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JONBUR Research · Update note

SeAH Besteel Holdings · 001430 · Steel & Materials

SeAH Besteel Holdings: Q3 Operating Profit Falls 46.4% as Net Result Turns to a Loss

Why this report

Written after:

Preliminary Q3 2026 consolidated results show operating profit of ₩14.4B, down 46.4% from a year earlier, and a net loss. This weakens the margin-recovery story in our earlier report, and the model's fair value estimate has fallen sharply.

Written Oct 29, 2026 · Data as of Oct 28, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-29 the company released preliminary consolidated results for July to September 2026. These figures are provisional and may differ from final numbers.

Revenue was ₩1,056.3B, up 14.1% from ₩925.9B a year earlier but down 7.0% from ₩1,135.7B in Q2. Operating profit was ₩14.4B, down 46.4% from ₩27.0B a year earlier and down 75.9% from ₩59.8B in Q2. That implies an operating margin of about 1.4% for the quarter, calculated from the filed figures.

Pre-tax profit from continuing operations was a loss of ₩19.8B, against a profit of ₩46.3B a year earlier and ₩49.9B in Q2. Net income was a loss of ₩12.4B, against a profit of ₩33.9B a year earlier. Net loss attributable to owners of the parent was ₩13.0B.

For the first nine months, revenue was ₩3,159.6B (up 13.2%) and operating profit was ₩105.4B (up 17.7%). Net income was ₩44.7B, down 23.0% from ₩58.1B. The filing excerpt does not explain the causes of the drop in profit, including the swing from operating profit to a pre-tax loss.

The share price closed at ₩31,200 on 2026-10-28, the day before the release. That is 30.0% lower over one month and 66.3% below the 52-week high of ₩92,500. Foreign ownership was 5.7%, down from 8.9% sixty days earlier.

What it changes for the thesis

Our previous report on 2026-10-13 described an earnings recovery driven by margins rather than revenue growth, with operating income rising from ₩52.3B in 2024 to ₩98.4B in 2025. It also noted that the share price had risen much faster than profits.

The Q3 result complicates that picture. Revenue growth was solid, so the weakness is in margins and below the operating line, not in sales. The nine-month operating profit is still 17.7% above last year, so the recovery is not erased. However, the quarterly margin of about 1.4% is back near the 2024 annual level of 1.4%, and the Q3 swing to a net loss shows how fragile the recovery is. The share price has already fallen sharply since the previous report, which was written at ₩44,500.

What it changes for the valuation

The model's estimate has moved down a lot. It is a 5-year discounted cash flow at a 5.7% rate, based on trailing figures to H1 2026, so it does not yet include the Q3 numbers. It now gives a base case of ₩9,081 per share, a bear case of ₩0 and a bull case of ₩87,611. The previous report showed a base of ₩105,413, a bear of ₩41,418 and a bull of ₩254,607 at a 5.0% rate. The higher discount rate and updated inputs, rather than new trailing earnings, drive the change, though the data does not break down the exact causes.

The share price of ₩31,200 is now above the base case and below the bull case. This is a model estimate based on the assumptions shown, not a target, and the very wide range shows how sensitive the result is to assumptions.

Current multiples are P/E 12.6, P/B 0.6, P/S 0.3 and EV/EBITDA 9.6, with a dividend yield of 3.8%. The previous report showed P/E 18.0, P/B 0.8 and EV/EBITDA 5.9. Multiples based on trailing figures will change once Q3 is included. Free cash flow in the trailing period was negative at ₩220.7B, and borrowings were ₩1,370.5B against cash of ₩172.7B.

Closing view

The evidence is mixed to weaker. Sales growth is healthy and nine-month operating profit is still above last year, but the Q3 operating profit drop and the net loss undercut the margin-recovery thesis we described earlier. The model's fair value range has narrowed in the downward direction and now sits mostly below the earlier range, with a bear case of zero. Lower multiples and a higher dividend yield partly reflect the lower share price. Whether the Q3 weakness is temporary is not answered by the filing excerpt, so the next full quarterly report and any explanation from the company will matter most.

Model estimate of fair value

Bear
₩0
-100%
Base
₩9,081
-70%
Bull
₩87,611
+190%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 5.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 29, 2026Update noteEarningsSeAH Besteel Holdings: Q3 Operating Profit Falls 46.4% as Net Result Turns to a Loss
  2. Oct 13, 2026InitiationStart of coverage (300 largest)SeAH Besteel Holdings: Sharp Share Price Rally Against Modest Profit Recovery

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information