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
S&K Polytec, which has rebuilt earnings through its polyurethane foam sheet, SMT, and wiper businesses, is now diversifying its growth base through the merger of an EV electrical component subsidiary.
2025 revenue declined year over year, but the operating margin held at 5.1%, a level well above the weak 2022-2023 period.
Q1 2026 operating profit reached KRW 6.72 billion, the highest in the past five quarters, and profitability continued into Q2.
In July 2026 the company completed the acquisition and merger of Sunjin Engineering, an EV busbar and terminal maker, declaring electrical components a new growth pillar.
The company disclosed plans to use KRW 48 billion secured from selling an idle factory to fund the new business investment.
Industry forecasts point to foldable OLED shipments returning to growth from 2026, a trend relevant to demand for the foam sheet and SMT segments.
S&K Polytec is a KOSDAQ-listed component and materials maker built on three business segments: polyurethane foam sheet, SMT, and wiper blades.
The polyurethane foam sheet segment produces shock-absorbing materials for IT products such as smartphones and OLED panels, placing it within the IT components and materials industry.
The SMT segment manufactures FPCA (flexible printed circuit board assemblies) for smartphones, while the wiper segment produces automotive wiper blades supplied to both OEM and aftermarket distribution channels.
In the wiper business, the company targets large distribution manufacturers such as ITW, Pylon, and Mighty, along with manufacturers like Trico and Valeo, and has expanded into Latin America by targeting buyers such as Codinter, AutoZone Mexico, and Dyna.
In July 2026, the company acquired Sunjin Engineering, which mainly produces EV busbars and terminals, and subsequently resolved at a board meeting to merge with it, stating its intention to make electrical components a new core growth business.
Management indicated the merger aims to integrate materials and electrical component technology and management resources to improve decision-making and operational efficiency.
Production facilities are located in the Sihwa Industrial Complex in Ansan, Gyeonggi Province, with continued R&D investment in high-functionality and eco-friendly products cited as a source of technical entry barriers.
Unlike the existing three businesses, which are exposed to mature markets in smartphones, displays, and automotive aftermarket, the new electrical components business represents an attempt to broaden exposure to the growing electric vehicle electrification market.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩78.3B | ₩1.9B | 2.4% |
| 2025Q3 | ₩69.3B | ₩2.6B | 3.8% |
| 2025Q4 | ₩85.7B | ₩6B | 7.0% |
| 2026Q1 | ₩70.5B | ₩6.7B | 9.5% |
| 2026Q2 | ₩68.4B | ₩4.9B | 7.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩336.1B | ₩200M | -₩1.2B | 0.1% | −1.4% | 118.2% |
| 2023 | ₩251.1B | ₩2.8B | -₩5.9B | 1.1% | −7.1% | 120.3% |
| 2024 | ₩330.1B | ₩15.2B | ₩8.9B | 4.6% | 9.7% | 101.1% |
| 2025 | ₩310.2B | ₩15.7B | ₩4B | 5.1% | 4.3% | 80.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue fell from KRW 336.1 billion in 2022 to KRW 251.1 billion in 2023, recovered to KRW 330.1 billion in 2024, then slipped again to KRW 310.2 billion in 2025.
Operating profit, which was near breakeven at KRW 0.19 billion in 2022 and KRW 2.84 billion in 2023, jumped to KRW 15.22 billion in 2024 and stayed at a similar KRW 15.72 billion in 2025, lifting the operating margin from 0.1% and 1.1% in 2022-2023 to 4.6% and 5.1% in 2024-2025.
Net income attributable to owners posted consecutive losses in 2022 (-KRW 1.21 billion) and 2023 (-KRW 5.88 billion), turned to a profit of KRW 8.87 billion in 2024, then eased to KRW 4.00 billion in 2025.
On a quarterly basis, owner net income was a loss of KRW 0.79 billion in Q2 2025, before recovering to KRW 1.53 billion in Q3 and KRW 1.62 billion in Q4; Q1 2026 posted revenue of KRW 70.5 billion, operating profit of KRW 6.72 billion, and owner net income of KRW 4.30 billion, the highest operating profit of the past five quarters.
Q2 2026 revenue was KRW 68.4 billion with operating profit of KRW 4.95 billion and owner net income of KRW 2.41 billion, lower than the prior quarter but still profitable.
On the balance sheet, total equity stood at KRW 141.0 billion and total liabilities at KRW 113.8 billion at the end of 2025, bringing the debt ratio down to 80.7% from 120.3% in 2023, 118.2% in 2022, and 101.1% in 2024, indicating an improving financial structure.
Operating cash flow was a strong KRW 21.9 billion in 2024 but fell to KRW 7.4 billion in 2025, a divergence from the stable operating profit level that suggests working-capital or other non-operating factors were at play.
Overall, the 2024 through H1 2026 period reads as a stretch of profit recovery following the low-margin, loss-making conditions of 2022-2023.
The foldable OLED market has been stagnant for the past three years but is expected by industry researchers to re-enter a growth phase from 2026, with shipments projected to expand from 25.03 million units in 2026 to 39.72 million units by 2030.
Foldable OLED accounts for only about 3% of total small OLED shipments, but thanks to its higher unit price its revenue share is expected to rise to about 8%, a dynamic tied to expanding premium volumes at customers such as Samsung Display for the foam sheet and SMT segments.
That said, foldable OLED shipments in the first half of this year were reported to have declined from a year earlier, suggesting the demand recovery has not yet fully materialized.
Samsung Display and LG Display are pursuing a strategy of broadening demand beyond smartphones and TVs toward automotive and IT devices with high value-added OLED, a shift aligned with the diversifying end applications relevant to the foam sheet and SMT segments.
The global automotive wiper blade market, at roughly USD 4.2 billion in 2026 with a modest projected CAGR of 2.4%, is a mature market centered on replacement demand and share competition rather than new demand growth.
The EV electrical components market (busbars, terminals) sits on a different growth cycle tied to vehicle electrification, and the company's new entry into this area can be read as an attempt to offset the maturity characteristics of its existing businesses.
In resolving to merge with Sunjin Engineering in July 2026, the company disclosed a policy of improving earnings and upgrading its business portfolio through the expansion of the electrical components business and investment in growth businesses.
It also outlined a plan to pursue additional growth investment and portfolio expansion funded by the KRW 48 billion secured from the idle factory sale.
On the existing business side, industry forecasts point to a foldable OLED demand recovery beginning in the second half of 2026 on the back of new product launches from Samsung Electronics and Apple, a variable that could affect order allocation for the foam sheet and SMT segments.
Whether the operating profit trend seen in Q1 and Q2 2026 continues into the second half will need to be confirmed through upcoming quarterly disclosures.
The timing and scale of the new electrical components business's actual contribution to revenue and profit will likely only become clear once the merger process is finalized and initial operating results are disclosed.
Detailed execution schedules, target facilities, and customers for the new business investment plan have not yet been fully disclosed, warranting attention to further filings.
In terms of the price-to-book ratio, the stock trades at a notable discount to net asset value, a pattern that can be read as reflecting the history of losses and low margins in 2022-2023.
On the earnings side, the shift from losses in 2022-2023 to profitability from 2024 through 2025 and into H1 2026 changes the profitability profile relative to the past, forming part of the backdrop for valuation discussions.
On the dividend side, no per-share cash dividend has recently been disclosed, so profit recovery and the outcome of new business investment are likely to be more central to assessment than dividend appeal.
It is also worth considering that once the portfolio shift from adding the electrical components business begins to show up in results, the market's frame of reference, which has been built around the three legacy businesses, could shift as well.
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 operating margin improved sharply in 2024 from 2023 and held in the 5% range through 2025, with Q1 2026 posting the highest operating profit of the past five quarters. Compared with the low-margin, loss-making stretch of 2022-2023, this suggests a possible structural shift in the profitability profile. The debt ratio also eased from around 120% in 2023 to around 80% in 2025, easing the financial burden.
In July 2026 the company acquired and merged with Sunjin Engineering, an EV busbar and terminal maker, stating its intent to build electrical components into a core growth business.
It plans to fund the expansion using KRW 48 billion secured from an idle factory sale, an attempt to broaden its portfolio into a growth market. Compared with the existing three businesses, which are centered on mature markets, this could become a catalyst for diversifying the company's growth base.
Industry researchers project foldable OLED shipments will re-enter a growth phase from 2026 and expand through 2030.
New product launches from Samsung Electronics and Apple are cited as the turning point for demand recovery, and foldable OLED carries a higher revenue share than shipment share, reflecting its higher value-added nature. This is a variable that could connect to growth in the end markets served by the foam sheet and SMT segments.
2025 revenue fell to KRW 310.2 billion from KRW 330.1 billion in 2024, and owner net income declined from KRW 8.87 billion in 2024 to KRW 4.00 billion in 2025. The company also posted a net loss in Q2 2025, showing that earnings have not moved in a uniform pattern quarter to quarter.
Q2 2026 operating profit also came in lower than Q1, indicating the pace of improvement has not been consistent every quarter.
The Sunjin Engineering acquisition and merger was decided in July 2026, and the integration outcome and the timing of its actual contribution to revenue and profit have not yet been confirmed through disclosures.
The KRW 48 billion investment plan also has not had its detailed execution schedule and targets fully disclosed, leaving room for variables during implementation.
Because the new business has a customer and supply chain structure different from the existing operations, the possibility of initial integration costs or organizational efficiency burdens cannot be ruled out.
The global wiper blade market is a mature one with a modest projected CAGR of 2.4%, centered on share competition rather than new demand growth. Foldable OLED shipments in the first half of this year also declined from a year earlier, indicating the demand recovery has not yet fully materialized.
With the existing three businesses carrying maturity characteristics, growth potential could remain limited until the new business's contribution becomes substantial.
According to past disclosures, revenue concentration with a small number of key customers such as SDT and ITW reached approximately 79% of total revenue. This structure means order changes or shifts in trading terms with specific customers could directly affect results.
While the new business may broaden the customer base over time, the existing customer concentration structure currently remains in place.
The Sunjin Engineering merger decided in July 2026 is still in an early post-decision stage, and one-time costs or unexpected delays could arise during organizational, workforce, and accounting integration.
Because the electrical components business may involve different customer and technical requirements than the existing foam sheet, SMT, and wiper businesses, realizing synergies could take time. The actual timing and scale of the KRW 48 billion investment fund will also need to be confirmed through future disclosures.
Foldable OLED shipments declined year over year in the first half of this year, so the possibility that demand recovery could be delayed beyond expectations cannot be ruled out. The wiper business is exposed to OEM and aftermarket demand as well as external variables such as exchange rates.
The EV electrical components market is also driven by the pace of automakers' electrification investment, meaning it too carries volatility tied to external factors.
Q3 2026 earnings disclosures should be checked to confirm whether the operating profit trend and revenue recovery seen in H1 2026 continued.
The merger effective date with Sunjin Engineering and whether initial electrical components revenue is reflected post-integration should be confirmed through related disclosures.
Changes in customer order allocation for the foam sheet and SMT segments following foldable product launches from Samsung Electronics and Apple should be monitored.
It is necessary to check whether specific targets, scale, and timing for growth business investment funded by the idle factory sale proceeds are disclosed.
S&K Polytec moved past the low-margin, loss-making stretch of 2022-2023 and has sustained improved operating margins and profitability since 2024, a trend that continued through H1 2026.
At the same time, in July 2026 the company decided to acquire and merge with Sunjin Engineering, an EV electrical components maker, moving to broaden its portfolio beyond the existing three businesses (foam sheet, SMT, wiper) into a growth market.
However, the timing and scale of the new business's actual revenue and profit contribution, as well as the detailed execution of the KRW 48 billion investment plan, have not yet been fully disclosed and warrant further confirmation.
On the existing business side, the foldable OLED demand recovery outlook is cited as a positive variable, but the fact that shipments actually declined in H1 this year, along with the modest growth pace of the wiper market, are factors that should be weighed alongside it.
The high customer concentration in the revenue structure and early-stage merger integration risk should also be considered in a balanced view. Overall, this stock presents a confirmed profit recovery trend alongside a not-yet-realized variable in the form of the new business entry.
Report written 2026-09-05 · Data as of 2026-09-04
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