PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Orient Precision is expanding its eco-friendly vehicle parts business while operating profit hovers near breakeven and net income swings sharply from quarter to quarter.
Eco-friendly vehicle parts revenue has been growing about 20% annually, and the company has set a goal to raise the electrification parts revenue share from roughly 10% currently to 50% within 2-3 years.
Owner net income turned positive in 2025, but operating profit declined for a second consecutive year.
After a large net loss in Q1 2026, Q2 revenue rebounded to the highest level in the recent four-quarter window, though operating profit remained in the red.
As a first-tier supplier to Hyundai Motor and Kia, results are directly exposed to disruptions in automaker production and sales.
Capital transactions such as holding and partially disposing of affiliate Orient Bio shares add further volatility to net income.
Orient Precision was founded in 1987 and listed on KOSDAQ in 2002, with its headquarters and production plants in Gumi, North Gyeongsang Province.
As a first-tier supplier to Hyundai Motor and Kia, the company manufactures manual transmission and shift-by-wire (SBW) parts along with various aluminum machined and assembled components.
In response to the shift toward eco-friendly vehicles, it supplies SBW gear sets and differential assemblies designed for eco-friendly vehicle platforms to major customers.
According to the company, eco-friendly vehicle parts revenue has been growing about 20% annually, and from the second half it has been expanding the vehicle models applying existing parts while also conducting customer testing and mass-production preparation for eco-friendly gap fillers and battery-related components.
Its subsidiary Kumyoung Tech, acquired in 2022, holds precision pressure-resistant aluminum die-casting and machining technology and counts major U.S. parts maker BorgWarner among its customers.
The company operates an overseas production base through its Vietnamese subsidiary Orient Vina, alongside a domestic production and logistics network that includes its Gumi plants and distribution centers in Ulsan and Cheonan.
Within the group structure, Orient Precision has held a stake in affiliate Orient Bio, and in February 2026 it disclosed a decision to dispose of part of that holding.
The automotive parts industry is structured around automakers, with price, quality, and delivery competition intensifying as parts suppliers grow larger and system-level ordering spreads.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩39.7B | ₩1B | 2.6% |
| 2025Q3 | ₩39B | ₩400M | 1.0% |
| 2025Q4 | ₩37B | -₩1B | −2.6% |
| 2026Q1 | ₩37.5B | -₩60,334,059 | −0.2% |
| 2026Q2 | ₩43.8B | -₩300M | −0.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩134.3B | -₩1.5B | -₩6.7B | −1.1% | −15.3% | 149.2% |
| 2023 | ₩162.8B | ₩2B | -₩5.7B | 1.2% | −15.1% | 150.8% |
| 2024 | ₩173.4B | ₩1.2B | -₩10,544,121 | 0.7% | 0.0% | 161.4% |
| 2025 | ₩157.1B | ₩900M | ₩1.8B | 0.6% | 4.5% | 148.0% |
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 from KRW 134.3 billion in 2022 to KRW 162.8 billion in 2023 and KRW 173.4 billion in 2024, before declining 9.3% to KRW 157.1 billion in 2025.
Operating profit swung from a loss of KRW 1.54 billion in 2022 to a profit of KRW 1.98 billion in 2023, but then declined for two straight years to KRW 1.22 billion in 2024 and KRW 0.91 billion in 2025.
In its disclosure, the company cited a decline in sales volume and revenue from strikes at Hyundai Motor and other issues in the second half of 2025 as the main cause of the 2025 operating profit decline.
By contrast, owner net income narrowed from losses of KRW 6.68 billion in 2022 and KRW 5.68 billion in 2023 to a near-breakeven loss of KRW 0.01 billion in 2024, before turning positive at KRW 1.80 billion in 2025.
The company explained that this net income improvement reflected a reduction in tax expense from recognizing deferred tax assets along with a partial improvement in subsidiary performance.
On a quarterly basis, revenue softened slightly from KRW 39.65 billion with operating profit of KRW 1.02 billion in Q2 2025 to KRW 39.04 billion with operating profit of KRW 0.39 billion in Q3 2025, before turning to an operating loss of KRW 0.96 billion on revenue of KRW 37.03 billion in Q4 2025.
In Q1 2026, revenue recovered slightly to KRW 37.50 billion, but operating profit/loss stayed near breakeven at negative KRW 0.06 billion, while the owner net loss widened sharply to KRW 2.49 billion, highlighting a notable gap between operating and net results.
In Q2 2026, revenue climbed to KRW 43.83 billion, the highest level in the recent four-quarter window, showing signs of recovery, though the operating loss continued at KRW 0.27 billion while net income returned to positive territory at KRW 0.72 billion.
Overall, while revenue has fluctuated quarter to quarter, operating profit has failed to break out of losses or breakeven levels for several consecutive quarters, and net income has shown substantial volatility driven by non-operating factors.
The automotive parts industry is heavily dependent on automakers' production and sales volumes and reacts sensitively to economic cycles. Supply chains are organized around automakers, and competition across quality, price, and delivery has intensified as parts suppliers grow larger and system-level ordering spreads.
Hyundai Motor, Orient Precision's key customer, posted record quarterly revenue in Q2 2026 on strong hybrid sales and favorable currency effects, but operating profit fell 20.8% year over year due to rising raw material costs and production disruptions from a parts supplier fire.
In particular, domestic sales volume fell 16.4% year over year due to parts supply disruptions, a factor that can directly affect first-tier suppliers' revenue.
Orient Precision itself disclosed that sales volume and revenue declined in the second half of 2025 due to strikes at Hyundai Motor and others, illustrating how automaker production disruptions flow through directly to supplier results.
Industry-wide, the shift toward eco-friendly vehicles is accelerating demand for electrification parts, while adoption of new materials and plastic components for weight reduction is also expanding.
Against this backdrop, Orient Precision said it is expanding supply of electrification parts such as SBW and differential assemblies, growing eco-friendly vehicle parts revenue by about 20% annually.
However, amid the trend of larger, more modular parts suppliers, Orient Precision remains a relatively small-to-mid-sized supplier, exposing it to price and technology competition from larger parts makers.
The company stated it will accelerate the transition of its electrification parts business structure, planning new part mass production and capacity expansion by early next year. Through this, it set a goal of raising the electrification parts revenue share from roughly 10% currently to 50% within the next 2-3 years.
From the second half, the vehicle models applying existing SBW and differential parts will expand, while eco-friendly gap fillers and battery-related components are undergoing customer testing and mass-production preparation.
A company representative said it is pursuing capacity expansion and continuous technology development in line with the market's shift toward eco-friendly vehicles.
Hyundai Motor, its key customer, said it will continue rolling out key new models such as the new Grandeur hybrid and Avante in the second half, a variable that could affect order volumes for first-tier supplier Orient Precision.
However, as with the 2025 second-half strike episode, a recurrence of automaker production or sales disruptions could immediately affect supplier revenue, suggesting earnings volatility may persist until the benefits of the electrification transition become more visible.
The company is also pursuing funding through holdings such as its stake in affiliate Orient Bio, meaning similar capital transactions could further affect earnings and financial structure going forward.
Orient Precision has swung between losses and modest profits in recent years, making it difficult for per-share-based valuation metrics to settle into a stable pattern.
Owner net income turned positive for full-year 2025, but quarterly net income variation has widened in 2026, leaving the sum of the most recent four quarters back in loss territory.
Its share price appears to trade near or below net asset value per share, which can be interpreted as the market not assigning a large premium over net assets.
No cash dividend has been paid based on the most recent fiscal year, suggesting that earnings recovery and progress in the electrification parts business are likely to be more central to investment judgment than dividend appeal.
That said, this assessment can shift with future earnings releases and business developments, so it is worth tracking the direction of earnings improvement rather than any single point-in-time figure.
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 company said eco-friendly vehicle parts revenue has been growing about 20% annually and set a target of raising the electrification parts revenue share from about 10% currently to 50% within 2-3 years.
Vehicle models applying already mass-produced parts such as SBW gear sets and differential assemblies are set to expand from the second half, while gap filler and battery parts are undergoing customer testing, laying structural growth foundations.
Owner net income reached KRW 1.80 billion in 2025, turning positive from a slight loss the prior year. Q2 2026 revenue reached KRW 43.83 billion, the highest level in the recent four-quarter window, signaling recovery, and net income also remained positive at KRW 0.72 billion.
Kumyoung Tech, acquired in 2022, counts major U.S. parts maker BorgWarner among its customers, partially supplementing the company's Hyundai/Kia-centered revenue structure.
An overseas production base is also secured through Vietnamese subsidiary Orient Vina, and holdings such as the affiliate Orient Bio stake provide a source of liquidity if needed.
Operating profit fell 25.3% year over year to KRW 0.91 billion in 2025, and the company posted operating losses for three consecutive quarters from Q4 2025 through Q2 2026. The operating margin remains low relative to revenue scale, and a clear improvement in core profitability has yet to be confirmed.
The company disclosed that sales volume and revenue declined in the second half of 2025 due to strikes at Hyundai Motor and others.
Hyundai Motor itself reported a 20.8% drop in Q2 2026 operating profit due to production disruptions from a parts supplier fire and rising raw material costs, illustrating how volatility across the automaker-parts supply chain can transmit directly to first-tier supplier results.
In Q1 2026, although the operating loss was only KRW 0.06 billion, the owner net loss widened to KRW 2.49 billion, suggesting a significant impact from non-operating factors. If this pattern repeats, forecasting future net income based on operating results alone could become difficult.
Given a business structure heavily reliant on automakers' production and sales volumes, revenue and profit are directly affected by external factors such as strikes, parts supply disruptions, and raw material price swings.
As with the second-half 2025 strike episode, the possibility of unexpected production disruptions recurring cannot be ruled out.
The debt ratio stood at 161.4% in 2024 and 148.0% in 2025, indicating relatively high debt levels relative to equity, and further monitoring is needed on whether cash generation from operating activities is expanding steadily relative to profit levels.
Orient Precision holds a stake in affiliate Orient Bio, and in February 2026 it disclosed a decision to dispose of part of that holding. Such equity-related transactions can add further volatility to net income through equity-method valuation gains/losses or disposal gains/losses.
When Q3 2026 consolidated results are disclosed, it will be important to check whether the revenue recovery seen in Q2 continues and whether operating profit turns positive.
It will be worth checking whether the company's announced schedule for new electrification part mass production and capacity expansion is actually met, and how progress toward the electrification revenue share target (from about 10% to 50% over the longer term) is unfolding.
It is worth observing how Hyundai Motor's expanded domestic production and sales from new model launches such as the new Grandeur hybrid and Avante affect order volumes for first-tier supplier Orient Precision.
It is necessary to monitor for further disclosures related to holding or disposing of affiliate stakes such as Orient Bio, in order to gauge how group-level capital transactions affect net income.
Orient Precision, a first-tier supplier to Hyundai Motor and Kia, is pursuing a strategy of gradually increasing its electrification parts share, stating that eco-friendly vehicle parts revenue has been growing about 20% annually.
On an annual basis, owner net income turned positive in 2025, but operating profit declined for a second straight year, which the company attributed to a drop in sales volume from strikes at Hyundai Motor and others in the second half of 2025.
In 2026, following a large net loss in Q1, revenue recovered to the highest level in the recent four-quarter window in Q2, though operating profit remained in the red, pointing to a lag between revenue recovery and profitability improvement.
The company has set a medium-term goal of raising the electrification parts revenue share from about 10% currently to 50% within 2-3 years, and has also flagged new part mass production and capacity expansion plans.
However, the structural exposure of results to automaker production and sales disruptions, along with net income volatility from non-operating factors such as affiliate equity transactions, remain sources of forecasting uncertainty going forward.
Investors may want to track both upcoming quarterly earnings releases and progress on expanding the electrification parts revenue share.
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.