Hyundai Wia makes automotive driveline parts such as four-wheel-drive systems, constant-velocity joints, engines, and transmissions. More than 90% of its revenue comes from vehicle components, and because its customers are effectively Hyundai Motor and Kia, its results move closely with those automakers' unit sales. In 2025, vehicle-parts revenue of ₩7.8 trillion accounted for the bulk of the company's ₩8.5 trillion total. In the remaining defense and mobility-solutions business (roughly ₩600 billion a year), the company disclosed that it is reviewing a possible sale of its defense unit, and it laid out a plan to invest ₩1 trillion over eight years in integrated thermal management (TMS) and unmanned factories, aiming to lift new-business revenue from 3% to 21% of the total. Worth noting recently is the mix of clear undervaluation signals and a solid balance sheet (P/B of 0.48x, FCF yield of 8.7%) alongside cautions that could change the picture: a softening finished-vehicle market, the burden of the ₩1 trillion investment, and an as-yet-undecided defense-unit sale.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 3.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.7% higher than a year earlier.
- ROE is 2.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.4%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Motor 25.35% (individual)
Controlling bloc incl. related parties 40.74%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis
- Hyundai Wia makes automotive driveline parts.
- Its main products are four-wheel-drive systems, constant-velocity joints (the shafts that transmit power to the wheels), engines, and transmissions, and more than 90% of revenue comes from these vehicle components.
- In 2025, vehicle-parts revenue of ₩7.8 trillion accounted for the bulk of the ₩8.5 trillion total.
- Because its customers are effectively the Hyundai Motor and Kia group, results are tightly linked to finished-vehicle sales.
- The rest is defense and mobility solutions (roughly ₩600 billion a year), where it makes parts for self-propelled artillery and armored vehicles.
- The company wound down its machine-tool business, whose profitability had been erratic, simplifying its structure into three pillars: vehicle parts, defense, and solutions.
- The latest close is ₩59,400 and the market cap is ₩1.6 trillion.
- The price sits below the 20-day line (₩68,335) and below the 60-day line (₩79,310).
- Trading under both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.5, a neutral level.
- The one-month change is -18.2%, the three-month change is -21.4%, and the price stands -41.4% below its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale, weighting recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 40.1%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The valuation metrics tell different stories.
- The P/E ratio (how many times a year's earnings the price represents) is 16.31x, which looks somewhat high, but the P/B (how many times book net assets the price represents) is 0.45x, about half of net assets.
- Equity is ₩3.6 trillion while the market cap is only ₩1.7 trillion.
- Profitability is still low: ROE (how much the company earns in a year on its equity) is 2.7% and the operating margin is 2.4%, the thin margins typical of the parts business.
- The balance sheet is stable.
- Net debt (total borrowings minus cash) is ₩100 billion, negligible relative to equity, and the current ratio (ability to meet short-term obligations) is a comfortable 1.9x.
- Cash generation stands out in particular: the FCF yield (actual cash earned relative to market cap) is a high 8.7%, and EV/EBIT (an earnings multiple that also reflects debt, akin to a debt-adjusted P/E) is 9.0x.
- The P/E alone makes it look expensive, but once debt and cash are factored in it screens much cheaper.
- Revenue has grown modestly around the ₩8 trillion mark for five years running.
- Revenue rose 3.7% in 2025, and it grew another 5.7% in the first quarter of this year, so top-line growth continues.
- The earnings picture is different, however.
- Operating profit slipped from ₩232.8 billion in 2023 to ₩204.4 billion in 2025.
- Net profit swings more widely.
- The ₩99.0 billion net profit for 2025 included a large one-off gain in the first quarter of last year, and as that base rolled off, first-quarter net profit this year fell 65% year on year to ₩35.4 billion.
- Yet operating profit in the same quarter actually rose 6.2%.
- The key point is that the core business is solid and it is the accounting one-off effect that dropped out.
- Stripping out the one-off, this year's operating profit is estimated in the low ₩200 billion range and net profit at around ₩120 billion.
- On that basis the forward P/E is about 14.5x, lower than the 17.6x based on last year's results.
- The biggest issue this year is the review of a possible sale of the defense unit.
- In two disclosures, in April and May, the company said it was 'reviewing various options to strengthen competitiveness but has decided nothing.' One option under discussion is transferring the roughly ₩400 billion-a-year defense business to a group affiliate.
- If a sale goes through, the proceeds are expected to fund new-business investment such as thermal management (TMS).
- In fact, the company laid out a plan to invest ₩1 trillion over the next eight years in integrated thermal management and unmanned factories (dark factories), lifting new-business revenue from the current 3% to 21% of the total.
- The dividend is ₩1,200 per share for a 1.9% dividend yield, and the company is targeting a return to a 25% payout ratio.
- The points to watch are clear.
- The core driveline business is solid, the balance sheet is sound, and cash generation is strong.
- A P/B of 0.48x and an FCF yield of 8.7% signal that the market values this company quite low.
- Based on last year the P/E looks high, but that reflects net profit tangled up with a one-off, and on a normalized forward basis this year it screens rather cheap.
- The cautions are also clear.
- Because results are tightly linked to finished-vehicle sales, a downturn in the auto market hits parts suppliers first.
- The shift into the thermal-management business is directionally sound, but the ₩1 trillion investment could constrain dividend capacity.
- The defense-unit sale is also not yet confirmed, so the picture depends on the outcome.
- In sum, if finished-vehicle volumes hold and the shift into new businesses goes smoothly, the undervaluation stands out; if the auto market softens or the investment burden grows, it weakens.
🔎 Valuation vs peers Undervalued
Compared against listed auto-parts makers (chassis, steering, thermal management) that supply the Hyundai Motor and Kia group, using HL Mando and Hanon Systems, whose business profile is closest, as the benchmark.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hanon Systems | 0.00x | 0.97x | -5.27% |
On a net-asset basis it is the most lowly valued of its peer parts makers. A P/B of 0.48x is about half of net assets, and the market cap (₩1.7 trillion) is only half of equity (₩3.6 trillion). Last year's P/E of 17.6x looks high, but that is because net profit was tangled up with a one-off factor. On normalized earnings this year (net profit estimated at about ₩120 billion), the forward P/E falls to about 14.5x, and the debt- and cash-adjusted EV/EBIT of 9.0x and FCF yield of 8.7% also point to cheapness relative to cash generation. That said, low ROE and results that are strongly tied to finished-vehicle sales are discount factors, so the undervaluation stands out as earnings normalize and new-business results are confirmed.
Price history Close · MA20 · MA60
The latest close is ₩59,400 and the market capitalization is ₩1.6 trillion. The price sits below its 20-day moving average (₩68,335) and below its 60-day moving average (₩79,310). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.5, a neutral level. The one-month change is -18.2%, the three-month change is -21.4%, and the position relative to the 52-week high is -41.4%. Relative strength versus the KOSPI is 34 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 34% of all stocks. Over the past three months it lagged the index by 40.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -40.05% / 6M -50.65% / 12M -47.55%
Key metrics vs sector median
Valuation
The P/E of 16.31x is above the sector median (7.76x). The P/B of 0.45x is below the sector median (0.56x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.212x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.7%, below the sector average (7.0%). The operating margin is 2.4%. The debt ratio is 82.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.4B | $5.4B | $5.6B | +3.68% ↑ faster |
| Operating profit | $154.3M | $145.0M | $135.5M | -6.58% ↓ slower |
| Net profit | $60.6M | $79.8M | $65.6M | -17.78% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.0B | $5.4B | $5.4B | $5.4B | $5.6B |
| Operating profit | $68.1M | $140.6M | $154.3M | $145.0M | $135.5M |
| Net profit | $41.3M | $43.4M | $60.6M | $79.8M | $65.6M |
| Revenue CAGR | 4-yr avg 3.03% | ||||
Revenue rose 3.7% year over year (2023 ₩8.2 trillion → 2024 ₩8.2 trillion → 2025 ₩8.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 6.6% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.0%. The two-year revenue CAGR is 1.9%. In the most recent quarter (Q1 2026), revenue was 5.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15FilingClarifying disclosure on the review of a defense-unit sale - stated it is 'reviewing various options but has decided nothing'A sale of the roughly ₩400 billion-a-year defense business would reshape the company toward vehicle parts, and the proceeds could be redirected as funding for new businesses (a medium-term structural change). Source
- 2026-05-14EarningsQ1 2026 quarterly report - revenue ₩2.18 trillion (+5.7%), operating profit ₩51.6 billion (+6.2%), net profit ₩35.4 billion (-65% on last year's one-off base)Operating profit rose, but net profit plunged as last year's Q1 one-off gain dropped out. Core-business strength held (mixed short-term signal). Source
- 2026-04-24EarningsFair disclosure of preliminary 2025 consolidated operating results - revenue ₩8.48 trillion (+3.7%), operating profit ₩204.4 billion (-6.6%), net profit ₩99.0 billionRevenue grew modestly but operating and net profit slipped slightly. Margin pressure on parts persists (medium term). Source
- 2026-04-20IRNotice of investor briefing (IR) and preview of year-end results disclosure - results and new-business strategy to be explainedA venue to explain the thermal-management new business and shareholder-return direction directly to the market (confirming medium-term direction). Source
- 2026-03-26UpdateFiling of change in shares held by the largest shareholder and others - disclosure of ownership changes within the governance structureAn update on governance-related information. Direct impact on results and the business is limited (low short-term impact). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-27Disclosure
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-20Disclosure
- 2026-04-20EarningsEarnings disclosure
- 2026-04-16Disclosure
- 2026-04-09Disclosure
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-26OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.