Samyoung: Profits Have Risen Sharply While the Share Price Has Fallen Back From Its High

Thesis

The data supports a clear improvement in earnings. Operating margin rose from 0.7% in 2022 to 9.7% in 2025 and 12.3% on a trailing basis, and ROE reached 27.6%. Trailing free cash flow of ₩29.1B is positive and substantial relative to the ₩176.8B market value.

The data does not explain the recent share price drop of 19.3% over one month and 14.0% over three months. No news headlines are available. Foreign ownership fell from 9.7% to 4.1% in 60 days, and the 20-day flows show foreign net selling against small net buying by institutions and retail. Filings show a change in the largest shareholder's holdings and a 5%+ holding report in early August, but their details are not in the data. The dividend yield is shown as 0.0%.

Business overview

Samyoung is a KOSPI-listed company in the rubber and plastics sector, founded in 1959 and listed in 1976. It has 34.0M listed shares and a market value of ₩176.8B. It is led by co-CEOs 이석준 and 조영한.

Revenue was ₩133.3B in 2021, ₩147.7B in 2022, ₩122.6B in 2023, ₩126.0B in 2024 and ₩153.2B in 2025. The share price is ₩5,200, against a 52-week range of ₩4,365 to ₩13,980, so it sits near the low end of that range. Its one-year return is still +12.8%.

Financial analysis

These figures come from filed financial statements. Revenue for the twelve months to H1 2026 was ₩191.0B, up from ₩153.2B in 2025, which itself grew 21.6%. Operating income was ₩23.5B, compared with ₩14.9B in 2025, ₩9.1B in 2024 and ₩1.0B in 2022. Net income was ₩23.5B, a net margin of 12.3%.

2023 net income of ₩18.6B was well above operating income of ₩6.0B, which suggests non-operating gains that year. ROE was 16.2% in 2025 and 27.6% on a trailing basis.

The balance sheet shows liabilities at 118.0% of equity, cash of ₩33.9B and borrowings of ₩50.0B, so borrowings exceed cash by about ₩16.1B. Free cash flow was ₩29.1B. An August filing mentions a decision on the acquisition of tangible assets, with no amount in the data.

Valuation

On trailing figures the P/E is 7.5, the P/B is 1.8 and the P/S is 0.9. Year-end P/E was 15.9 in 2025, 15.1 in 2024 and 8.2 in 2023, so the current P/E is lower than in the last three year-ends. The current P/B of 1.8 is below the 2.4 of 2025 year-end. EV/EBITDA is not available, and enterprise value is ₩192.9B.

Among the listed peers, P/E ranges from 3.2 (Kumho Tire) to 21.2 (Pum-Tech Korea), and P/B from 0.2 to 2.7. Samyoung's P/B of 1.8 is above most of them. The peers are much larger tire-related names, so comparability is limited.

The valuation model uses a 5-year discounted cash flow at a 7.4% rate. It gives a model estimate of ₩3,070 per share in the base case, ₩1,033 in the bear case and ₩6,679 in the bull case, based on the assumptions shown. The current price of ₩5,200 is above the base case and within the bear-to-bull range. The estimate is not a target and not a reason to act.

Catalysts

• The half-year report filed on 2026-08-13 gives the latest trailing figures, showing revenue of ₩191.0B and operating income of ₩23.5B.
• The 2026-08-10 filing on the decision to acquire tangible assets could change the company's capacity or spending, though no details are in the data.
• The change in the largest shareholder's holdings and the 5%+ holding report on 2026-08-03 point to ownership changes worth monitoring.
• Foreign ownership dropped from 9.7% to 4.1% in 60 days, and further flow changes could affect trading.
• The next quarterly filing will show whether the higher margins are holding.

Risks

• The share price fell 19.3% in one month and sits well below its 52-week high of ₩13,980, and the data gives no reason for the move.
• The model's base estimate of ₩3,070 is below the current price of ₩5,200, and the bear-to-bull range of ₩1,033 to ₩6,679 shows high uncertainty.
• Earnings have been volatile: operating margin was 0.7% in 2022, and 2023 net income relied on items beyond operations.
• Borrowings of ₩50.0B exceed cash of ₩33.9B, and liabilities are 118.0% of equity.
• Foreign investors have been net sellers, and no dividend yield is shown (0.0%), so returns depend on the share price.

Closing view

The filings show a real improvement in revenue, margins, ROE and cash flow, and the trailing P/E of 7.5 is below recent year-end levels. Against that, the share price has dropped sharply, foreign ownership has fallen, and the model estimate of ₩3,070 per share is below the market price, with a wide range. The data shows a company with stronger earnings whose recent profits may or may not last, and it does not settle that question.

Model estimate of fair value

Bear

₩1,033

-79%

Base

₩3,070

-38%

Bull

₩6,679

+34%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Half-year report (Jun 2026)Aug 13, 2026
• Major Matters Report (Decision on Acquisition of Tangible Assets)Aug 10, 2026
• Change in largest shareholder's holdingsAug 3, 2026
• 5%+ holding reportAug 3, 2026
• Disclosure of Corporate Governance ReportJun 1, 2026
• Quarterly report (Mar 2026)May 14, 2026
• Annual general meeting resultsMar 31, 2026
• Annual report (Dec 2025)Mar 23, 2026
• Audit report submittedMar 17, 2026
• Reference Document for Proxy Solicitation of Voting RightsMar 13, 2026
• Amended: Cash dividend decisionMar 10, 2026
• Cash dividend decisionFeb 27, 2026
• Daily prices up to 2026-10-23
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 24, 2026InitiationStart of coverage (reader request)Samyoung: Profits Have Risen Sharply While the Share Price Has Fallen Back From Its High