PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩75 per share · Prices as of the 2026-10-02 close
Hwashin Precision is a KOSDAQ-listed maker of automotive chassis and precision-machined parts that has shown a recovering operating margin trend since 2025 after a weak 2024.
2025 consolidated revenue reached KRW 378.9bn with operating profit of KRW 11.8bn (3.1% margin), up from a 0.4% margin in 2024.
Operating margins jumped to about 10.0% in 1Q26 and 10.1% in 2Q26, marking a notable recent-quarter improvement.
Revenue is split between an auto parts business and a raw-material processing business, supplying chassis parts, precision-machined parts, and aftermarket parts to OEMs.
The company completed cancellation of 3.62% of treasury shares in November 2025 and disclosed a value-up plan in March 2026 targeting a payout ratio of around 25%.
The firm is developing aluminum lightweight parts while supplying components for the dedicated EV platform E-GMP, building capability for the eco-friendly vehicle transition.
Hwashin Precision was established in 1991 to manufacture and sell automotive chassis parts, and it listed on KOSDAQ in 2011 through a merger with a special-purpose acquisition company.
Its headquarters and plant are located in Yeongcheon, North Gyeongsang Province, and it built an additional plant in Gyeongsan in 2012 to run a raw-material primary processing business alongside its core operations.
The business is organized into two segments: an auto parts segment that supplies OEMs with chassis parts, precision-machined parts, and aftermarket parts in both module and individual-part form, and a raw-material processing segment, with the auto parts segment accounting for the larger share of revenue.
Under KRX's industry classification, the company sits in the KOSDAQ transportation equipment and parts sector (FICS auto parts category), meaning its core business is supplying components to passenger-vehicle OEMs rather than aircraft parts.
The controlling shareholder and CEO, Seo-jin Jeong, holds a stake in the low-teens percentage range, and combined related-party holdings including affiliates Global Auto Trading and World Auto Trading bring total insider ownership to roughly 36%. The company operates alongside KOSPI-listed Hwashin Co.
(010690) as part of the broader Hwashin business group in the auto parts space, though the two are separately listed entities with distinct governance and dividend policies.
More recently, the company has focused on responding to the shift toward eco-friendly vehicles by supplying parts for the dedicated EV platform E-GMP and developing aluminum lightweight components.
Its customer base is centered on domestic OEMs, which means its results are closely tied to the broader vehicle production and sales cycle.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩98.5B | ₩5.4B | 5.5% |
| 2025Q3 | ₩87.6B | ₩300M | 0.4% |
| 2025Q4 | ₩104.5B | ₩4.2B | 4.0% |
| 2026Q1 | ₩121.3B | ₩12.2B | 10.0% |
| 2026Q2 | ₩101.5B | ₩10.3B | 10.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩317.9B | ₩9.3B | ₩7.1B | 2.9% | 7.0% | 58.8% |
| 2023 | ₩359.9B | ₩8.7B | ₩9B | 2.4% | 7.6% | 67.0% |
| 2024 | ₩322B | ₩1.3B | ₩2.6B | 0.4% | 2.5% | 58.9% |
| 2025 | ₩378.9B | ₩11.8B | ₩10.3B | 3.1% | 8.7% | 67.0% |
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
Hwashin Precision's annual results show clear swings between 2022 and 2025. Revenue rose from KRW 317.9bn in 2022 (operating profit KRW 9.3bn, 2.9% margin) to KRW 359.9bn in 2023 (operating profit KRW 8.7bn, 2.4% margin), with revenue growing but margin slipping slightly.
In 2024, revenue fell to KRW 322.0bn and operating profit collapsed to just KRW 1.34bn (a 0.4% margin), with owners' net income shrinking sharply to KRW 2.64bn.
In 2025, however, revenue rebounded to KRW 378.9bn with operating profit recovering to KRW 11.8bn (3.1% margin) and owners' net income improving markedly to KRW 10.3bn versus 2024.
Quarterly results have been volatile: 3Q25 revenue was KRW 87.6bn with operating profit of only KRW 0.33bn (0.4% margin), before improving to KRW 104.5bn revenue and KRW 4.18bn operating profit (4.0% margin) in 4Q25.
Entering 2026, 1Q26 revenue reached KRW 121.3bn with operating profit of KRW 12.16bn (10.0% margin), and 2Q26 revenue was KRW 101.5bn with operating profit of KRW 10.27bn (10.1% margin), both showing a sharp margin jump versus the year-earlier quarters.
Summed owners' net income over the most recent four quarters (3Q25 through 2Q26) reached roughly KRW 22.2bn, more than double full-year 2025 net income.
Given the sharp margin dip seen in 3Q25, whether the elevated margins of the two most recent quarters are sustainable will require confirmation from upcoming quarterly results.
The domestic auto parts industry that Hwashin Precision operates in is closely tied to the production and sales cycles of OEM automakers.
The domestic vehicle market has at times seen improved production and sales volumes helped by policy support such as reduced consumption taxes and growing demand for eco-friendly vehicles, which tends to flow through favorably to parts suppliers' results.
On the demand side, expansion of the dedicated EV platform E-GMP is proceeding alongside continued hybrid vehicle demand, leaving parts makers with the dual task of developing both internal-combustion parts and lightweight EV components.
Hwashin Precision is responding through aluminum lightweight part development and E-GMP platform supply, though this is a strategy shared broadly across small and mid-sized parts suppliers in the industry.
As a small-cap KOSDAQ auto parts maker, the company has relatively smaller scale and bargaining power compared with larger tier-one suppliers or its KOSPI-listed group affiliate Hwashin Co. (010690), a notable feature of the competitive landscape.
Movements in steel and aluminum raw material prices and the won-dollar exchange rate directly affect the cost structure and are cited as one factor behind recent quarter-to-quarter margin swings.
Overall, OEM production adjustments at home and abroad, parts pricing negotiations, and the pace of the EV transition are likely to remain the key variables for parts suppliers' results going forward.
On March 24, 2026, the company disclosed a corporate value-up plan targeting a payout ratio of around 25% of separate-basis net income, within the bounds of distributable profit.
Some observers have noted this appears to be a one-off target rather than a multi-year commitment, making its continuity going forward a point to watch. In November 2025, the company also cancelled treasury shares equal to 3.62% of total shares outstanding, continuing its shareholder-return-related actions.
On the operating side, expansion of supply for the dedicated EV platform E-GMP and development of aluminum lightweight parts are ongoing trends expected to progress in tandem with OEMs' EV production plans.
With operating margins jumping into the 10% range in the first half of 2026, whether this trend continues into the second half and beyond will be a key variable for the earnings trajectory.
Results for quarters not yet finalized will be confirmed sequentially through regular disclosures, and OEM production and sales plan changes along with raw material and exchange rate trends warrant continued monitoring.
When discussing Hwashin Precision's valuation, it is worth considering both the earnings slump of 2024 and the recovery trend seen from 2025 onward.
The share price trades at a level where the premium to net asset value is not large, which could reflect either that the market has not yet fully priced in the pace of earnings improvement, or alternatively that it reflects the historically volatile earnings pattern typical of an auto parts supplier.
On the dividend side, the company has a track record of paying an annual year-end dividend and disclosed a target payout ratio of around 25% under its 2026 value-up plan, though the dividend yield itself is not considered notably high within the industry.
Given the stock's history of significant earnings volatility, market interpretation of its valuation could shift depending on whether the recent quarters' margin improvement proves durable.
Because these metrics continue to change along with future disclosed results and share price movements, readers should check the most current figures separately at the time of any investment decision.
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
The operating margin, which had fallen to just 0.4% in 2024, recovered to 3.1% in 2025, and the first half of 2026 saw two consecutive quarters with margins in the 10% range. Owners' net income also grew sharply from KRW 2.6bn in 2024 to KRW 10.3bn in 2025. The sum of net income over the most recent four quarters shows a clear improvement even on an annualized basis.
The company completed cancellation of 3.62% of treasury shares in November 2025 and disclosed a value-up plan in March 2026 targeting a payout ratio of around 25%. Its track record of paying an annual year-end dividend adds to the accumulating evidence of the company's commitment to shareholder returns.
The company is developing aluminum lightweight parts while supplying components for the dedicated EV platform E-GMP, giving it capability to respond to OEMs' electrification transition. This can be viewed as part of the business preparation to diversify away from an internal-combustion-centered revenue structure.
As shown by 3Q25's operating margin falling to just 0.4%, quarterly results have shown considerable volatility. Whether the elevated margins of the two most recent quarters stem from one-off factors or represent a structural improvement will require verification from additional quarterly results.
Revenue is concentrated in parts supply to domestic OEM customers, meaning results are directly exposed to changes in OEM production and sales plans or volume adjustments from a given customer. Pricing negotiation power may also be relatively limited compared with larger tier-one suppliers.
As a small-cap KOSDAQ stock with a modest market capitalization, the shares can exhibit heightened price volatility depending on trading volume and supply-demand conditions. This is a variable that can affect the share price independent of underlying earnings factors.
Movements in key raw material prices such as steel and aluminum, along with the won-dollar exchange rate, directly affect the cost structure. These can be cited as one factor behind quarterly operating margin swings, making continued monitoring of raw material and FX trends necessary.
If upstream OEM production and sales slow down, or if the pace of the EV transition is delayed, parts demand could be directly affected. Changes in domestic and overseas OEM production plans can translate into revenue fluctuations.
The controlling shareholder and related-party entities (including affiliates Global Auto Trading and World Auto Trading) hold a substantial portion of shares, and the company forms part of a group relationship with KOSPI-listed Hwashin Co. (010690). Intragroup transactions or governance changes could pose risks from a minority shareholder perspective.
3Q26 results are expected to be disclosed. It will be important to check whether the double-digit operating margins seen in the two most recent quarters continue.
Changes in domestic OEMs' EV and new-model production plans should be checked for their impact on parts order volumes.
This is the point to check the year-end dividend disclosure for fiscal 2026 and whether the 2026 value-up plan's payout ratio target of around 25% was met.
Ongoing tracking is needed of how steel, aluminum, and won-dollar exchange rate trends affect cost structure and margins in coming quarters.
Hwashin Precision is a small-cap KOSDAQ parts maker focused on automotive chassis parts and raw-material processing, whose operating margin fell to just 0.4% in 2024 before recovering to 3.1% in 2025 and then jumping to the 10% range for two consecutive quarters in the first half of 2026.
However, given the sharp margin dip seen in 3Q25, whether the recent improvement is structural will require confirmation from additional quarterly results.
The company has continued its shareholder-return efforts through treasury share cancellation and a value-up plan targeting a payout ratio of around 25%, while also addressing the electrification transition through EV platform E-GMP supply and aluminum lightweight parts development.
Because revenue is concentrated in parts supply to domestic OEMs, the company's results remain directly exposed to the upstream production cycle and to raw material and FX fluctuations, a variable that warrants continued observation.
The governance structure, with the controlling shareholder and related parties holding roughly the high-30s percent range of shares, along with its relationship to KOSPI-listed group affiliate Hwashin Co. (010690), is also worth monitoring.
On balance, the durability of the earnings recovery and shifts in the OEM order environment are likely to be the key variables shaping the company's future results.
Report written 2026-09-05 · Data as of 2026-09-04
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