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
Hyunwoo Industrial continues a revenue recovery led by automotive electronics PCBs, but the sizable gap between quarterly operating profit and net income calls for closer scrutiny of earnings quality.
2025 consolidated revenue rebounded to about KRW 237.4bn, matching 2023 levels, but owner net income declined year on year
As of Q1 2026, automotive electronics products (telematics, BMS, etc.) accounted for 86.8% of revenue
Over the trailing four quarters (Q3 2025-Q2 2026), owner net income exceeded operating profit, pointing to a notable non-operating contribution
The company disclosed a KRW 9.0bn capex plan for 2026 and a cumulative KRW 18.0bn plan over three years
Shares trade at a discount to net asset value, with the earnings multiple sitting in a relatively low range versus its own history
Founded in 1987 and listed on KOSDAQ in 2007, Hyunwoo Industrial is a printed circuit board (PCB) specialist that manufactures boards for automotive electronics and digital home appliances such as LCD, LED, and OLED devices, supplying major domestic and overseas customers.
Key customers reportedly include LG Electronics and LG Display.
In Q1 2026, automotive electronics products (telematics, BMS, auto, etc.) generated KRW 52.7bn, accounting for 86.8% of total revenue and cementing the segment as the core business, while IT products (LCD, TV, etc.) contributed KRW 5.6bn (9.3%) and other network equipment KRW 1.2bn (2.0%).
Revenue in the same period was split between exports of KRW 24.8bn (40.9%) and domestic sales of KRW 35.9bn (59.1%).
The company holds annual production capacity of roughly 2.1 million square meters, with Q1 2026 output of 44,100 square meters (8,500 double-sided, 35,600 multilayer) and an average utilization rate of 84.1%. Order backlog at the same point stood at KRW 32.9bn (188,000 square meters).
The PCB industry carries heavy fixed-cost burdens due to its capital-intensive nature, and intensifying competition from Chinese manufacturers with improving technology has been cited as a profitability headwind. The company maintains overseas affiliates such as Hyunwoo VINA to support production and customer coverage.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩61.7B | ₩2.8B | 4.5% |
| 2025Q3 | ₩64.3B | ₩5.1B | 8.0% |
| 2025Q4 | ₩60.8B | ₩2.2B | 3.6% |
| 2026Q1 | ₩60.7B | ₩3.4B | 5.5% |
| 2026Q2 | ₩75.4B | ₩4.3B | 5.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩209.9B | ₩8.3B | ₩4.7B | 4.0% | 5.1% | 119.6% |
| 2023 | ₩237.3B | ₩13.9B | ₩10.4B | 5.9% | 10.3% | 101.8% |
| 2024 | ₩206.2B | ₩7.7B | ₩8.3B | 3.8% | 7.8% | 77.1% |
| 2025 | ₩237.4B | ₩11B | ₩7.6B | 4.7% | 6.6% | 75.8% |
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
On an annual basis, revenue rose from KRW 209.9bn in 2022 to KRW 237.3bn in 2023, fell to KRW 206.2bn in 2024, and recovered to KRW 237.4bn in 2025, matching the 2023 level. The operating margin improved from 4.0% in 2022 to 5.9% in 2023, dipped to 3.8% in 2024, and rose again to 4.7% in 2025.
However, owner net income climbed from KRW 4.66bn in 2022 to KRW 10.39bn in 2023, then declined for two straight years to KRW 8.34bn in 2024 and KRW 7.56bn in 2025, diverging from the operating profit trend.
On a quarterly basis, revenue of KRW 61.65bn, operating profit of KRW 2.76bn, and net income of KRW 2.06bn in Q2 2025 improved sharply in Q3 to revenue of KRW 64.27bn and operating profit of KRW 5.15bn, with net income rising to KRW 4.47bn.
In Q4, however, despite revenue of KRW 60.84bn and operating profit of KRW 2.17bn, net income fell sharply to KRW 0.94bn, suggesting a significant non-operating impact.
Entering 2026, Q1 posted revenue of KRW 60.69bn, operating profit of KRW 3.36bn, and net income of KRW 3.99bn, while Q2 revenue reached a window-high KRW 75.40bn with operating profit of KRW 4.31bn and net income of KRW 6.02bn.
Across the trailing four quarters (Q3 2025 through Q2 2026), owner net income has repeatedly exceeded operating profit, indicating a meaningful and recurring non-operating contribution. This recurring gap between operating profit and net income is a factor worth monitoring when assessing earnings quality.
While consumer electronics still represent a large share of the PCB industry, demand is shifting toward higher-value applications such as AI servers, electric vehicle power electronics, and next-generation communication networks, which require more layers and tighter tolerances.
The automotive PCB market is cited as an area of relatively higher growth, driven by electrification, the spread of advanced driver assistance systems (ADAS), and the transition to software-defined vehicles.
In particular, electric vehicles require far greater board area than internal combustion vehicles, forming a structural driver of automotive PCB demand growth. However, copper-intensive layouts can add to material cost pressure, posing a cost-management burden.
Across the broader industry, the capital-intensive nature of the business creates heavy fixed-cost burdens, and intensifying competition from Chinese manufacturers with improving technology has been identified as a factor eroding profitability.
At the same time, the role of PCBs as a core component is expected to expand in automobiles, industrial robotics, and advanced medical devices, diversifying end-market applications.
Hyunwoo Industrial, with automotive electronics comprising the vast majority of its revenue, sees its performance closely tied to the demand cycles of automakers and electronics suppliers.
Hyunwoo Industrial disclosed plans to invest KRW 9.0bn in production facilities and equipment in 2026, part of a cumulative KRW 18.0bn capex program over three years aimed at expanding capacity and efficiency.
As of Q1 2026, the utilization rate stood at 84.1%, leaving some room to absorb additional demand, while order backlog at the same point was KRW 32.9bn.
The company supplies products to automotive electronics, EV electronics, and display customers, positioning it to potentially benefit if the electrification and electronics-content trends in the auto industry continue.
However, given the sharp net income contraction relative to operating profit seen in Q4 2025, volatility in non-operating items could continue to affect future quarterly results, which warrants attention.
The pace of capex execution and how quickly new production lines reach stable yields and utilization will be key factors to watch for cost-structure improvement.
Automotive customers' vehicle sales and new model launch schedules, along with raw material (copper, etc.) price trends, are also variables that could influence future margins.
The price-to-book ratio sits well below 1x, indicating the market values the shares at a discount to net asset value.
The price-to-earnings ratio also sits toward the lower end of its historical trading range, which could be interpreted as the market maintaining a cautious view on the durability of the recent earnings recovery.
The company has a history of paying annual cash dividends, though the dividend yield changes daily with the share price and should be checked against the real-time figure shown on screen.
Over multiple years, net income has fluctuated, and in recent quarters net income has exceeded operating profit, meaning the quality and sustainability of earnings remain an important variable in interpreting valuation.
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
As of Q1 2026, automotive electronics accounted for 86.8% of revenue, giving the company high exposure to the structurally growing electrification and ADAS trend. Electric vehicles require far greater board area than internal combustion vehicles, underpinning demand growth for automotive PCBs. Should the auto industry's electrification transition continue, the related revenue share could expand further.
2025 consolidated revenue recovered to KRW 237.4bn, matching 2023 levels, and Q2 2026 revenue reached a window-high KRW 75.4bn. The company disclosed a KRW 9.0bn capex plan for 2026 and a cumulative KRW 18.0bn plan over three years to improve capacity and efficiency. The Q1 2026 utilization rate of 84.1% suggests some capacity remains to absorb additional demand.
In Q1 and Q2 2026, owner net income reached KRW 3.99bn and KRW 6.02bn respectively, continuing to exceed operating profit. The trailing four-quarter sum of net income is around KRW 15.4bn, which on an annualized basis surpasses the net income recorded in both 2024 and 2025. However, since this increase stems partly from non-operating factors, its sustainability warrants confirmation.
In Q4 2025, despite an operating profit of KRW 2.17bn, net income fell sharply to KRW 0.94bn, reflecting a significant non-operating impact. Conversely, in Q1 and Q2 2026, net income substantially exceeded operating profit, indicating considerable quarter-to-quarter earnings volatility. Such swings can reduce the predictability of results.
The PCB industry's capital-intensive nature creates heavy fixed-cost burdens, and intensifying competition from Chinese manufacturers with improving technology has been cited as a factor eroding profitability. This can translate into ongoing pressure to cut costs to maintain price competitiveness. If more entrants expand into automotive electronics, defending margins could become a challenge.
Owner net income peaked at KRW 10.39bn in 2023 before declining for two consecutive years to KRW 8.34bn in 2024 and KRW 7.56bn in 2025. Since revenue and operating margin actually improved in parts of this period, the non-operating factors behind the net income decline warrant further scrutiny. This suggests operating performance may not directly translate into income attributable to shareholders.
With the vast majority of revenue concentrated in automotive electronics products, performance is closely tied to the demand cycles of automakers and electronics suppliers. High dependence on specific customers means their production adjustments or volume changes could directly affect results. The low share of IT and display segments limits diversification benefits outside automotive electronics.
Copper-intensive PCB layouts can see material costs rise when copper prices increase. Given the capital-intensive nature of the industry, heavy fixed costs mean a decline in utilization could amplify cost burdens. Rising depreciation from capex expansion is also a variable that could affect future margins.
Recent quarterly results have repeatedly shown a gap between operating profit and owner net income, suggesting that foreign exchange or other non-operating items are adding considerable volatility to earnings.
Because these items operate independently of core business performance, they can increase uncertainty in forecasting future results. While the debt ratio stood at 75.8% as of 2025, the impact of financing costs or currency fluctuations on profit and loss warrants ongoing monitoring.
The Q3 2026 quarterly report is expected around this time, and it will be important to check whether the net income expansion seen in Q2 continues and how the automotive electronics revenue share evolves.
This is a point to check the execution progress of the planned KRW 9.0bn capex for 2026 and whether new production lines are stabilizing in terms of utilization.
The annual business report for fiscal 2026 is expected around this time, allowing confirmation of the full-year operating margin trend, direction of owner net income, and changes in the debt ratio.
This period warrants watching changes in order backlog tied to major automaker and electronics customers' new model launches and electrification lineup expansion schedules.
Hyunwoo Industrial, centered on automotive electronics PCBs, has restored revenue to 2023 levels, and quarterly revenue and net income expanded in the first half of 2026.
However, annual owner net income has declined for two consecutive years since peaking in 2023, and the recurring gap between operating profit and net income across quarters means both earnings quality and sustainability need to be examined together.
The capex plan and a utilization rate around 84.1% provide a basis for future capacity expansion, but intensifying competition from Chinese manufacturers and raw material price volatility remain challenges for margin management.
Shares trade at a discount to net asset value and at a relatively low earnings multiple versus their own history, which could also be read as the market's cautious assessment of earnings volatility.
Upcoming Q3 results, capex execution progress, and demand trends among automotive electronics customers will be key variables for future assessment. This report is for informational purposes only and does not constitute a buy or sell recommendation.
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.