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-Connect returned to profit in 2025 but slipped back into operating and net losses in the first half of 2026, putting the pace of its foldable component and secondary battery/hydrogen new-business commercialization in focus.
2025 consolidated revenue reached KRW 278.7bn with operating profit of KRW 13.3bn, swinging to profit, while net income to owners turned to KRW 35.8bn from a prior-year loss.
However, both Q1 2026 (net loss of KRW 2.1bn) and Q2 2026 (operating loss of KRW 2.6bn, net loss of KRW 3.9bn) posted losses, with revenue also falling sharply quarter over quarter.
The debt ratio fell sharply from 263.3% in 2024 to 92.4% in 2025, linked to business restructuring including the deconsolidation of a subsidiary.
The core business is foldable-phone hinges and metal exterior parts supplied mainly to Samsung Electronics, alongside secondary-battery current interrupt devices (CID) and a hydrogen business based on plasma carbon conversion unit (PCCU) technology.
A 5-to-1 share consolidation was completed in May 2026, reducing shares outstanding from roughly 79.38 million to about 15.88 million.
Founded in 2000 and listed on KOSDAQ in 2007, S-Connect is a metal parts processing specialist operating domestic plants in Hwaseong, Eumseong and Ansan, plus overseas facilities in Dongguan, China and Bac Giang, Vietnam.
Its core business is hinges and metal exterior parts for Samsung Electronics' Galaxy series, including foldable Fold and Flip models; as of 2023 this wireless-phone parts segment accounted for 95.38% of revenue.
This is complemented by primary battery production (1.85%) and secondary battery/eco-friendly hydrogen new businesses (2.77%). In the secondary battery segment, the company supplies current interrupt devices (CID) to Samsung SDI, positioning itself as a safety-component supplier that prevents battery explosions.
Its eco-friendly hydrogen business is built on equity and manufacturing exclusivity in Recarbon USA, which holds source technology for plasma carbon conversion units (PCCU) that convert greenhouse gases from thermal power plants, wastewater facilities and landfills into synthesis gas.
Major customers are large domestic conglomerate affiliates including Samsung Electronics and Samsung SDI, and in the foldable phone and battery component markets it competes with similar metal-parts makers such as KH Vatec.
The company is pursuing a strategy of leveraging stable cash flow from its legacy wireless parts business to expand into higher value-added secondary battery and hydrogen businesses.
This diversification could eventually broaden revenue sources beyond single-category smartphone parts, though the new businesses still represent only a single-digit share of total revenue.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩63.3B | ₩1.2B | 2.0% |
| 2025Q3 | ₩66.8B | ₩3.3B | 4.9% |
| 2025Q4 | ₩64.9B | ₩4.2B | 6.4% |
| 2026Q1 | ₩58.1B | ₩300M | 0.6% |
| 2026Q2 | ₩38.1B | -₩2.6B | −6.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩200.4B | ₩5.8B | ₩4.1B | 2.9% | 8.8% | 251.7% |
| 2023 | ₩275.3B | ₩8B | -₩1B | 2.9% | −1.4% | 172.1% |
| 2024 | ₩291.9B | ₩4.1B | -₩25.7B | 1.4% | −46.7% | 263.3% |
| 2025 | ₩278.7B | ₩13.3B | ₩35.8B | 4.8% | 40.4% | 92.4% |
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
2025 consolidated revenue was KRW 278.69bn, slightly down from KRW 291.90bn in 2024, while operating profit surged to KRW 13.27bn from KRW 4.09bn, widening the profit margin. Net income attributable to owners reached KRW 35.79bn, a clear swing from a KRW 25.75bn loss in 2024.
The company attributed the modest revenue decline to subsidiary deconsolidation and a shift in revenue mix amid changing business conditions, while operating profit and net income grew substantially on a profitability-focused restructuring and cost cuts.
On a quarterly basis, after Q2 2025 revenue of KRW 63.28bn, operating profit of KRW 1.25bn and a net loss of KRW 4.05bn, the company expanded its profit in Q3 (revenue KRW 66.84bn, operating profit KRW 3.29bn, net income KRW 3.63bn) and Q4 (revenue KRW 64.90bn, operating profit KRW 4.15bn, net income KRW 21.92bn).
The fact that Q4 net income far exceeded operating profit suggests a one-off, non-operating item (such as deferred tax effects) may have been involved.
However, losses reappeared in 2026, with Q1 revenue of KRW 58.11bn, operating profit of KRW 0.34bn but a net loss of KRW 2.10bn, followed by Q2 revenue of KRW 38.06bn, an operating loss of KRW 2.57bn and a net loss of KRW 3.93bn, alongside a clear revenue downtrend.
As a result, net income to owners over the most recent four quarters (Q3 2025 through Q2 2026) stands at KRW 19.51bn, still positive but reflecting how strong results in the second half of 2025 offset weakness in the first half of 2026.
The debt ratio improved markedly from 263.3% in 2024 to 92.4% in 2025, as owners' equity rose from KRW 55.16bn to KRW 88.66bn while total liabilities fell from KRW 141.66bn to KRW 81.96bn.
The smartphone metal parts industry S-Connect operates in shows significant quarter-to-quarter demand variation tied to Samsung Electronics' new model launch cycles, particularly the Galaxy S series in the first half and Galaxy Z Fold/Flip models in the second half.
The foldable phone market rides a structural trend of rising demand for premium metal components in innovative products, and the high technical difficulty of precision parts like hinges creates entry barriers.
In the secondary battery segment, the lithium-ion battery market is expected to grow alongside EV market expansion, with ongoing capital investment and process optimization in battery production lines using precision mold technology.
However, in periods when global EV demand growth slows more than expected, the revenue contribution from battery components could be limited.
The eco-friendly hydrogen business aligns with the global policy trend toward greenhouse gas reduction, but remains at the demonstration and commercialization stage both domestically and abroad, meaning commercial revenue contribution will take time.
Competitively, the company faces established players such as KH Vatec in the foldable phone hinge market, while demand for lithium primary batteries is assessed to be growing steadily amid the digitalization and portability trends in electronic devices.
In its 2025 earnings disclosure, the company stated that subsidiary deconsolidation and profitability-focused restructuring were the key drivers of earnings improvement, making it a key point to watch whether this cost-efficiency trend continues.
The 5-to-1 share consolidation completed in May 2026 was resolved by the board with the stated purpose of maintaining an appropriate number of outstanding shares to stabilize the stock price and enhance corporate value, and was disclosed as unrelated to a capital reduction.
In the secondary battery segment, ongoing supply of current interrupt devices (CID) to Samsung SDI means that volume changes tied to EV and battery market conditions could affect future revenue.
The eco-friendly hydrogen business is pursuing demonstration and commercialization domestically and abroad based on Recarbon's PCCU technology, but a specific timeline for commercial revenue has not yet been officially confirmed.
The foldable phone parts segment may continue to show seasonality, with a higher revenue weighting in the second half tied to Samsung's new model launch cycle.
Given that first-half 2026 results reverted to losses, cost-cutting effects and new-business progress in the second half onward are likely to determine the direction of full-year results.
The stock trades at a discount to book value, meaning the price-to-book ratio leaves some room relative to asset value.
However, since the company posted net losses for two years starting in 2022 before finally swinging to profit in 2025, earnings multiples calculated on the most recent four quarters are difficult to compare directly with the prior loss-making period.
As for dividends, there is no recent payout on record, suggesting resources are being prioritized toward business restructuring and new-business investment rather than shareholder returns.
The return to losses in the first half of 2026 suggests a substantial portion of the profit captured in the most recent four-quarter window stemmed from a temporary strength in the second half of 2025, which is worth noting when interpreting earnings multiples going forward.
Overall, valuation metrics are being formed amid a phase of repeated swings between losses and profits, a setting that can be sensitive to short-term earnings volatility.
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
2025 consolidated operating profit of KRW 13.27bn and net income of KRW 35.79bn marked a clear turnaround to profitability, while the debt ratio fell sharply from 263.3% to 92.4%. This reflects the effect of subsidiary deconsolidation and profitability-focused restructuring, a positive shift in financial health. Whether this improvement persists into 2026 remains uncertain based on first-half results.
Supplying current interrupt devices (CID) to Samsung SDI and pursuing an eco-friendly hydrogen business using Recarbon's PCCU technology represent attempts to move beyond a single-category smartphone parts structure. If successfully commercialized, this could diversify revenue sources. However, the revenue contribution from these new businesses remains in the single digits so far.
The position supplying hinges and metal exterior parts for Samsung's Galaxy Z Fold and Flip series could tie the company to structural growth in the foldable phone market. Precision processing technology acts as an entry barrier and could be a differentiating factor versus competitors.
However, seasonality tied to Samsung's new model launch cycle also amplifies quarter-to-quarter earnings volatility.
Both Q1 and Q2 2026 posted net losses, and Q2 also saw a return to operating losses (KRW 2.57bn). Revenue also fell sharply from KRW 58.11bn in Q1 to KRW 38.06bn in Q2, showing a clear downtrend. This signals that the H2 2025 profit trend was not sustained.
The vast majority of revenue derives from smartphone parts sold to Samsung Electronics, meaning results are heavily dependent on the sales performance of specific customer models. Weak new-model sales or volume adjustments could significantly hurt results. The secondary battery segment carries a similar risk given its dependence on Samsung SDI.
The eco-friendly hydrogen (PCCU) business remains at the demonstration and commercialization stage both domestically and abroad, with no confirmed timeline for concrete revenue contribution. The secondary battery CID segment could also see limited expansion speed during periods of slowing EV demand. Continued investment in new businesses could also weigh on near-term profitability.
Since most revenue is concentrated among a small number of large customers such as Samsung Electronics and Samsung SDI, changes in their ordering policies or volume adjustments could directly affect results. Quarter-to-quarter earnings variation could widen depending on whether new models adopt the company's parts. This structural risk is likely to persist without customer diversification.
Given overseas production bases in China and Vietnam, currency fluctuations could affect costs and results. Rising raw material prices, such as for metal materials, could pressure margins.
Whether cost factors contributed to the reappearance of operating losses in H1 2026 requires confirmation through subsequent disclosures.
Expanding secondary battery and hydrogen businesses may require ongoing capital investment and R&D spending. While funds are directed toward businesses still in an early commercialization stage, near-term financial burden could increase.
Although the debt ratio improved significantly in 2025, it could fluctuate again depending on the scale of new business investment.
Check the Q3 2026 quarterly report to see whether revenue and profit break away from the loss trend seen in Q2.
Watch for disclosures or IR materials on expanded CID supply to Samsung SDI or new customer wins.
Check the FY2026 annual business report to see whether the 2025 profit turnaround was sustained on a full-year basis, or whether H1 weakness weighed on annual results.
Continue monitoring for additional disclosures or contracts related to demonstration and commercialization of the eco-friendly hydrogen business based on Recarbon's PCCU technology.
S-Connect achieved a clear turnaround to profit in 2025, with consolidated revenue of KRW 278.7bn, operating profit of KRW 13.3bn and net income of KRW 35.8bn, while also significantly lowering its debt ratio.
However, with operating and net losses reappearing in both Q1 and Q2 2026 alongside declining revenue, opinions could diverge on whether last year's improvement was temporary or structural.
The core foldable phone parts business supplied to Samsung Electronics carries seasonality tied to new model launch cycles, while the secondary battery CID and eco-friendly hydrogen (PCCU) new businesses carry both growth potential and the uncertainty of an early commercialization stage.
Business restructuring, including the 5-to-1 share consolidation adjusting shares outstanding and subsidiary deconsolidation, has also taken place, but whether these changes translate into earnings stability requires confirmation through future quarterly results.
On valuation, the stock trades at a discount to book value, though it is worth noting that a substantial portion of recent profit may stem from temporary factors in the second half of 2025.
Overall, investors would need to monitor both the continuity of quarterly profitability and progress on new businesses going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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