoilers.
According to a Hana Securities report, transmission plates accounted for roughly 7% of the product mix, piping about 25%, and bumper/spoiler exterior parts around 63%.
Its subsidiaries include plastic injection specialist Praco and Najeon Co., alongside overseas production units in the Czech Republic and Mexico, as well as Sambo Motors India, established in 2024, giving the company a global manufacturing footprint.
Its principal customers are Hyundai Motor and Kia, whose combined share within the plastics parts business is reported to exceed 80%. However, the adoption of competitive bidding by automakers and expanding global sourcing have intensified competition, limiting profitability gains even as revenue grows.
More recently, the company has broadened its product lineup to include battery busbars, rotor assemblies, hybrid-vehicle housing block assemblies and connecting plates, and EV motor oil coolers supplied through its acquired unit SB Automotive, as it pursues a transition toward eco-friendly vehicle components.
A long-term supply agreement for rotor assemblies to Hyundai Motor, spanning 11 years starting late 2025, has been secured.
This new-product expansion entails new plant investments and initial fixed-cost burdens, while the company is also expanding its status as a global auto parts supplier by shipping select EV items to overseas customers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩430.1B | ₩19.4B | 4.5% |
| 2025Q3 | ₩419.4B | ₩5.4B | 1.3% |
| 2025Q4 | ₩422.9B | ₩13.6B | 3.2% |
| 2026Q1 | ₩429.3B | ₩13.8B | 3.2% |
| 2026Q2 | ₩460.3B | ₩5B | 1.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.2T | ₩22.9B | ₩21.4B | 1.9% | 8.1% | 227.7% |
| 2023 | ₩1.4T | ₩51.6B | ₩29.8B | 3.6% | 9.3% | 225.4% |
| 2024 | ₩1.6T | ₩54.3B | ₩43.8B | 3.5% | 11.5% | 217.0% |
| 2025 | ₩1.7T | ₩61.7B | ₩20.3B | 3.7% | 4.8% | 219.0% |
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 rose for four consecutive years, from KRW 1,199.9 billion in 2022 to KRW 1,440.6 billion in 2023, KRW 1,570.6 billion in 2024, and KRW 1,684.6 billion in 2025.
Operating profit also improved, from KRW 22.9 billion (1.9% margin) in 2022 to KRW 51.6 billion (3.6%) in 2023, KRW 54.3 billion (3.5%) in 2024, and KRW 61.7 billion (3.7%) in 2025, with margins stabilizing in the mid-to-high 3% range.
Net income attributable to owners, however, rose from KRW 21.4 billion in 2022 to KRW 29.8 billion in 2023 and KRW 43.8 billion in 2024, before falling sharply to KRW 20.3 billion in 2025, diverging from the operating-profit trend.
On a quarterly basis, the second quarter of 2025 posted revenue of KRW 430.1 billion, operating profit of KRW 19.4 billion, and net income of KRW 4.4 billion; the third quarter showed revenue of KRW 419.4 billion, operating profit of KRW 5.4 billion, and net income of KRW 9.9 billion; and the fourth quarter recorded revenue of KRW 422.9 billion and operating profit of KRW 13.6 billion, yet net income swung to a loss of KRW 13.7 billion.
This suggests that even in a quarter with solid operating profit, non-operating items (likely including interest expense or valuation losses) had a substantial impact.
Into 2026, the first quarter recovered to revenue of KRW 429.3 billion, operating profit of KRW 13.8 billion, and net income of KRW 7.7 billion, but the second quarter saw revenue rise to KRW 460.3 billion while operating profit fell to KRW 5.0 billion (a 1.1% margin) and net income came in at just KRW 5.3 billion.
Over the trailing four quarters (third quarter of 2025 through second quarter of 2026), combined revenue was approximately KRW 1,731.9 billion, operating profit about KRW 37.9 billion, and net income attributable to owners around KRW 9.2 billion, a period marked by pronounced quarter-to-quarter margin swings.
Overall, the longer-term trend of revenue growth and operating margin improvement has held, but quarterly operating margins have oscillated between roughly 1% and 3%, and net income has repeatedly diverged from the operating profit trend, warranting closer attention to earnings quality.
The domestic auto parts industry is experiencing intensifying price competition among suppliers as automakers expand competitive bidding and diversify global sourcing.
Sambo Motors' plastics injection and exterior parts segment is heavily reliant on Hyundai Motor and Kia, making its performance closely tied to those automakers' production and sales cycles.
At the same time, the shift toward electrification is creating a new growth axis in demand for EV-specific components such as battery busbars, motor rotor assemblies, and oil coolers, with many suppliers competing to shift their portfolios from internal-combustion parts toward electrified components.
Sambo Motors has positioned itself to respond to its customers' global production expansion through vertical integration via affiliates such as Praco and Najeon, and through overseas production bases in the Czech Republic, Mexico, and India.
However, early-stage investment in new products and plants tends to bring fixed-cost burdens that can delay profit contribution, making the pace of monetization relative to peers a key point of attention.
Regional variation in automaker demand (North America and Europe versus emerging markets) and shifting product mix toward hybrid vehicles are additional factors influencing supplier performance.
The company has already secured a series of new orders, including battery busbars for Hyundai Mobis under an eight-year contract, rotor assemblies for Hyundai Motor under an 11-year contract starting late 2025, hybrid-vehicle housing block assemblies and connecting plates, spoilers and garnishes for new North American models, and EV motor oil coolers supplied through SB Automotive.
Hana Securities has noted that while this product and geographic expansion will serve as a growth driver, meaningful profit contribution is likely to come only from 2026 onward, given external debt-funded financing and rising fixed costs tied to new plants and products in their early stages.
The company has stated it continues R&D for new-energy vehicle components and is pursuing further business expansion through new order activity with overseas automakers and eco-friendly vehicle item wins.
The operation and revenue contribution of the India subsidiary established in 2024, along with the actual ramp-up pace of already-secured long-term contracts, are likely to be key variables for future performance.
That said, as seen in the operating margin decline and weak net income in the fourth quarter of 2025 and second quarter of 2026, early-stage new-product costs and non-operating factors could also slow the pace of earnings improvement.
Whether EV component sales contribution becomes more visible in upcoming quarters, and whether margin stability recovers, remain key points to watch.
In its late-2023 and mid-2024 reports, Hana Securities presented valuations that, after accounting for convertible bond dilution, placed the stock at a price-to-earnings ratio in the low-single mid-4x to 5x range and a price-to-book ratio around 0.3x to 0.5x, characterizing this as roughly in line with industry averages at the time.
Compared with that historical band, recent trading levels appear to have shifted toward the upper end on an earnings-multiple basis, while the stock continues to trade at a substantial discount to net asset value.
The company has maintained modest annual cash dividends, though given the recent volatility in earnings, the sustainability of that dividend policy also warrants attention.
Ultimately, the valuation reflects a combination of the longer-term trend of operating margin improvement and a financial structure marked by net income volatility and a debt ratio in the 200%-plus range.
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
New products such as rotor assemblies, battery busbars, and EV motor oil coolers have already been secured under long-term contracts. The rotor assembly business, tied to an 11-year contract with Hyundai Motor, provides a stable revenue base. Hana Securities has analyzed this expansion as a growth driver from 2026 onward.
Revenue has increased for four consecutive years since 2022, and the operating margin has improved from 1.9% to 3.7%. This is interpreted as a result of new product expansion combined with solid sales at customer automakers. If operating leverage is sustained, there is room for further margin improvement.
Through affiliates such as Praco and Najeon and production subsidiaries in the Czech Republic, Mexico, and India, the company has built a system capable of responding to its customers' overseas production expansion. The India subsidiary, established in 2024, broadens its capacity to serve emerging markets. Export expansion to Japan and the United States is also underway.
The plastics parts business relies heavily on Hyundai Motor and Kia, whose combined share exceeds 80%. The adoption of competitive bidding by automakers and expanding global sourcing have been cited as factors limiting profitability gains even as revenue grows. Changes in customer automakers' production and sales strategies could directly affect performance.
While operating profit improved for four consecutive years, net income attributable to owners fell sharply year-over-year in 2025. In the fourth quarter of 2025, the company posted a net loss despite solid operating profit, indicating a significant impact from non-operating factors. In the second quarter of 2026 as well, both operating margin and net income declined even as revenue rose.
A Korea Exchange disclosure confirms an investment warning pre-designation notice for the stock in January 2026. Such measures are typically triggered by sharp short-term price swings and can add trading risk regardless of underlying fundamentals.
Subsequent actions, including whether an actual designation follows and when it might be lifted, warrant confirmation.
There have been recurring periods in which net income attributable to owners fails to track improving operating profit. As with the fourth-quarter 2025 net loss, non-operating items (likely including interest expense and financial instrument valuation gains or losses) can significantly disrupt the earnings trend. Reviewing the detailed breakdown of non-operating items in future quarterly disclosures will be necessary.
High revenue dependence on Hyundai Motor and Kia means the company could be vulnerable to changes in those customers' production policies. Automakers' competitive bidding practices and expanding global sourcing have been cited as structural sources of margin pressure. This risk could persist if the pace of new-customer diversification remains slow.
The debt ratio eased somewhat from 227.7% in 2022 to 219.0% in 2025 but remains in the mid-200% range, meaning borrowing burdens tied to new-product investments persist. Past Hana Securities reports pointed to potential equity dilution risk stemming from convertible bond issuance.
As new plant and product investments continue, ongoing monitoring of financing methods and changes in financial structure will be necessary.
It will be important to check whether the third-quarter 2026 operating margin recovers to the first-quarter level (around 3%) or whether the low-margin, weak-net-income pattern seen in the second quarter repeats.
It will be worth monitoring whether EV component sales—such as rotor assemblies and oil coolers—materialize as projected in Hana Securities' outlook for meaningful profit contribution from 2026 onward.
It will be useful to track the utilization rate and revenue contribution of Sambo Motors India, established in 2024, along with the performance trend of the company's overseas production subsidiaries.
It will be important to review the remaining convertible bond balance, maturity and conversion terms, and changes in the debt ratio to reassess dilution and financial structure risk.
Following the January 2026 investment warning pre-designation notice, it will be important to monitor any follow-up Korea Exchange action, including an actual designation, additional measures, or eventual lifting of the status.
Sambo Motors has shown a long-term trajectory of recovering scale and profitability, with revenue and operating margin steadily improving since 2022.
At the same time, the company is adding a new growth axis to its Hyundai Motor- and Kia-centered business through expansion into electrified components such as rotor assemblies, battery busbars, and EV oil coolers.
However, as seen in the fourth quarter of 2025 and second quarter of 2026, there have been periods where operating profit improvement did not translate into stable net income, leaving non-operating volatility as a key variable in interpreting results.
Alongside this, factors such as high revenue concentration in Hyundai Motor and Kia, a debt ratio in the mid-200% range, and the January 2026 investment warning pre-designation notice warrant balanced consideration.
Key points to watch going forward include how visibly EV component sales contribute to revenue and whether quarterly margin and net income stability recovers. This report does not present an investment opinion or target price and is intended for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
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