Sampyo Cement Co Ltd

Sampyo Cement maintains a capital structure characterized by significant leverage, with long-term debt of 503.4 billion KRW against total equity of 786.1 billion KRW, resulting in a debt-to-equity ratio of 0.64. The company holds 82.3 billion KRW in cash and equivalents, which is insufficient to cover total liabilities of 660.6 billion KRW, leading to a negative net cash position. Liquidity is constrained, evidenced by a current ratio of 0.91, indicating that current liabilities exceed current assets. Operating cash flow stands at 93.9 billion KRW, while free cash flow is 62.4 billion KRW after capital expenditures of 45.3 billion KRW.

Profitability metrics show a return on equity of 6.96% and a return on assets of 3.78%. The company generated net income of 40.8 billion KRW on revenue of 676.9 billion KRW, yielding a net margin of approximately 6.0%. Operating income was 75.9 billion KRW, reflecting an operating margin of roughly 11.2%. The gross profit was 130.4 billion KRW, indicating a gross margin of approximately 19.3%. These returns are modest, suggesting moderate efficiency in asset utilization and equity generation.

Revenue concentration is not detailed in segment or geographic breakdowns within the available data. The company’s primary activity is identified as construction materials, implying exposure to domestic infrastructure and real estate cycles. Without specific segment data, the revenue mix is assumed to be dominated by core cement products, with potential ancillary sales of aggregates or ready-mix concrete.

Growth trajectory analysis is limited due to the absence of historical period data. The latest normalized period shows revenue of 676.9 billion KRW. Without prior year comparisons, year-over-year growth rates cannot be calculated. The company’s market capitalization is 854.5 billion KRW, with a share count of 107.4 million shares outstanding, both basic and diluted.

Risk factors include medium liquidity risk due to the current ratio below 1.0 and the negative net cash position. Dilution risk is assessed as low, with no difference between basic and diluted share counts. Key flags highlight the negative net cash status, which may constrain financial flexibility. The company’s reliance on debt financing, with long-term debt comprising 64% of equity, exposes it to interest rate risks and refinancing challenges.

Recent events include analyst estimates with a mean recommendation of 3.00 (Hold), based on one analyst coverage. The mean EPS estimate is 326.00 KRW, compared to the last actual EPS of 380.00 KRW, suggesting a potential downward revision in earnings expectations. There are no strong buy or buy ratings, indicating neutral to cautious sentiment among analysts.

Sampyo Cement Co Ltd (038500.KQ) has seen its operating asset base formally updated to include four key facilities in South Korea, marking a notable structural clarification in its production footprint. The additions comprise the Samcheok Cement Plant, an integrated facility with a capacity of 10.09 Mtpa, alongside three grinding plants: Donghae (1.346 Mtpa), Gwangyang (1.2 Mtpa), and Busan (0.8 Mtpa). All four assets are currently listed with an operating status, consolidating the company’s total recognized capacity across these specific locations. This update provides a clearer view of Sampyo Cement’s operational scale, particularly highlighting the dominance of the Samcheok integrated plant, which accounts for the majority of the newly recorded capacity. The inclusion of the Donghae, Gwangyang, and Busan grinding plants further delineates the company’s downstream processing capabilities within the domestic market. These assets collectively reinforce the firm’s position in the South Korean cement sector through a mix of integrated production and specialized grinding operations. Despite the significant detail added to its asset registry, the company’s broader financial and analyst profile remains static. There are no material changes reported against prior analysis, and the firm continues to be covered by two analysts with no reported index memberships or disclosed top holders. This stability suggests that while the operational data has been refined, the fundamental market perception and coverage structure for Sampyo Cement have not shifted. The precise mapping of these operating plants offers investors a more granular understanding of Sampyo Cement’s production infrastructure. By distinguishing between integrated and grinding assets, the updated data allows for a more accurate assessment of the company’s operational efficiency and capacity utilization within South Korea. This clarity is essential for evaluating the firm’s ability to meet domestic demand and manage its production costs effectively.

Cash conversion ratio of 1.72 is well above the cohort median of 1.2, reflecting robust cash generation capabilities.

Net income CAGR of 19.0% over four years highlights strong historical earnings growth momentum for the company.

Long-term debt decreased to 550.4 billion KRW in FY2025, showing a positive trend in balance sheet deleveraging.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or debt servicing.

Revenue KRW 676.93B, −14,4% YoY; Operating income −23,3% YoY.

• ▍Revenue KRW 676.93B, −14,4% YoY
• ▍Operating income −23,3% YoY
• ▍Net income −38,3% YoY
• ▍Free cash flow −27,2% YoY
• ▍Net margin 6.0%

Revenue KRW 790.79B, −4,0% YoY; Operating income +21,4% YoY.

• ▍Revenue KRW 790.79B, −4,0% YoY
• ▍Operating income +21,4% YoY
• ▍Net income +95,5% YoY
• ▍Free cash flow +53,6% YoY
• ▍Net margin 8.4%

Revenue KRW 823.73B, +14,2% YoY; Operating income +34,8% YoY.

• ▍Revenue KRW 823.73B, +14,2% YoY
• ▍Operating income +34,8% YoY
• ▍Net income +12,0% YoY
• ▍Free cash flow +25,9% YoY
• ▍Net margin 4.1%

Revenue KRW 721.12B, +26,7% YoY; Operating income +31,9% YoY.

• ▍Revenue KRW 721.12B, +26,7% YoY
• ▍Operating income +31,9% YoY
• ▍Net income +48,4% YoY
• ▍Free cash flow +496,9% YoY
• ▍Net margin 4.2%

Revenue KRW 568.99B; Operating income KRW 45.88B.

• ▍Revenue KRW 568.99B
• ▍Operating income KRW 45.88B
• ▍Net margin 3.6%