PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩70 per share · Prices as of the 2026-10-02 close
Sungchang Autotech posted steady improvement in revenue and operating margin from 2022 to 2025, but its 2026 second-quarter net profit attributable to owners swung to a loss despite positive operating income.
Full-year 2025 revenue reached KRW 243.5 billion, up sharply from KRW 194.4 billion in 2024, with operating margin hitting a four-year high of 4.8%.
Combined net profit attributable to owners over the trailing four quarters (2025Q3-2026Q2) stayed positive at KRW 4.98 billion, but the second quarter of 2026 alone posted a net loss of KRW 1.41 billion.
In the first quarter of 2026, operating profit fell 20.1% year-on-year as gains from the U.S. subsidiary's injection-molded sales and cost improvements were offset by lower domestic climate-control sales and higher SG&A at the China unit.
Recent exports have been supported by rising hybrid vehicle shipments to the United States and expanding electric vehicle volumes to Europe.
U.S. tariffs on autos and parts (15%) and pressure from automakers to lower parts prices remain profitability variables across the parts industry.
Founded in 1996, Sungchang Autotech is an auto parts manufacturer focused on cabin air filters and climate-control components. Domestically, the company supplies cabin air filters, cluster ionizers, and inverters, and it developed and mass-produced Korea's first inverter for electric compressors.
Through its overseas subsidiaries, it produces injection-molded parts such as HVAC units, cowl top covers, and wheel guards for supply to the U.S. and Chinese markets. Its main customers are domestic automakers Hyundai and Kia, reached through Hyundai Mobis, along with U.S. and European automakers.
More recently, the company has been expanding its eco-friendly vehicle parts business based on new patented technologies while also broadening its product lineup into the aftermarket (AS) parts segment to secure a more stable revenue base.
The company has stated that it is diversifying its product portfolio by combining conventional internal-combustion-engine parts with eco-friendly climate-control technology for EVs and hybrids.
Domestic climate-control parts and overseas injection-molded parts form the two main pillars of revenue, and performance across domestic and overseas operations tends to diverge by region.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩64.7B | ₩5.8B | 9.0% |
| 2025Q3 | ₩64.1B | ₩1.9B | 2.9% |
| 2025Q4 | ₩57.3B | ₩1.3B | 2.3% |
| 2026Q1 | ₩56.4B | ₩2B | 3.6% |
| 2026Q2 | ₩58.8B | ₩2.6B | 4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩184.8B | ₩7B | ₩2.3B | 3.8% | 5.3% | 153.3% |
| 2023 | ₩169.3B | ₩4.1B | ₩5.5B | 2.4% | 11.4% | 193.8% |
| 2024 | ₩194.4B | ₩6.3B | ₩5.5B | 3.2% | 10.3% | 196.7% |
| 2025 | ₩243.5B | ₩11.6B | ₩8.5B | 4.8% | 14.1% | 186.8% |
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
Annual revenue fell from KRW 184.8 billion in 2022 to KRW 169.3 billion in 2023, then rose for two consecutive years to KRW 194.4 billion in 2024 and KRW 243.5 billion in 2025. Operating margin declined from 3.8% in 2022 to 2.4% in 2023 before recovering to 3.2% in 2024 and 4.8% in 2025.
Net profit attributable to owners increased from KRW 2.34 billion in 2022 to KRW 5.50 billion in 2023, KRW 5.46 billion in 2024, and KRW 8.49 billion in 2025.
On a quarterly basis, the second quarter of 2025 posted the strongest margin among recent quarters, with revenue of KRW 64.65 billion and operating profit of KRW 5.84 billion (roughly a 9.0% operating margin), before margins narrowed in the third quarter (KRW 1.86 billion) and fourth quarter (KRW 1.34 billion) of 2025.
The first quarter of 2026 showed some recovery with revenue of KRW 56.42 billion and operating profit of KRW 2.04 billion, and the second quarter of 2026 continued that operating improvement with revenue of KRW 58.79 billion and operating profit of KRW 2.61 billion.
However, net profit attributable to owners in the second quarter of 2026 turned negative at KRW -1.41 billion despite the operating profit, a swing that appears linked to items below the operating line, though the specific cause has not yet been officially disclosed.
Over the trailing four quarters (third quarter of 2025 through second quarter of 2026), combined net profit attributable to owners remained positive at KRW 4.98 billion even after accounting for the second-quarter loss.
Overall, the trend of revenue growth and operating margin recovery is clear, but quarter-to-quarter volatility in net profit has increased.
The domestic auto parts industry faces a dual pressure from U.S. tariff policy and automakers' expanding local production and sourcing. The U.S. government applies a 15% tariff on Korean autos and parts, raising concerns that the resulting cost burden on automakers could translate into pressure to cut parts prices.
That said, the retroactive tariff adjustment from 25% to 15% applied in November 2025 is cited as a factor that has somewhat improved export conditions.
The Korea Institute for Industrial Economics and Trade has noted that the parts industry could face both direct tariff impacts and indirect pressure as automakers push down parts prices to offset tariff costs.
Conversely, an aging U.S. vehicle fleet driven by higher tariffs and rising demand for aftermarket parts is cited as a potential opportunity for domestic AS parts suppliers.
On the demand side, hybrid vehicle sales continue to grow steadily in the U.S. and Europe, creating a relatively favorable environment for suppliers tied to HEV and EV climate-control and thermal-management components.
Competitively, Sungchang Autotech has accumulated long-standing technology in the domestic cabin air filter and inverter markets, but its revenue scale is smaller than Hyundai Mobis or larger parts suppliers, giving it the characteristics of a small-to-mid-sized parts maker sensitive to the automaker cycle, exchange rates, and raw material price swings.
The company has stated that it is pursuing a strategy of diversifying its product portfolio by combining conventional internal-combustion-engine parts with eco-friendly climate-control technology for EVs and hybrids.
Through this, it aims to secure both near-term profitability and long-term growth drivers while strengthening its position in the global eco-friendly vehicle market.
The company is also expanding into the aftermarket (AS) parts segment to reduce dependence on the new-vehicle sales cycle and build a more stable revenue base.
Growth in the U.S. subsidiary's injection-molded parts sales and cost improvements, already evident in first-quarter 2026 results, will be a key point to watch going forward.
Meanwhile, declining domestic climate-control parts sales and rising SG&A at the China unit have weighed on recent results, and this divergence between regions could persist.
The expansion of the eco-friendly parts business based on new patented technology has not yet been accompanied by disclosed order sizes or mass-production timelines, which will need confirmation through future filings or investor communications.
The current share price trades below the company's book value per share, placing it in a discounted range relative to net assets. The price-to-earnings ratio calculated using the trailing four quarters of results appears lower than that of comparable auto-parts peers such as Dolfin Rubbers and Mitsuchi.
On the dividend side, the payout relative to the share price is not large, distinguishing it from high-dividend names in the sector.
It is also worth noting that, as seen in the second quarter of 2026, there have been instances where net profit turned negative despite a positive operating profit, meaning quarter-to-quarter earnings volatility can affect the stability of valuation metrics.
On an annual basis, earnings have shown a gradual recovery trend since 2022, though this trend has not translated smoothly into every individual quarter.
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
Revenue rose for two consecutive years in 2024 and 2025, and operating margin improved from 2.4% in 2023 to 4.8% in 2025. Net profit attributable to owners also grew from KRW 2.34 billion in 2022 to KRW 8.49 billion in 2025, supported by expanding injection-molded sales and cost improvements at the U.S. subsidiary.
Building on its track record as the first Korean company to develop and mass-produce inverters for electric compressors, the company is expanding its eco-friendly parts business based on new patented technology.
It is simultaneously broadening into the aftermarket (AS) parts segment to reduce dependence on the new-vehicle sales cycle.
Rising hybrid vehicle exports to the U.S. and expanding EV volumes to Europe have supported recent exports. With hybrid vehicle sales growing steadily in the U.S. and European markets, related parts demand could continue on this trajectory.
In the second quarter of 2026, operating profit was positive at KRW 2.61 billion, yet net profit attributable to owners turned negative at KRW -1.41 billion.
This appears related to items below the operating line, though the specific cause has not been officially confirmed, leaving questions about the quality and stability of earnings.
With the 15% U.S. tariff on autos and parts remaining in place, analysis suggests automakers' cost burden could be passed on to parts suppliers through price-cut pressure.
The Korea Institute for Industrial Economics and Trade has noted the parts industry could face both direct tariff impacts and indirect price pressure from automakers.
In the first quarter of 2026, declining domestic climate-control sales and rising SG&A at the China subsidiary were cited as reasons for lower operating profit. If this regional divergence, contrasting with improvement at the U.S. unit, continues, it could add volatility to consolidated results.
The 15% U.S. tariff on autos and parts remains in effect, and the rate could change depending on future negotiation outcomes. If the resulting cost burden on automakers translates into pressure to cut parts prices, it could weigh on profitability.
Fluctuations in raw material prices and exchange rates directly affect the costs and revenue of Sungchang Autotech given its overseas subsidiary exposure. Rising prices for parts-related raw materials such as semiconductors and memory are cited as a factor pressuring profitability across the industry.
With major customers concentrated among domestic automakers Hyundai and Kia via Hyundai Mobis, results can be sensitive to shifts in automaker production and sales cycles. As seen with declining domestic climate-control sales, a slowdown in demand from a specific customer or region can affect overall performance.
The 2026 third-quarter earnings release should clarify whether the second-quarter net loss was a one-off factor and whether the operating profit improvement trend continues.
Progress on U.S. auto and parts tariff negotiations and any changes in automakers' parts pricing policies should be monitored.
Quarterly filings should be checked to confirm whether the U.S. subsidiary's injection-molded sales growth and cost improvements continue, and how domestic climate-control sales and China unit SG&A trend.
The 2026 annual results disclosure should be checked to confirm the yearly direction of revenue and operating margin, as well as concrete outcomes from the new eco-friendly parts business.
Sungchang Autotech showed improvement in both revenue and operating margin from 2022 through 2025, supported by demand for the U.S. subsidiary's injection-molded parts and hybrid/EV components.
However, in the second quarter of 2026, net profit attributable to owners turned negative despite positive operating profit, making quarter-to-quarter earnings volatility a new point to watch.
Regional divergence, including declining domestic climate-control sales and rising SG&A at the China unit, has also appeared, warranting a region-by-region view of consolidated results.
On the industry side, the 15% U.S. tariff and pressure from automakers to cut parts prices remain profitability variables across the sector, while strong hybrid vehicle sales and rising aftermarket demand are cited as relatively favorable factors.
The company is responding through diversification into eco-friendly parts and expansion into the aftermarket segment, though concrete order sizes or outcomes have not yet been disclosed.
Future earnings releases and the progress of tariff negotiations will likely help clarify whether the recent net profit volatility is temporary or structural.
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.