Sanil Electric (062040) Q2 2026 earnings summary

Executive summary

• Manufactures transformers and related electrical equipment, with 97% of sales from exports, primarily to the US, which accounts for 87% of total sales.

• Listed on KOSPI in July 2024; maintains strong credit ratings (A+ as of April 2026).

• Expanded production capacity with a new factory and ongoing automation investments.

Financial highlights

• H1 2026 revenue: KRW 314.5 billion; operating income: KRW 117.5 billion; net income: KRW 100.5 billion.

• Gross margin for H1 2026: 37.3%; operating margin: 37.4%; net margin: 32%.

• Cash and cash equivalents at June 2026: KRW 95.1 billion.

• Dividend payout ratio (H1 2026): 25.5%; cash dividend per share: KRW 1,250.

• Debt-to-equity ratio: 14% at June 2026, down from 16% at end-2025.

Outlook and guidance

• Targeting further US market penetration with plans for local sales/service centers and potential manufacturing base.

• Expects continued growth from global grid upgrades, renewable energy investments, and US infrastructure spending.

• Aims for 30% dividend payout ratio by 2030.