KOSDAQIT & Software0015M0

Dts

₩24,950▲ 34.86%2026-10-23 close

Market Cap

₩372B

Turnover

₩716.4B

Volume

20.9M

Shares out.

14.9M

PER

—

PBR

—

EPS

—

Dividend Yield

—

PER, PBR and dividend yield are calculated from the latest confirmed results (EPS, BPS, dividend per share) and the current share price · Prices as of the 2026-10-23 close

Report overview

DTS Inc.: Global Air-Cooled Heat Exchanger Leader Debuts on KOSDAQ

Having listed on KOSDAQ on October 23, 2026 with 26 years of proprietary air-cooled thermal management technology and a robust global EPC order base, DTS Inc. stands as Korea's only company offering a full lineup of air-cooled heat exchangers for the energy plant market.

1
Korea's only full AFC/ACC lineup: 26 years of accumulated technology and supply relationships with 15 of the world's top 20 EPC firms create a high barrier to entry
2
Sustained earnings growth: revenue up approximately 88% from 2023 to 2025, with the operating margin expanding to 19.0% in H1 2026
3
Order backlog of KRW 129.3 billion at end-June 2026: new orders grew from KRW 41.0 billion in 2023 to KRW 114.6 billion in 2025, underpinning near-term revenue visibility
4
New growth drivers in AI data center cooling and ORC waste-heat recovery: builds on existing thermal management expertise, though material revenue is not expected before 2027–2029
5
Post-IPO financial independence: phasing out guarantees, collateral, and trademark royalty payments to parent Dasan Networks strengthens the company's standalone financial footing

Business structure

DTS Inc. is an air-cooled thermal management manufacturer established in July 2000 in Gunsan, North Jeolla Province.

The company designs and fabricates Air Fin Coolers (AFCs) and Air-Cooled Condensers (ACCs) for large-scale energy plants including LNG liquefaction facilities, oil refineries, petrochemical plants, and combined-cycle power stations; these two product lines accounted for 93.6% of total revenue in FY2025.

Core competencies include proprietary high-efficiency Fin technology developed in-house since 2006, project-specific thermal design software, ultra-low-noise engineering, and globally certified quality standards—creating a high barrier to entry for new competitors.

As of end-June 2026, the company had completed a cumulative 284 projects across more than 30 countries and held supply relationships with 15 of the world's top 20 EPC contractors.

Repeat-order records of up to 27 times from a single end user and up to 15 times from a single EPC firm attest to strong long-term customer retention. DTS Inc. is the only domestic company with a full AFC and ACC product lineup, giving it a broader offering than domestic peers such as SNT Energy and BHI.

Overseas revenue represented 89% of total sales in FY2025, with the Middle East, North America, and Africa as primary markets, supported by a Middle East regional office.

KOSDAQ-listed Dasan Networks holds a 31.99% post-IPO stake as the controlling shareholder, having acquired the then-insolvent DTS Inc. in 2013 and investing over KRW 50 billion to develop it into its current global position.

The Gunsan production facility can handle projects worth up to KRW 200 billion per year and operates nine AI-assisted robotic welding units to enhance production efficiency.

Recent trends

In FY2025, DTS Inc. posted consolidated revenue of KRW 142.718 billion, operating profit of KRW 25.082 billion, and net profit of KRW 18.765 billion.

This represents approximately 88% revenue growth in two years from KRW 75.8 billion in FY2023, while operating profit nearly doubled from KRW 13.3 billion to KRW 25.1 billion over the same period.

For H1 2026, the company recorded revenue of KRW 79.1 billion (+26.2% year-on-year) and operating profit of KRW 15.0 billion (+42.9%), with an operating margin of 19.0%—above the full-year FY2025 level of 17.6%.

New energy plant orders expanded from KRW 41.0 billion in 2023 to KRW 114.6 billion in 2025, with H1 2026 new orders reaching KRW 57.8 billion. The order backlog stood at KRW 129.3 billion as of end-June 2026, supporting near-term revenue visibility.

DTS Inc. listed on KOSDAQ on October 23, 2026, recording institutional subscription demand of 983.98:1 and retail subscription of 986.99:1, with total retail subscription deposits of approximately KRW 5.0873 trillion.

The final IPO price was set at the top of the guidance range at KRW 18,500, raising total gross proceeds of approximately KRW 41.2 billion, with 61% of institutional allocations subject to voluntary lock-up.

On listing day the shares hit an intraday high of KRW 40,750 (+120.27% above the IPO price) before closing at KRW 24,950 (+34.86%), with turnover of KRW 716.4 billion.

As of end-June 2026, the debt-to-equity ratio was 73.22% (industry average: 89%), the current ratio 186% (industry average: 161%), and the interest coverage ratio 20× (industry average: 3.83×), all comfortably above sector norms.

Outlook

CEO Kim Joong-il publicly guided for FY2026 revenue of KRW 170 billion and operating profit of KRW 25.5 billion as of June 2026. The company has set a second-half 2026 order target of approximately KRW 90 billion, which management estimates would bring the year-end backlog to around KRW 140 billion.

AI data center dry coolers and ORC waste-heat power generation have been positioned as medium-to-long-term growth drivers, with management expecting meaningful AI data center cooling procurement to begin after 2029 and ORC revenue contribution to commence from 2027.

In the ORC segment, the company has already secured a 1.5 MW-scale commercial supply contract following a technology transfer from a French partner and is pursuing expansion to the 3–5 MW product range as well as entry into European markets. For the U.S.

LNG plant market, the company is reinforcing its local agent network and building relationships with EPC contractors, with a stated long-term goal of reaching KRW 500 billion in revenue within ten years.

Net IPO proceeds of approximately KRW 36.5 billion are allocated to facility investment (KRW 10.9 billion), project working capital (KRW 12.0 billion), and other uses (KRW 13.6 billion).

Post-listing, the company will phase out guarantees, collateral, and trademark royalty payments—which totaled approximately KRW 3.2 billion over the prior three years—to parent Dasan Networks, establishing a more independent financial structure.

Bull factors

Solid Global Order Foundation

A track record of 284 projects across 30-plus countries and supply relationships with 15 of the world's top 20 EPC contractors underpin a stable order pipeline.

Repeat-order records of up to 27 times from a single end user and 15 times from a single EPC firm demonstrate the durability of long-term customer relationships. New orders of KRW 114.6 billion in 2025 were roughly 2.8 times the KRW 41.0 billion recorded in 2023, reflecting rapidly accelerating order momentum. The order backlog of KRW 129.3 billion at end-June 2026 provides solid near-term revenue visibility.

Double-Digit Operating Margins on an Improving Trend

The H1 2026 operating margin of 19.0% exceeded the full-year FY2025 level of 17.6%, reflecting cost efficiencies and an improving order mix. Being the only domestic supplier with a full AFC and ACC lineup limits effective competition and supports pricing leverage.

Expanding AI-assisted robotic welding automation and further capital investment in the Gunsan facility are expected to reinforce cost competitiveness over the medium to long term.

A debt-to-equity ratio of 73.22% (below the industry average of 89%) and an interest coverage ratio of 20× (well above the industry average of 3.83×) indicate sound financial health.

New Growth Engines in AI Data Centers and ORC

Existing plant thermal design expertise and ultra-low-noise engineering can be directly applied to AI data center dry coolers, lowering new-business entry costs.

In the ORC segment, a 1.5 MW-scale commercial supply contract is already in hand, and a technology transfer from a French partner enables end-to-end capabilities from thermal analysis to full package integration.

Structural tailwinds—tightening global carbon regulations and surging AI infrastructure investment—support long-term demand for both new business lines. Leveraging its existing EPC customer network, the company also has the opportunity to pursue follow-on orders in CCUS and hydrogen plant projects.

Bear factors

Uncertain Timeline for New Business Revenue Contributions

AI data center cooling and ORC are not expected to generate meaningful revenue until after 2029 and 2027, respectively, limiting near-term earnings catalysts.

Both new business lines currently contribute minimally to total revenue, and a slower-than-expected commercialization path could delay the realization of these growth drivers.

Even as domestic AI data center construction plans move forward, competition will shape the timing and scale of dry cooler orders available to DTS Inc. The ORC business remains at an early-project stage, leaving execution risks around the scale-up to 3–5 MW products and entry into overseas markets.

Revenue Concentration in AFC/ACC and Dependence on the Energy Plant Order Cycle

With AFC and ACC together representing 93.6% of FY2025 revenue, the company's earnings are highly sensitive to shifts in the energy plant investment cycle. The project-based order model means that large-contract delays or cancellations can cause significant quarter-to-quarter revenue swings.

A sustained decline in international oil or natural gas prices, or a deceleration in energy demand growth, could structurally slow new orders from LNG plants and power stations. The minimal current contribution from new businesses limits near-term diversification benefits.

Governance Structure and Shareholder Return Uncertainty

Dasan Networks retains a 31.99% stake as the controlling shareholder post-IPO, and residual concerns about conflicts of interest and minority shareholder value at Dasan Networks persist.

As of the listing date of October 23, 2026, there is no share buyback program in place, and a specific standalone shareholder return policy has yet to be finalized.

The stated priority of deploying IPO proceeds and operating cash into capital investment over the five years following listing constrains near-term shareholder return capacity.

Chairman Nam Min-woo of Dasan Group's public comment about the potential listing of additional subsidiaries could reignite market concerns about the group's broader governance structure.

Risk factors

Energy Plant Order Cycle Risk

An acceleration in the global energy transition or a macroeconomic downturn could reduce new orders for LNG plants and power stations, undermining the company's order base.

Sharp declines in international oil or natural gas prices may prompt energy companies to cut capital expenditures, directly reducing demand for heat exchangers. Large project delays or cancellations affect the rate at which the backlog converts to revenue and can increase quarter-to-quarter earnings volatility.

Intensifying price competition from domestic peers such as SNT Energy and BHI, as well as global players, could erode margins in new-order markets.

Foreign Exchange and Geopolitical Risk

With 89% of revenue derived overseas, the company has significant exposure to foreign exchange fluctuations; a strengthening Korean won reduces the KRW-equivalent value of dollar- and euro-denominated revenues.

An escalation in Middle Eastern conflicts or tighter sanctions in the region—a key order market—could disrupt project execution. Changes in U.S. trade policy or heightened import restrictions introduce uncertainty into the company's North American LNG market expansion strategy.

Continued concentration of orders in specific regions or with a small number of customers would increase vulnerability to localized disruptions.

New Business Technology and Commercialization Risk

Although AI data center dry coolers and ORC waste-heat generation share technical synergies with the core business, they face different customer specifications, competitive dynamics, and regulatory environments from the energy plant business.

The ORC segment relies on a technology transfer from a French partner, and scaling up commercialization may require additional development expenditure. AI data center cooling is not expected to see significant procurement until after 2029, requiring a prolonged period of upfront investment before returns materialize.

If new-business orders fall meaningfully short of management targets, the return on IPO proceeds may be lower than anticipated.

Overall view

DTS Inc. is a special-purpose machinery manufacturer that has built 26 years of proprietary air-cooled thermal management technology and a global EPC order network in the energy plant sector, with its full AFC/ACC product lineup and double-digit operating margins forming the core of its competitive positioning.

Both FY2025 full-year results and H1 2026 performance showed concurrent growth in orders, revenue, and earnings, with a backlog of KRW 129.3 billion at end-June 2026 supporting near-term revenue visibility.

Over the medium to long term, AI data center cooling and ORC waste-heat recovery represent meaningful growth variables, but both are not expected to contribute material revenues until 2027 at the earliest, making the trajectory of core energy plant orders the dominant near-term earnings driver.

The governance relationship with parent Dasan Networks, meaningful exposure to foreign exchange and geopolitical factors given 89% overseas revenue, and the inherent variability of a project-based order model are areas warranting ongoing monitoring.

This report is prepared for informational purposes only and does not contain any investment opinion, rating, or price target.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-10-23 · Data as of 2026-10-23

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.