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
Shinsung ST, a battery-part specialist, has seen quarterly revenue expand rapidly on the back of a growing secondary-battery and ESS mix and the ramp-up of its new Kentucky plant, but full-year 2025 profitability deteriorated sharply and 2026 has so far alternated between quarterly profit and loss in an early-stage recovery.
Revenue rose for four straight quarters from KRW 23.9bn (2025Q2) to KRW 59.9bn (2026Q2), driven mainly by an expanding secondary-battery and ESS mix
FY2025 operating margin fell to 1.9% and owner-attributable net profit to KRW 0.55bn, down sharply from 6.9% and KRW 7.1bn in 2024
After an operating loss in 2026Q1, the company returned to profit in 2026Q2 with operating income of KRW 1.67bn and net income of KRW 1.23bn
The new Kentucky plant is ramping up Heat Sink and ESS container production, emerging as a North American growth driver
Acquisition of the remaining 50% stake in the Poland unit is planned for H2 2026, with consolidation into revenue expected from 2027
Founded in 2004 and listed on KOSDAQ in 2023, Shinsung ST is a battery-part specialist and an affiliate of Shinsung Delta Tech.
Its core products are conductive Busbars that connect current between battery cells and Module Cases that protect cells from external shock, and it has recently expanded into liquid-cooled thermal management Heat Sinks and finished ESS containers.
Its main customers are Korean battery cell makers LG Energy Solution and SK On, through which components ultimately reach global automakers and battery manufacturers.
The secondary-battery business accounts for more than 71.3% of total revenue, making it the company's core business, while the remaining roughly 28% comes from EV camera modules and electronic components produced and sold through its Vietnam subsidiary.
Domestically the company operates its Changwon headquarters plus plants in Gumi and Haman, and both the Gumi and Haman sites produce secondary-battery components including ESS module cases and conductive parts. Overseas production has expanded beyond China, Vietnam and Poland to the United States.
With the completion of its US subsidiary, Shinsung ST now has four overseas production bases in China, Vietnam, Poland and the United States. A notable recent structural shift was the pivot from an originally planned Busan expansion to local production in Kentucky in response to tariff risk.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩23.9B | ₩200M | 0.8% |
| 2025Q3 | ₩29.6B | ₩1.4B | 4.7% |
| 2025Q4 | ₩34B | -₩2.2B | −6.6% |
| 2026Q1 | ₩50.2B | -₩500M | −1.1% |
| 2026Q2 | ₩59.9B | ₩1.7B | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩106.5B | ₩7.9B | ₩9.3B | 7.4% | 25.5% | 135.5% |
| 2023 | ₩124.7B | ₩8.4B | ₩9.1B | 6.7% | 9.4% | 40.4% |
| 2024 | ₩127B | ₩8.8B | ₩7.1B | 6.9% | 6.9% | 40.8% |
| 2025 | ₩116.9B | ₩2.3B | ₩600M | 1.9% | 0.5% | 136.1% |
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
Annual results held up well from 2022 to 2024, with revenue rising from KRW 106.5bn to KRW 127.0bn and operating margin at 7.4% and 6.9% respectively, but in 2025 revenue slipped to KRW 116.9bn while operating margin collapsed to 1.9%, shrinking owner-attributable net profit to just KRW 0.55bn.
The debt ratio also jumped from 40.8% in 2024 to 136.1% in 2025, reflecting the heavy capital outlays tied to the new US Kentucky subsidiary.
On a quarterly basis, revenue of KRW 23.9bn and operating income of KRW 0.18bn (with a net loss of KRW 0.23bn) in 2025Q2 improved to revenue of KRW 29.6bn and operating income of KRW 1.38bn (net profit of KRW 0.10bn) in 2025Q3, but 2025Q4 revenue grew to KRW 34.0bn even as the company posted an operating loss of KRW 2.25bn and a net loss of KRW 1.52bn, its worst quarter.
Rising costs weighed on profitability, and in the fourth quarter the initial fixed-cost burden from delays in ramping up the new US plant compounded the issue, pushing the quarter into an operating loss (1Q25 operating margin of +10.0% swung to -6.6% in 4Q25).
In 2026, first-half revenue accelerated further, from KRW 50.2bn in Q1 to KRW 59.9bn in Q2, and after an operating loss of KRW 0.54bn in Q1 the company swung back to an operating profit of KRW 1.67bn and net profit of KRW 1.23bn in Q2.
Over the trailing four quarters (2025Q3-2026Q2), cumulative owner-attributable net profit remained in negative territory at roughly -KRW 1.14bn, indicating that top-line growth has not yet translated into a full profit recovery, a pattern consistent with fixed-cost pressure from newly launched overseas plants overlapping with the cost of a shifting product mix.
The consensus industry view is that the electric vehicle (EV) market remains in a chasm-like phase of temporary demand stagnation before mass adoption, while the ESS (energy storage system) market is growing quickly on the back of AI and data-center-driven electricity demand.
According to market research firm P&S Intelligence, the North American ESS battery market grew from 48 gigawatts (GW) in 2024 to 53GW in 2025 and is projected to expand to 120GW by 2032. Overlapping US tariff policy on China is also seen as creating a supply-chain realignment opportunity.
High tariff barriers on Chinese products are seen as a positive for Shinsung ST given its entry into the North American ESS market, with expectations that a meaningful share of Chinese-made ESS battery demand, which currently holds roughly a 90% share of the North American ESS market, could shift to Korean companies.
Competitively, Shinsung ST has long served as a tier-one supplier of Busbars and Module Cases to domestic battery cell makers, and it is reportedly benefiting as thermal management (Heat Sink) sourcing shifts away from existing Chinese suppliers.
Still, weaker EV demand remains a persistent downside factor and is part of the reason the company's product mix is rapidly rebalancing toward ESS and thermal management components.
The company plans to begin mass production of Heat Sink units for LG Energy Solution around May 2026 at its new Kentucky plant (annual capacity of 20GWh), progressively delivering against roughly KRW 1.1 trillion in related orders through 2030, with a stated goal of capturing more than a 30% share of the customer's thermal management system sourcing.
It plans to deliver liquid-cooled ESS thermal management 'Heat Sink' components to LG Energy Solution starting in May 2026, with mass production beginning at the new Kentucky plant (annual capacity of 20GWh); an initial order of KRW 1.1 trillion is to be delivered through 2030, and starting with this order the company aims to secure more than a 30% share of the customer's thermal management system.
The Poland subsidiary, in which Shinsung ST currently holds a 50% stake, is expected to have the remaining stake acquired in the second half of 2026, bringing it into consolidated revenue from 2027; the unit is slated to produce the higher-value Top Plate Assembly (TPA) module case from 2026 to 2035, supplying Ford through LG Energy Solution starting in the second half of 2026.
The remaining 50% stake is to be secured in the second half of 2026, bringing the Poland subsidiary's revenue into consolidation from 2027; the unit will begin producing the higher value-added TPA (Top Plate Assembly) module case from 2026 to 2035, to be supplied to Ford through LG Energy Solution starting in the second half of this year.
As a result of this product diversification, the secondary-battery segment's share of revenue is expected to rise from 71% in 2025 to more than 80% in 2026. The company's secondary-battery parts mix is projected to rise from 71% in 2025 to more than 80% in 2026.
Management has stated that once the second Kentucky plant (for ESS containers, an investment of roughly KRW 70 billion) is operational, US production capacity alone could generate up to KRW 700 billion in annual revenue, with total company revenue potentially reaching up to KRW 1 trillion by 2027.
The company plans to establish an additional second plant in Kentucky, and once product mass production begins in the second half of next year, US production capacity could reach up to KRW 700 billion; Shinsung ST has projected that if its US market entry and ESS product upgrades succeed, revenue could reach up to KRW 1 trillion by 2027.
The company's earnings trajectory has been unsteady, swinging from a 2024 profit to a sharp profit decline in 2025 and back into a net loss over the trailing four quarters, placing it in an early and uneven recovery phase.
Because of this, profit-based valuation metrics carry limited interpretive value, and market pricing appears to lean more on revenue growth and order backlog than on trailing profitability.
The share price has continued to trade within the historical band established since listing, and relative to net asset value it tends to carry a certain premium.
Dividends have remained modest each year, suggesting that investor focus centers less on dividend yield and more on the pace of earnings improvement as the secondary-battery and ESS businesses scale.
Going forward, the stabilization of utilization at the new US plant and the timing of the Poland subsidiary's consolidation are likely to be key variables for any valuation reassessment.
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
The secondary-battery segment's revenue share is projected to rise from 71% in 2025 to over 80% in 2026, alongside diversification into higher-value new products such as Heat Sink and TPA.
Even amid the EV chasm, ESS demand has remained resilient, allowing the company's shifting product mix to support both revenue defense and growth. Four consecutive quarters of rising revenue suggest this structural shift is already showing up in actual sales.
By establishing its own production base in Kentucky, the company has preemptively addressed tariff risk and is capturing an opportunity to displace existing Chinese supply chains through Heat Sink mass production.
As the North American ESS market grows rapidly on AI and data-center demand, local production could serve as a competitive advantage in terms of customer responsiveness and tariff mitigation, while expanded European automaker supply through the Poland subsidiary adds regional diversification.
The return to both operating and net profit in 2026Q2, following an operating loss in Q1, suggests the initial cost burden from the new plant may be gradually easing.
If new orders for Heat Sink and ESS containers are recognized as revenue in sequence, quarterly earnings volatility could diminish going forward, and the planned 2027 consolidation of the Poland subsidiary is also cited as a factor that could expand the medium-term earnings base.
Operating margin plunged to 1.9% in 2025 from 6.9% the prior year, and owner-attributable net profit shrank sharply to roughly KRW 0.55 billion.
Over the same period the debt ratio jumped from 40.8% to 136.1%, reflecting a heavier financial burden from new overseas investment, and the trailing four-quarter total remains in net loss territory, indicating the profit recovery is not yet complete.
Amid continued EV demand weakness, delays in ramping up the new Kentucky plant were cited as a direct cause of the 2025Q4 operating loss.
If utilization at the new line fails to rise as expected or further delays occur, similar fixed-cost pressure could recur, and any slippage in the timeline for acquiring the Poland stake and consolidating its revenue could also delay the broader growth narrative.
A significant portion of revenue depends on transactions with a small number of battery cell makers such as LG Energy Solution, meaning changes in customer investment or production plans could directly affect results.
The secondary-battery industry itself has not fully emerged from the chasm phase, and ESS demand can also fluctuate with the pace of policy support and power infrastructure investment, while raw material (such as aluminum) prices and tariff policy changes remain cost-side risks.
Over the past five quarters, operating and net profit have alternated between gains and losses, leaving low visibility on earnings predictability.
During the early ramp-up phase of a new plant, fixed-cost burdens can swing quarterly results significantly, and it may take additional time to reach a stable profit trajectory. Investors should track the pace of margin stabilization separately from top-line growth.
With multiple overseas investments underway simultaneously, including the first and second Kentucky plants and the expanded Poland stake, execution risks exist around funding, staffing and certification processes.
Given the sharp rise in the debt ratio in 2025, the financial burden could vary depending on how additional investment is funded (borrowing versus internal cash), and any delay beyond the planned schedule could increase fixed-cost pressure.
While US tariff policy toward China is expected to work in the company's favor, trade policy can be highly volatile depending on the political environment.
If tariff policy eases or is applied differently than expected, the comparative advantage from local production could weaken, and changes in EV and ESS subsidy policies across countries also remain a variable that could affect downstream demand.
2026Q3 earnings are due to be released — watch whether the Q2 return to profit continues and whether improving Kentucky plant utilization is reflected in margins.
Check progress on Heat Sink volume ramp-up at Kentucky Plant 1 and investment progress at Plant 2 (ESS containers) — whether the initial fixed-cost burden eases is the key variable.
Confirm whether the acquisition of the remaining 50% stake in the Poland subsidiary is completed — this will provide a basis for estimating the scale of 2027 revenue consolidation.
Confirm whether the Kentucky Plant 2 (ESS container) begins operations and the scale of initial revenue recognition.
FY2026 annual results are due to be finalized via DART filing — final confirmation of whether the secondary-battery revenue mix reached the targeted 80%-plus and whether annual margins recovered.
Shinsung ST is in a transitional phase, shifting its business axis from secondary-battery components toward becoming an ESS solutions specialist, and the steady rise in revenue over the past four quarters shows this shift is progressing on the top line.
However, as evidenced by the operating margin's plunge to 1.9% and the debt ratio's jump to 136.1% in 2025, the initial cost burden from large-scale overseas investments such as the new Kentucky plant is placing significant pressure on profitability.
The return to profit in 2026Q2 is a positive signal, but the trailing four-quarter total remains in net loss territory, so it is premature to conclude that a full profit recovery has taken hold.
Multiple events likely to affect future results—mass production of higher-value products like Heat Sink and TPA, consolidation of the Poland subsidiary, and the start-up of the Kentucky Plant 2—are scheduled from the second half of 2026 into early 2027.
Investors will want to track both the durability of revenue growth and the pace at which utilization stabilizes and margins recover at the new production sites.
Report written 2026-09-05 · Data as of 2026-09-04
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