PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
Sangsin EDP, the domestic leader in secondary-battery can (CAN) market share, swung from an operating loss in 2024 to profit in 2025 and has now posted four straight profitable quarters, with ESS demand and next-generation 46-mm cylindrical cans emerging as new growth axes.
Swung from an operating loss of KRW 8.22bn in 2024 to operating profit of KRW 8.65bn in 2025, with four consecutive profitable quarters since 2025Q3
Product mix is weighted toward prismatic (mid-to-large) cans at 56% and cylindrical cans at 31% (as of 2025Q3), a prismatic-centric portfolio
Reliance on top customer Samsung SDI exceeds 90% of sales, making customer diversification progress a key valuation variable
Operates multiple production sites domestically in Cheonan and Yangsan, and overseas in Hungary, the United States (Indiana), Malaysia, and China
Expansion of 46-mm (4680) cylindrical cans and ESS-use prismatic cans is expected to shape earnings direction from 2026 onward
Founded in 1992 and listed on KOSDAQ in 2007, Sangsin EDP specializes in secondary-battery components, manufacturing metal cans (CAN)—the key external casing of lithium-ion cells—in cylindrical, prismatic, and mid-to-large formats.
The company's competitive edge rests on Deep Drawing forming technology, which shapes metal without welding, combined with precision mold processes spanning 12 to 15 stages.
As of 2025Q3, product mix skewed toward mid-to-large (prismatic) cans at roughly 56% of sales and cylindrical cans at roughly 31%, with the remainder from other items and merchandise.
The largest customer, Samsung SDI, is reported to account for more than 90% of total sales, making single-customer concentration both a structural feature and a recognized limitation.
Production is based domestically in Cheonan and Yangsan, supplemented by five overseas subsidiaries in Hungary, Indiana in the United States, Malaysia, and China, allowing local can supply near customers' cell plants—an important edge given the high logistics-cost sensitivity of bulky can components.
Competitively, the company is estimated to hold roughly 70% share of the domestic prismatic can market and about 90% of the cylindrical can market, effectively positioning it as the leading domestic can manufacturer.
More recently, ESS (energy storage system)-use prismatic cans and next-generation 46-mm (46-phi) cylindrical cans have emerged as new growth pillars.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩61.3B | ₩900M | 1.4% |
| 2025Q3 | ₩59.9B | ₩5.9B | 9.8% |
| 2025Q4 | ₩70.6B | ₩5.8B | 8.2% |
| 2026Q1 | ₩72.2B | ₩4.9B | 6.8% |
| 2026Q2 | ₩86B | ₩6.4B | 7.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩290.8B | ₩32.8B | ₩24.5B | 11.3% | 20.0% | 99.7% |
| 2023 | ₩301.6B | ₩30.2B | ₩26.2B | 10.0% | 17.8% | 97.6% |
| 2024 | ₩251.8B | -₩8.2B | ₩600M | −3.3% | 0.4% | 106.2% |
| 2025 | ₩250.1B | ₩8.7B | ₩2B | 3.5% | 1.3% | 109.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
On an annual basis, operating profitability was solid in 2022 with revenue of KRW 290.8bn and operating profit of KRW 32.76bn (11.3% margin), continuing into 2023 with revenue of KRW 301.6bn and operating profit of KRW 30.2bn (10.0% margin).
In 2024, however, revenue slipped slightly to KRW 251.8bn while the company posted an operating loss of KRW 8.22bn (-3.3% margin), marking a swing into deficit.
In 2025, revenue held roughly steady at KRW 250.1bn, but the company returned to operating profit of KRW 8.65bn (3.5% margin), with net income rising to KRW 2.01bn.
Quarterly, 2025Q2 revenue was KRW 61.28bn with a thin operating profit of KRW 0.89bn (1.4% margin) and a net loss of KRW 3.51bn, but 2025Q3 showed clear improvement with revenue of KRW 59.90bn and operating profit of KRW 5.89bn (9.8% margin).
This was followed by 2025Q4 revenue of KRW 70.59bn and operating profit of KRW 5.76bn (8.2% margin), 2026Q1 revenue of KRW 72.21bn and operating profit of KRW 4.88bn (6.8% margin), and 2026Q2 revenue of KRW 86.04bn and operating profit of KRW 6.40bn (7.4% margin)—four consecutive profitable quarters with both revenue and profit scaling up together.
Analysts attribute the improvement to higher utilization and profitability at overseas subsidiaries (including Malaysia and China) and cost-ratio gains from production-process automation.
The 2025Q2 net loss appears tied to a temporary factor, and over the most recent four-quarter window (2025Q3–2026Q2) both revenue and profit show a clear year-over-year improvement.
The secondary-battery industry went through an adjustment phase in recent years amid an EV demand slowdown, but interest has revived as ESS (energy storage system) demand expands rapidly, particularly in North America.
Samsung Securities noted that the prismatic format's share of EV batteries is trending up from 26% in 2021 to 43% in 2025. Battery technology is also evolving toward Cell-to-Pack (CTP) architecture, a shift that is accelerating the move toward prismatic-centric formats.
ESS-use LFP battery cells are trending toward larger sizes, and this cell enlargement is cited as a factor that could lift average selling prices through larger can dimensions.
In the cylindrical camp, discussion continues around a transition from the existing 18650/21700 formats to the 46-mm (4680) family, with automakers reviewing adoption of 46-mm cells.
Competitively, can manufacturing carries relatively high entry barriers, though there have been cases of China-linked component makers entering domestic battery makers' supply chains, indicating a longer-term competitive pressure.
Having proactively built overseas bases in Hungary and the United States alongside its main customer, Sangsin EDP maintains a relative position as format transition and geographic diversification unfold simultaneously across the industry.
The company's own guidance reportedly calls for roughly 30% revenue growth alongside an operating margin in the upper-single-digit range, implying a further step-up in 2026 versus 2025.
In a March 2026 report, Hanyang Securities forecast 2026 revenue of KRW 325bn, up 30% year over year, and operating profit of KRW 31.3bn, up 237.5%, citing North American ESS market expansion and profitability recovery at the U.S. production base as the key drivers.
In a December 2025 report, the Korea IR Service noted that the company is pursuing capacity expansion at its Indiana, U.S. subsidiary in line with its customer's North American ESS roadmap, and projected that earnings would step up from 2026Q4 once additional equipment on top of currently operating lines comes fully online.
For 46-mm cylindrical cans, phased capacity additions are planned centered on the domestic Cheonan site, with the main customer reportedly developing toward mass production targeted for 2025-2027, leaving the visibility of that production timeline as a medium-term variable.
In May 2026, Samsung SDI reportedly signed a prismatic battery supply agreement with Mercedes-Benz targeting 2028 deliveries, which Samsung Securities characterized as a demand-expansion factor for related value-chain companies.
Most of this new volume, however, would flow into results from around 2027-2028 onward, meaning the pace of U.S. ESS line utilization increases and progress on customer diversification remain the more immediate near-term variables.
Sangsin EDP's share price appears to have already priced in much of the earnings recovery narrative—the swing from a 2024 loss to 2025 profit, and four consecutive quarters of expanding profit since.
The price-to-earnings ratio trades near the upper end of the trading band established back in 2021-2022, and the price-to-book ratio similarly sits in a range that carries a premium to net asset value. The dividend yield runs below the industry average, reflecting a modest per-share payout level.
In an April 2026 report, Samsung Securities argued that valuation derived from the company's own guidance looked relatively low "compared to the average P/E of 54x for secondary-battery materials and components peers"—a judgment made by that brokerage, and one where other investors may choose different peer sets or interpretations.
On balance, the current valuation level can be read as reflecting both market expectations tied to the ESS and 46-mm growth narrative and the structural constraint of heavy single-customer dependence.
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 2026-08-21
As ESS demand grows rapidly, especially in North America, the safety profile and cell-enlargement trend of prismatic cans could work favorably for the company.
The main customer is reported to be converting part of its Indiana, U.S. line for ESS use, meaning revenue contribution could scale up once that line reaches full operation. If ESS cells continue to grow larger, larger can dimensions could also support higher average selling prices.
Next-generation 46-mm cylindrical batteries offer higher energy density and output, drawing attention as a power source for both EVs and humanoid robots. Sangsin EDP is reported to operate a cylindrical can production base including 46-mm capacity in Cheonan, South Korea, with plans for phased capacity additions.
As the main customer reportedly develops toward mass production targeted for 2025-2027, the company's multi-year experience supplying cylindrical cans could work favorably for early order wins.
Through process improvements, the company reportedly lowered its prismatic manufacturing defect rate from 4.5% to 1.3% and cut material costs by reducing oil usage in production processes. This cost innovation has translated into four consecutive quarters of profit since 2025Q3. If overseas subsidiary utilization improves further, operating leverage could support higher margins.
With reliance on Samsung SDI reportedly exceeding 90% of sales, changes in that customer's production and investment plans have a direct impact on results. If customer diversification is delayed, the structural discount limiting valuation expansion could persist.
Recent customer-diversification expectations have not yet been confirmed through specific contracts or order volumes.
Operating multiple overseas subsidiaries in Hungary, the United States, Malaysia, and China means utilization swings at individual units can add volatility to consolidated results. As seen in the 2025Q2 net loss, some quarters may see sharp profit declines due to temporary factors. Currency fluctuations are also a relevant risk factor given the company's meaningful overseas sales exposure.
A renewed slowdown in EV demand (the so-called chasm) could weigh on overall demand for both prismatic and cylindrical cans. There have been cases of China-linked component makers entering domestic battery makers' supply chains, indicating longer-term pricing and share competition pressure.
If the shift to 46-mm formats or ESS cell enlargement proceeds more slowly than expected, the realization of the new growth narrative could be delayed.
Reliance on a single customer for more than 90% of sales is a structural risk, as changes in that customer's ordering policy or investment plans can sharply affect results. This risk is likely to persist unless customer diversification translates into clear contracts.
Operating multiple overseas production subsidiaries means currency fluctuations can directly affect consolidated results.
Raw material price movements, including for metal inputs, also influence the cost ratio, and margins could come under renewed pressure if cost savings from process improvements fail to offset rising material costs.
If the pace of transition to 46-mm cylindrical batteries or large ESS-use prismatic cells differs from expectations, the timing for new revenue recognition could be pushed back.
The possibility of existing market share erosion cannot be ruled out if new competitors enter can manufacturing or the main customer diversifies its sourcing.
Look for the 2026Q3 earnings disclosure to confirm whether ESS revenue expansion and the four-quarter run of profit improvement continue.
This is the timing to check whether additional ESS-use equipment at the Indiana, U.S. subsidiary comes fully online, and what utilization and revenue contribution follow.
Monitor progress on the main customer's 46-mm battery mass-production target (2025-2027) and whether Sangsin EDP secures new orders for 46-mm cylindrical cans.
Watch for news on value-chain volume allocation tied to the Samsung SDI-Mercedes-Benz supply agreement targeted for 2028.
Sangsin EDP successfully turned from an operating loss in 2024 to profit in 2025, and has sustained four consecutive quarters of expanding profit from 2025Q3 through 2026Q2.
The recovery is attributed to improved utilization and profitability at overseas subsidiaries and cost-ratio gains from production-process automation.
Going forward, the key watch points are how far two growth axes—expanding North American ESS-use prismatic can volumes and next-generation 46-mm cylindrical cans—can lift results.
Still, dependence on Samsung SDI for more than 90% of sales remains a structural constraint, and whether customer diversification translates into concrete contracts is an important variable.
Valuation currently reflects much of the earnings recovery relative to the prior downturn, and its future direction will hinge on the pace of ESS line utilization gains and the visibility of the 46-mm mass-production timeline.
Investors should continue monitoring upcoming quarterly results and disclosures on the customer's capacity expansion and production schedules to track whether these variables materialize.
Report written 2026-09-05 · Data as of 2026-09-04
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