Sungwoo Hitech is a Tier-1 supplier that stamps steel sheet into body panels, bumper beams, and chassis modules and delivers them as complete assemblies to automakers. Most of its revenue comes from Hyundai Motor and Kia group volumes, and it also supplies locally from plants near Hyundai's overseas factories in India, China, and Europe. In 2025 it posted full-year revenue of ₩4.4 trillion and operating profit of ₩242.7 billion, and in the first quarter of 2026 it recorded revenue of ₩1.07 trillion and operating profit of ₩54.5 billion, while returning capital through a cash dividend of ₩200 per share for a yield of about 3%. What stands out lately is that, with profitability underpinned by a 10.5% ROE, a low forward P/E in the 3.11x range makes the stock look undervalued when vehicle production holds up; but with revenue heavily dependent on Hyundai and Kia volumes and a debt ratio of 286.9%, the debt burden could become more visible if volumes decline.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 286.9%).
- Revenue rose 3.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.0% higher than a year earlier.
- ROE is 10.5% (total-net basis). It is above the sector average.
- Operating margin is 5.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Sungwoo Holdings (Note 1) 32.74% (corporate)
Controlling bloc incl. related parties 44.87%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Sungwoo Hitech makes the body (frame) parts that form the skeleton of a car.
- Its mainstay products are body panels stamped from steel sheet, bumper beams (the front and rear impact-absorbing frame), and chassis (lower-frame) modules, delivered as complete assemblies in a Tier-1 supplier structure.
- Since the overwhelming majority of revenue comes from Hyundai Motor and Kia group volumes, these automakers' production units, body design changes, and structural shifts from the transition to electric vehicles translate directly into work for Sungwoo Hitech.
- Beyond Korea, it also runs production subsidiaries near Hyundai's overseas plants in India, China, and Europe to supply locally — a form of global co-advancement that is another pillar of revenue.
- The recent closing price is ₩5,660 and the market capitalization is ₩452.8 billion.
- The price sits below the 20-day line (₩6,388) and below the 60-day line (₩7,620).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward momentum over the last 14 days on a 0–100 scale) is 33.4, a neutral level.
- The one-month change is -12.5%, the three-month change is -32.0%, and the position versus the 52-week high is -50.0%.
- Relative strength versus the KOSDAQ is 69 (on a 1–99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 30% of all stocks by strength.
- Over the past three months it lagged the index by 11.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed annual (2025) results, the P/E ratio (how many times a year's net profit the share price represents) is 2.55x and the P/B (how many times net assets the share price represents) is 0.27x.
- Profitability is decent for a parts maker, with ROE (how much is earned in a year on equity) of 10.5% and an operating margin of 5.5%, and that ROE is higher than same-structure suppliers Hyundai Mobis (7.4%) and HL Mando (3.7%).
- In other words, the low P/B of 0.28x is not because profitability is poor but rather the result of the share price being cheap relative to net assets.
- The forward P/E on this year's earnings is also around 3x, well below the peer median (Hyundai Mobis 12.7x, HL Mando 23.0x), so whether measured on last year's or this year's earnings, the signal that the price is low relative to earnings is consistent.
- The debt ratio is 286.9%, with debt exceeding equity, and an interest coverage ratio of 2.65x means operating profit does not cover interest with great room to spare — a point to weigh alongside the valuation.
- Over five years, revenue rose from ₩3.3 trillion in 2021 to ₩4.4 trillion in 2025, and operating profit grew from ₩76.4 billion to ₩242.7 billion over the same period, so profit improved even more than the top line.
- For full-year 2025, revenue was up 3.2%, operating profit up 17.9%, and net profit up 31.7%, a recovery trend.
- The first quarter of 2026 started with pressured profitability: revenue of ₩1.07 trillion (+2.0%) but operating profit of ₩54.5 billion (-6.5%) and net profit of ₩31.2 billion (-27.1%).
- That said, body parts is an industry where quarterly volumes vary widely with vehicle production schedules and the timing of new-model launches, so it is too early to call the annual direction from one quarter's slowdown alone.
- A forward P/E of 3.11x on this year's earnings is far below peers, which reads as this year's earnings power still being thick as long as Hyundai and Kia production volumes hold and the exchange-rate and pricing environment remains supportive.
- The basis for this picture is that the company maintains a 10.5% ROE and a 5.5% operating margin even after its revenue base has climbed to the ₩4.4 trillion range.
- Recent disclosures center on periodic reports, dividends, and shareholder-meeting agenda items.
- The May 2026 quarterly report delivered confirmed first-quarter results (revenue ₩1.07 trillion, operating profit ₩54.5 billion, net profit ₩31.2 billion), and the March business report confirmed full-year 2025 figures (revenue ₩4.4 trillion, operating profit ₩242.7 billion, net profit ₩177.8 billion).
- From late February through April, a cash dividend (₩200 per share) was resolved and amended, sustaining capital returns at a yield of about 3%, and the March regular shareholders' meeting handled agenda items including approval of the financial statements and election of directors.
- No separate fair-disclosure of major new orders or future business plans was confirmed during this period, so the earnings direction is a matter to gauge from vehicle production volumes and quarterly results disclosures.
- The strengths are clear.
- The P/E and P/B are low versus peers and the forward P/E on this year's earnings is also in the 3x range, well below the comparison group, while a 10.5% ROE ahead of Hyundai Mobis and HL Mando shows the low valuation is not due to weak profitability.
- Add a 3% dividend yield in capital returns, and an undervalued character — the price marked cheap relative to assets and earnings — is distinct.
- Points to watch alongside are the financial structure with a 286.9% debt ratio and the revenue mix heavily dependent on Hyundai and Kia volumes.
- In sum, this is a stock where a low valuation and thick earnings power stand out when vehicle production provides support, and which enters a phase where the debt burden becomes more prominent if vehicle volumes decline or pricing pressure drags on.
- The price itself sits low relative to earnings and net assets, so the key is confirming vehicle production volumes and the pace of profitability recovery through quarterly results.
🔎 Valuation vs peers Undervalued
Among Tier-1 suppliers of body, chassis, and parts in the Hyundai Motor and Kia delivery structure, those with a similar business nature and figures verifiable on-site were compared.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Mobis | 11.54x | 0.86x | 7.44% |
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hwaseung Corporation | 1.68x | 0.46x | 27.54% |
Looking at its position versus peers, Sungwoo Hitech's P/E and P/B sit lower not only than Hyundai Mobis and HL Mando but than most body-parts makers, while its profitability (ROE 10.5%) is in fact ahead. That combination suggests a discount is attached to the price relative to assets and earnings. That said, (a) the structural dependence of revenue on Hyundai and Kia volumes, and (b) the financial burden of a 286.9% debt ratio act as the backdrop to that discount, and (c) the P/E of 3x is a trailing figure using last year's confirmed earnings as the denominator, so in a phase where earnings inflect — like the -27% net profit in the first quarter of 2026 — the same price can look more expensive on a forward basis. Using this year's net profit of about ₩146.5 billion by seasonality approximation as the denominator, the forward P/E is around 3.6x — still low, but higher than the trailing 3.0x. So rather than declaring it flatly cheap, it is better viewed as conditionally undervalued: the undervaluation appeal stands out if the earnings slowdown is temporary, and the margin of safety thins if the slowdown becomes structural.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩1.13 trillion | approx. ₩53.9 billion | approx. ₩22.4 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,660 and the market capitalization is ₩452.8 billion. The price sits below its 20-day moving average (₩6,388) and below its 60-day moving average (₩7,620). 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 33.4, a neutral level. The one-month change is -12.5%, the three-month change is -32.0%, and the position relative to the 52-week high is -50.0%. Relative strength versus the KOSDAQ is 69 (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 70% of all stocks. Over the past three months it lagged the index by 11.2%. 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 -11.21% / 6M +2.78% / 12M -7.14%
Key metrics vs sector median
Valuation
The P/E of 2.55x is below the sector median (7.76x). The P/B of 0.27x is below the sector median (0.56x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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.
Profitability & financials
Return on equity (ROE) is 10.5%, above the sector average (7.0%). The operating margin is 5.5%. The debt ratio is 286.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.9B | $2.8B | $2.9B | +3.24% ↑ faster |
| Operating profit | $170.2M | $136.5M | $160.8M | +17.87% ↑ faster |
| Net profit | $116.5M | $89.5M | $117.9M | +31.68% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.2B | $2.6B | $2.9B | $2.8B | $2.9B |
| Operating profit | $50.6M | $65.7M | $170.2M | $136.5M | $160.8M |
| Net profit | $29.8M | $25.8M | $116.5M | $89.5M | $117.9M |
| Revenue CAGR | 4-yr avg 6.96% | ||||
Revenue rose 3.2% year over year (2023 ₩4.3 trillion → 2024 ₩4.2 trillion → 2025 ₩4.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 17.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.0%. The two-year revenue CAGR is 0.7%. In the most recent quarter (Q1 2026), revenue was 2.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 3.5%, is on the high side.
- ROE of 10.5% points to solid profitability.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-15UpdateFirst quarter 2026 quarterly report — revenue ₩1.07 trillion (+2.0%), operating profit ₩54.5 billion (-6.5%), net profit ₩31.2 billion (-27.1%)Short term: the top line held, but net profit fell sharply year on year, a signal of an earnings slowdown. Whether profitability recovers as the quarters progress is the key point. Source
- 2026-04-09DividendAmendment to cash and in-kind dividend decision — year-end dividend of ₩200 per share, payout ratio about 9.5%Medium term: sustains capital returns at a dividend yield of about 3.0%. With a low payout ratio, there is room to expand returns if results provide support. Source
- 2026-03-27FilingRegular shareholders' meeting results — approval of financial statements, election of directors, and other agenda items handledShort term: routine items on governance and dividends were finalized. The direct earnings impact is limited, but the continuity of the capital-return policy can be confirmed. Source
- 2026-03-19Update2025 business report — consolidated revenue ₩4.4 trillion, operating profit ₩242.7 billion (+17.9%), net profit ₩177.8 billion (+31.7%)Medium term: confirms the 2025 annual earnings recovery. A reference document underpinning the upward five-year operating-profit trend. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩4.38 trillion | (2025.12) | Confirmed | link |
| First quarter 2026 operating profit | ₩54.5 billion(-6.5%) | (2026.03) | Confirmed | link |
| Year-end dividend per share | ₩200 | ₩200 | Confirmed | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩253.6 billion | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-09DividendCash/stock dividend decision (amended)
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-03-10Amended filing
- 2026-02-25Shareholders' meeting notice
- 2026-02-25Shareholders' meeting notice
- 2026-02-25DividendCash/stock dividend decision
📖 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.