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
Pyung Hwa Industrial posted its fourth consecutive year of revenue growth to KRW 626.1 billion in 2025 with owner net profit jumping to KRW 15.7 billion, yet operating margin stayed in the low-2% range and the debt ratio remains elevated.
Revenue rose for four straight years, from KRW 519.9 billion in 2022 to KRW 626.1 billion in 2025.
2025 owner net profit reached KRW 15.7 billion, well above the prior year's KRW 3.8 billion and even above operating profit of KRW 13.3 billion, suggesting a meaningful non-operating contribution.
The debt ratio improved from 482.0% in 2023 to 312.1% in 2025.
Operating profit recovered to KRW 5.10 billion and KRW 8.26 billion in Q1 and Q2 2026, respectively, up from a KRW 1.82 billion trough in Q3 2025.
Core products span NVH (anti-vibration), hose, sealing, and air suspension components, including bellows localized for the first time domestically in cooperation with Hyundai Mobis.
Pyung Hwa Industrial traces its roots to 1950 as Pyung Hwa Rubber Industrial Co. and has produced automotive rubber and NVH components for more than seven decades from its headquarters in Dalseong, Daegu.
Its core product lines include anti-vibration (AVS), soundproofing, and waterproofing parts, hose products, sealing systems, and air suspension components, with the sealing lineup for engines, transmissions, and suspensions reportedly spanning roughly 5,400 product variants.
The bellows, a key air suspension component used in premium and electric vehicles, was localized for the first time domestically in cooperation with Hyundai Mobis, occupying a symbolic place in the company's technology portfolio.
Its OEM customer base centers on domestic automakers such as Hyundai and Kia, while the company has also expanded into defense-related component supply to diversify its business.
Overseas, the company operates production and sales subsidiaries in China and India and has pursued growth in direct exports to global automakers.
R&D is handled by a technology research institute established in 1987, which is developing next-generation vibration-control technologies such as active mounts, active dampers, and airless tires along with eco-friendly materials.
Competitively, consolidation among global automakers has intensified rivalry among suppliers, and domestic parts makers, including Pyung Hwa, have responded by expanding exports and diversifying their customer base.
Within its corporate structure, Pyung Hwa Industrial sits under Pyung Hwa Holdings alongside affiliates such as Pyung Hwa Engineering and Pyung Hwa Oil Seal, with which it maintains production and technology cooperation.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩165.5B | ₩2.9B | 1.8% |
| 2025Q3 | ₩159.5B | ₩1.8B | 1.1% |
| 2025Q4 | ₩150.8B | ₩6.4B | 4.3% |
| 2026Q1 | ₩162.6B | ₩5.1B | 3.1% |
| 2026Q2 | ₩172.2B | ₩8.3B | 4.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩519.9B | ₩5.7B | ₩6.1B | 1.1% | 14.7% | 471.1% |
| 2023 | ₩564B | ₩9.9B | ₩3.6B | 1.8% | 8.4% | 482.0% |
| 2024 | ₩588.4B | ₩14.1B | ₩3.8B | 2.4% | 8.3% | 404.8% |
| 2025 | ₩626.1B | ₩13.3B | ₩15.7B | 2.1% | 25.3% | 312.1% |
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 519.9 billion in 2022 to KRW 564.0 billion in 2023, KRW 588.4 billion in 2024, and KRW 626.1 billion in 2025.
Operating profit improved from KRW 5.73 billion in 2022 to KRW 9.94 billion in 2023 and KRW 14.06 billion in 2024, before slipping slightly to KRW 13.34 billion in 2025, pushing the operating margin down from 2.4% in 2024 to 2.1% in 2025 despite higher revenue.
Owner net profit was weak at KRW 6.08 billion in 2022, KRW 3.63 billion in 2023, and KRW 3.83 billion in 2024, then surged to KRW 15.71 billion in 2025—exceeding that year's operating profit of KRW 13.34 billion, which points to a substantial non-operating contribution.
Equity grew from KRW 41.4 billion in 2022 to KRW 62.1 billion in 2025, while the debt ratio declined from 471.1% in 2022 and 482.0% in 2023 to 404.8% in 2024 and 312.1% in 2025.
On a quarterly basis, revenue of KRW 165.5 billion and operating profit of KRW 2.94 billion in Q2 2025 fell to a trough of KRW 159.5 billion revenue and KRW 1.82 billion operating profit in Q3 2025, before rebounding sharply in Q4 2025 to KRW 6.45 billion in operating profit and KRW 9.12 billion in net profit despite lower revenue of KRW 150.8 billion.
Into 2026, revenue and operating profit recovered together, reaching KRW 162.6 billion revenue and KRW 5.10 billion operating profit in Q1, and KRW 172.2 billion revenue and KRW 8.26 billion operating profit in Q2.
However, Q2 2026 net profit of KRW 7.38 billion declined from Q1's KRW 8.49 billion, indicating that operating profit improvement and net profit trends have not moved in perfect lockstep each quarter.
Across the trailing four quarters (Q3 2025 through Q2 2026), the pattern of net profit consistently exceeding operating profit suggests a recurring influence from non-operating items.
In the domestic auto parts industry, consolidation among global automakers has intensified competition among suppliers, and domestic parts makers, including Pyung Hwa, have responded by expanding exports and diversifying their customer base.
Some analyses note that domestic parts makers are diversifying their sales channels by increasing exports, and that demand for electronics-related parts is expected to surge as hybrid and electric vehicle adoption spreads amid tighter environmental and safety regulations.
At the same time, some views suggest the sector in 2026 is shifting toward a phase where plant utilization and fixed-cost management at automakers, rather than sales volume alone, determine profitability.
The expansion of Chinese automakers overseas and intensifying price competition pose a threat to global suppliers, but this dynamic could also present an opportunity for quality-focused domestic suppliers to serve as alternative supply chains.
Pyung Hwa has pursued efforts to reduce OEM dependency through localization of air suspension bellows, diversification of sealing products, and expansion into defense-related components.
Competitors in the space are split between large parts conglomerates and specialized niche suppliers, and Pyung Hwa maintains a specialized position built on rubber-material-based NVH and sealing technology.
However, suppliers with a high proportion of internal-combustion-engine-related parts may face structural demand shifts during the electrification transition, making the pace of new-product portfolio transition an important variable.
The company continues to develop next-generation NVH technologies such as active mounts, active dampers, and airless tires, along with new air suspension technologies, having received a government award in 2023 for a smart ride-height-control multi-chamber air suspension.
The air suspension bellows business, built on cooperation with Hyundai Mobis, is cited as an area that could link to growing demand from premium and electric vehicles.
On the financial side, the debt ratio has trended down from 482.0% in 2023 to 312.1% in 2025, and whether this trend continues in coming quarters is a point worth monitoring.
With operating profit recovering to KRW 5.10 billion and KRW 8.26 billion in Q1 and Q2 2026 from a Q3 2025 trough of KRW 1.82 billion, whether this recovery continues into the second half is a key consideration.
Expansion of defense-related component supply is cited as a diversification factor that could reduce dependence on the OEM production cycle.
The strategy of expanding direct exports through overseas subsidiaries in China and India could serve as a means of diversifying the customer base amid the reorganization of automakers' global production footprints.
However, no specific numerical guidance or major new order disclosures have been publicly confirmed at this time, and future filings and IR materials will need to be checked for updates.
When assessing valuation, it is worth examining the relationship between the share price and net asset value alongside multiples based on historical earnings.
There is some discrepancy between KRX-reported and self-calculated net asset value figures, meaning the perceived discount or premium can vary depending on the equity basis and calculation method used.
Given the sharp year-over-year increase in 2025 net profit, multiples reflecting the trailing four quarters appear to sit toward the lower end of the historical multi-year band.
However, this net profit increase includes a non-operating contribution that exceeded operating profit, a factor worth considering when interpreting the multiple.
On the dividend side, recent disclosures indicate no separate cash dividend has been paid, which may relate to a policy of prioritizing earnings toward balance-sheet improvement or reinvestment.
Ultimately, valuation of this stock sits in a range where the quality of earnings (operating profit versus net profit) and the pace of balance-sheet improvement both need to be considered together.
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 climbed steadily from KRW 519.9 billion in 2022 to KRW 626.1 billion in 2025, marking four straight years of growth. This can be interpreted as a result of expanded supply to OEM customers and export diversification efforts translating into a broader revenue base.
Given the fixed-cost-heavy nature of parts manufacturing, stable revenue growth could lay the groundwork for improved operating leverage going forward.
The debt ratio steadily declined from 482.0% in 2023 to 312.1% in 2025. Over the same period, equity increased from KRW 43.4 billion to KRW 62.1 billion, expanding the capital base. If the pattern of net profit growth translating into capital accumulation continues, it could contribute to improved financial stability.
Localization of air suspension bellows in cooperation with Hyundai Mobis is cited as a new growth area tied to premium and electric vehicles.
Expanded defense-related component supply and increased direct export share through overseas subsidiaries could serve as diversification tools to reduce dependence on the OEM production cycle.
A diversified product portfolio spanning NVH, sealing, and hose products provides a structure where weakness in one segment could be offset by strength in another.
The 2025 operating margin fell to 2.1% from 2.4% the prior year, and margins have remained stuck in the low-single-digit to low-2% range throughout 2022–2025. Even as revenue grew, cost and SG&A pressures appear to be constraining margin expansion.
As long as the cost-pressure structure typical of OEM-supplying parts makers persists, margin improvement is likely to progress only gradually.
In 2025, net profit of KRW 15.71 billion exceeded operating profit of KRW 13.34 billion, and this pattern recurred across the trailing four quarters. This suggests that non-operating items have had a substantial influence on net profit relative to core business profitability.
Until the persistence of these non-operating factors is confirmed, a cautious approach is warranted when assessing the quality of earnings.
While the debt ratio has been trending down, it remained high at 312.1% as of 2025. Liabilities of KRW 193.9 billion are substantial relative to equity of KRW 62.1 billion, meaning changes in interest rate conditions or credit environment could affect earnings through interest expense.
Amid intensifying competition from consolidation among global automakers, relatively limited financial flexibility is also a factor to consider.
Although the debt ratio has been improving, it remained high at 312.1% in 2025, reflecting a heavy liability burden relative to equity. If interest rates rise or credit conditions deteriorate, financing costs could increase, making the sustainability of balance-sheet improvement important.
Since capital accumulation depends heavily on net profit growth, a slowdown in future net profit could also slow the pace of improvement.
A revenue structure centered on OEM customers carries the structural risk that results could be affected by changes in a specific customer's production plans or sales performance.
As consolidation among automakers and reorganization of production bases continue, whether new orders are secured could affect medium- to long-term revenue.
As the exact revenue share tied to specific customers could not be confirmed through search, the degree of diversification will need to be verified through future disclosures.
The electrification transition could structurally reduce demand for internal-combustion-engine-related parts, making the pace of portfolio transition an important variable for suppliers with a high share of such products.
The expansion of Chinese automakers overseas and intensifying low-price competition could act as a price-pressure factor across the global parts supply chain.
As automaker plant utilization and fixed-cost management increasingly determine supplier profitability, sensitivity to fluctuations in OEM production could increase.
Check whether the Q1–Q2 2026 operating profit recovery (KRW 5.10 billion to KRW 8.26 billion) continues in the Q3 2026 earnings release, and whether net profit continues to exceed operating profit.
Review the Q4 and full-year 2026 business report for further debt ratio improvement and any change in dividend policy.
Any new order or contract disclosures related to Hyundai Mobis-linked air suspension bellows or defense-related components would provide evidence of progress in business diversification.
If a credit rating agency adjusts the rating or outlook, this would show how the recent debt-ratio improvement trend is being reflected in external credit assessments.
Pyung Hwa Industrial posted four consecutive years of revenue growth from 2022 to 2025, and surface-level indicators improved further with a sharp increase in 2025 owner net profit.
However, the operating margin remained stuck in the low-2% range, and the fact that 2025 net profit exceeded operating profit—a pattern that recurred across the trailing four quarters—is a factor worth weighing when assessing earnings quality.
The debt ratio showed a improving trend from 482.0% in 2023 to 312.1% in 2025, signaling balance-sheet progress, though the absolute level remains elevated.
On the business side, diversification efforts are evident through localization of air suspension bellows, expansion of sealing products, and entry into defense-related components, all aimed at reducing dependence on the OEM production cycle.
Across the broader industry, consolidation among automakers and the electrification transition are proceeding in parallel, with domestic parts makers showing a trend of expanding exports and diversifying their customer base.
Going forward, the persistence of the operating profit recovery, the pace of debt ratio improvement, and greater clarity on the nature of non-operating items will likely be important points to watch in understanding this company.
Report written 2026-09-05 · Data as of 2026-09-04
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