성신양회

5-Year Financial Trend

In 2022, a sharp rise in raw material costs (bituminous coal, etc.) caused operating and net margins to plunge into a net loss; margins then recovered in 2023 on price hikes and cost stabilization, before gradually narrowing again from 2024 through H1 2026. The debt-to-equity ratio peaked at 199.7% in 2022, then improved to 120.5% by 2025 through capital increases and profit accumulation, before ticking back up slightly to 122.7% in H1 2026 (DART, calculated directly, A).

Business Overview and Diversification

Sungshin Cement's core businesses are the manufacture and sale of cement (Portland cement) and ready-mixed concrete, alongside recycled-resource processing (waste synthetic resin, slag, etc.) and an aggregates business. The Danyang plant is known to be one of the largest single cement production facilities in Korea (secondary source, not cross-checked against the original).

Per TheBell (2026-03-06), cement revenue fell from KRW 723.8 billion in 2022 to a cumulative KRW 474.9 billion in Q3 2025 (-14.4% YoY), while trading-segment revenue rose from KRW 105.7 billion in 2022 to a cumulative KRW 287.9 billion in Q3 2025 (+77.4% YoY). The trading segment was spun off as a separate business in December 2023. Absolute segment-level revenue for H1 2026 has not been cross-checked against primary disclosures and remains unavailable.

Peer Comparison — Domestic Cement Market Share

In Q2 2025, the combined operating profit of the six major cement makers was KRW 190.3 billion, down about -38% YoY, with individual declines of -55.6% for Hanil Cement, -36.5% for Sungshin Cement, -29.4% for Sampyo Cement, -29.6% for Asia Cement, and -23.9% for Ssangyong C&E — confirming margin pressure across the industry (Asia Economy, 2025-08-19). Sungshin Cement's standalone Q1 2025 figures were not obtained as confirmed data.

Valuation (Factual Multiples)

Simply annualizing H1 2026 cumulative net income by doubling it implies a P/E of approximately 7.57x (E), a naive estimate that does not account for seasonality. P/B trades at approximately 0.34x relative to total equity at both FY2025 year-end and H1 2026 end, a low level relative to book value.

Investor Flow Trends

Unit: shares · Source: alphasquare.co.kr scraped estimate (secondary source, not cross-checked against original KRX data, E) · Over most of the last 10 trading days, foreign inflows paired with individual outflows recurred, and on 2026-08-13 the pattern briefly reversed, with foreign investors selling heavily while individuals bought heavily.

Governance and Capital Structure

Stakes for ES Power, Kim Tae-hyun, and Kim Seok-hyun are drawn from mixed snapshots spanning 2025-10-20 to 2026-06-09 (reconstructed from WiseReport and Dealsite, secondary sources, E). Per a 2025-10-22 disclosure, ES Power received an 11.39% stake gifted without consideration from Honorary Chairman Kim Young-jun, rising from 2.79% to 13.76% (A, Report on Status of Specified Securities Ownership by Executives and Major Shareholders), and was later reported at 14.17% reflecting market-value updates.

Per Biz Tribune (2025-07-04), it has been pointed out that Executive Vice President Kim Seok-hyun has been involved in management for roughly a decade as an unregistered executive without formal board participation; reports also indicate he separately operates unlisted affiliates such as Jinsung Remicon, Sungshin Industry, and Jinsung Green in an intra-group transaction structure in which they receive cement raw materials from Sungshin Cement. Whether these affiliates are subject to consolidation has not been confirmed and remains unavailable. As of 2026-08-18, the confirmed list of representative directors could not be cross-checked against primary sources due to inconsistencies between sources (not available).

Macro Environment Factors

Sungshin Cement's revenue is directly linked to the domestic construction cycle (orders and starts), and since bituminous coal — the key fuel for the cement calcination process — is largely imported, costs are sensitive to exchange-rate and global fuel-price movements. As an electricity-intensive industry, rising electricity rates and carbon allowance costs are also confirmed to add to cost pressure.

Risk Factors

• Bituminous coal accounts for about 40% of cement manufacturing costs and is largely imported (secondary source, media outlet and reference date unverified).
• Based on confirmed financial data, the operating margin has continued to narrow, from 6.59% in 2023 to 2.50% in H1 2026 (DART, calculated directly, A).
• Weakness in domestic construction orders (-21.7% YoY in June 2026) and building permit area (-0.2%) is confirmed as a leading indicator for cement shipments (Construction & Economy Research Institute of Korea (CERIK)).
• From the 4th greenhouse gas emissions trading phase (2026-2030), the paid-allocation portion expands, increasing the burden of emission allowance purchase costs (first paid-allocation auction held in January 2026).
• The debt-to-equity ratio improved to 120.5% in 2025 but rose slightly again to 122.7% in H1 2026, remaining above 100% in absolute terms (DART, calculated directly, A).
• The industry has consolidated into a 'big three' structure — the Hanil Cement–Hanil Hyundai Cement merger (21.8%), Ssangyong C&E (21.2%), and Bum-Asia Group (18.8%) — with Sungshin Cement ranking 5th at 13.5% (secondary source, reference date unverified).
• Details of ongoing litigation and contingent liabilities, individual carbon-allowance allocations and expected purchase costs, and any collateral provided have not been cross-checked against primary disclosures and remain unavailable.