PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩180 per share · Prices as of the 2026-10-02 close
Daelim Bath has posted year-on-year improvement in revenue, operating profit and net income since 2022, extending its turnaround, but its credit rating and governance issues remain outstanding concerns.
2025 consolidated revenue reached KRW 300.6bn (+6.9%), operating profit KRW 18.6bn (+84.4%), and controlling-interest net income KRW 13.4bn, marking three straight years of improvement.
Operating profit summed over the latest four quarters (Q3 2025-Q2 2026) was roughly KRW 22.2bn, with pronounced quarter-to-quarter seasonality.
Daelim Bath has reportedly held the top position in Korea's sanitary ware market for many consecutive years, with a share exceeding half the market.
The company's credit rating remains at the lowest investment-grade notch, and governance concerns surfaced after an auditor resigned mid-term in January 2026.
Capital policy events during 2025 also included a bond-with-warrant issuance for working capital and a share buyback followed by a partial disposal.
Daelim Bath began in 1966 as a government-affiliated ceramics center and listed on the KOSPI in 1992, becoming Korea's leading bathroom and sanitary ware specialist.
Its business is divided into sanitary ware and faucets, bathroom materials and interior products, rental services, and furniture (through Pinewood Living), with one survey indicating sanitary ware and faucets account for more than half of sales.
In 2025, the bath segment (sanitary ware and faucets) generated roughly KRW 195.7bn in revenue and KRW 16.8bn in operating profit, accounting for the bulk of the company's total profit.
In contrast, the interior (BK) segment, the rental (care) segment, and the furniture segment operated by subsidiary Pinewood Living generated revenue but at very thin operating margins.
Affiliates include Pinewood Living, which develops a living-brand furniture business, and Adobio, which operates a healthcare and beauty business. On the product side, the company has expanded its premium 'Black Collection' faucets, PVD coating, and water-saving G1 series to build an eco-friendly, higher-end lineup.
In April 2026 it launched the 'ARNO Series,' its first integrated-design product line combining faucets, sinks and toilets, reinforcing a set-based sales strategy.
Its customer base spans B2B channels centered on construction firms and distributors serving reconstruction, redevelopment and new-build projects, alongside B2C retail, and it also exports premium bidets co-developed with a European brand across Europe.
Daelim Bath has reportedly maintained the No.1 share position in Korea's sanitary ware market for many consecutive years.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩77.2B | ₩4.4B | 5.7% |
| 2025Q3 | ₩74.3B | ₩7.5B | 10.1% |
| 2025Q4 | ₩74.9B | ₩2.6B | 3.5% |
| 2026Q1 | ₩75.8B | ₩5.6B | 7.4% |
| 2026Q2 | ₩80.3B | ₩6.5B | 8.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩253.5B | ₩1.5B | -₩800M | 0.6% | −0.5% | 113.7% |
| 2023 | ₩266.3B | ₩4.1B | -₩4.6B | 1.5% | −3.0% | 116.4% |
| 2024 | ₩281.1B | ₩10.1B | ₩5.4B | 3.6% | 3.5% | 115.2% |
| 2025 | ₩300.6B | ₩18.6B | ₩13.4B | 6.2% | 8.0% | 93.0% |
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
2025 consolidated revenue was KRW 300.57bn, up 6.9% from KRW 281.05bn a year earlier, while operating profit rose 84.4% to KRW 18.62bn from KRW 10.10bn.
Controlling-interest net income jumped to KRW 13.37bn from KRW 5.36bn in 2024, extending the recovery from consecutive net losses of KRW 0.81bn in 2022 and KRW 4.65bn in 2023. The operating margin improved steadily from 0.6% in 2022 to 1.5% in 2023, 3.6% in 2024 and 6.2% in 2025.
Summed over the latest four quarters (Q3 2025-Q2 2026), revenue totaled roughly KRW 305.2bn, operating profit about KRW 22.2bn, and controlling-interest net income about KRW 16.2bn, running ahead of the prior full-year figures.
Quarterly results showed clear seasonality, with Q3 2025 operating profit peaking at KRW 7.53bn before dropping sharply to KRW 2.63bn in Q4 2025. Momentum resumed in 2026, with operating profit of KRW 5.58bn in Q1 and KRW 6.50bn in Q2, while revenue climbed to KRW 80.26bn in Q2.
Operating cash flow was KRW 13.51bn in 2025, down from KRW 20.69bn in 2024 but positive for a fourth consecutive year. The debt-to-equity ratio eased from the 110% range in 2022-2024 to 93.0% in 2025, indicating a modest improvement in the balance sheet structure.
The sanitary ware and bathroom materials industry is closely tied to the construction cycle, including new housing, reconstruction and redevelopment activity. Daelim Bath has reportedly held the No.1 position in Korea's sanitary ware market for multiple consecutive years with a share exceeding half the market.
The domestic market itself appears mature, however, meaning a slowdown in new housing supply could constrain revenue growth.
Premiumization trends such as hotel-style bathrooms and high-end remodeling have expanded demand for set-based, integrated-design products rather than standalone items, and Daelim Bath has broadened its portfolio in line with this 'space-unit consumption' trend.
Raw materials such as kaolin and clay, along with brass ingot used for faucet production, are largely sourced domestically, limiting raw-material procurement risk.
Competitively, the company maintains its leading position in sanitary ware but faces profitability challenges in newer business areas such as furniture and rental, where it competes against established players.
Its co-development and export partnership with a European premium brand illustrates one avenue for expanding overseas sales channels.
The company launched the 'ARNO Series' in April 2026, expanding its integrated-design faucet, sink and toilet lineup and continuing its set-based sales strategy. It has also continued expanding eco-friendly products such as the water-saving G1 series and jet technology.
On the financing side, in 2025 it issued a KRW 500 million privately placed, detachable bond with warrant for working capital purposes, with an exercise price of KRW 4,271. If the attached warrants are exercised, share count could increase, leaving room for changes to the capital structure.
The company purchased 251,300 treasury shares between February and May 2025 and disposed of a portion in December 2025 for executive incentive purposes, making the future use of remaining treasury shares worth watching.
Following the mid-term resignation of an auditor in January 2026, no disclosure on a replacement has yet been confirmed, leaving governance normalization as a point to monitor going forward.
On the earnings front, operating profit improved again in the first half of 2026, meaning the direction of full-year results may hinge on whether the seasonally stronger second half materializes.
With the latest four quarters of results now reflected, the multiple of price to net income has entered a range whose meaning differs from the earlier loss-making period. The stock trades below the company's net asset value, which could be interpreted as the market not yet fully pricing in the recent earnings recovery.
Dividends have resumed following the return to profitability, and future payout levels may depend on the stability of earnings going forward.
At the same time, the fact that the credit rating remains at the lowest investment-grade notch and that short-term borrowings represent a large share of liabilities could be considered a discount factor relative to net asset value.
The trend of steadily growing profit since the turnaround from losses is another factor worth weighing in any valuation discussion.
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
Surveys indicate Daelim Bath has held the No.1 position in Korea's sanitary ware market with a share exceeding half for multiple years. Such market dominance can translate into advantages in brand recognition and distribution networks.
The company continues to expand its premium lineup in an effort to broaden share in higher-priced product categories.
Revenue, operating profit and net income have all improved year after year since 2022, and in 2025 all three metrics grew by double digits or more versus the prior year. Quarterly results in the first half of 2026 again showed increasing operating profit. If this recovery continues, it could also support further improvement in the balance sheet.
Launches of integrated-design and premium products, such as the Black Collection and ARNO Series, have continued. The product lineup featuring water-saving technology and eco-friendly certification is also expanding.
This has the potential to support higher-value project wins in areas such as hotels and premium residential complexes.
The bath segment (sanitary ware and faucets) accounts for the majority of total profit, while the interior, rental and furniture segments operate at very thin margins. The furniture segment in particular showed an operating margin below 1%, making its profit contribution effectively negligible. Business diversification has not yet translated into diversified profitability.
The company's credit rating remains at the lowest investment-grade notch (BBB-), and assessments point to a relatively low current ratio alongside a high proportion of short-term borrowings. While the debt-to-equity ratio has declined, liabilities still exceed net assets in scale. A less favorable interest rate environment could increase funding cost burdens.
Operating profit shows significant quarter-to-quarter volatility, making it difficult to extrapolate annual trends from a single quarter's results. In January 2026 an auditor resigned mid-term, and no disclosure of a replacement has been confirmed. A prolonged governance vacancy could weigh on internal controls and investor confidence.
Demand for sanitary ware and bathroom building materials is directly affected by the housing new-build and reconstruction cycle. Revenue growth could be constrained during periods of slower housing supply. With a high B2B share, the company is also exposed to shifts in construction firms' order timing.
The credit rating at the lowest investment-grade level combined with a high share of short-term borrowings has been flagged as a concern for financial stability. Assessments also point to a current ratio only modestly above 100%. In a rising interest rate environment, interest cost burdens could increase.
Since an auditor resigned mid-term in January 2026, the position is understood to remain vacant. As the auditor serves a key oversight function over the board and management, a prolonged vacancy could translate into internal control risk.
External questions have also been raised about the dividend received by the largest shareholder and the allocation of executive compensation, suggesting debate over the equity of shareholder return policy may continue.
The expected timing of Q3 (July-September) earnings disclosure, a point to check whether the interior, rental and furniture segments show margin improvement relative to the bath segment and whether the seasonal margin pattern repeats.
Whether the current BBB- rating is maintained or changed, alongside shifts in short-term borrowings and liquidity metrics, should be reviewed.
Whether a successor is appointed to the auditor position that became vacant in January 2026, and the state of governance normalization, should be confirmed.
Whether the warrants attached to the bond, with an exercise price of KRW 4,271, are exercised relative to the share price level, and the resulting potential change in share count, should be monitored.
The company's explanation of the sales contribution from new products such as the ARNO Series, and whether profitability improves in segments outside the bath business, should be reviewed.
Daelim Bath has extended a year-on-year improvement in revenue, operating profit and net income from a 2022 loss through 2025, and its results summed over the latest four quarters also exceeded the full-year figures.
Its long-standing No.1 position in Korea's sanitary ware market and the expansion of its premium product lineup stand out as business strengths.
However, profit remains concentrated in the bath segment while the interior, rental and furniture segments continue to show low profitability, and the credit rating remaining at the lowest investment-grade notch represents an ongoing financial challenge.
Governance-related uncertainty also exists, as no disclosure of a replacement has been confirmed since an auditor resigned mid-term in January 2026.
Given the significant quarter-to-quarter volatility in results, tracking the coming several quarters will be important for assessing whether the recent improvement trend persists.
Overall, the company sits at a juncture where market-position and earnings-recovery strengths coexist with balance sheet and governance-related challenges.
Report written 2026-09-05 · Data as of 2026-09-04
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