KOSDAQAutomotive122690

Seojin Automotive

₩1,630▲ 1.56%2026-10-02 close

Market Cap

₩37B

Turnover

₩17,146,901

Volume

10,000 shares

Shares out.

23.1M

PER

—

PBR

0.2×

EPS

-₩636

Dividend Yield

0.00%

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

Report overview

Revenue Growth Meets Margin Pressure in EV Pivot

Seojin Automotive posted a record annual revenue of KRW 2.9419 trillion in 2025, but its operating margin slipped to 0.9% and it recorded a controlling-interest net loss, reflecting a phase where top-line expansion and margin erosion are occurring simultaneously.

1
2025 revenue reached KRW 2.9419 trillion, up year on year, but operating profit was only KRW 26.8 billion (0.9% margin), below 3.0% in 2023 and 2.2% in 2022.
2
The 2025 controlling-interest net loss was KRW 24.8 billion, reversing from a KRW 1.2 billion profit in 2024, and the sum of controlling-interest net income over the latest four quarters (Q3 2025-Q2 2026) also remains negative.
3
Quarterly results show wide swings, with large net losses in Q2 and Q4 of 2025 versus a return to profit in Q1 2026.
4
Multiple SECO Group affiliates -- Ecoplastic, AIA, Comos, and SECO Mobility (formerly Korea Yasunaga) -- are consolidated, resulting in a large non-controlling interest share and amplified volatility in controlling-interest earnings.
5
The company is pursuing a shift toward eco-friendly vehicle parts through hybrid damper supply to Hyundai Transys and full subsidiarization of SECO Mobility.

Business structure

Seojin Automotive is an automotive parts specialist within the SECO Group, with its standalone entity focused on automatic transmission (A/T) parts and clutch covers/discs for vehicle drivetrains.

Based on previously disclosed figures, the standalone entity's revenue mix was roughly 55% A/T parts, 30% clutch covers/discs, and 15% other items. By customer, OEM sales to Hyundai and Kia accounted for about 48%, overseas OEM about 7%, other OEM about 8%, and aftermarket (AS) parts about 32%.

Consolidated revenue is weighted far more heavily toward subsidiaries than the standalone parent; as of Q3 2024, roughly half of consolidated revenue came from subsidiary Ecoplastic, which makes bumpers and consoles, while sub-subsidiaries AIA (rubber and plastic parts) and Comos (steering wheels) each contributed shares in the low double digits.

SECO Group is a mid-sized auto parts conglomerate with some 30 affiliates including Seojin Industrial (chassis) and Seojin Cam (camshafts), and Seojin Automotive serves as the group's core affiliate for drivetrain systems and electrified powertrains.

To address the shift to eco-friendly vehicles, Seojin Automotive produces EV reduction gears and has structured SECO Mobility -- rebranded from the former Korea Yasunaga -- to supply hybrid dampers and rotor assemblies to Hyundai Motor and Hyundai Transys.

Competitively, the company contends with drivetrain and transmission parts makers such as SNT Motiv, DIC, and Daedong Gear, and its strategy emphasizes deepening its position within the Hyundai Motor Group value chain rather than broad customer diversification.

Earnings trend

Quarterly revenue · Operating profit

₩810.1B₩17.5B25Q2₩707.6B₩4.3B25Q3₩733.1B-₩17.2B25Q4₩704.3B₩14.3B26Q1₩746.1B₩23B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩2.1T₩46.4B2022₩2.5T₩73.8B2023₩2.6T₩36.5B2024₩2.9T₩26.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩810.1B	₩17.5B	2.2%
2025Q3	₩707.6B	₩4.3B	0.6%
2025Q4	₩733.1B	-₩17.2B	−2.3%
2026Q1	₩704.3B	₩14.3B	2.0%
2026Q2	₩746.1B	₩23B	3.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩2.1T	₩46.4B	₩7.1B	2.2%	8.5%	392.8%
2023	₩2.5T	₩73.8B	₩8.8B	3.0%	9.9%	378.1%
2024	₩2.6T	₩36.5B	₩1.2B	1.4%	1.3%	476.8%
2025	₩2.9T	₩26.8B	-₩24.8B	0.9%	−16.8%	390.5%

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

Earnings analysis

Annual revenue rose for four straight years, from KRW 2.0937 trillion in 2022 to KRW 2.4519 trillion in 2023, KRW 2.5891 trillion in 2024, and KRW 2.9419 trillion in 2025.

Operating profit, however, increased from KRW 46.4 billion in 2022 to KRW 73.8 billion in 2023 before declining for two consecutive years to KRW 36.5 billion in 2024 and KRW 26.8 billion in 2025, with the operating margin steadily falling from 3.0% in 2023 to 1.4% in 2024 and 0.9% in 2025.

Controlling-interest net income stayed positive at KRW 7.1 billion in 2022 and KRW 8.8 billion in 2023, then fell sharply to KRW 1.2 billion in 2024 before turning into a KRW 24.8 billion net loss in 2025.

On a quarterly basis, Q2 2025 posted an operating profit of KRW 17.5 billion yet a controlling-interest net loss of KRW 19.2 billion, and Q4 2025 saw the operating line itself flip to a KRW 17.2 billion loss while the controlling-interest net loss widened to KRW 21.2 billion.

Q1 2026 turned profitable with revenue of KRW 704.3 billion, operating profit of KRW 14.3 billion, and controlling-interest net income of KRW 6.1 billion, but Q2 2026 -- despite operating profit rising to KRW 23.0 billion -- again recorded a controlling-interest net loss of KRW 1.3 billion, underscoring low earnings stability.

Over the latest four quarters (Q3 2025-Q2 2026), the sum of controlling-interest net income/loss was a loss of roughly KRW 13.8 billion, with the wide quarter-to-quarter swings suggesting that period-specific items such as cost recognition or equity-method gains/losses materially affect controlling-interest results.

Operating cash flow declined from KRW 90.8 billion in 2022 and KRW 66.3 billion in 2023 to KRW 89.3 billion in 2024 and then KRW 46.6 billion in 2025, meaning cash generation weakened even as revenue expanded.

Taken together, revenue scale has continued to grow, but cost pressure combined with volatility from subsidiaries' non-controlling interests appears to be eroding the quality and stability of earnings.

Industry analysis

Because its business is centered on supplying parts to domestic automakers Hyundai and Kia, Seojin Automotive's performance is closely tied to Hyundai Motor Group's production and sales cycle.

In the first half of 2025, consolidated revenue grew 16.2% year on year while operating profit fell 5.6% and net income turned negative, showing revenue growth and margin deterioration occurring together.

Revenue from the automotive parts manufacturing segment increased, but cost burdens limited profitability, and North American demand along with growing global demand for domestic SUVs and hybrid-electric vehicles (HEVs) drove export growth.

This mirrors a broader industry pattern in which demand for internal-combustion-focused parts is plateauing while demand for hybrid and electric vehicle parts is emerging as a new growth axis.

Raw material and component procurement costs, along with labor costs, are squeezing margins across the parts supplier industry broadly, and Seojin Automotive is no exception.

Competitors such as SNT Motiv, DIC, and Daedong Gear compete in similar drivetrain and transmission parts markets, meaning relative positioning depends heavily on securing supply rights for new automaker platforms.

Outlook

The company has positioned its transition to eco-friendly vehicle parts as a core task. According to disclosed information, it plans to supply hybrid dampers to Hyundai Transys and is pursuing new business development through diversification of automatic transmission products and partnerships with overseas automakers.

SECO Mobility, rebranded from the former Korea Yasunaga, serves as the supply hub for hybrid dampers and rotor assemblies to Hyundai Motor and Hyundai Transys; as of an October 2024 report, total supply was expected to reach roughly KRW 1.7 trillion (KRW 1.1 trillion in phase one and KRW 300 billion each in phases two and three), and Seojin Automotive was reported to be pursuing full subsidiarization by acquiring the 44% stake held by its Chinese partner.

This stake acquisition reportedly hinges on the easing of regulations restricting domestic capital entry into the foreign parts and materials industrial complex where SECO Mobility's Iksan plant is located, making the progress of that regulatory easing a point to monitor.

Separately, the company reportedly carried out national research and development (R&D) projects in 2025 related to EV powertrains, multi-speed drives, and electrified axles, continuing to build in-house electrification component technology.

However, how much and when these new business and transition initiatives will actually translate into revenue and profit remains something to be confirmed through future quarterly results and additional disclosures.

Valuation

PER

—

PBR

0.2×

ROE

-8.8%

EPS

-₩636

BPS

₩6,886

Dividend per share

₩0

With controlling-interest net income having swung from a profit in 2024 to a loss in 2025, and the trailing four-quarter total remaining in loss territory, earnings-based valuation metrics are difficult to apply consistently at this stage.

The stock appears to trade at a substantial discount to net asset value, a pattern commonly observed in the earnings-volatile auto parts sector. Dividend payments are not confirmed for the most recent fiscal year, limiting sector comparisons on the shareholder-return front.

The debt ratio, which has ranged from the high 300% to high 400% level, is largely attributable to the structure of multiple consolidated subsidiaries and the associated non-controlling interests, and should not be read simply as standalone financial risk.

Whether and how durably earnings recover going forward will likely determine the basis for any valuation reassessment.

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

Bull factors

Progress on Eco-Friendly Parts Transition

Expanding hybrid damper supply to Hyundai Transys and rotor assembly supply through SECO Mobility could diversify the revenue base away from internal-combustion-centric parts.

EV reduction gear production and national R&D work on multi-speed drives and electrified axles support efforts to build in-house electrification technology. If full subsidiarization of SECO Mobility is completed, control and profit allocation for the related business could become clearer.

Continued Revenue Scale Expansion

Revenue has grown for four consecutive years from 2022 through 2025, expanding to KRW 2.9419 trillion. North American demand and growing global demand for domestic SUV and HEV models are reported to have contributed to export growth. As the revenue base expands, there is room for earnings improvement if the cost structure stabilizes.

Instances of Quarterly Return to Profit

Controlling-interest net income turned positive in Q3 2025 and Q1 2026, showing that losses have not been fixed in every quarter. Operating profit itself showed a recovery trend, rising to KRW 14.3 billion in Q1 2026 and KRW 23.0 billion in Q2 2026. This suggests that cost management or revenue mix improvements can produce effects in certain quarters.

Bear factors

Structural Decline in Operating Margin

The operating margin has declined for three straight years, from 3.0% in 2023 to 1.4% in 2024 and 0.9% in 2025. This indicates cost burdens have grown faster than revenue. If this trend does not reverse, revenue growth may not translate into profit.

High Volatility in Controlling-Interest Net Income

Controlling-interest net losses of KRW 19.2 billion and KRW 21.2 billion occurred in Q2 and Q4 2025, respectively, and the trailing four-quarter sum was also a loss of roughly KRW 13.8 billion.

Controlling-interest results have repeatedly shown losses even in quarters with positive operating profit, reducing predictability. The large scale of non-controlling interests across multiple subsidiaries acts as a structural factor amplifying volatility in the controlling-interest share.

Weakening Cash Generation

Operating cash flow fell from KRW 89.3 billion in 2024 to KRW 46.6 billion in 2025, moving opposite to revenue growth. The debt ratio also remains elevated, ranging from the high 300% to high 400% level. This could act as a burden on securing future investment funding and financial flexibility.

Risk factors

Customer and OEM Cycle Dependence

Because most revenue is concentrated in OEM and related aftermarket parts for Hyundai and Kia, performance is heavily dependent on those automakers' production and sales cycles. Changes in a specific customer's production plans or adoption of a new vehicle platform can directly affect revenue. The limited customer diversification remains a vulnerability for risk spreading.

Consolidated Subsidiary and Non-Controlling Interest Structure Risk

With numerous subsidiaries and sub-subsidiaries consolidated, weak performance at any single affiliate can materially affect overall consolidated results and controlling-interest net income.

Intra-group transactions such as the SECO Mobility stake acquisition can be delayed depending on the regulatory environment, including rules governing the foreign parts and materials industrial complex.

The complex ownership structure across affiliates can also make it harder for investors to identify the drivers of results.

Cost and Foreign Exchange Volatility Risk

Raw material prices and labor costs are cited as key factors behind the operating margin decline, and if this cost pressure persists, earnings recovery could be delayed even amid revenue growth. Given the export component of sales, currency fluctuations are also a variable that can affect results.

If bargaining power on supply prices with automakers is limited, it may be difficult to fully pass through rising costs.

What to watch next

Mid-November 2026 (expected Q3 report filing period)
Check the confirmed Q3 2026 revenue, operating profit, and controlling-interest net income figures to assess whether the recent quarter's earnings recovery trend continues.
Upon future disclosure (if a SECO Mobility stake acquisition announcement occurs)
Confirm whether the full subsidiarization of SECO Mobility (acquisition of the remaining 44% stake) proceeds and review any related disclosures to track governance changes in the eco-friendly parts business.
Upon follow-up disclosure on hybrid damper mass production and supply
Check the timing of hybrid damper supply commencement to Hyundai Transys and the pace at which initial volumes are reflected in revenue and profit.
Early 2027 (expected 2026 annual business report filing period)
Verify whether full-year 2026 operating margin and controlling-interest net income have moved past the 2025 loss trend, and whether debt ratio and cash flow metrics have improved.

Overall view

Seojin Automotive is an auto parts group whose revenue has grown for four consecutive years from 2022 through 2025, yet its operating margin has declined over the same period, and it recorded a controlling-interest net loss in 2025.

Over the latest four quarters (Q3 2025-Q2 2026), profitable and loss-making quarters alternated, producing high volatility in controlling-interest net income, and the cumulative figure remains in loss territory.

Moves toward eco-friendly parts transition -- including hybrid damper supply and full subsidiarization of SECO Mobility -- are underway, but the timing and scale of their actual contribution to revenue and profit have not yet been confirmed through disclosures.

Given the governance structure consolidating numerous affiliates, non-controlling interests represent a large share, which reduces the predictability of controlling-interest results.

The debt ratio remains elevated, ranging from the high 300% to high 400% level, and operating cash flow also declined in 2025 compared with the prior year.

For investors, it appears important to monitor the sustainability of revenue growth alongside whether operating margin recovers, how the SECO Mobility governance situation evolves, and whether quarterly controlling-interest net income stabilizes.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.