PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Daehan Textile returned to profit in 2024, but 2025 saw revenue grow while operating profit fell sharply, and the most recent four quarters have alternated between profit and loss near breakeven.
2025 revenue rose to KRW 158.3 billion (+18.2% YoY), but operating profit fell 71.2% to KRW 697 million and net income turned to a loss again
Over the trailing four quarters (2025Q3-2026Q2), net income alternated between profit and loss, with the combined total near breakeven
Operating cash flow deteriorated sharply to negative KRW 22.3 billion in 2025, while the debt ratio rose to 51.2%
As a cotton-centric spinning and weaving business, exposure to raw material prices, FX, and tariffs from 100% imported cotton is a key variable
The former Jeonju plant site was fully sold in 2017 and is now owned by a developer, making it a separate regional development story rather than a direct company earnings driver
Daehan Textile's core business is spinning cotton and polyester staple fiber into combed cotton yarn and other spun yarns, then weaving and dyeing them into finished fabric. Revenue is split between the textile segment (99.48%) and construction (0.52%), making it essentially a single-business textile company.
Production is split between the domestic Jeonju plant (spinning and weaving) and Daegu plant (dyeing and finishing); the Jeonju plant runs 35,520 spinning spindles and 82 weaving looms, while the Daegu plant operates continuous dyeing and printing lines.
Overseas, the company consolidates subsidiaries including Qingdao Taeyuan Textile, Qingdao Taehan Dyeing, Daehan Textile Shanghai in China, and PT. Taihan Indonesia, spreading production and processing functions abroad.
Raw cotton is 100% imported, mainly from the United States, exposing the company to global cotton prices and currency swings. Domestic and export sales are split roughly 4:6, with exports forming the larger share, and sales combine planned production with order-based production for dyeing services.
In the market, Daehan Textile's operating margin is viewed as among the lowest of comparable spinning and weaving companies, pointing to a relative profitability disadvantage within its peer group.
As background, the former Jeonju plant site (about 230,000 square meters) was fully sold to developer Jagwang Co., Ltd. in 2017 for roughly KRW 198 billion, so it is no longer a Daehan Textile asset, and the subsequent tourism-tower complex development is a separate company's project.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩46.9B | ₩76,181,637 | 0.2% |
| 2025Q3 | ₩40.3B | ₩79,269,987 | 0.2% |
| 2025Q4 | ₩40.4B | ₩1.1B | 2.6% |
| 2026Q1 | ₩34.9B | ₩400M | 1.1% |
| 2026Q2 | ₩40.6B | ₩1.2B | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩191.5B | -₩3.9B | -₩5.2B | −2.0% | −3.9% | 55.7% |
| 2023 | ₩149.4B | -₩1.8B | -₩3.7B | −1.2% | −2.8% | 38.0% |
| 2024 | ₩133.9B | ₩2.4B | ₩1.1B | 1.8% | 0.8% | 40.1% |
| 2025 | ₩158.3B | ₩700M | -₩600M | 0.4% | −0.4% | 51.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
On an annual basis, 2022 saw revenue of KRW 191.5 billion with an operating loss of KRW 3.9 billion and a net loss of KRW 5.2 billion (debt ratio 55.7%), reflecting a loss-making phase.
In 2023, revenue declined to KRW 149.4 billion, yet losses continued with an operating loss of KRW 1.8 billion and a net loss of KRW 3.7 billion.
In 2024, revenue fell further to KRW 133.9 billion, but the company turned profitable with operating profit of KRW 2.4 billion (operating margin 1.8%) and net income of KRW 1.1 billion, showing signs of cost-structure improvement.
However, 2025 revenue rose 18.2% year-on-year to KRW 158.3 billion, while operating profit came to only KRW 697 million (operating margin 0.4%), down 71.2% from the prior year, and net income swung back to a loss of KRW 610 million.
This pattern reflects garment order growth driving revenue while tariff-related cost increases eroded profitability.
Looking at quarterly operating profit, results were KRW 76 million in 2025Q2, KRW 79 million in 2025Q3, KRW 1.05 billion in 2025Q4, KRW 369 million in 2026Q1, and KRW 1.15 billion in 2026Q2, showing wide swings with relatively stronger results in Q4 and Q2.
Net income attributable to owners alternated between profit and loss each quarter: +KRW 319 million in 2025Q2, -KRW 310 million in 2025Q3, +KRW 278 million in 2025Q4, -KRW 274 million in 2026Q1, and +KRW 347 million in 2026Q2.
Summing the most recent four quarters (2025Q3-2026Q2), owner net income totals roughly KRW 41 million, close to breakeven.
On the cash flow side, operating cash flow remained positive at KRW 10.5 billion in 2023 and KRW 5.2 billion in 2024, but deteriorated sharply to negative KRW 22.3 billion in 2025, suggesting greater working-capital pressure from inventory and receivables tied to revenue growth.
Korea's cotton spinning and weaving industry is generally viewed as a mature, structurally declining sector burdened by high wage growth, severe shortage of skilled labor, aging facilities, and high raw material costs.
At the same time, global textile demand continues at a moderate pace, leaving room for competitiveness gains through automation, technology development, and management innovation.
Within this environment, Daehan Textile's operating margin is viewed as among the lowest of comparable peers, placing it in a relatively weaker profitability position within its industry group.
The structure of sourcing 100% of raw cotton from overseas means the company fully bears cost volatility tied to international cotton prices and currency movements.
In 2025, tariff-related cost increases were specifically identified as the main driver of the margin decline, illustrating how trade-policy shifts in major markets such as the United States can directly affect a domestic textile maker's profit and loss.
Supply-chain instability, prolonged high interest rates, and logistics and raw-material price volatility have combined to widen uncertainty across the industry, and Daehan Textile is responding through customer diversification, eco-friendly material development, and smart factory conversion.
Having overseas production bases in China and Indonesia may provide some buffer against rising labor cost and environmental regulatory burdens in domestic production.
The company states it is pursuing profitability improvement through customer diversification, eco-friendly material development, and smart factory conversion in response to expanded uncertainty from supply-chain instability, prolonged high interest rates, and logistics and raw-material price volatility.
However, no specific revenue or profit guidance, nor new capacity expansion plans, have been separately confirmed through disclosures or media reports, leaving the outlook largely at the level of directional strategy statements.
Given that the most recent four quarters alternated between profit and loss, whether this volatility moderates in coming quarters will be a key point to watch.
As background, the former Jeonju plant site, now owned by developer Jagwang Co., Ltd., completed Jeonju City's integrated review in March 2025 and project-approval filing in April 2025, with Jagwang stating it targets construction start around fall, completion of the first apartment phase by end-2030, and the tourism tower roughly 20 months later.
This is unrelated to Daehan Textile's direct financial performance but continues to generate news flow as a regional Jeonju issue, with construction industry observers noting that delays in contractor selection could affect the actual groundbreaking timeline.
On Daehan Textile's core business, changes in cotton prices, foreign exchange rates, and tariff policy remain the key variables likely to continue affecting cost and margin in upcoming quarters.
Daehan Textile's shares trade at a substantial discount to the company's net asset value, sitting well below book value per share.
On the earnings side, the profit-and-loss direction itself reversed year to year - from consecutive losses in 2022-2023, to a profit turnaround in 2024, and back to a modest loss in 2025 - and with the trailing four-quarter combined net income near breakeven, price-to-earnings type comparisons in this window warrant caution in interpretation.
On the dividend side, no recent cash dividend has been confirmed, so shareholder-return appeal through dividends is currently limited.
Given the wide swings in results over recent years, how the direction and magnitude of quarterly profit evolves going forward will be an important variable for interpreting price-to-earnings type metrics.
The stock's small market capitalization and relatively limited liquidity as a small-cap name should also be factored in.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
After consecutive losses in 2022-2023, the company turned profitable in 2024 with operating profit of KRW 2.4 billion and net income of KRW 1.1 billion. In 2025, individual quarters such as Q4 (operating profit KRW 1.05 billion) and 2026Q2 (KRW 1.15 billion) posted relatively solid results. Revenue itself grew 18.2% year-on-year in 2025, showing signs of order recovery.
The 2025 revenue growth was primarily attributed to an increase in garment orders, which can be interpreted as a sign of partial recovery in downstream apparel and textile demand. If revenue growth continues, it could combine with cost-structure improvements to support margin recovery over time.
The company consolidates subsidiaries in Qingdao and Shanghai, China, and in Indonesia, giving it a structure to geographically diversify production and processing functions. This can provide some buffer amid rising domestic labor costs and environmental regulatory burdens.
Strategies such as customer diversification and eco-friendly material development are being pursued in parallel.
While 2025 revenue grew 18.2% year-on-year, operating profit plunged 71.2% and net income swung back into a loss. Tariff-related cost increases were identified as the main driver of the profitability decline, exposing a structural weakness where revenue growth does not directly translate into profit improvement.
Owner net income alternated between profit and loss over the past five quarters, showing hard-to-predict swings. 2025 operating cash flow deteriorated sharply to negative KRW 22.3 billion from positive levels in 2023-2024, likely reflecting greater inventory and receivables burden from revenue growth, which could add to working-capital pressure.
Daehan Textile's operating margin is viewed as among the lowest of comparable spinning and weaving companies. Korea's cotton textile industry is noted for structural problems including high wage growth, skilled-labor shortages, aging facilities, and expensive raw materials.
Relying on 100% imported raw cotton exposes the company directly to swings in international prices and exchange rates.
Raw cotton is 100% imported, mainly from the United States, leaving the company fully exposed to price and supply instability from global economic conditions and weather anomalies. Won-dollar exchange rate movements can simultaneously affect import costs and export margins. If raw material prices rise, margins could deteriorate again regardless of revenue growth.
In 2025 results, tariff-related cost increases were identified as the main driver of the sharp drop in operating profit. Trade-policy changes in major export markets can continue to directly affect costs and selling prices going forward. If supply-chain instability and logistics-cost volatility overlap, the burden could be compounded.
Operating cash flow deteriorated sharply to negative KRW 22.3 billion in 2025, and the debt ratio rose to 51.2% from the prior year. Revenue growth may have led to increased inventory and receivables, delaying cash collection. If this trend continues, the need for external funding could grow.
Check the 2026 Q3 preliminary earnings disclosure — this is the point to assess whether the recent pattern of alternating quarterly profit and loss continues, and whether revenue growth and operating margin recovery hold up.
Track international cotton price trends, the won-dollar exchange rate, and tariff policy changes in major markets such as the United States — these were the key drivers of the 2025 margin decline and warrant continued monitoring.
Monitor whether construction begins at the former Jeonju plant site (now owned by Jagwang) — not a Daehan Textile asset, but related news continues as a regional issue, with contractor-selection delays as a variable to watch.
Check the FY2026 annual preliminary earnings disclosure — this is the point to assess whether the company returns to profit after the 2025 loss, and whether dividend policy resumes.
Daehan Textile turned profitable in 2024, but in 2025 revenue grew 18.2% while operating profit plunged 71.2% and net income swung back into a loss, showing profit-and-loss direction reversing year to year.
Owner net income alternated between profit and loss over the past five quarters, and the trailing four-quarter total remained close to breakeven. Operating cash flow deteriorated sharply to negative KRW 22.3 billion in 2025 while the debt ratio rose to 51.2%, reflecting funding pressure amid revenue expansion.
The structure of 100% imported raw cotton and cost exposure to tariff policy changes remain key margin variables going forward. On the other hand, the revenue recovery driven by rising garment orders and the cost-diversification structure from overseas production bases are factors worth weighing as well.
The former Jeonju plant site development, having been fully sold off in 2017, should be viewed as a separate regional issue unrelated to the company's current financial performance.
Overall, this is a period where the direction and magnitude of results have diverged sharply quarter to quarter, making it important to track whether revenue, margin, and cash flow improvements continue in coming quarters.
Report written 2026-09-05 · Data as of 2026-09-04
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