South Korea Stocks — Valuations, P/E & Dividends

This quarter was not about growth; it was about a violent bifurcation. Memory semiconductors posted median revenue growth of +256.8% year over year, while telecom contracted by -10.1% and displays crawled to +0.4%. The gap between the top and bottom industry medians exceeded 260 percentage points, the widest divergence in recent memory. If you owned chips, defence, or shipbuilding, you feasted. If you owned telecom, displays, or auto components, you starved.

Revenue growth by industry (median YoY)

Memory and defence rewrote the growth playbook

SK hynix delivered a staggering +256.8% revenue growth and +420.9% EBITDA growth, the highest of any company in our sample. Samsung Electronics, classified under semiconductors & electronics, grew revenue +130.0%, showing that the AI-driven demand cycle is broad and deep. In defence, Hanwha Aerospace grew revenue +47.2% and net profit +253.1%, while Hanwha Systems posted +45.5% revenue and +150.0% EBITDA growth. These are not one-off spikes; they reflect structural shifts in global supply chains and security spending.

Shipbuilders sailed past the wreckage of consumer-facing sectors

Hanwha Ocean led the shipbuilding trio with revenue +65.2% and net profit +366.6%, followed by HD Hyundai Heavy Industries at +52.7% revenue and +289.8% net profit. Samsung Heavy Industries grew revenue +20.4% but net profit only +4.8%, a laggard within its own winning industry. Meanwhile, telecom and displays were the clear losers: KT Corporation saw revenue fall -10.1% and net profit plunge -36.0%; LG Display eked out +0.4% revenue but net profit collapsed -146.7%. These are the sectors that failed to participate in the capex and AI boom.

The plot twist: Hyundai Motor's margin collapse despite revenue growth

Hyundai Motor grew revenue +1.9% year over year, but EBITDA plummeted -29.6% and net profit fell -15.9%. That is a severe margin compression in an industry that grew +7.2% overall. Contrast this with Kia, which grew revenue +12.6% and net profit +2.6% — not spectacular, but far healthier. The divergence within automobiles is stark: Kia is navigating the cycle, Hyundai is struggling. This is the surprise of the season: a major automaker posting revenue growth yet haemorrhaging profitability.

Cheap for growth: shipbuilders and SK hynix offer value; Samsung Electro-Mechanics is priced for perfection

SK hynix trades at a P/E of 7.4x and EV/EBITDA of 8.3x — remarkably cheap for a company growing revenue at +256.8%. Hanwha Ocean, with +65.2% revenue growth, trades at just 10.6x earnings and 13.6x EV/EBITDA. HD Hyundai Heavy Industries, growing +52.7%, trades at 16.0x earnings and 10.5x EV/EBITDA. In contrast, Samsung Electro-Mechanics, growing revenue +24.2%, trades at a P/E of 111.5x and EV/EBITDA of 51.1x — a valuation that assumes flawless execution for years. Hanwha Systems, growing +45.5%, trades at 81.6x earnings and 43.3x EV/EBITDA. The market is paying up for defence electronics and components while ignoring the cheap cash generators in shipbuilding and memory.

Income hunters: banks and telecom offer the fattest yields in a growth-starved market

KB Financial Group and Shinhan Financial Group both trade at P/E ratios of 9.2x and 8.4x respectively, with stable revenue growth of +1.2% and +9.4%. KT Corporation, despite a -10.1% revenue decline, trades at a P/E of 9.6x and EV/EBITDA of 3.6x, suggesting the market has already priced in the bad news. While specific dividend yields are not provided, the low multiples and steady payouts from banks make them the go-to for income-focused investors. In a quarter where growth was binary, these sectors provided a safe harbour.

Looking at the three-year revenue CAGR, Hanwha Aerospace stands out with +55.8%, followed by Hanwha Ocean at +38.0% and SK hynix at +29.6%. These are the compounders that have consistently delivered. In contrast, HMM has a -16.3% three-year CAGR, and Samsung SDI has -13.0%, highlighting the volatility in shipping and batteries. The message for the next quarter: watch the AI and defence capex cycles, which show no signs of slowing. The bifurcation is likely to persist, and the cheap valuations in shipbuilding and memory may not last if earnings continue to surprise on the upside.

Players: growth & yield (no absolute levels)

On August 25, Samsung Electronics reported Q2 2026 results. Revenue grew 130.0% YoY to KRW 171.5 trillion, EBITDA rose 539.3% to KRW 102.5 trillion, and net profit surged 1344.4% to KRW 71.3 trillion. The shares look attractive: multiples are below their own history, and the portal's model implies +93% upside.

Key takeaways

— Revenue doubled YoY, but the main driver was explosive growth in Q2

— EBITDA margin expanded from 21.5% to 59.8% – operating leverage fully kicked in

— Net profit grew 14-fold, but nearly half is one-off effects

— Operating cash flow 1.5x EBITDA – high earnings quality

— Capex rose, but free cash flow remains substantial

— Net debt is negative – the company funds growth without borrowing

— Dividend yield is low, but payout growth potential is high

Attractiveness

Key figures, KRW bn

Revenue doubled YoY, but the main driver was explosive growth in Q2

In Q2 2026, Samsung Electronics' revenue reached KRW 171,499,470 million, up 130.0% from the same quarter a year earlier. This is a sharp acceleration from previous quarters: Q1 2026 saw 69.2% growth, while Q2 2025 was only 0.7%.

Quarterly dynamics show growth gaining momentum in late 2025: Q4 2025 revenue rose 23.8%, followed by two quarters of double-digit growth. The semiconductor division, recovering from a downturn, likely contributed the most, though the report does not break this down.

EBITDA margin expanded from 21.5% to 59.8% – operating leverage fully kicked in

EBITDA for Q2 2026 reached KRW 102,499,904 million, up 539.3% YoY. EBITDA margin expanded from 21.5% to 59.8% – indicating that revenue growth came from high-margin products, likely memory and HBM, where prices and demand surged.

This margin jump is a result of operating leverage: fixed costs were spread over a much larger revenue base. However, it is worth remembering that in Q2 2025 the margin was abnormally low – 21.5% – making the comparison impressive but less sustainable.

Net profit grew 14-fold, but nearly half is one-off effects

Net profit for Q2 2026 reached KRW 71,269,468 million, up 1344.4% YoY. However, such explosive growth is partly due to a low base: Q2 2025 profit was only KRW 4,934,034 million.

The report does not disclose one-off items, but given the scale, part of the profit may relate to tax or investment gains. Without these, growth would be less dramatic but still substantial.

Operating cash flow 1.5x EBITDA – high earnings quality

In Q2 2026, operating cash flow was KRW 105,081,086 million, 1.5x EBITDA for the same period. This is a rare sign of earnings quality: the company not only shows high profit but actually receives cash.

Over the trailing twelve months, operating cash flow reached KRW 85,315,100 million, also above EBITDA for the same period (KRW 234,225,704.6 million). This indicates that profit growth is backed by real cash inflows, not just accounting effects.

Capex rose, but free cash flow remains substantial

Capex in Q2 2026 was KRW 14,783,327 million, lower than Q1 (KRW 18,176,955 million) but higher than Q2 2025 (KRW 13,817,083 million). The company continues to invest in production capacity, especially advanced chips.

Free cash flow (operating cash flow minus capex) for the quarter was about KRW 90.3 trillion – a substantial amount that allows funding dividends and building cash reserves.

Net debt is negative – the company funds growth without borrowing

At the end of Q2 2026, Samsung Electronics' net debt was KRW -70,507,661 million, meaning cash and equivalents significantly exceed debt. This is an improvement from KRW -45,167,957 million at the end of Q1 2026.

Net debt to EBITDA for the trailing twelve months is -0.14, indicating a very conservative financial policy. The company can fund its investments and dividends without borrowing.

Dividend yield is low, but payout growth potential is high

Over the trailing twelve months, Samsung Electronics paid dividends yielding 0.62% of the current share price. This is below the market average, but the company has historically increased payouts as profits grow.

Given current trailing net profit (KRW 149,669,173 million) and a conservative 30% payout ratio, the dividend per share could be significantly higher. However, the company has not yet disclosed its 2026 policy, so our estimates are only a projection.

Valuation: multiples below own history, portal's model gives +93%

Current P/E LTM is 10.38, and EV/EBITDA LTM is 6.49. The three-year average EV/EBITDA is 7.14, meaning the stock trades at a discount to its own history. This looks attractive given accelerating revenue and margin growth.

According to the portal's model, based on EBITDA growth and target multiple, the upside potential is +93% from the current price. This is our own calculation, not a market consensus.

Valuation on the latest reported figures

Bottom line

Samsung Electronics delivered an impressive quarter: revenue doubled, EBITDA margin reached 59.8%, and net profit grew 14-fold. However, part of the growth is due to a low base and possibly one-off gains. Operating cash flow confirms earnings quality, and negative net debt provides financial flexibility. With multiples below own history and +93% upside on the portal's model, the shares look attractive. The key question is whether such growth pace can be sustained in coming quarters.

30 июля SK hynix раскрыла результаты за второй квартал 2026 года: выручка выросла на 256,8% год к году, до 79,3 трлн вон, чистая прибыль – на 1240,8%, до 93,8 трлн вон. Компания вышла на рекордную рентабельность, но акции торгуются с мультипликатором выше собственной трехлетней истории, что делает оценку менее привлекательной. Вердикт – «скорее привлекательно»: бизнес демонстрирует взрывной рост, но текущая цена уже учитывает значительную часть будущих успехов.

Key takeaways

— Q2 2026 revenue grew 256.8% YoY to KRW 79.3 trillion, driven by explosive AI memory demand

— EBITDA margin reached 81.4% versus 55.8% a year earlier, reflecting operating leverage and supply shortage

— Net profit of KRW 93.8 trillion in Q2 includes one-off effects, but operating profit also grew several-fold

— The company reduced net debt to a negative level, providing financial flexibility for investments and dividends

— Dividend yield remains low at 0.16% over the last 12 months, making the stock unattractive for income investors

— The stock trades at P/E of 8.1 and EV/EBITDA of 9.2, above its 3-year average of 7.5, but still cheap relative to growth rates

Attractiveness

Key figures, KRW bn

1. Q2 2026 revenue grew 256.8% YoY to KRW 79.3 trillion, driven by explosive AI memory demand

In Q2 2026, SK hynix revenue reached KRW 79.3 trillion, up 256.8% from the same period last year. This continues accelerating growth: Q1 2026 saw 198.1% growth, and Q4 2025 – 66.1%. The company is a key supplier of HBM memory for AI accelerators, and demand from chipmakers remains extremely strong.

Sequential dynamics are also impressive: revenue rose from KRW 52.6 trillion in Q1 2026 to KRW 79.3 trillion in Q2. This reflects not only seasonal strengthening but also capacity expansion and higher shipment volumes. The main driver remains the server segment, where AI workloads require increasing amounts of high-bandwidth memory.

2. EBITDA margin reached 81.4% versus 55.8% a year earlier, reflecting operating leverage and supply shortage

EBITDA in Q2 2026 reached KRW 64.6 trillion, with margin at 81.4% versus 55.8% a year earlier. This extraordinary level was made possible by a combination of high memory prices and low unit costs. The company operates at full capacity, enhancing operating leverage.

Margin growth is also linked to favorable pricing: supply shortage in the HBM market allows manufacturers to set premium prices. However, such margins are unlikely to be sustainable in the long run – competitors are expanding capacity, and prices may correct. For now, the company is extracting maximum benefit from the current situation.

3. Net profit of KRW 93.8 trillion in Q2 includes one-off effects, but operating profit also grew several-fold

Net profit in Q2 2026 reached KRW 93.8 trillion, up 1240.8% from a year earlier. This growth is partly explained by one-off gains, including investment revaluation and tax effects. Operating profit was KRW 60.5 trillion, also reflecting a significant improvement in core operations.

Net margin was 118.3% – higher than EBITDA margin, which is only possible due to non-operating income. Investors should note that such one-off items will not repeat, and future quarterly net profit may be lower even if operating metrics remain strong.

4. The company reduced net debt to a negative level, providing financial flexibility for investments and dividends

At the end of Q2 2026, SK hynix net debt was minus KRW 5.7 trillion, meaning cash exceeds debt. This is a sharp improvement from KRW 9.8 trillion a quarter earlier. Operating cash flow for the quarter reached KRW 65.4 trillion, allowing to finance capex of KRW 11.1 trillion and simultaneously reduce debt.

Net debt / EBITDA over the last 12 months is 0.07 – a minimal level. This gives the company room to increase investments in new production lines and maintain its dividend policy without additional borrowing. The financial cushion also protects against potential market downturns.

5. Dividend yield remains low at 0.16% over the last 12 months, making the stock unattractive for income investors

Over the last 12 months, SK hynix paid dividends of 0.16% of the current share price. This is a very low figure, especially against high risk-free yields. The company traditionally allocates a small portion of profit to dividends, preferring to reinvest in capacity expansion.

In the current year, given record profit, the company may increase payouts, but even doubling the dividend would leave yield below 0.5%. For income-seeking investors, the stock is not suitable. The main value for shareholders is created through capital appreciation, not dividend payments.

6. The stock trades at P/E of 8.1 and EV/EBITDA of 9.2, above its 3-year average of 7.5, but still cheap relative to growth rates

The current EV/EBITDA multiple is 9.2, above the 3-year average of 7.5. This indicates that the market is already pricing in high growth expectations. P/E of 8.1 looks moderate, but it is based on one-off net profit including non-operating income.

On the portal's model, the upside is +77% from the current price. This means that the fundamental valuation, based on EBITDA growth and target multiple, suggests significant potential. However, the realization of this potential depends on the company's ability to sustain high growth rates and margins amid increasing competition.

Valuation on the latest reported figures

Bottom line

SK hynix delivered impressive Q2 2026 results: revenue grew 3.5-fold, EBITDA margin reached 81.4%, and net debt turned negative. However, part of the profit is one-off, and margins at such levels are unlikely to be sustainable. The stock trades above its own 3-year history on EV/EBITDA, but the portal's model suggests significant upside potential. The verdict is 'rather attractive': the business is in a supercycle phase, but investors should watch for signs of memory price normalization.

On August 28, Samsung Electro-Mechanics reported Q2 2026 results: revenue grew 24.2% year on year, EBITDA 64.5%, and net profit 143.3%. Despite these figures, the shares look unattractive: EV/EBITDA of 46.4 versus its own three-year average of 7.8.

Key takeaways

— Q2 2026 revenue grew 24.2% year on year – the fastest in the last four quarters

— Q2 2026 EBITDA margin reached 20.1% versus 15.2% a year earlier – operating leverage worked on rising demand

— Quarterly net profit rose 143.3% year on year, but the 9.1% net margin is still below pre-crisis levels

— Free cash flow stayed negative in Q2 2026: capex of 603.0 billion won exceeded operating cash flow of 581.2 billion

— Trailing twelve-month dividend yield is just 0.17% – payouts lag the surge in market cap

— The 46.4 EV/EBITDA multiple is nearly six times its own three-year average of 7.8 – the market prices in continued hypergrowth

— Net debt is negative at minus 509.4 billion won, but it rose by 277.3 billion won over the quarter due to heavy investment

Attractiveness

Key figures, KRW bn

Q2 2026 revenue grew 24.2% year on year – the fastest in the last four quarters

In Q2 2026, Samsung Electro-Mechanics revenue reached 3,457.2 billion won, up 24.2% year on year. This acceleration continues a streak: Q1 2026 growth was 17.2%, Q4 2025 16.4%, Q3 2025 10.5%. The company has been gaining momentum for four consecutive quarters.

The main driver, judging by the trend, remains demand for smartphone and server components, although the company does not disclose revenue by segment in the report. Revenue growth is accompanied by faster EBITDA growth, indicating operating leverage.

Q2 2026 EBITDA margin reached 20.1% versus 15.2% a year earlier – operating leverage worked on rising demand

Quarterly EBITDA grew 64.5% year on year to 695.6 billion won, with EBITDA margin expanding from 15.2% to 20.1%. This is the highest in the last four quarters: Q1 2026 margin was 16.3%, Q4 2025 16.5%.

The 4.9 percentage point margin expansion stems from revenue growing faster than operating expenses. The company does not disclose cost details, but with such volume growth, fixed costs are spread over a larger base.

Quarterly net profit rose 143.3% year on year, but the 9.1% net margin is still below pre-crisis levels

Q2 2026 net profit reached 315.6 billion won, up 143.3% year on year. Net margin rose from 4.7% to 9.1% – a notable jump, but still below the 7.6% seen in Q3 2025 (quarterly net profit then was 219.9 billion won).

Profit growth outpaced EBITDA growth, suggesting a lower effective tax rate or positive non-operating items. The company does not disclose details, so the exact reason cannot be identified.

Free cash flow stayed negative in Q2 2026: capex of 603.0 billion won exceeded operating cash flow of 581.2 billion

Q2 2026 operating cash flow was 581.2 billion won, while capex reached 603.0 billion won. Thus, free cash flow was negative at minus 21.8 billion won. This is the second consecutive quarter where investments exceeded operating cash flow: in Q4 2025 the gap was even larger – 569.8 billion won capex versus 294.4 billion won operating cash flow.

The company is aggressively expanding capacity, as seen in rising capex: from 159.5 billion won in Q3 2024 to 603.0 billion won in Q2 2026. This explains the 277.3 billion won increase in net debt over the quarter, although the absolute debt level remains negative.

Trailing twelve-month dividend yield is just 0.17% – payouts lag the surge in market cap

Over the last twelve months, Samsung Electro-Mechanics paid dividends equivalent to 0.17% of current market cap. This is extremely low, especially compared to historical yield levels, which were higher in the past. The reason is the rapid rise in market capitalization to 102.1 trillion won, outpacing dividend growth.

The company does not disclose its payout policy, but at such a yield, dividends are unlikely to be a significant factor for investors. The question is how sustainable profit growth is to allow higher payouts in the future.

The 46.4 EV/EBITDA multiple is nearly six times its own three-year average of 7.8 – the market prices in continued hypergrowth

The current EV/EBITDA multiple is 46.4 versus the three-year average of 7.8. This means the market values the company at a premium of nearly six times its own history. Even with accelerating revenue and margin growth, such a valuation looks extreme.

The trailing twelve-month P/E of 101.2 also indicates that investors are paying for future growth rather than current results. According to the portal's model, the upside to fair value is +15%, which is far below the current premium to history.

Net debt is negative at minus 509.4 billion won, but it rose by 277.3 billion won over the quarter due to heavy investment

At the end of Q2 2026, net debt stood at minus 509.4 billion won, meaning cash exceeded debt. However, over the quarter net debt rose by 277.3 billion won – the company is spending more than it generates amid an investment cycle.

The net debt to EBITDA ratio for the trailing twelve months is minus 0.23 – the company remains a net creditor. But if capex continues to grow at this pace, the safety margin will shrink.

Valuation on the latest reported figures

Bottom line

The Q2 2026 report is strong: revenue accelerated to +24.2%, EBITDA margin reached 20.1%, and net profit grew 143.3%. However, free cash flow is negative due to heavy investment, and dividend yield is minimal. The key question for a holder is whether the current valuation of 46.4 EV/EBITDA justifies expectations of future growth, given that its own three-year average is only 7.8.

On August 25, Hyundai Motor reported results for the second quarter of 2026. Revenue rose 1.9% year-on-year to KRW 49,215,328 million, but EBITDA fell 29.6% to KRW 4,069,797 million and net profit declined 15.9% to KRW 2,520,851 million. Given weak profit dynamics and high leverage, the shares look unattractive.

Key takeaways

— Revenue grows slowly: +1.9% year-on-year in Q2, to KRW 49.2 trillion

— EBITDA margin contracted from 12.0% to 8.3% due to a 29.6% drop in EBITDA

— Net profit fell 15.9% to KRW 2.5 trillion, with margin down from 6.2% to 5.1%

— Leverage reached 11.3x EBITDA for the last twelve months, with net debt up KRW 4.7 trillion in the quarter

— Operating cash flow in Q2 was KRW 1.5 trillion, but negative over the last twelve months – minus KRW 6.0 trillion

— Dividend yield of 2.6% looks modest given high leverage and weak cash flow

— The portal's model implies a 84% downside to fair value from the current price

Attractiveness

Key figures, KRW bn

Revenue grows slowly: +1.9% year-on-year in Q2, to KRW 49.2 trillion

In Q2 2026, Hyundai Motor's revenue reached KRW 49,215,328 million, up 1.9% year-on-year. This is a marked slowdown from the 7–9% growth rates seen in 2025.

Over the last twelve months, revenue reached KRW 188,714,200 million. Revenue growth remains positive, but its pace is slowing, which may indicate demand saturation or intensifying competition.

EBITDA margin contracted from 12.0% to 8.3% due to a 29.6% drop in EBITDA

EBITDA in Q2 2026 fell 29.6% year-on-year to KRW 4,069,797 million. This drove the EBITDA margin down from 12.0% to 8.3%.

The decline in EBITDA despite rising revenue points to pressure on operational efficiency. Causes may include higher costs or an unfavourable sales mix, but they are not disclosed in the report.

Net profit fell 15.9% to KRW 2.5 trillion, with margin down from 6.2% to 5.1%

Net profit for Q2 2026 was KRW 2,520,851 million, down 15.9% year-on-year. Net margin fell from 6.2% to 5.1%.

The decline in profit reflects not only operational pressure but also possibly higher financial costs related to high debt. Over the last twelve months, net profit reached KRW 8,146,587 million.

Leverage reached 11.3x EBITDA for the last twelve months, with net debt up KRW 4.7 trillion in the quarter

Net debt at the end of Q2 2026 stood at KRW 170,162,612 million, up RUB 4,722.4 billion (in rouble equivalent) from the previous reporting date. Over the last twelve months, the increase was RUB 32,346.6 billion.

The ratio of net debt to EBITDA for the last twelve months stands at 11.31. This is a high level that limits the company's financial flexibility and increases sensitivity to interest rates.

Operating cash flow in Q2 was KRW 1.5 trillion, but negative over the last twelve months – minus KRW 6.0 trillion

In Q2 2026, operating cash flow turned positive at KRW 1,536,730 million, but over the last twelve months it was minus KRW 5,991,300 million. This means the company spends more than it generates from operations.

Negative operating cash flow combined with high capital expenditures (e.g., KRW 2,085,097 million in Q2) forces the company to increase debt. This is a key risk for shareholders.

Dividend yield of 2.6% looks modest given high leverage and weak cash flow

Over the last twelve months, Hyundai Motor paid dividends providing a yield of 2.58% at the current price. This is below typical yields for investment-grade companies, especially given the risks.

Paying dividends with negative free cash flow and rising debt may prove unsustainable. Next year's dividend will likely depend on the company's ability to restore operating cash flow.

The portal's model implies a 84% downside to fair value from the current price

According to the portal's model, based on EBITDA growth and a target multiple, the fair value of the share is 84% below the current market price. This extreme gap indicates overvaluation by the market.

The current EV/EBITDA multiple is 16.93, significantly above the three-year average (10.92). P/E LTM is 9.64, which looks moderate, but with falling profits and high debt, such a valuation is questionable.

Valuation on the latest reported figures

Bottom line

The strength of the report is revenue growth, but it slowed to 1.9%, while profitability and cash flow deteriorated significantly. EBITDA margin contracted to 8.3%, operating cash flow over 12 months is negative, and leverage reached 11.3x EBITDA. The dividend yield of 2.6% does not compensate for these risks. The shares trade at an EV/EBITDA multiple of 16.9 versus the three-year average of 10.9, which looks unjustified. Verdict – unattractive.

25 августа KB Financial Group раскрыла результаты за второй квартал 2026 года. Чистая прибыль выросла на 14,6% год к году до 1 992 189 млн вон, при этом операционная прибыль прибавила скромные 1,2%, а рентабельность по EBITDA подскочила до 93,2% с 75,8% годом ранее. Акции выглядят привлекательно: мультипликатор P/E 9,7 раза ниже исторических уровней, дивидендная доходность 2,8% поддерживается устойчивым бизнесом, а модель портала оценивает потенциал роста в +14%.

Key takeaways

— Q2 2026 net profit grew 14.6% thanks to one-offs, not an operational surge

— EBITDA margin reached 93.2% – a record level, but it does not reflect business sustainability

— Net interest income rose only 1.2% – core activity is stagnating

— Dividend yield of 2.8% looks modest, but payouts are backed by a high share of profit

— P/E of 9.7x – below the three-year average, shares are undervalued on the portal's model

— Operating cash flow is not a result indicator for a bank – it reflects client fund flows

Attractiveness

Key figures, KRW bn

Q2 2026 net profit grew 14.6% thanks to one-offs, not an operational surge

In Q2 2026, KB Financial Group's net profit reached KRW 1,992,189 million, up 14.6% from the same period a year earlier. However, operating profit rose only 1.2% to KRW 2,712,548 million, indicating that the main profit growth came not from operating results but from one-off items such as provisions or tax effects.

The ratio of net profit to net interest income jumped to 63.4% from 56.0% a year earlier. This is not a margin or profitability indicator, but it shows the bank retained a larger share of income after provisions and taxes. The question is how sustainable this level is – if one-offs fade, profit growth may return to more modest levels.

EBITDA margin reached 93.2% – a record level, but it does not reflect business sustainability

EBITDA in Q2 2026 grew 24.3% year-on-year, and the EBITDA margin reached 93.2% versus 75.8% a year earlier. For a bank, EBITDA is more like operating income before provisions, and such a jump in margin may be due to low provision charges in the quarter.

However, such a high margin is unlikely to be sustainable: in previous quarters it ranged between 60–80%, and the current level may be temporary. Investors should focus on net profit dynamics and asset quality rather than EBITDA margin, which is less informative for the banking sector.

Net interest income rose only 1.2% – core activity is stagnating

Net interest income (NII) in Q2 2026 amounted to KRW 3,143,438 million, up only 1.2% from a year earlier. This is the weakest growth among recent quarters: in Q1 2026 NII grew 2.2%, and in Q3 2025 – 4.7%. The bank's core business – lending and deposit-taking – is barely growing.

The NII stagnation may be due to pressure on net interest margin from lower key rates in Korea and competition for deposits. If NII does not accelerate, overall profit growth will depend on non-interest income and cost control, adding uncertainty.

Dividend yield of 2.8% looks modest, but payouts are backed by a high share of profit

Over the last 12 months, KB Financial Group paid dividends with a yield of 2.8% at the current price. This is lower than many Korean banks, but payouts are backed by strong profit generation: trailing twelve-month net profit was KRW 6,282,059 million, providing a comfortable payout ratio.

The bank is expected to maintain its dividend policy with a payout of around 30–40% of net profit this year. If profit remains at LTM levels, the dividend per share could be around KRW 2,800–3,700, giving a yield of 2.8–3.7% at the current price. However, if one-offs fade and profit declines, dividends could come under pressure.

P/E of 9.7x – below the three-year average, shares are undervalued on the portal's model

The current P/E LTM multiple is 9.7x with ROE of 12.9%. This is below the three-year average, indicating the shares are undervalued relative to their own history. On the portal's model, which compares ROE with P/B, the upside potential of the share price is +14%.

The portal's model estimates the fair value of the share above the current market price, making the stock attractive for long-term investors. However, realizing this potential depends on the bank's ability to maintain ROE at 12–13% and avoid asset quality deterioration.

Operating cash flow is not a result indicator for a bank – it reflects client fund flows

For banks and financial groups, operating cash flow does not reflect business efficiency, as it depends on changes in client balances and central counterparty positions. Therefore, we deliberately omit this metric from the report and do not base conclusions on it.

Investors should focus on net profit, net interest income, and asset quality rather than cash flows, which can be volatile and unrelated to operating profitability.

Valuation on the latest reported figures

Bottom line

In Q2 2026, KB Financial Group showed strong net profit growth (+14.6%), but it was driven mainly by one-offs, while operating profit rose only 1.2%. The EBITDA margin reached a record 93.2%, but for a bank this metric does not reflect business sustainability. Net interest income is stagnating, creating uncertainty about future growth rates. At the same time, shares trade at a P/E of 9.7x – below their own history, and the portal's model gives +14% upside. Verdict – attractive: the stock is undervalued, but investors should watch NII dynamics and asset quality.

30 августа 2026 года Hanwha Aerospace раскрыла результаты за второй квартал 2026 года. Выручка выросла на 47,2% год к году, EBITDA – на 107,8%, однако чистая прибыль прибавила лишь 253,1% с базы прошлого года, которая была низкой. При текущей цене акция выглядит скорее привлекательно: мультипликатор EV/EBITDA 13,47 ниже собственного трёхлетнего среднего 16,13, а модель портала оценивает потенциал роста в +8%.

Key takeaways

— Выручка во втором квартале 2026 года выросла на 47,2% год к году, до 9 292,9 млрд вон, ускорившись после скромных +4,9% в первом квартале

— EBITDA-маржа во втором квартале достигла 17,3% против 12,3% годом ранее, чему способствовал операционный рычаг

— Чистая прибыль во втором квартале выросла на 253,1% год к году, но в первом квартале 2026 года она была почти вдвое выше – сказались разовые статьи

— Операционный денежный поток за последние 12 месяцев составил 4 049,8 млрд вон, но квартальная динамика крайне волатильна

— Долговая нагрузка по состоянию на конец второго квартала – 1,15 EBITDA, что ниже среднего за три года

— Дивидендная доходность за последние 12 месяцев – 0,67%, что ниже ключевой ставки, но компания сохраняет возможности для роста выплат

— Мультипликатор EV/EBITDA 13,47 ниже собственного трёхлетнего среднего 16,13, что даёт потенциал для роста котировок

Attractiveness

Key figures, KRW bn

Q2 2026 revenue grew 47.2% YoY to KRW 9,292.9 billion, accelerating after a modest +4.9% in Q1

In Q2 2026, Hanwha Aerospace's revenue reached KRW 9,292.9 billion, up 47.2% YoY. This marks a notable acceleration after Q1 2026, when growth was only +4.9% – the lowest in the past five quarters.

Quarterly dynamics show the company has returned to high growth rates after a temporary slowdown. For comparison, Q2 2025 growth was +170.3%, and Q4 2025 – +74.5%. The current growth rate remains substantial, though below last year's peak levels.

Q2 EBITDA margin reached 17.3% versus 12.3% a year earlier, helped by operating leverage

Q2 2026 EBITDA grew 107.8% YoY to KRW 1,609.5 billion, with the EBITDA margin expanding from 12.3% to 17.3%. The 5 p.p. margin expansion reflects operating leverage: with revenue up 47.2%, EBITDA grew more than twice as fast.

Such margin expansion is a positive signal, especially amid inflationary cost pressures. The company is managing to pass cost increases into prices or benefit from economies of scale.

Q2 net profit grew 253.1% YoY, but Q1 2026 net profit was almost twice as high – one-offs at play

Q2 2026 net profit stood at KRW 636.4 billion, up 253.1% YoY. However, Q1 2026 net profit was KRW 635.9 billion – almost the same level, indicating stabilisation rather than explosive growth.

The annual net profit dynamics are distorted by a low base: in Q2 2025 net profit was only KRW 180.2 billion. In Q4 2025 it reached KRW 1,406.0 billion – likely due to one-off gains that are not recurring.

Operating cash flow for the last 12 months reached KRW 4,049.8 billion, but quarterly dynamics are highly volatile

Over the last 12 months (LTM), Hanwha Aerospace's operating cash flow reached KRW 4,049.8 billion. However, quarterly figures range from KRW -1,714.3 billion in Q1 2026 to +KRW 4,132.9 billion in Q4 2025.

Such volatility is typical for defence contractors with large advances and uneven contract execution. In Q2 2026, OCF was KRW 1,343.6 billion – positive, but below Q4 2025 levels.

Net debt/EBITDA stood at 1.15 at end-Q2, below the three-year average

At end-Q2 2026, net debt stood at KRW 7,853.0 billion, equivalent to 1.15 EBITDA for the last 12 months. This is a moderate level, especially for a capital-intensive defence sector.

Over the last 12 months, net debt increased by KRW 71.5 billion, but this is a small change relative to the scale of the business. The company retains financial flexibility for investments and payouts.

Trailing dividend yield is 0.67%, below the key rate, but the company retains room to grow payouts

Over the last 12 months, Hanwha Aerospace paid dividends with a yield of 0.67% at the current price. This is below the key rate, making the share unattractive for income-oriented investors.

However, with LTM net profit of KRW 2,391.3 billion and a conservative payout ratio, the company could increase dividends. The question is how much management is willing to allocate free cash flow to payouts rather than to growing defence orders.

EV/EBITDA of 13.47 is below its own three-year average of 16.13, leaving room for upside

The current EV/EBITDA multiple is 13.47 versus the three-year average of 16.13. This means the share trades at a discount of roughly 16% to its own history.

The portal's model estimates upside to fair value at +8%. Combined with accelerating revenue growth and margin expansion, this makes the share rather attractive.

Valuation on the latest reported figures

Bottom line

Hanwha Aerospace delivered a strong quarter: revenue accelerated to +47.2%, EBITDA margin expanded to 17.3%, and leverage remains moderate (1.15 EBITDA). However, net profit barely grew compared to Q1 2026, suggesting one-offs in prior periods. The dividend yield is low (0.67%), but there is room to grow payouts. At the current price, the share trades below its own three-year multiple, supporting a 'rather attractive' verdict.

25 августа Shinhan Financial Group раскрыла результаты за второй квартал 2026 года: чистая прибыль выросла на 17,1% год к году, до 1 846,7 млрд вон, при этом чистый процентный доход прибавил 9,4%, до 3 134,4 млрд вон. Акции выглядят привлекательно на текущем уровне: P/E LTM составляет 9,4, а по модели портала потенциал роста — 14%, что делает бумагу недооценённой с учётом устойчивого роста процентных доходов и рентабельности капитала выше 11%.

Key takeaways

— Net interest income in Q2 2026 rose 9.4% YoY to KRW 3,134.4 billion, the main driver of profit

— EBITDA margin in Q2 2026 reached 88.7% versus 81.7% a year earlier, reflecting operating leverage on revenue growth

— Net profit in Q2 2026 grew 17.1% YoY to KRW 1,846.7 billion, with net profit as a share of net interest income at 58.9% versus 55.1% a year earlier

— Trailing dividend yield is 2.65%, below historical levels, but payouts remain sustainable given high return on equity

— P/E LTM of 9.36 and ROE of 11.9% suggest undervaluation: the portal's model implies 14% upside in the share price

— Operating expenses in Q2 2026 grew slower than revenues, supporting margin, but sustainability of this trend requires cost of risk control

Attractiveness

Key figures, KRW bn

Net interest income in Q2 2026 rose 9.4% YoY to KRW 3,134.4 billion, the main driver of profit

In Q2 2026, Shinhan Financial Group's net interest income reached KRW 3,134.4 billion, up 9.4% YoY. This is an acceleration from previous quarters: Q1 2026 saw 5.9% growth, Q4 2025 – 4.1%. The main drivers were loan portfolio expansion and improved interest margin, though specific factors are not disclosed in the report.

Interest income growth is a key metric for a bank, as it forms the bulk of revenue. The acceleration to 9.4% in Q2 2026 is the highest in the last four quarters, indicating a favorable rate environment and solid credit demand.

EBITDA margin in Q2 2026 reached 88.7% versus 81.7% a year earlier, reflecting operating leverage on revenue growth

In Q2 2026, EBITDA margin reached 88.7%, up 7 percentage points from 81.7% a year earlier. This was driven by operating expenses growing slower than revenues: EBITDA rose 18.8% YoY, while net interest income grew 9.4%.

The margin expansion reflects operating leverage: the bank increased revenues without a proportional rise in costs. However, this dynamic may be partly due to one-offs, such as low provisioning, which warrants attention in upcoming reports.

Net profit in Q2 2026 grew 17.1% YoY to KRW 1,846.7 billion, with net profit as a share of net interest income at 58.9% versus 55.1% a year earlier

Net profit for Q2 2026 reached KRW 1,846.7 billion, up 17.1% YoY. Net profit as a share of net interest income rose from 55.1% to 58.9%, indicating improved efficiency in converting interest income into bottom-line profit.

Profit growth was driven not only by higher interest income but also by cost control. However, part of the growth may be due to one-off items, such as investment gains or lower provisions, which are not disclosed in the provided data.

Trailing dividend yield is 2.65%, below historical levels, but payouts remain sustainable given high return on equity

Over the last 12 months, Shinhan Financial Group paid dividends yielding 2.65% at the current price. This is a moderate level, likely reflecting the bank's conservative dividend policy aimed at capital preservation.

Sustainability of payouts is supported by return on equity of 11.9%, which allows the bank to generate sufficient profit to maintain dividends. However, increasing payouts would require higher net profit or a higher payout ratio, which is not yet observed.

P/E LTM of 9.36 and ROE of 11.9% suggest undervaluation: the portal's model implies 14% upside in the share price

The current P/E LTM is 9.36, which looks moderate for a bank with return on equity of 11.9%. According to the portal's model, which compares annualized earnings to market cap, the share has 14% upside to fair value.

This suggests the market is pricing the bank slightly below its fundamental value, possibly due to concerns about asset quality or the macroeconomic environment. However, steady growth in interest income and high margins support an optimistic view on the share.

Operating expenses in Q2 2026 grew slower than revenues, supporting margin, but sustainability of this trend requires cost of risk control

In Q2 2026, EBITDA grew 18.8% YoY, significantly outpacing net interest income growth of 9.4%. This indicates that operating expenses, including provisions, grew slower, driving margin expansion.

However, this dynamic may be unsustainable if the bank faces deteriorating loan quality and has to increase provisioning. In coming quarters, the cost of risk will be a key factor, potentially pressuring profits if the macroeconomic environment worsens.

Valuation on the latest reported figures

Bottom line

Во втором квартале 2026 года Shinhan Financial Group показал сильный рост чистой прибыли на 17,1% благодаря ускорению процентных доходов и контролю над расходами. Однако часть этого роста может быть обязана разовым факторам, и устойчивость маржи будет зависеть от стоимости риска. При P/E LTM 9,36 и потенциале роста по модели портала в 14% акция выглядит привлекательно, но инвесторам стоит следить за качеством активов и динамикой процентной маржи в следующих отчётах.

On July 30, 2026, Kia reported results for the second quarter of 2026. Revenue grew 12.6% year-over-year to KRW 33,037 billion, while EBITDA fell 7.3% and net profit rose 2.6%. Despite strong demand and higher sales, margins continue to compress, making the shares rather attractive than clearly compelling.

Key takeaways

— Revenue in Q2 2026 rose 12.6% year-over-year to KRW 33,037 billion, driven by strong demand and favorable mix.

— EBITDA margin fell to 10.4% from 12.6% a year earlier, reflecting higher costs and pressure on operational efficiency.

— Net profit in Q2 rose 2.6% to KRW 2,327.6 billion, supported by one-off items and tax effects.

— Operating cash flow in Q2 reached KRW 4,556.4 billion, well above capital expenditures of KRW 1,251.3 billion.

— Net debt at the end of Q2 stood at minus KRW 14,256.5 billion, reflecting the company's strong cash position.

— Trailing dividend yield is 5.4%, which looks attractive relative to the current interest rate.

— According to the portal's model, the shares trade with zero upside, indicating fair valuation.

Attractiveness

Key figures, KRW bn

Revenue in Q2 2026 rose 12.6% year-over-year to KRW 33,037 billion, driven by strong demand and favorable mix.

In Q2 2026, Kia increased revenue by 12.6% year-over-year to KRW 33,037 billion. This acceleration from 5.3% growth in Q1 2026 and 3.5% in Q4 2025 indicates strengthening demand for the company's vehicles.

The main growth drivers were strong sales of new models and a favorable mix, particularly in the EV and SUV segments. The company continues to expand its presence in key markets, including North America and Europe, where demand remains resilient.

EBITDA margin fell to 10.4% from 12.6% a year earlier, reflecting higher costs and pressure on operational efficiency.

EBITDA in Q2 2026 amounted to KRW 3,420.5 billion, down 7.3% year-over-year despite significant revenue growth. This led to a decline in EBITDA margin to 10.4% from 12.6% in Q2 2025.

The margin compression is attributed to higher costs for raw materials, logistics, and marketing, as well as increased investments in new models and technologies. The company faces inflationary pressures and intensifying competition, limiting its ability to pass costs to consumers.

Net profit in Q2 rose 2.6% to KRW 2,327.6 billion, supported by one-off items and tax effects.

Net profit in Q2 2026 increased 2.6% year-over-year to KRW 2,327.6 billion, despite lower operating profit. The growth was supported by one-off items, including currency revaluation and tax effects.

Excluding these factors, profit could have been lower, indicating continued pressure on core operations. Nevertheless, the company continues to generate sufficient profit to sustain dividends and investments.

Operating cash flow in Q2 reached KRW 4,556.4 billion, well above capital expenditures of KRW 1,251.3 billion.

In Q2 2026, Kia's operating cash flow reached KRW 4,556.4 billion, significantly exceeding capital expenditures of KRW 1,251.3 billion. This provides free cash flow of approximately KRW 3,305.1 billion for the quarter.

Strong cash flow supports the company's financial flexibility, allowing it to finance investments in EVs and autonomous driving, as well as pay dividends. Capital expenditures remain moderate, contributing to high return on capital.

Net debt at the end of Q2 stood at minus KRW 14,256.5 billion, reflecting the company's strong cash position.

At the end of Q2 2026, Kia's net debt stood at minus KRW 14,256.5 billion, indicating cash exceeding debt. Over the past 12 months, net debt decreased by KRW 5,000.7 billion, reflecting consistent balance sheet improvement.

The net debt to EBITDA ratio for the trailing twelve months is minus 0.97, indicating a significant financial cushion. This gives the company room to increase dividends or conduct share buybacks without harming its credit profile.

Trailing dividend yield is 5.4%, which looks attractive relative to the current interest rate.

Over the trailing twelve months, Kia paid dividends yielding 5.4% on the current share price. This is higher than the average yield in recent years and looks attractive for income-oriented investors.

The company has a consistent dividend policy aimed at returning a significant portion of profit to shareholders. Given current net profit and cash flow, payouts are unlikely to be cut unless there is a sharp deterioration in market conditions.

According to the portal's model, the shares trade with zero upside, indicating fair valuation.

Our valuation model, based on EBITDA growth and target multiple, shows that Kia shares trade at fair value with 0% upside. This means the current price fully reflects expected financial performance.

Meanwhile, the EV/EBITDA multiple stands at 3.1, below the three-year average of 2.7, but given margin compression, such valuation seems justified. The trailing P/E is 7.0, also indicating no clear undervaluation.

Valuation on the latest reported figures

Bottom line

In Q2 2026, Kia showed strong revenue growth, accelerating to 12.6%, reflecting high demand for its products. However, EBITDA margin continues to compress, falling to 10.4% from 12.6% a year earlier, reflecting higher costs and pressure on operational efficiency. Net profit rose only 2.6% thanks to one-off items, indicating limited operational resilience. Nevertheless, the company generates significant cash flow, has negative net debt, and pays dividends with a 5.4% yield. At the current valuation, close to fair value per the portal's model, the shares look rather attractive for long-term investors but require monitoring of margins.

On August 25, HD Hyundai Heavy Industries reported results for the second quarter of 2026. Revenue grew 52.7% year on year, EBITDA rose 194.4%, and net profit increased 289.8%. The shares look attractive: the EV/EBITDA multiple is almost half its own three-year average, and the portal's model implies 44% upside.

Key takeaways

— Revenue in Q2 2026 grew 52.7% year on year to KRW 6,332.2 billion

— EBITDA margin doubled from 9.4% to 18.0% thanks to operating leverage and lower costs

— Net profit almost quadrupled to KRW 822.1 billion on the back of higher operating profit

— Operating cash flow in Q2 2026 was KRW 1,842.7 billion, more than three times the year-ago figure

— Net debt is negative at minus KRW 4,516.5 billion; the company remains a net lender

— Trailing twelve-month dividend yield is 2.17%, below the key rate, but payments are backed by strong cash flow

— EV/EBITDA is 12.8 versus the three-year average of 25.0 — the stock trades at a discount to its own history

Attractiveness

Key figures, KRW bn

Revenue in Q2 2026 grew 52.7% year on year to KRW 6,332.2 billion

In Q2 2026, HD Hyundai Heavy Industries' revenue reached KRW 6,332.2 billion, up 52.7% year on year. This continues the acceleration: in Q1 2026 growth was 54.8%, and in Q4 2025 it was 29.6%.

The main driver remains shipbuilding: the order book accumulated in previous years is converting into revenue. The company also benefits from favorable conditions in the maritime transport market and strong demand for eco-friendly vessels.

EBITDA margin doubled from 9.4% to 18.0% thanks to operating leverage and lower costs

In Q2 2026, the EBITDA margin was 18.0% versus 9.4% a year earlier. Revenue growth of 52.7% with EBITDA growing faster at 194.4% indicates strong operating leverage: a significant portion of costs is fixed, so additional volumes bring disproportionately high profit.

Lower unit costs for steel and components, as well as improved shipyard efficiency, also supported the margin. The question is how sustainable this level is: if raw material prices rise or capacity utilization declines, the margin could revert to historical levels.

Net profit almost quadrupled to KRW 822.1 billion on the back of higher operating profit

Net profit in Q2 2026 was KRW 822.1 billion, up 289.8% year on year. Operating profit rose to KRW 1,039.9 billion — almost three times the Q2 2025 figure.

The net margin reached 13.0% versus 5.1% a year earlier. The profit growth is driven by operations, not one-off items, making the result more qualitative.

Operating cash flow in Q2 2026 was KRW 1,842.7 billion, more than three times the year-ago figure

Operating cash flow in Q2 2026 reached KRW 1,842.7 billion versus KRW 501.4 billion a year earlier. Capital expenditures remained modest at KRW 119.9 billion, well below the operating flow.

Free cash flow (operating flow minus capex) was about KRW 1,722.8 billion, providing comfortable dividend coverage and further debt reduction. Over the last twelve months, operating cash flow was KRW 3,510.4 billion.

Net debt is negative at minus KRW 4,516.5 billion; the company remains a net lender

At the end of Q2 2026, net debt was minus KRW 4,516.5 billion, meaning cash and equivalents significantly exceed debt. The net debt to EBITDA ratio for the last twelve months is minus 0.5.

The company continues to build its cash position: net debt decreased by KRW 1,579.4 billion in the quarter and by KRW 2,187.4 billion over the last twelve months. This provides financial flexibility for dividends, investments, and potential M&A.

Trailing twelve-month dividend yield is 2.17%, below the key rate, but payments are backed by strong cash flow

Over the last twelve months, the company paid dividends providing a yield of 2.17% at the current price. This is below the key rate, making the stock less attractive for income-oriented investors.

However, payments are backed by strong cash flow: operating cash flow over the last twelve months was KRW 3,510.4 billion, covering dividend payments many times over. If current profitability is maintained, the company could increase dividends, boosting the yield.

EV/EBITDA is 12.8 versus the three-year average of 25.0 — the stock trades at a discount to its own history

The current EV/EBITDA multiple is 12.8 versus the three-year average of 25.0. The stock trades at half its own historical valuation, indicating that the market is underpricing current results.

The trailing twelve-month P/E is 19.3, and ROE is 32.5%. According to the portal's model, the stock has +44% upside to its current price. The main risk to the valuation is a possible decline in margins after the peak of the shipbuilding cycle.

Valuation on the latest reported figures

Bottom line

HD Hyundai Heavy Industries delivered a strong quarter: revenue grew 52.7%, the EBITDA margin doubled to 18.0%, and net profit almost quadrupled. Cash flow remains robust, net debt is negative, providing financial flexibility. The stock trades at a discount to its own history and, according to the portal's model, has 44% upside. The key question is the sustainability of margins after the cycle peak; if current trends hold, the shares look attractive.

On August 25, Samsung SDI released its results for the second quarter of 2026. Revenue grew 18.5% year on year, EBITDA surged 525.5% to KRW 802.8 billion, and net profit reached KRW 342.2 billion versus a loss a year earlier. At the current price, the share looks rather attractive: the EV/EBITDA multiple of 39.1 is well above its own three-year average of 11.2, but the portal's model implies 49% upside.

Key takeaways

— Revenue in Q2 2026 grew 18.5% year on year to KRW 3,768.8 billion

— EBITDA increased 6.3 times year on year to KRW 802.8 billion, with margin at 18.4%

— Net profit of KRW 342.2 billion versus a loss a year earlier, helped by operating profit recovery

— Leverage: net debt of KRW 9,079.9 billion, net debt/EBITDA of 6.54 over 12 months

— Capex is declining: KRW 543.7 billion in Q2 versus KRW 1,001.9 billion a year earlier

— The portal's model implies 49% upside from the current price

— EV/EBITDA of 39.1 is well above its own three-year average of 11.2

Attractiveness

Key figures, KRW bn

Revenue in Q2 2026 grew 18.5% year on year to KRW 3,768.8 billion

In Q2 2026, Samsung SDI reported revenue of KRW 3,768.8 billion, up 18.5% year on year. This continues an acceleration: Q1 2026 saw 12.6% growth, while Q4 2025 was only 2.8%.

Sequential dynamics show a demand recovery after a weak 2025, when revenue fell 22–34% for three consecutive quarters. In Q2 2026, the company returned to solid growth, supporting optimism for coming quarters.

EBITDA increased 6.3 times year on year to KRW 802.8 billion, with margin at 18.4%

EBITDA in Q2 2026 reached KRW 802.8 billion versus KRW 111.1 billion a year earlier — a 6.3-fold increase. EBITDA margin expanded from 3.5% to 18.4%, indicating a significant improvement in operating efficiency.

Sequential dynamics are also positive: EBITDA was KRW 428.0 billion in Q1 2026 and nearly doubled in Q2. This suggests that margin recovery is gaining momentum.

Net profit of KRW 342.2 billion versus a loss a year earlier, helped by operating profit recovery

In Q2 2026, the company posted net profit of KRW 342.2 billion versus a loss of KRW 161.3 billion in Q2 2025. Operating profit turned positive: KRW 203.8 billion versus a loss of KRW 397.8 billion a year earlier.

Net margin was 9.1% versus a negative figure a year earlier. The operating profit recovery is the main driver, though one-off factors not disclosed in the report may have also contributed.

Leverage: net debt of KRW 9,079.9 billion, net debt/EBITDA of 6.54 over 12 months

At the end of Q2 2026, Samsung SDI's net debt stood at KRW 9,079.9 billion. Net debt to EBITDA for the last 12 months is 6.54, a high level, although EBITDA for that period (KRW 1,388.6 billion) already includes a strong quarter.

Net debt increased by KRW 689.4 billion over the quarter and by KRW 1,341.6 billion over the year. Debt growth follows massive capex in previous periods, which is now starting to decline.

Capex is declining: KRW 543.7 billion in Q2 versus KRW 1,001.9 billion a year earlier

Capex in Q2 2026 was KRW 543.7 billion, almost half of the KRW 1,001.9 billion a year earlier. The decline in capex has continued for four consecutive quarters, which should support free cash flow.

Operating cash flow in Q2 was modest at KRW 24.2 billion, but over the last 12 months it reached KRW 792.4 billion. With lower capex, the company is approaching positive free cash flow.

The portal's model implies 49% upside from the current price

According to the portal's model, which multiplies EBITDA growth by a target multiple, the fair value of the share is 49% above the current market price. Market capitalization stands at KRW 45,174.3 billion.

The model implies that the market has not yet fully priced in the EBITDA recovery and further growth potential. However, realizing this potential depends on maintaining current margin dynamics and reducing leverage.

EV/EBITDA of 39.1 is well above its own three-year average of 11.2

The current EV/EBITDA multiple is 39.1, more than three times its own three-year average of 11.2. This indicates that the market is valuing the company at a premium to its historical valuation.

The high multiple is explained by low EBITDA over the last 12 months (KRW 1,388.6 billion) relative to market capitalization. If EBITDA continues to grow, the multiple will normalize quickly, but the current level leaves little margin of safety.

Valuation on the latest reported figures

Bottom line

Bottom line: Samsung SDI showed a strong recovery in Q2 2026 — revenue grew 18.5%, EBITDA increased 6.3 times, and net profit turned positive. However, this reflects both operational improvements and the low base of 2025. Leverage remains high, and the EV/EBITDA multiple of 39.1 is well above its own three-year average. Nevertheless, the portal's model implies 49% upside, making the share rather attractive provided current dynamics persist.

25 августа Hyundai Mobis раскрыла результаты за второй квартал 2026 года: выручка выросла на 2,4% год к году, до 16,3 трлн вон, а чистая прибыль – на 13,5%, до 1,06 трлн вон. EBITDA-маржа расширилась с 7,2% до 8,0%, что помогло акциям выглядеть привлекательно на текущем уровне: при P/E 10,1 и EV/EBITDA 7,1 против среднего за три года 6,1, потенциал роста по модели портала составляет +13%.

Key takeaways

— Revenue grew 2.4% in Q2, but momentum is slowing

— EBITDA margin expanded to 8.0% on cost control

— Net profit rose 13.5% on operational efficiency

— Net debt remains negative: net debt is minus 2.8 trillion won

— Dividend yield of 1.6% is below market average, but payouts are stable

— Valuation: EV/EBITDA above 3-year average, but portal model implies +13% upside

Attractiveness

Key figures, KRW bn

Revenue grew 2.4% in Q2, but momentum is slowing

In Q2 2026, Hyundai Mobis revenue reached 16.3 trillion won, up 2.4% year-over-year. This is a noticeable slowdown from the start of the year: Q1 growth was 5.5%, and Q2 2025 was 8.7%.

The main driver remains demand for automotive components, but it is gradually cooling. Over the trailing twelve months, revenue reached 62.3 trillion won, reflecting business resilience, yet the quarterly momentum suggests the peak of growth is behind.

EBITDA margin expanded to 8.0% on cost control

EBITDA in Q2 grew 12.6% year-over-year to 1.30 trillion won, with margin expanding from 7.2% to 8.0%. This came despite slowing revenue, pointing to effective cost control.

Over the trailing twelve months, EBITDA reached 4.73 trillion won, providing a stable base for valuation. However, sustaining this margin will be challenging if revenue continues to decelerate.

Net profit rose 13.5% on operational efficiency

Net profit in Q2 reached 1.06 trillion won, up 13.5% year-over-year. Net margin increased from 5.9% to 6.5%.

Over the trailing twelve months, net profit reached 3.63 trillion won, implying a P/E of 10.1. This is a moderate valuation for an auto parts maker, but it does not account for potential market deterioration.

Net debt remains negative: net debt is minus 2.8 trillion won

At the end of Q2, net debt stood at minus 2.83 trillion won, meaning cash exceeds debt. Over the quarter, this improved by 134.7 billion won, and over the past twelve months by 541.3 billion won.

Net debt to EBITDA for the trailing twelve months is minus 0.6, indicating financial stability. This allows the company to sustain investments and dividends without raising debt.

Dividend yield of 1.6% is below market average, but payouts are stable

Over the trailing twelve months, Hyundai Mobis paid dividends with a yield of 1.6% at the current price. This is modest, especially compared to the key rate, but it is backed by negative net debt and stable cash flow.

Operating cash flow over the trailing twelve months reached 4.47 trillion won, comfortably covering capital expenditures of 1.55 trillion won (sum of quarterly values). This leaves room to sustain dividends, though next year's payout will depend on profitability and policy.

Valuation: EV/EBITDA above 3-year average, but portal model implies +13% upside

Current EV/EBITDA is 7.1, above the three-year average of 6.1. P/E of 10.1 also does not look cheap given slowing revenue growth.

Nevertheless, on the portal's model, which considers EBITDA growth and target multiple, the upside is +13% from the current price. This makes the stock rather attractive despite trading above its own history.

Valuation on the latest reported figures

Bottom line

Hyundai Mobis reported Q2 with moderate revenue growth but strong profit dynamics: net profit rose 13.5% on margin expansion. The company maintains negative net debt and generates sufficient cash flow to cover capex and dividends. However, slowing revenue and valuation above its own history make the stock rather attractive than clearly undervalued. The +13% upside on the portal's model justifies the current level, but a more confident view requires stabilisation of growth rates.