PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩170 per share · Prices as of the 2026-10-02 close
PJ Metal's core aluminum deoxidizer and billet business is recovering profitability while its recycled-lead subsidiary expands, driving sequential quarterly improvement since 2025.
2025 consolidated revenue reached KRW 349.0bn (+37.1% YoY) with operating profit of KRW 12.2bn, showing joint growth in sales and profit
Five consecutive quarters of improvement, from an operating loss in Q2 2025 to KRW 11.8bn operating profit in Q2 2026
Holds 51% stake in subsidiary PJ E&S (recycled lead), expanding into waste lead-acid battery recycling
Debt ratio rose from 78.4% in 2023 to 113.3% in 2025, and 2025 operating cash flow was negative
In the US aluminum extrusion antidumping case, Korean tariff rates were set lower than competing countries, highlighting export competitiveness
PJ Metal is a KOSDAQ-listed non-ferrous metal processor that manufactures and sells aluminum deoxidizers used in steelmaking and aluminum billets, an intermediate material for extrusion.
According to company disclosures, the firm supplies deoxidizers to POSCO's Gwangyang steelworks while selling its entire billet output to aluminum extrusion companies.
Billets are produced as 6000-series aluminum alloys such as 6061, 6063, and 6N01, with purity and specifications adjusted to match customer production environments.
Segment data disclosed on a recruitment information platform indicates that as of Q1 2026, deoxidizers accounted for roughly 75% of revenue and billets about 25%.
The company was established in 2010 through a spin-off of Aldex's deoxidizer business, and in 2023 it acquired a dormant recycled-lead plant, establishing subsidiary PJ E&S with a 51% stake.
PJ E&S operates in the Yulchon Free Trade Zone, recycling waste lead-acid batteries into high-purity lead ingots, and received a USD 20 million Export Tower award in December 2025.
Deoxidizer demand is tied to steel output volume and thus relatively less cyclical, while billet sales have grown on lightweighting and eco-friendly industry demand, though cost pressure limits its profitability.
As the business relies on aluminum scrap as raw material, results are sensitive to fluctuations in raw material prices and exchange rates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩87.2B | -₩800M | −1.0% |
| 2025Q3 | ₩86.8B | ₩2.4B | 2.8% |
| 2025Q4 | ₩90.8B | ₩5.9B | 6.5% |
| 2026Q1 | ₩103.1B | ₩7.9B | 7.7% |
| 2026Q2 | ₩122.8B | ₩11.8B | 9.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩269B | ₩10.4B | ₩5.8B | 3.9% | 9.5% | 85.2% |
| 2023 | ₩229.3B | ₩6B | ₩14B | 2.6% | 19.8% | 78.4% |
| 2024 | ₩254.5B | ₩9.2B | ₩2.8B | 3.6% | 4.1% | 81.3% |
| 2025 | ₩349B | ₩12.2B | ₩7.6B | 3.5% | 10.3% | 113.3% |
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 came in at KRW 348.96bn, up 37.1% from KRW 254.49bn in 2024, while operating profit rose to KRW 12.23bn from KRW 9.17bn, though the operating margin held around 3.5%, similar to 3.6% in 2024.
Net profit attributable to owners jumped to KRW 7.63bn from KRW 2.82bn in 2024, indicating an improvement in earnings quality as well.
However, 2023's owner net profit of KRW 14.03bn—well above that year's KRW 6.01bn operating profit—appears to reflect a one-off item and diverged from the revenue and operating profit trend.
On a quarterly basis, after an operating loss of KRW 0.84bn in Q2 2025, operating profit expanded for five straight quarters: KRW 2.44bn in Q3 2025, KRW 5.89bn in Q4 2025, KRW 7.93bn in Q1 2026, and KRW 11.79bn in Q2 2026.
Revenue also climbed steadily over the same period from KRW 86.8bn to KRW 122.8bn, showing a clear recovery in both volume and pricing. Owner net profit in Q2 2026 surged to KRW 9.48bn from KRW 1.96bn in the prior quarter, suggesting a possible contribution from non-operating items or the subsidiary.
Meanwhile, 2025 operating cash flow was negative at KRW -17.77bn despite the net profit surplus, which appears to reflect greater working-capital burden from inventory and receivables as revenue expanded.
The debt ratio rose steadily from 78.4% in 2023 to 81.3% in 2024 and 113.3% in 2025, indicating growing balance-sheet pressure alongside the top-line expansion.
Aluminum deoxidizers are an essential auxiliary material in steelmaking, with sales linked to domestic steelmakers' crude steel output, giving the segment a relatively stable demand base.
Aluminum billets, in contrast, are benefiting from rising demand tied to lightweighting and eco-friendly trends across automotive, construction, and electronics end markets, but profitability is exposed to raw-material cost swings, particularly aluminum scrap prices.
Externally, US trade measures have emerged as a key variable.
In the US Department of Commerce's 2024 preliminary antidumping ruling on aluminum extrusions, Korean companies' dumping margins were set at 0% for Almex and 2.42% for Sinyang, significantly lower than competing countries such as China (up to 376.85%), Mexico (up to 82.03%), and Indonesia (up to 112.21%).
Based on this, KOTRA assessed that antidumping duties could be both a caution factor and an opportunity for domestic firms to absorb demand shifting away from Chinese suppliers.
Some non-responding Korean firms, however, were assigned a punitive 43.56% rate, though the overall industry impact was seen as limited given their minimal US export exposure.
Separately, in April 2026 the United States restructured its Section 232 tariffs on steel, aluminum, and copper, shifting from a metal-content-value basis to a full customs-value basis, with effects varying by product category.
Within Korea's aluminum extrusion and billet industry, several competitors including Igu Industrial, Choil Aluminum, and Namsun Aluminum operate alongside PJ Metal, which leverages long-standing deoxidizer supply relationships and billet manufacturing know-how as competitive advantages.
The company is expanding subsidiary PJ E&S's waste lead-acid battery recycling business, built on the recycled-lead plant acquired in 2023, and this subsidiary has been building export track record, receiving a USD 20 million Export Tower award in December 2025.
The core aluminum deoxidizer and billet segment has shown steadily expanding revenue and operating profit on a quarterly basis since 2025, suggesting that recovering demand from steelmaking and extrusion end markets is being reflected in results.
Externally, the final US antidumping ruling on aluminum extrusions and changes to how Section 232 tariffs are applied remain variables that could affect export profitability, warranting continued monitoring of finalized tariff rates and scope.
The company has also stated it is preparing to enter the recovery of valuable metals through electric-vehicle waste battery recycling, making the concrete progress and revenue timing of this new business a point to watch going forward.
However, given that 2025 operating cash flow was negative and the debt ratio surpassed 100%, the impact of top-line growth on financial soundness also warrants attention.
Market commentary has raised the possibility of greater subsidiary profit contribution and entry into higher-value areas such as high-purity aerospace-grade scrap, though concrete orders or revenue realization require further confirmation through disclosures.
PJ Metal's 2025 revenue growth, expanding operating profit, and five consecutive quarters of earnings improvement from an operating loss in Q2 2025 through Q2 2026 point to a distinct earnings recovery phase relative to its own recent history.
From a price-to-book perspective, the stock has traded around a discount to or modest premium over net asset value, without a clear directional departure from its multi-year trading band.
On dividends, the company has a track record of paying cash dividends, though the payout ratio and yield level can vary from year to year depending on net profit swings. The recent rise in the debt ratio and negative operating cash flow are factors worth weighing alongside any valuation interpretation.
Ultimately, how this stock's valuation is read may depend on the pace of core-business earnings recovery and the timing at which new businesses such as recycled lead and EV waste-battery recycling begin contributing to revenue.
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
Following an operating loss in Q2 2025, operating profit expanded every quarter through Q2 2026, stabilizing the profitable trend. Revenue over the same period rose steadily from KRW 86.8bn to KRW 122.8bn, reflecting recovery in both volume and pricing.
This shows that demand recovery in steelmaking and extrusion end markets is being directly reflected in core-business results.
51%-owned subsidiary PJ E&S produces high-purity lead ingots by recycling waste lead-acid batteries, and it received a USD 20 million Export Tower award in December 2025, building export track record.
This expansion into eco-friendly material recycling could become a new revenue stream with growth potential relative to the core business.
In the US antidumping investigation into aluminum extrusions, Korean companies' dumping margins were set significantly lower than those of competing countries such as China, Mexico, and Indonesia.
This suggests domestic aluminum processors may retain relative price competitiveness and could absorb demand shifting away from Chinese suppliers.
The debt ratio rose rapidly from 78.4% in 2023 to 113.3% in 2025, and 2025 operating cash flow was negative at KRW -17.7bn despite a net profit surplus. Working-capital burden appears to be expanding alongside top-line growth, warranting continued monitoring of the balance sheet.
Because the business relies on aluminum scrap as a raw material, profitability is exposed to fluctuations in raw material prices and the won-dollar exchange rate. The billet segment's revenue has grown on lightweighting demand, but cost pressure limits profitability improvement.
In April 2026 the United States restructured how Section 232 tariffs on steel, aluminum, and copper are applied, moving to a full customs-value basis, with mixed effects across product categories.
Volatility in the trade environment persists, including the final antidumping ruling and potential future additions to covered products.
The debt ratio has risen continuously over the past three years, and 2025 operating cash flow was negative. Continued top-line growth could bring additional funding needs or working-capital management burden.
The final US antidumping ruling on aluminum extrusions and changes to Section 232 tariff application are variables that could directly affect export profitability. Further adjustments to covered products or rates could alter earnings expectations.
Volatility in raw material prices such as aluminum scrap and the won-dollar exchange rate directly affects cost of goods sold and profitability. The billet segment's cost burden limits profitability improvement, so margin pressure could intensify during periods of rising raw material prices.
Check for confirmation of the final tariff rates and scope following the US antidumping ruling on aluminum extrusions.
Check whether Q3 2026 revenue and operating profit continue the improvement trend seen in Q2 2026 (KRW 11.8bn operating profit).
Check via disclosures whether subsidiary PJ E&S's revenue contribution expands and monitor concrete progress on the new EV waste-battery recycling business.
Check whether the rising debt ratio and negative operating cash flow improve in the FY2026 full-year results, and whether the cash dividend policy is maintained.
PJ Metal saw joint growth in revenue and operating profit in 2025, and its core-business recovery has become more pronounced with five consecutive quarters of expanding profit from an operating loss in Q2 2025 through Q2 2026.
The expansion of subsidiary PJ E&S's recycled-lead business and its accumulating export track record stand out as growth drivers beyond the core business.
However, the debt ratio has risen for three consecutive years to 113.3%, and 2025 operating cash flow was negative—a financial burden that has emerged alongside the top-line growth and warrants attention.
Externally, the US antidumping ruling on aluminum extrusions and changes to Section 232 tariff application remain variables that could affect export profitability. The business's sensitivity to raw material prices and exchange rates is also a factor to continue monitoring.
On balance, this stock sits at a juncture where positive momentum from core-business earnings recovery and new business expansion coexists with caution factors around financial structure burden and trade policy uncertainty.
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.