PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
A Harim Group-affiliated integrated livestock food company spanning feed, hog farming, meat, and processed meat, showing simultaneous earnings recovery and overseas subsidiary improvement since 2025.
2025 consolidated revenue reached KRW 1.90tn with operating profit of KRW 179.2bn, a sharp year-on-year improvement
1Q2026 operating profit hit KRW 61.4bn, the highest in five quarters, before easing in 2Q2026
Vertically integrated structure across four segments: compound feed (~42%), meat (~23%), hog farming (~18%), and processed meat (~13%)
Debt ratio steadily declined from 202.7% in 2022 to 133.9% in 2025, indicating improving financial structure
Strong domestic pork prices and livestock disease risk act as a double-edged variable for earnings
Sunjin started as a livestock business in 1973 and was brought into the Harim Group in 2007, building a vertically integrated structure spanning feed supply, hog farming, meat distribution, and meat processing.
In 2007, Harim acquired a 46.4% controlling stake in Sunjin through NS Home Shopping, formalizing the group's entry into hog farming.
Revenue mix by segment consists of compound feed at 41.97%, meat at 22.98%, hog farming at 18.03%, and processed meat at 12.54%, with the compound feed segment producing feed for hogs, cattle, and poultry across 14 domestic and overseas plants.
The hog farming segment integrates feed supply through hog raising and meat distribution to produce market hogs, while the meat segment produces the clean-brand "Sunjin Pork Handon" supplied to Hyundai Department Store, Lotte Super, and Homeplus.
The processed meat segment supplies patties and sausages to major clients including Burger King and CJ CheilJedang. The company operates roughly 22-23 subsidiaries, including eight to nine domestic entities and 13-14 entities across five overseas countries such as Vietnam, Myanmar, China, India, and the Philippines.
Raw material costs for compound feed are sensitive to exchange rates and international grain prices, while livestock output is exposed to disease outbreaks and weather variability.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩463B | ₩44.3B | 9.6% |
| 2025Q3 | ₩473.2B | ₩38.3B | 8.1% |
| 2025Q4 | ₩503.3B | ₩40.4B | 8.0% |
| 2026Q1 | ₩533B | ₩61.4B | 11.5% |
| 2026Q2 | ₩541.1B | ₩43.4B | 8.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.9T | ₩70.6B | ₩23.2B | 3.8% | 5.5% | 202.7% |
| 2023 | ₩1.9T | ₩97.5B | ₩13.9B | 5.1% | 3.2% | 183.9% |
| 2024 | ₩1.7T | ₩124.1B | — | 7.4% | — | 177.2% |
| 2025 | ₩1.9T | ₩179.2B | ₩118.9B | 9.5% | 21.1% | 133.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Consolidated revenue for 2025 reached KRW 1,895.7bn with operating profit of KRW 179.2bn, a marked improvement from 2024's revenue of KRW 1,681.4bn and operating profit of KRW 124.1bn, consistent with the disclosed year-end result of 12.7% revenue growth and 44.4% operating profit growth.
Net income attributable to owners expanded sharply to KRW 118.9bn in 2025, up from KRW 13.9bn in 2023 and KRW 23.2bn in 2022, signaling a recovering earnings base.
On a quarterly basis, 2Q2025 owners' net income of KRW 47.6bn unusually exceeded operating profit of KRW 44.3bn, while 3Q2025 (KRW 13.5bn) and 4Q2025 (KRW 14.2bn) saw net income drop sharply despite revenue growth to KRW 473.2bn and KRW 503.3bn respectively, reflecting cost-side pressures.
In 1Q2026, revenue rose to KRW 533.0bn with operating profit reaching KRW 61.4bn, the highest among the last five quarters, and net income recovered to KRW 37.4bn.
However, in 2Q2026 revenue grew 16.87% year-on-year to KRW 541.1bn while operating profit fell 2.06% to KRW 43.4bn and net income dropped 57.26% to KRW 20.4bn.
This quarterly volatility appears to stem from the business structure where feed costs tied to international grain prices and exchange rates, alongside hog price swings, are simultaneously reflected in results.
On an annual basis, however, both revenue and operating profit have shown a directionally positive trend from 2022 through 2025.
The domestic pork market was affected by overlapping outbreaks of African Swine Fever (ASF) and Foot-and-Mouth Disease (FMD) in 2025-2026, with wholesale hog prices in May 2026 up 9.9% year-on-year.
The Korea Rural Economic Institute's Agricultural Outlook 2026 projected total hog inventory to rise about 0.5% year-on-year in 2026, with wholesale pork prices settling at a somewhat more stable KRW 5,500-5,700/kg versus the 2025 average of KRW 5,763/kg.
Compound feed prices fell 1.0% year-on-year to KRW 725/kg as of November 2025, easing feed cost burdens somewhat, while the UN Food and Agriculture Organization's global grain price index showed an upward trend as of February 2026 amid Black Sea tensions and logistics disruptions, reintroducing cost volatility.
In the global pork market, production increases in the United States, Brazil, China, and Canada are expected to offset EU production declines tied to ASF, with global output forecast to rise modestly in 2026, while EU and Brazilian exports may reallocate toward Asian markets including Korea that remain under ASF-related import restrictions.
Domestic consumer surveys show domestic pork still accounts for 77.2% of purchases, with quality and safety cited as the primary reasons for choosing domestic product.
Within this environment, Sunjin's vertically integrated structure across feed, hog farming, meat, and processed meat allows it to internally offset some cost and selling-price fluctuations.
The Korea IR Service assessed that Sunjin is expected to see stable earnings growth driven by a turnaround in its global operations, noting that Vietnam maintains stable results based on four feed plants and hog/poultry farms, while Myanmar's profitability improved after gaining an oligopolistic position following a competitor's withdrawal post-coup.
The same assessment noted China is expected to see narrower losses as it preemptively expanded cattle herd numbers during a period of falling cattle prices, while India is expected to post stable long-term results as its own plant ramps up and dairy demand expands.
Domestically, recovery in feed sales volume and strength in hog prices combined with cost efficiencies were cited as the core drivers of profit, with the meat segment also benefiting from improved distribution structures.
With Korea's 2026 hog inventory and slaughter volumes projected to increase modestly, continued improvement in productivity metrics such as PSY and MSY suggests room for cost competitiveness gains in the hog farming segment.
However, upward pressure on international grain prices and exchange rates, along with the frequency of livestock disease outbreaks, remain key variables that will shape future earnings volatility.
The company appears to be continuing a strategy of expanding its meat processing and food business footprint through production facility expansion, including projects tied to the Iksan food cluster.
The price-to-earnings ratio calculated on trailing four-quarter net income (3Q2025-2Q2026) sits at a low single-digit multiple relative to the company's multi-year low-earnings period, reflecting the earnings recovery that has emerged since 2025.
The price-to-book ratio remains below 1x, placing the stock in a range trading at a discount to net asset value. On the dividend side, per-share cash dividends are disclosed annually, with the dividend yield fluctuating alongside the share price.
Given the pronounced earnings volatility between the contracted profit period of 2022-2024 and the recovery phase from 2025 onward, valuation metrics at any single point in time should be considered alongside this earnings cycle.
Room for operational improvement can be found in productivity metrics within the hog farming segment (PSY, MSY) and in the normalization of overseas subsidiary profitability.
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 2026-09-04
Operating profit rose 44.4% year-on-year to KRW 179.2bn in 2025, and 1Q2026 operating profit of KRW 61.4bn marked the highest level in five quarters. Compared with the low-margin period of 2022-2023, the earnings structure has visibly improved. Whether this trend continues will depend on the relative movement of costs and selling prices.
The vertically integrated structure spanning feed, hog farming, meat, and processed meat provides some capacity to offset shocks from individual variables like grain and hog prices across the business. The compound feed segment maintains a stable sales base across 14 domestic and overseas plants. This structure can help mitigate the cyclical risks inherent to the livestock industry.
The Korea IR Service assessed that Myanmar's profitability improved after gaining an oligopolistic position following a competitor's exit, while China is expected to see narrower losses from herd expansion. Vietnam maintains stable results based on four feed plants and hog/poultry farms. Normalization across the five overseas countries could provide an additional buffer to consolidated results.
2Q2026 revenue rose 16.87% year-on-year, but operating profit fell 2.06% and net income dropped 57.26%. In 3Q-4Q2025, net income also declined sharply despite revenue growth. This confirms that quarterly earnings can swing significantly depending on cost factors.
African Swine Fever and Foot-and-Mouth Disease both occurred domestically in 2025-2026, affecting hog inventories. Disease outbreaks can lead to reduced herd sizes and higher biosecurity costs, weighing on hog farming and meat segment profitability. Extreme weather such as heatwaves also remains a variable affecting livestock productivity.
Raw materials for compound feed are directly exposed to international grain prices and exchange rate movements. As of February 2026, the global grain price index showed an upward trend amid Black Sea tensions, raising the possibility that cost pressures could resurface. Simultaneous increases in grain prices and exchange rates could act as a margin squeeze.
A significant portion of compound feed costs depends on imported grains, directly exposing the company to international grain prices and the won-dollar exchange rate. The FAO grain price index's upward trend in February 2026 suggests feed cost burdens could increase again. This can directly affect margins in the hog farming and feed segments.
Livestock diseases such as African Swine Fever and Foot-and-Mouth Disease recurred domestically in 2025-2026, which can lead to reduced herd sizes and higher biosecurity costs. Extreme weather such as heatwaves and heavy rain is also a variable affecting productivity. Overlapping disease and climate risks could bring simultaneous supply disruption and cost increases.
As a Harim Group affiliate, Sunjin may be involved in intra-group equity or asset transactions depending on group-level business restructuring or funding needs. Past examples include the Harim Food acquisition and intercompany fund lending.
Changes in the group's overall financial situation or strategy could indirectly affect Sunjin's business direction.
Check for the 3Q2026 preliminary earnings disclosure. Key points include whether the net income deceleration seen in 2Q continues and how hog price/feed cost variables are reflected.
Monitor livestock disease trends such as ASF and FMD during the winter season and related quarantine measures. Disease spread directly affects herd size and costs.
Track the FAO global grain price index and the won-dollar exchange rate to assess the direction of feed cost pressure.
This is the point to check the year-end dividend record date and any related dividend policy disclosures.
Sunjin is a Harim Group-affiliated integrated livestock food company with a vertically integrated structure spanning feed, hog farming, meat, and processed meat, showing a clear recovery trend in revenue and operating profit since 2025.
While 1Q2026 operating profit hit its highest level in five quarters, 2Q2026 saw profit deceleration despite revenue growth, indicating that quarterly volatility remains significant.
Overseas subsidiaries, particularly in Myanmar and Vietnam, show signs of improvement, and the debt ratio has steadily declined over multiple years.
However, variables outside the company's control—international grain prices, exchange rates, and the frequency of livestock disease outbreaks—remain structural factors that can sway results. From a valuation standpoint, recent earnings recovery is reflected in metrics that differ from the prior low-earnings period. Investors will want to track upcoming quarterly results alongside livestock disease and grain price indicators.
Report written 2026-09-05 · Data as of 2026-09-04
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