PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩80 per share · Prices as of the 2026-10-02 close
Samsung Climate Control is a small-cap KOSPI maker of radiators and oil coolers whose 2025 profit fell sharply on cost inflation and a financial-instrument impairment charge, before operating profit recovered in the first half of 2026.
2025 revenue rose slightly year-on-year, but operating profit and net profit nearly halved due to higher material and labor costs plus a financial-instrument impairment charge.
The company posted an operating loss in Q4 2025, then returned to operating profit in both Q1 and Q2 2026.
Revenue is split roughly 54% radiators, 29% oil coolers, 14% HVAC and 3% other products, showing heavy reliance on radiators and oil coolers.
The stock has repeatedly swung sharply whenever reports emerged that Nvidia was scouting domestic immersion-cooling suppliers for GPU heat issues, though no specific supply-contract disclosure involving the company has been confirmed.
The debt ratio declined from 19.2% in 2022 to 13.3% in 2025, reflecting a conservatively maintained balance sheet.
Samsung Climate Control, headquartered in Changwon, South Korea, develops and manufactures heat-exchange products including radiators, oil coolers, intercoolers, and HVAC components. Despite its name, the company is not affiliated with the Samsung Group and has no corporate relationship with it.
As of March 2026, revenue is split roughly 54% radiators, 29% oil coolers, 14% HVAC, and 3% other items, showing continued heavy reliance on radiators and oil coolers.
Production is centered at the Naedong and Naeseo plants in Changwon, supplemented by subsidiaries in Indonesia and Vietnam, while a Bangladesh unit, SCC Meters, was established to explore electricity-meter manufacturing as a new business line.
Products are supplied directly to domestic automakers, heavy-equipment and agricultural-machinery manufacturers, and aftermarket service providers, with some exports going to the United States, Europe, and Southeast Asia.
The company has been expanding into eco-friendly commercial-vehicle thermal management, including a government-supported project to develop a 150kW-class high-efficiency cooling module for hydrogen fuel-cell buses.
It is also working on thermal-management products for electrified vehicles, such as battery and power-electronics cooling systems, in response to the shift toward EVs.
Its competitive landscape overlaps with numerous domestic and global automotive heat-exchanger makers, and demand for its traditional internal-combustion-engine-oriented products could be affected by the pace of vehicle electrification.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32.7B | ₩2.3B | 7.1% |
| 2025Q3 | ₩30.6B | ₩1B | 3.3% |
| 2025Q4 | ₩24.9B | -₩1.4B | −5.6% |
| 2026Q1 | ₩26.7B | ₩1.6B | 6.0% |
| 2026Q2 | ₩31.9B | ₩2.5B | 7.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩95.7B | ₩8.7B | ₩40.9B | 9.1% | 15.9% | 19.2% |
| 2023 | ₩125.9B | ₩5.4B | ₩13.8B | 4.3% | 5.1% | 15.6% |
| 2024 | ₩115.8B | ₩6.5B | ₩14.4B | 5.6% | 5.2% | 14.2% |
| 2025 | ₩117.7B | ₩3.2B | ₩7.1B | 2.8% | 2.4% | 13.3% |
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
Consolidated revenue for 2025 was KRW 117.74 billion, up 1.7% from KRW 115.77 billion in 2024, but operating profit fell nearly by half to KRW 3.25 billion from KRW 6.48 billion, and net profit dropped sharply to KRW 7.24 billion from KRW 14.89 billion the prior year.
The company attributed the profit decline to higher material and labor costs along with a financial-instrument impairment charge. The operating margin, which moved from 9.1% in 2022 to 4.3% in 2023 and 5.6% in 2024, fell further to 2.8% in 2025.
On a quarterly basis, operating profit slowed from KRW 2.31 billion in Q2 2025 to KRW 1.02 billion in Q3, before turning negative in Q4 2025 with revenue of KRW 24.92 billion and an operating loss of KRW 1.40 billion.
The company then returned to profit in Q1 2026 with revenue of KRW 26.67 billion and operating profit of KRW 1.60 billion, and improved further in Q2 2026 with revenue of KRW 31.89 billion and operating profit of KRW 2.50 billion.
Notably, owner net profit in Q2 2026 reached KRW 6.24 billion, well above the operating profit for that quarter, suggesting a meaningful non-operating contribution—similar to 2022, when owner net profit of KRW 40.91 billion far exceeded operating profit of KRW 8.74 billion, illustrating how non-operating items periodically drive large swings in reported earnings.
Over the trailing four quarters (Q3 2025–Q2 2026), owner net profit totaled KRW 11.49 billion, with the 2026 first-half recovery offsetting much of the temporary Q4 2025 loss.
Operating cash flow remained resilient throughout, at KRW 16.04 billion in 2022, KRW 15.87 billion in 2023, KRW 12.89 billion in 2024, and KRW 15.38 billion in 2025, indicating stable cash generation despite earnings volatility.
The automotive thermal-management components industry is in a transition period where demand for internal-combustion radiators and oil coolers coexists with rising demand for battery and power-electronics cooling driven by vehicle electrification.
As automakers pursue electrification strategies, demand for traditional internal-combustion-engine parts could gradually be affected, a variable relevant to Samsung Climate Control given its heavy reliance on radiators and oil coolers.
At the same time, the spread of AI data centers has elevated liquid- and immersion-cooling technologies as a new growth axis for thermal management.
Research firm Dell'Oro Group projected the data-center liquid-cooling market could expand to roughly $7 billion by 2029, while MarketsandMarkets estimated the liquid-cooling market would grow from $4.07 billion in 2026 to $27.65 billion by 2033.
Within this trend, Samsung Electronics has been pursuing the data-center cooling and immersion-cooling market through its European HVAC subsidiary FläktGroup, a business entirely unrelated to Samsung Climate Control, with no capital or operational link between the two companies.
Samsung Climate Control has nonetheless drawn thematic attention whenever reports surfaced that Nvidia was seeking domestic immersion-cooling suppliers to address GPU heat issues, though such reports have largely been market rumor and no official supply contract has been confirmed.
In terms of competitive positioning, Samsung Climate Control is a small-cap parts maker with revenue in the low hundreds of billions of won, far smaller in scale than major global thermal-management and HVAC companies.
Samsung Climate Control is pursuing diversification into eco-friendly commercial-vehicle thermal management, including a government-supported project to develop a 150kW-class high-efficiency cooling module for hydrogen fuel-cell buses, while also exploring new overseas ventures such as electricity-meter manufacturing through its Bangladesh unit, SCC Meters.
However, no disclosed guidance is available regarding when or to what extent these new businesses will meaningfully contribute to revenue.
Reports about Nvidia scouting domestic immersion-cooling suppliers to address GPU heat issues resurfaced in February 2025 and again in July 2026, each time moving the stock, but in both instances no separate company-specific disclosure was reported.
Whether immersion cooling will translate into actual revenue therefore remains a matter to be confirmed through future official disclosures or order announcements.
The return to operating profit in both Q1 and Q2 2026 following the Q4 2025 operating loss could be read as a sign of easing cost pressure or revenue recovery, but whether this trend continues into the second half needs to be confirmed in upcoming quarterly results.
The medium- to long-term shift in demand structure for traditional radiators and oil coolers, driven by vehicle electrification, remains a variable that warrants continued observation.
The current share price trades at a substantial discount to net asset value, and the earnings multiple based on the trailing four quarters sits near the lower-to-middle end of the multi-year trading band the stock has historically occupied. The dividend yield appears to run below the sector average.
The shift from a Q4 2025 operating loss to profitability in the first half of 2026 is an important variable for valuation interpretation, and the stability of earnings over the next several quarters remains to be confirmed.
The discount to net asset value—rather than a premium—appears to reflect a combination of factors, including limited capital efficiency, liquidity constraints typical of a small-cap stock, and price volatility driven by thematic trading flows unrelated to underlying earnings.
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
The debt ratio has steadily declined from 19.2% in 2022 to 13.3% in 2025, while operating cash flow remained above KRW 10 billion in every year over the same period. This shows that cash-flow-based financial stability has been maintained even amid earnings volatility. Low leverage can be viewed as providing capacity to respond to external changes.
The company is broadening its technology portfolio into electrification and eco-friendly commercial vehicles, including developing a 150kW-class cooling module for hydrogen fuel-cell buses through a government-supported project.
It is also exploring new overseas ventures such as electricity-meter manufacturing through its Bangladesh unit, SCC Meters. Such efforts could represent a potential path toward reducing reliance on traditional internal-combustion-engine parts.
Following the operating loss in Q4 2025, the company posted operating profit in both Q1 and Q2 2026, showing a recovery trend. In Q2, both revenue and operating profit improved from the prior quarter, and owner net profit rose substantially. Net profit summed over the trailing four quarters offset a meaningful portion of the Q4 2025 loss.
A significant portion of revenue remains concentrated in internal-combustion-oriented components such as radiators and oil coolers. If automakers accelerate their shift toward electrification, demand structure for these traditional parts could be affected over the long term. Whether the pace of new-business transition can offset this remains unconfirmed.
In 2025, operating profit and net profit both fell by nearly half year-on-year due to higher material and labor costs and a financial-instrument impairment charge. The operating margin also declined from 5.6% in 2024 to 2.8% in 2025.
Recurring instances—such as in 2022 and Q2 2026—where net profit substantially exceeds operating profit highlight non-operating earnings volatility that complicates performance forecasting.
The stock has repeatedly swung sharply whenever reports emerged about Nvidia scouting domestic immersion-cooling suppliers to address GPU heat issues, yet no separate company-specific disclosure was confirmed on either occasion.
Confusion recurs due to the similarity of the company's name to Samsung Group despite having no corporate relationship. Such thematic volatility can result in price moves disconnected from actual earnings.
The demand structure for traditional internal-combustion radiators and oil coolers could shift over the long term as EV adoption spreads. Cyclicality in end markets such as heavy equipment and agricultural machinery is also a factor that can affect performance. Uncertainty over the timing of new-business revenue contribution is a further structural risk.
As seen in 2025, when the operating margin fell to 2.8% and the company posted a Q4 operating loss, cost pressure and non-operating earnings volatility can reduce the predictability of profits. Further increases in material and labor costs could reproduce margin pressure.
If non-recurring items such as financial-instrument impairment charges recur, net profit volatility could widen further.
With a market capitalization of around KRW 0.1 trillion, the stock is susceptible to liquidity constraints and heightened price volatility driven by thematic trading flows.
There is a history of sharp swings tied to rumor-driven news about Nvidia immersion-cooling suppliers, which can occur independently of actual earnings. The potential for the company's name to be mistaken for a Samsung Group affiliate also adds to information asymmetry.
The Q3 2026 earnings disclosure should be checked to see whether the operating profit recovery seen in Q2 continues and whether material and labor cost pressures ease.
It is worth monitoring whether an actual supply contract or order disclosure related to immersion cooling for global semiconductor or data-center customers such as Nvidia materializes. So far only rumor-based reports have been confirmed.
Progress on the government-supported 150kW hydrogen fuel-cell bus cooling module project and any disclosed commercialization timeline should be tracked.
The 2026 annual business report and year-end dividend disclosure should be checked to confirm finalized full-year 2026 results and any change in dividend policy.
Samsung Climate Control is a small-cap KOSPI-listed maker of automotive heat-exchange components such as radiators, oil coolers, and HVAC parts, whose operating margin fell to 2.8% in 2025 amid cost pressure and a financial-instrument impairment charge, resulting in a Q4 operating loss.
However, the company returned to operating profit in both Q1 and Q2 2026, showing an improving earnings trajectory, and net profit summed over the trailing four quarters offset much of the Q4 loss.
Its balance sheet has been managed conservatively, with a steadily declining debt ratio and stable operating cash flow maintained every year.
On the business side, the company continues efforts to reduce reliance on traditional internal-combustion-engine parts through development of a hydrogen fuel-cell bus cooling module and exploration of new overseas ventures.
At the same time, the stock has repeatedly reacted to rumor-driven news about Nvidia scouting immersion-cooling suppliers, though no specific company disclosure related to this has been confirmed, meaning any actual business contribution will need to be verified through future disclosures.
Shifts in demand structure for traditional parts driven by vehicle electrification, along with volatility in non-operating earnings, remain variables that warrant continued observation.
Report written 2026-09-05 · Data as of 2026-09-04
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