[Click eStock] "Wooshin System, Corporate Value Not Reflecting Earnings Turnaround"

Hanyang Securities diagnosed on the 16th that Wooshin System has achieved a performance turnaround but it has not yet been reflected in the corporate value.

Wooshin System is a manufacturing specialist company focusing on automotive body automation equipment, parts, and safety belt (Safety) sectors, and was listed on the KOSPI market in 2002. Recently, it has actively entered the secondary battery automation equipment market, expanding its business from the existing internal combustion engine vehicle base to the entire electrification industry. Its major clients include more than 40 global OEM and ODM companies such as GM and FORD, and it has production bases in strategic regions including North America, India, and Mexico.

As of the end of last year, Wooshin System recorded its highest-ever performance with consolidated sales of 563.6 billion KRW and operating profit of 36.07 billion KRW. Compared to the previous year, sales increased by 132.7% and operating profit by 190.6%, which is the result of large-scale order sales in the secondary battery automation equipment sector being fully reflected.

Researcher Lee Jun-seok of Hanyang Securities analyzed, "In 2025, due to the base effect, sales of 503.1 billion KRW (down 10.7% YoY) and operating profit of 31.98 billion KRW (down 11.3% YoY) are expected, but these levels are still high compared to 2023, and it is judged to be a phase of maintaining solid strength within the mid- to long-term performance trend."

The company's automotive body automation equipment business is its initial core business and still a key foundation generating stable cash flow. It supplies welding and assembly equipment for new car models on a turnkey basis, and recently strengthened its global order competitiveness by securing production bases in Detroit, North America, and Pune, India.

Researcher Lee explained, "Based on this technological foundation, the company entered the secondary battery automation equipment market from 2020, secured competitiveness in automation equipment centered on battery assembly processes, and succeeded in orders worth about 200 million USD for US OEMs in 2023." Last year, related sales of about 280 billion KRW were reflected in the performance, driving overall growth, and orders from European VM companies and additional orders are also expected.

The safety belt sector is growing centered on the subsidiary 'Wooshin Safety System,' established through the acquisition of DBI in 2013. This company internalized the entire process from design to certification and production, and is establishing itself as a global safety partner in the safety belt market, which requires high safety and reliability, based on high entry barriers. The market restructuring began when Takata went bankrupt in 2017, and as a result, a reflective benefit from global volume redistribution is expected from 2025.

Researcher Lee Jun-seok stated, "The company is responding to most of GM's global new cars and is expanding customer diversification including Ford and Stellantis, starting with Hyundai-Kia's 'Staria' model." Last year, the safety sector achieved sales of 160 billion KRW, reached the break-even point (BEP), and eliminated losses up to 2023, while the fixed cost burden of the Mexico corporation is improving due to increased volume for North America.