Hanjoo Light Metal

Hanjoo Light Metal is an aluminum casting specialist founded in 1987 that listed on KOSDAQ in January 2023.

Its product portfolio is organized into four broad categories: ultra-lightweight components (subframes, control arms, knuckles/carriers), engine parts (intake manifolds, etc.), electric vehicle (EV) parts, and marine parts.

The company holds exclusive supply positions for parts used in Hyundai Motor's large SUVs such as the Santa Fe and Palisade, Kia's Telluride, and Genesis G80/G90, and also counts GM, Ford, and Nissan among its global automaker customers.

In 2022 it established a production subsidiary in Slovakia, becoming the first Korean aluminum casting company to build a local production base in Europe.

In October 2023 it directly secured an order for common parts (crossmembers and control arms) for Hyundai Motor's next-generation dedicated EV platform, eM, under a contract running from 2025 through 2033 covering a total volume of 6,358,910 units with expected revenue of KRW 403.7 billion.

In the marine segment, the company supplies parts to a globally recognized outboard engine maker, giving it exposure beyond the automotive sector.

The company holds multiple proprietary casting technologies including electromagnetic-stirring squeeze die casting (ESDC), low-pressure die casting (LPDC), and gravity die casting (GDC), which it uses to differentiate itself in markets requiring high strength, high toughness, and ultra-lightweight components.

Consolidated revenue in 2022 was KRW 232.50 billion with operating profit of KRW 5.25 billion and net profit of KRW 93 million, essentially a break-even level of profitability.

In 2023, falling aluminum ingot prices pushed down selling prices, and revenue declined to KRW 220.98 billion while the company swung to an operating loss of KRW 13.58 billion and a net loss of KRW 15.32 billion.

In 2024, despite a 13.5% increase in revenue to KRW 250.76 billion, the company posted an operating loss of KRW 8.66 billion and a net loss of KRW 7.28 billion, with losses persisting.

In 2025, revenue rose further to KRW 259.46 billion and operating profit turned positive at KRW 1.33 billion, though the net loss continued at KRW 2.74 billion.

On a quarterly basis, the operating loss widened to KRW 170 million in the third quarter of 2025 and KRW 2.89 billion in the fourth quarter, before the company posted two consecutive quarters of operating profit in 2026 — KRW 1.22 billion in the first quarter and KRW 2.60 billion in the second quarter.

On a net income basis, the company recorded a net loss attributable to owners of KRW 221 million in the first quarter of 2026 before turning to a net profit of KRW 938 million in the second quarter.

Over the most recent four-quarter window (third quarter of 2025 through second quarter of 2026), the cumulative net loss attributable to owners was KRW 1.91 billion, showing a gradual narrowing of losses amid continued quarterly volatility.

Operating cash flow improved from negative KRW 2.33 billion in 2023 to KRW 21.75 billion in 2024 and KRW 11.63 billion in 2025, indicating a recovery in cash generation.

The automotive lightweighting components industry sits atop structural demand for fuel efficiency and emissions reduction, with the spread of electric vehicles adding a further growth driver.

However, a slowdown in EV demand growth relative to earlier expectations — often described as a chasm — has weighed on the revenue growth pace of related parts suppliers in recent years.

On the raw material side, aluminum ingots (such as AC4CH and A356.2) account for the large majority of purchases; Hanjoo Light Metal disclosed in a securities registration statement that AC4CH aluminum ingot made up 90.3% of raw material purchases, and separate analyst commentary has also tracked quarterly price moves in A356.2 ingot, which it said accounted for 85% of purchases.

As a result, the industry's cost structure is such that swings in ingot prices flow directly into cost ratios and earnings volatility.

In terms of competitive positioning, relatively few domestic aluminum casting companies operate production subsidiaries in Europe, giving Hanjoo Light Metal's Slovak subsidiary a geographic advantage in supplying European automakers and parts makers.

Hyundai Motor Group plans to launch numerous new models on its eM platform through 2030, with common parts to be applied sequentially across several models starting with the Genesis GV90, meaning suppliers in that supply chain see their results tied to the pace of platform rollout.

The company said it will begin mass production in the third quarter of 2026 of front and rear crossmembers, control arms, and other lightweight parts applied to the Genesis GV90, and expects European volume expansion along with mass-production revenue from new projects such as GM and GV90 to be reflected in earnest from the fourth quarter.

In Europe, the share of existing core products supplied through the Slovak subsidiary expanded from 60% to 100% starting in August, and mass production of new items beginning in November is expected to add further knuckle and carrier supply volume.

The company noted, however, that the third quarter could see some production impact from seasonal factors typical of the foundry industry.

On customer diversification, the company signed a non-disclosure agreement with automotive parts maker ZF in May and is currently conducting technical reviews of three new parts targeting the North American market, while also pursuing a Global Advanced Technology Center (GATC) initiative.

A company representative attributed the second-quarter earnings improvement to the company's high-value-added lightweighting strategy beginning to show results.

That said, the timing for applying common parts to follow-on eM platform models such as the next-generation GV80 (2026) and next-generation G80 (2027) is tied to Hyundai Motor Group's assembly plans, meaning actual production timing and volumes could shift with changes to the automaker's production schedule.