KOSDAQMachinery294630

SuNAM

₩3,110▲ 1.14%2026-10-02 close

Market Cap

₩82.8B

Turnover

₩400M

Volume

120,000 shares

Shares out.

26.5M

PER

—

PBR

—

EPS

-₩180

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

Superconductor Growth Story Meets Persistent Losses

Seonam is Korea's sole producer of second-generation high-temperature superconducting wire, expanding partnerships tied to AI data centers and fusion energy, but its project-based revenue base and multi-year operating losses remain unresolved.

1
2025 consolidated revenue was KRW 3.39 billion with an operating loss of KRW 3.86 billion, marking a fourth consecutive year of operating losses.
2
The company has diversified overseas through supply agreements with US-based VEIR, the UK's UKIFS STEP fusion program, and the University of Houston.
3
Q2 2026 revenue rose to KRW 1.198 billion quarter-on-quarter, but the operating loss widened to KRW 1.606 billion, the largest in the recent five-quarter window.
4
Rising AI data center power demand and copper-substitute material discussions are drawing industry attention to superconductors, though the revenue impact on Seonam remains limited so far.
5
As recently as September 4, 2026, the company disclosed a new wire supply contract worth about KRW 662 million, continuing a pattern of small, sporadic orders.

Business structure

Founded in 2004 and listed on KOSDAQ in 2020, Seonam manufactures high-temperature superconducting (HTS) wire for power cables, fault current limiters, and fusion reactors using its proprietary RCE-DR process. Its main revenue comes from sales of second-generation HTS wire and superconducting magnets.

The company also develops and supplies high-field, no-insulation HTS magnet systems and rotating machines.

Seonam supplies directly to end-application manufacturers such as LS Cable & System, LS Electric, and Korea Electric Power Corporation, while collaborating internationally with VEIR of the US, Nexans of France, SuperOx of Russia, NASA, Airbus, Siemens, and Commonwealth Fusion Systems on custom product development and new business opportunities.

The company is described as the sole domestic supplier of superconducting wire and is positioned among the leading global players in terms of quality, productivity, and price competitiveness.

Because sales are project- and order-based, revenue tends to fluctuate significantly depending on project timing, and weaker performance versus competitors in magnet-application characteristics has been cited as a drag on results. The company is also pursuing product upgrades through PLD process development alongside capacity expansion.

Earnings trend

Quarterly revenue · Operating profit

₩700M-₩1.1B25Q2₩1B-₩700M25Q3₩1B-₩1.3B25Q4₩500M-₩900M26Q1₩1.2B-₩1.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩6.4B-₩2.4B2022₩6.4B-₩3.1B2023₩1.4B-₩4.5B2024₩3.4B-₩3.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩700M	-₩1.1B	−162.7%
2025Q3	₩1B	-₩700M	−74.3%
2025Q4	₩1B	-₩1.3B	−120.7%
2026Q1	₩500M	-₩900M	−197.2%
2026Q2	₩1.2B	-₩1.6B	−134.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩6.4B	-₩2.4B	-₩2.1B	−37.7%	−26.8%	123.5%
2023	₩6.4B	-₩3.1B	-₩11.3B	−48.4%	−102.2%	40.1%
2024	₩1.4B	-₩4.5B	-₩3.9B	−317.8%	−50.2%	53.4%
2025	₩3.4B	-₩3.9B	-₩4B	−113.9%	−40.8%	70.4%

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

Seonam's annual revenue moved from KRW 6.36 billion in 2022 and KRW 6.39 billion in 2023 to a sharp drop of KRW 1.41 billion in 2024, before partially recovering to KRW 3.39 billion in 2025.

Operating losses widened from KRW 2.40 billion in 2022 to KRW 3.09 billion in 2023 and KRW 4.47 billion in 2024, before narrowing slightly to KRW 3.86 billion in 2025.

Net loss ballooned to KRW 11.25 billion in 2023, far exceeding that year's operating loss of KRW 3.09 billion, suggesting a significant non-operating drag. Net losses in 2024 and 2025 were KRW 3.94 billion and KRW 3.98 billion respectively, staying closer to the operating loss level.

On a quarterly basis, revenue of KRW 660 million with an operating loss of KRW 1.07 billion in Q2 2025 improved to KRW 958 million in revenue and a narrower operating loss of KRW 712 million in Q3 2025, but Q4 2025 saw revenue rise to KRW 1.04 billion while the operating loss widened again to KRW 1.26 billion.

Q1 2026 revenue fell sharply to KRW 453 million with an operating loss of KRW 894 million, and even as Q2 2026 revenue recovered to KRW 1.198 billion, the operating loss expanded further to KRW 1.606 billion, the widest in the recent five-quarter window.

This pattern shows that fixed-cost burdens have been outpacing the pace of revenue recovery amid order-driven revenue volatility.

Total equity moved from KRW 7.90 billion in 2022 to KRW 11.01 billion in 2023, then fluctuated between roughly KRW 7.86 billion in 2024 and KRW 9.74 billion in 2025 as accumulated losses weighed on the balance sheet.

Industry analysis

The high-temperature superconducting (HTS) wire industry is in an early growth phase, with multiple demand drivers emerging simultaneously, including reduced power grid transmission losses, higher-density data center power infrastructure, and progress toward commercial fusion power.

US-based VEIR, backed by investors including Microsoft's Climate Innovation Fund, is pursuing commercialization of superconducting cables for data centers and announced in November 2025 that it had successfully demonstrated delivery of 3 megawatts of power through its STAR system.

LS Cable & System has commercialized what it describes as the world's first superconducting system for external data center power networks, a development tied to the growth of the customer value chain that Seonam supplies wire into.

In the UK, the STEP fusion program led by UKIFS, a subsidiary of UKAEA, aims to build a commercial fusion power plant by the 2040s and has run phased joint research with Seoul National University's Applied Superconductivity Research Center since 2024, while Seonam was selected as a material supplier for the program in February 2025.

However, commercial fusion power remains a long-term undertaking expected only after 2040, and while Seonam is described as the sole domestic wire producer, overseas competitors and partners such as SuperOx and Nexans also operate in the space.

Industry growth potential is being highlighted, but the timing of the shift to full commercialization and mass production remains uncertain, and the pace of translation into revenue remains limited.

Outlook

In July 2026, Seonam signed a KRW 430 million superconducting wire supply agreement with VEIR of the US, running from July 13 to October 13, 2026, a small contract equivalent to about 12.8 percent of recent revenue.

On September 4, 2026, the company disclosed an additional second-generation HTS wire supply contract worth approximately KRW 662 million, equal to roughly 19.6 percent of the prior year's revenue.

Regarding the UK's UKIFS STEP fusion program, Seoul National University's Applied Superconductivity Research Center announced a third-phase joint research agreement worth about KRW 20 billion running from February 2026 to March 2027, with the stated goal of producing a 3-meter prototype model magnet for fusion applications.

While Seonam is not the direct contracting party in this research agreement, it is linked to the STEP program's progress, given that Seonam was selected as a material supplier for the program in February 2025, making it a relevant reference point for the domestic superconductor ecosystem's expansion.

In September 2024, the company also signed a contract worth approximately KRW 3.6 billion to supply Reel-to-Reel PVD equipment to the University of Houston, indicating that equipment supply, alongside material sales, forms another revenue stream.

The company has stated it is advancing product commercialization through PLD process technology development, and revenue volatility is expected to persist depending on the timing and scale of future project orders.

Valuation

PER

—

PBR

—

ROE

-65.3%

EPS

-₩180

BPS

—

Dividend per share

₩0

Seonam's shares tend to trade at a considerable premium relative to net asset value, suggesting that growth expectations tied to the superconductor industry theme are being priced in ahead of financial performance.

The company has not paid dividends amid four consecutive years of operating losses and equity-erosion management concerns, limiting the relevance of a dividend-based approach.

Historically, the share price has shown a pattern of sharp swings tied to event-driven news such as contract disclosures and data center or copper-substitution themes, with relatively low correlation to underlying financial fundamentals.

With losses attributable to controlling shareholders persisting, assessing the share price relative to net assets requires weighing both the historical earnings trajectory and the pace at which future orders materialize.

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

AI Data Center Power Crunch and Copper Substitution Theme

Surging AI data center power demand and rising copper prices have created a backdrop that highlights superconducting wire as a copper substitute.

VEIR of the US announced in November 2025 that it successfully demonstrated 3-megawatt power delivery via its superconducting cable and is targeting 2026 commercialization, underscoring that Seonam has built an early-stage supply relationship.

The push by major domestic cable makers such as LS Cable & System to commercialize superconducting systems can also be read as a favorable backdrop for Seonam's position in the domestic supply chain.

Expanding Fusion and Global Certification Track

Seonam was selected in February 2025 as a material supplier for the UKIFS-led STEP fusion program under the UK's UKAEA, with reports indicating the program's total wire requirement could reach roughly 90,000 km on a 4mm basis.

The expansion of joint research between Seoul National University's Applied Superconductivity Research Center and UKIFS into a third phase worth about KRW 20 billion starting in 2026, extending to prototype fusion magnet development, could help bolster confidence in the broader domestic superconductor ecosystem.

This kind of global track record has the potential to serve as a favorable reference when bidding for fusion projects in other countries.

Signs of Revenue Recovery and a Diversified Customer Base

Annual revenue, which had fallen to KRW 1.41 billion in 2024, recovered to KRW 3.39 billion in 2025, and Q2 2026 revenue also rose to KRW 1.198 billion versus the prior quarter.

The customer base is spread across not only major domestic firms such as Korea Electric Power Corporation, LS Cable & System, and LS Electric, but also overseas institutions and companies including NASA, Airbus, Siemens, Nexans, and VEIR, reducing reliance on any single contract.

Bear factors

Four Consecutive Years of Operating Losses and Fixed-Cost Burden

The company posted operating losses every year from 2022 through 2025, and in the first half of 2026 losses continued at KRW 894 million in Q1 and KRW 1.606 billion in Q2.

While quarterly revenue has ranged between KRW 453 million and KRW 1.2 billion, operating losses have instead widened, indicating that fixed costs related to production and R&D are outpacing the pace of revenue growth.

Volatility of Order-Based Revenue

The company itself has stated that revenue fluctuates according to project order timing given its order-based sales structure, and revenue indeed plunged in 2024 before recovering in 2025, reflecting low predictability.

Recently disclosed contracts, including the KRW 430 million agreement with VEIR and the roughly KRW 662 million contract disclosed in early September, are each individually too small to materially shift annual results.

Competitive Disadvantage in Magnet Applications

Multiple research sources have pointed out that Seonam's characteristics in magnet applications lag competitors, contributing to weaker results.

With the superconductor industry split between power and magnet application segments, a competitive disadvantage in magnets could constrain entry into higher value-added markets such as fusion and medical magnets going forward.

Risk factors

Financial Soundness

Net losses attributable to controlling shareholders continued at KRW 11.25 billion in 2023, KRW 3.94 billion in 2024, and KRW 3.98 billion in 2025, causing total equity to fluctuate. Continued loss accumulation could raise the possibility of additional capital raises or equity-erosion management issues.

Order Concentration and Contract Execution

Individual supply contracts frequently account for 10 to 20 percent of revenue, meaning delays or cancellations of a single contract could immediately affect results. Structures like the VEIR contract, which repeat as short three-month agreements, reduce long-term revenue visibility.

Uncertainty Over Technology Commercialization Timing

Commercial fusion power is expected only in the 2040s, a long-term undertaking, and even data center superconducting cables like VEIR's are targeting 2026 commercialization while still in an early market-formation stage.

Delays in commercialization or the emergence of competing solutions, such as a stabilization in copper prices, pose a risk of delaying Seonam's growth narrative.

What to watch next

Around October 13, 2026
Check whether the KRW 430 million VEIR wire supply contract is completed as scheduled and whether a follow-on contract is signed.
Mid-November 2026
Watch the Q3 2026 earnings disclosure to see whether the operating loss widening seen in Q2 continues and whether the revenue recovery persists.
From September 2026 onward
Track the delivery progress of the roughly KRW 662 million second-generation HTS wire supply contract disclosed on September 4, 2026.
Through March 2027
Monitor progress on the third-phase joint research between Seoul National University's Applied Superconductivity Research Center and UKIFS (development of a 3-meter fusion magnet prototype), and whether Seonam's role as a STEP program material supplier translates into actual volume supply.

Overall view

As Korea's sole producer of second-generation HTS wire, Seonam has a business structure linked to multiple growth themes including AI data center power infrastructure and fusion energy, and continues to expand overseas partnerships with VEIR, UKIFS, and the University of Houston, among others.

However, the confirmed financial data shows a different picture: four consecutive years of operating losses from 2022 through 2025, with losses continuing to widen in the first half of 2026, reflecting that order-based revenue volatility and fixed-cost burdens remain unresolved.

Individual contracts have generally amounted to only 10 to 20 percent of revenue, not large enough to fundamentally alter annual results.

On the industry side, favorable conditions are forming around data center power constraints, copper-substitution discussions, and the UK's fusion program, but the actual timing of commercialization and mass production remains a long-term challenge.

Investors should recognize the gap between market interest in the growth theme and the company's financial performance, and continue to monitor whether future order disclosures and earnings reports narrow that gap.

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.