Fact Summary
In its semiannual report (DART receipt no. 20260814000512) filed on August 14, 2026, Sungeel HiTech disclosed that H1 2026 (consolidated, cumulative) revenue was KRW 137.7 billion and operating profit turned positive at KRW 6.3 billion, while net loss for the period was KRW 13.5 billion. The closing price on the same day was KRW 38,350, up 7.57% from the previous day, with trading volume of 234,579 shares. As of June 19, 2026, largest shareholder Lee Kang-myung and related parties held a 35.99% stake, and on May 8, 2026 the company received payment for 648,414 new shares (issue price KRW 69,400) from a third-party allotment capital increase, raising working capital for raw material purchases.
Price-Change Context Note
This price move occurred on the same day as the disclosure of the semiannual report, in which H1 2026 operating profit turned positive at KRW 6.3 billion, following three consecutive fiscal years of operating losses (2023–2025). However, the semiannual report's net loss of KRW 13.5 billion persisted, revealing a gap between the improvement in operating performance and net income metrics.
Business Overview
Sungeel HiTech was established in March 2017 through a physical spin-off of the battery recycling division of Sungeel Hi-Metal, and listed on KOSDAQ in July 2022. The company operates a fully integrated value chain in which spent batteries and battery scrap are collected and shredded to produce black mass (pre-treatment), followed by hydrometallurgical processing (post-treatment) to recover and refine battery metals such as nickel, cobalt, and lithium (web research synthesis, as-of date not specified).
Production Facilities
| Facility | Description |
|---|---|
| Gunsan Plant 1 & 2 | Pre-treatment (shredding → black mass) facility |
| Saemangeum Plant 3 (Hydro Center) | Completed June 2024; post-treatment (hydrometallurgical processing of black mass) facility. Reports indicate rising utilization during H1 2026 (exact latest figures not obtained) |
Revenue Mix by Product (2025)
Overseas Subsidiaries
The company holds numerous overseas subsidiaries as consolidated entities across Europe (Hungary, Poland), Asia (China, India, Malaysia, Indonesia), and the United States, among others; however, the exact equity stakes and operating status by location for individual entities are not obtained, as verification against the original DART business report is required.
5-Year Financial Trend
| Period | Revenue (KRW bn) | Operating Profit (KRW bn) | Net Income (KRW bn) | Debt-to-Equity Ratio (%) |
|---|---|---|---|---|
| 2022 (Annual) | 269.9 | 48.3 | 39.1 | 44.4 |
| 2023 (Annual) | 247.4 | -8.3 | 25.2 | 77.4 |
| 2024 (Annual) | 136.2 | -71.4 | -112.5 | 202.2 |
| 2025 (Annual) | 194.6 | -54.5 | -80.5 | 367.6 |
| H1 2026 (Cumulative) | 137.7 | 6.3 | -13.5 | 308.2 |
Revenue, which stood at KRW 269.9 billion in 2022, declined consecutively in 2023–2024 before rebounding to KRW 194.6 billion in 2025; H1 2026 (cumulative) revenue of KRW 137.7 billion corresponds to 70.8% of full-year 2025 revenue (calculated based on confirmed DART data). Operating profit posted losses for three consecutive fiscal years from 2023–2025 before turning positive at KRW 6.3 billion in H1 2026, but net income continued to post a loss of KRW 13.5 billion in H1 2026. The debt-to-equity ratio rose from 44.4% in 2022 to 367.6% in 2025 before declining to 308.2% in H1 2026 (all directly calculated based on system-confirmed financial data, A).
Competitor Comparison
| Company | H1 2026 Revenue | H1 2026 Operating Profit | Notes |
|---|---|---|---|
| Sungeel HiTech (365340) | KRW 137.7 billion | KRW 6.3 billion (turned profitable) | Primary source (A), DART receipt no. 20260814000512 |
| Saebit Chem (107600) | KRW 30.9 billion | KRW 390 million (turned profitable) | Secondary source, revenue +49% YoY |
| Cosmo Chemical (005420) | Not obtained | Not obtained | Individual H1 figures not obtained via web research |
| POSCO HY Clean Metal (unlisted) | Not obtained | Not obtained (reported monthly profitability since December 2025) | Unlisted; limited periodic disclosure obligations |
Sungeel HiTech is characterized by a fully integrated value chain encompassing both pre-treatment (shredding → black mass) and post-treatment (hydrometallurgical processing), and its H1 2026 revenue scale is approximately 4.5x that of Saebit Chem, the largest among domestic industry peers (based on web research). Cosmo Chemical is pursuing battery recycling as a subsidiary (Cosmo Eco-Chem) alongside its existing chemical business, including titanium dioxide, while POSCO HY Clean Metal, being unlisted, discloses only limited individual financial figures.
Valuation
In H1 2026, the issuance of new shares through a third-party allotment capital increase raised total equity, lowering PBR from 3.21x at end-2025 to 2.66x at end-H1 2026 (a breakdown separating the capital-increase effect from changes in retained earnings was not obtained). As net losses continued, PER is not calculable. Based on web research of industry peers, Saebit Chem's PBR is 3.31–3.75x (varies by source) and Cosmo Chemical's is 1.52–2.80x (varies by source), placing Sungeel HiTech's PBR (2.66–3.21x, A) between these two ranges (peer figures vary significantly by source and are for reference only).
Macro & Commodity Environment
| Indicator | Value | As-of Date |
|---|---|---|
| LME Nickel | 16,810 USD/ton | 2026-08-14 |
| LME Cobalt | 56,290 USD/ton | 2026-08-13 |
| Lithium Carbonate (China benchmark) | approx. 21.94 USD/kg | 2026-08-12 |
| KRW/USD exchange rate | approx. KRW 1,417–1,419 | 2026-08-14 |
| KRW/EUR exchange rate | approx. KRW 1,638 | 2026-08-14 |
| KRW/HUF exchange rate (Hungary) | approx. KRW 5.05 | 2026-08-14 |
Sungeel HiTech's revenue and costs are linked to international metal prices for nickel, cobalt, and lithium, as well as the KRW/USD, KRW/EUR, and KRW/HUF exchange rates. Cobalt rose 68.86% YoY, while nickel was in a corrective phase on expectations of expanded supply from Indonesia, resulting in diverging directions across metals (as of 2026-08-14). In the US, changes to the IRA 45X tax credit and FEOC requirements, and in the EU, the Critical Raw Materials Act's (CRMA) domestic recycling target (15% of strategic raw material consumption by 2030), are each identified as policy variables affecting the business environment.
Investor Flow Trends
| Category | 1-Week Cumulative (Aug 10–14) | 1-Month Cumulative (Jul 16–Aug 14) |
|---|---|---|
| Individual | +78,211 shares | +293,558 shares |
| Institutional | +17,176 shares | -156,433 shares |
| Foreign | -95,615 shares | -139,427 shares |
Over the five trading days from August 7 to August 14, 2026, foreign investors recorded a net outflow of 95,615 shares, moving in the opposite direction from individual investors' net inflow (78,211 shares) over the same period. On a 1-month cumulative basis, both institutional (-156,433 shares) and foreign (-139,427 shares) investors saw net outflows, while individual investors alone showed net inflow dominance (+293,558 shares).
Governance & Capital Structure
| Date | Event |
|---|---|
| 2025-10-17 | Disclosure of KRW 53.0 billion convertible bond issuance (maturity 2030-10-27, conversion price KRW 41,336) |
| 2026-02-13 | Completed full disposal of 192,005 treasury shares |
| 2026-04-30 | Disclosure of third-party allotment capital increase decision (proceeds of approximately KRW 45.0 billion) |
| 2026-05-08 | Payment received for 648,414 new shares from the capital increase |
| 2026-05-12 | Subsidiary SUNGEEL HITECH EUROPE capital increase decision (KRW 8.68 billion contribution) |
| 2026-06-19 | Largest shareholder and related parties acquired an additional 713,296 shares (stake of 35.99%) |
Sungeel HiTech is reported to hold around 11 overseas subsidiaries across Europe (Hungary, Poland), Asia (China, India, Malaysia, Indonesia), and the United States, among others (secondary source, as-of date estimated at December 2025); however, exact equity stakes and operating status by location for individual subsidiaries remain not obtained, as verification against the original DART filing is required. The convertible bond (KRW 53.0 billion), if fully converted, carries the capacity to issue new shares equivalent to approximately 9.51% of total shares outstanding.
Recent Disclosure & News Timeline
| Date | Content |
|---|---|
| 2026-04-30 | Disclosure of third-party allotment capital increase decision (proceeds of KRW 44.9 billion, for raw material purchase working capital purposes) |
| 2026-05-12 | Subsidiary SUNGEEL HITECH EUROPE capital increase decision (improving the capital structure of the Hungarian sub-subsidiary) |
| 2026-06-03 | Reports of business cooperation discussions with Ecopro in Hungary (secondary source, not an officially confirmed contract) |
| 2026-06-25 | Government (Ministry of Environment) launched a pilot certification program for recycled battery minerals, with Sungeel HiTech among 6 participating companies |
| 2026-08-14 | Semiannual report filed (revenue KRW 137.7 billion, operating profit turned positive at KRW 6.3 billion, net loss KRW 13.5 billion) |
Financial & Business Considerations
Theme Relevance
Fact Highlights
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