KOSPIAutomotive007340

DN Automotive

₩50,200▲ 1.11%2026-10-02 close

Market Cap

₩2.9T

Turnover

₩5.2B

Volume

100,000 shares

Shares out.

58.5M

PER

6.0×

PBR

1.0×

EPS

₩7,493

Dividend Yield

2.22%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,000 per share · Prices as of the 2026-10-02 close

Report overview

Machine Tools Drive a Record Quarter

The company posted a record quarter in 2Q26 with revenue of KRW 1.2493trn and operating profit of KRW 205.4bn, while the integration of HELLER and renewed listing discussions at machine-tool subsidiary DN Solutions unfold in parallel.

1
In 2Q26 revenue reached KRW 1.2493trn (+37.3% YoY) and operating profit KRW 205.4bn (+69.0%), with a 16.4% operating margin, the highest among the five quarters provided.
2
Press reports attribute the 2Q26 growth to record quarterly revenue and margins in the machine-tool division, with new orders and backlog also described as all-time highs.
3
Subsidiary DN Solutions completed the acquisition of Germany's HELLER in January 2026, and the company projected its consolidated revenue would expand to roughly KRW 3trn as a result.
4
Annual revenue rose from KRW 3.1564trn in 2022 to KRW 3.6757trn in 2025, while the debt-to-equity ratio fell from 305.8% to 115.4% over the same period.
5
DN Solutions withdrew its IPO in 2025 after weak book-building, and an August 2026 press report noted both a review of a renewed listing and the variable of dual-listing regulation.

Business structure

DN Automotive combines an auto-parts business making anti-vibration rubber components and lead-acid batteries with a machine-tool business.

Founded in 1971 as Dong-A Tire Industrial and listed on KOSPI in 1988, it was spun off in 2017 into DN Automotive and Dong-A Tire Industrial, and the two entities merged again in 2024.

It added Chrysler, General Motors and Ford as customers in the early 2000s, and expanded overseas anti-vibration capacity by acquiring Avon of the UK in 2009 and CF Gomma of Italy in 2014. What changed the nature of the portfolio was machine tools.

In 2022 it acquired 100% of DN Solutions (formerly Doosan Machine Tools) from MBK Partners for KRW 2.12trn, through wholly owned special purpose vehicle GMT Holdings. GMT Holdings holds an 84.83% stake in DN Solutions.

DN Solutions is the domestic leader and roughly the world's third-largest machine-tool maker, with revenue of KRW 2.1763trn in 2022, KRW 2.1023trn in 2023 and KRW 2.112trn in 2024, making it a major pillar of consolidated sales.

Its lineup spans more than 400 product types including turning centers and machining centers.

On the parts side, battery capacity is being added: in October 2025 it agreed with the city of Ulsan to invest KRW 62.1bn in high-performance AGM battery lines, and in February 2025 it signed a memorandum with Busan to build an automotive lead-acid battery plant in Gijang.

The result is a dual portfolio exposed both to steady replacement demand in auto parts and to the global capital-expenditure cycle.

Earnings trend

Quarterly revenue · Operating profit

₩909.6B₩121.6B25Q2₩918.7B₩118.7B25Q3₩968.6B₩150B25Q4₩1T₩144.6B26Q1₩1.2T₩205.4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩3.2T₩421.5B2022₩3.3T₩490.4B2023₩3.4T₩522.9B2024₩3.7T₩527.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩909.6B	₩121.6B	13.4%
2025Q3	₩918.7B	₩118.7B	12.9%
2025Q4	₩968.6B	₩150B	15.5%
2026Q1	₩1T	₩144.6B	14.2%
2026Q2	₩1.2T	₩205.4B	16.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩3.2T	₩421.5B	₩180.9B	13.4%	20.7%	305.8%
2023	₩3.3T	₩490.4B	₩274.8B	15.0%	24.1%	227.5%
2024	₩3.4T	₩522.9B	₩284.9B	15.2%	16.4%	130.6%
2025	₩3.7T	₩527.9B	₩281.6B	14.4%	14.0%	115.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The annual track record shows gradual but steady expansion. Revenue rose for three consecutive years, from KRW 3.1564trn in 2022 to KRW 3.2692trn in 2023, KRW 3.4345trn in 2024 and KRW 3.6757trn in 2025, while operating profit widened from KRW 421.5bn to KRW 527.9bn.

The operating margin, however, eased from 15.0% in 2023 and 15.2% in 2024 to 14.4% in 2025, and net profit attributable to owners was essentially flat at KRW 281.6bn in 2025 versus KRW 284.9bn in 2024. The quarterly pattern changed markedly entering 2026.

From revenue of KRW 909.6bn and operating profit of KRW 121.6bn in 2Q25, KRW 918.7bn and KRW 118.7bn in 3Q25, and KRW 968.6bn and KRW 150.0bn in 4Q25, quarterly revenue passed KRW 1trn in 1Q26 at KRW 1.0177trn with KRW 144.6bn operating profit, then reached KRW 1.2493trn of revenue, KRW 205.4bn of operating profit and KRW 140.6bn of owners' net profit in 2Q26.

That marks a 37.3% YoY rise in revenue and 69.0% in operating profit, with the 16.4% operating margin the highest of the five quarters provided. According to press coverage, the machine-tool division led the growth in that quarter with record quarterly revenue and margins (etoday, August 2026).

Summing the latest four quarters (3Q25 to 2Q26) gives roughly KRW 4.1543trn of revenue and KRW 618.7bn of operating profit, an operating margin of about 14.9%.

On the balance sheet, the debt-to-equity ratio fell from 305.8% in 2022 to 227.5% in 2023, 130.6% in 2024 and 115.4% in 2025, while operating cash flow improved to KRW 259.3bn in 2025 from KRW 197.1bn a year earlier.

Note, though, that the 2024 merger with Dong-A Tire Industrial changed the share-count base, and non-controlling interests (KRW 442.3bn at end-2025) form part of equity, so consolidated profit and the owners' portion should be read separately.

Industry analysis

Machine tools are a classic cyclical industry tied to manufacturing capital expenditure.

At an April 2025 press briefing, DN Solutions management said the global machine-tool market had contracted 6% the prior year while the company grew, citing stronger US aerospace investment, European defense spending and India's manufacturing push as growth drivers.

More recently, reshoring and supply-chain realignment have been cited as lifting manufacturing investment and machine-tool demand.

An August 2026 report said that as semiconductor strength and advances in artificial intelligence raise the importance of precision machining, machine-tool firms at home and abroad are expanding aggressively through IPOs and M&A.

On competitive position, DN Solutions is described as the domestic number one and roughly third globally in machine tools, while HELLER is regarded as a European high-end brand strong in 4- and 5-axis machining centers, mill-turn centers and mass-production equipment.

Combining the two brands reads as an attempt to shift weight from commodity equipment competition toward higher value-added segments. The auto-parts side behaves differently.

Lead-acid batteries draw on both new-vehicle fitment and replacement demand, giving them lower volatility than the vehicle production cycle, whereas anti-vibration parts volumes are set by platform awards from automakers.

Net-net, earnings direction swings more with the global capex cycle, with the parts business acting as a buffer.

Outlook

The most concrete change is the HELLER acquisition. DN Solutions completed its purchase of Germany's HELLER Group in January 2026 and disclosed that it acquired 100% of the shares for about KRW 324.3bn.

The company projected that the deal would lift DN Solutions' consolidated revenue to roughly KRW 3trn, more than 40% above the roughly KRW 2.1trn recorded in 2024.

That said, the company stated it would focus the next 12 to 24 months on organizational integration, restoring HELLER's revenue, and joint R&D and service capability, meaning synergies will take time to show in earnings.

On orders, Samsung Securities analyst Lim Eun-young said in an August 2026 report that DN Automotive posted record levels of new orders and backlog in 2Q26, and that because machine tools typically take six months to a year from order to revenue recognition, the increase raises earnings visibility for the second half and 2027.

Hana Securities analyst Song Sun-jae said in an August 2026 report that third-quarter consolidated revenue and operating profit would rise 32% and 55% YoY to KRW 1.21trn and KRW 184bn, and raised his target price to KRW 80,000 from KRW 60,000. Governance events also remain open.

According to an August 2026 report, DN Solutions is reviewing a renewed IPO, intending to use proceeds for debt repayment and investment while keeping domestic and overseas M&A options open. It has also been noted that a listing deadline set under pre-IPO agreements makes a lengthy delay difficult (TheBell).

For batteries, the next checkpoints are actual groundbreaking and ramp-up progress at the Ulsan AGM lines and the planned Busan plant.

Valuation

PER

6.0×

PBR

1.0×

ROE

18.5%

EPS

₩7,493

BPS

₩46,070

Dividend per share

₩1,000

At the center of the valuation debate is where subsidiary value accrues. The earnings-based multiple sits below the KOSPI market average, and the share price is not far from book value per share, leaving little premium to net assets.

Kiwoom Securities analyst Shin Yun-chul said in April 2026 coverage that tighter dual-listing rules were reducing the likelihood of a DN Solutions listing, thereby easing the risk of value dilution at parent DN Automotive.

Conversely, if the situation described in August 2026 reports persists, with DN Solutions reviewing a renewed IPO, interpretations of where subsidiary value belongs could diverge again.

It is also worth noting that part of consolidated equity consists of non-controlling interests, creating a gap between consolidated metrics and owner-based metrics. The company has continued paying annual cash dividends, and its capacity for shareholder returns has widened as profits have grown.

Because actual multiples and dividend yield change daily with the share price, the live metric cards on screen are the accurate reference.

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 2026-09-04

Bull factors

Turn in the machine-tool order cycle

In 2Q26 revenue rose 37.3% YoY and operating profit 69.0%, with a 16.4% operating margin. Press reports say the machine-tool division led that growth with record quarterly revenue and margins.

Samsung Securities said in an August 2026 report that new orders and backlog in the same quarter were at record levels, and that given the typical six-to-twelve-month recognition lag this raises visibility for the second half and 2027. The pace at which orders convert into revenue is the key variable for the earnings trend.

Wider revenue base from HELLER

DN Solutions completed the HELLER Group acquisition in January 2026, disclosing a 100% stake purchase for about KRW 324.3bn. The company projected the deal would take DN Solutions' consolidated revenue to roughly KRW 3trn, more than 40% above the roughly KRW 2.1trn of 2024.

HELLER is viewed as a European high-end brand strong in 4- and 5-axis machining centers and mass-production equipment. A broader high-value lineup creates room for mix-driven margin improvement.

Lower leverage and cash flow

The debt-to-equity ratio declined for three straight years, from 305.8% in 2022 to 227.5% in 2023, 130.6% in 2024 and 115.4% in 2025. Operating cash flow improved to KRW 259.3bn in 2025 from KRW 197.1bn in 2024.

In other words, the metrics have moved in the direction of easing the financial burden left by a large debt-funded acquisition. That said, equity includes non-controlling interests, so an owner-level reading requires separate treatment.

Bear factors

Renewed subsidiary listing debate

DN Solutions withdrew its IPO in April 2025 after book-building, citing conditions in which its value was hard to assess appropriately. An August 2026 report referred to a review of a renewed listing and plans to use proceeds for debt repayment and investment.

During the earlier attempt, critics argued the dual listing could dilute DN Automotive's value. Whether the listing is revived, and what parent-shareholder protections accompany it, form the axis of the debate.

Integration costs and margin dilution at HELLER

The company said restoring HELLER's revenue is a core objective. It also indicated the next 12 to 24 months would be devoted to organizational integration and that revenue recovery. Industry observers cite management challenges in integration alongside the technological synergies. How much early-stage costs weigh on profitability is a key variable for reading 2026-2027 margins.

Cycle dependence and a history of margin plateau

The operating margin slipped from 15.0% in 2023 and 15.2% in 2024 to 14.4% in 2025, and owners' net profit plateaued at KRW 281.6bn in 2025 versus KRW 284.9bn in 2024. As management noted, the global machine-tool market is volatile enough to contract 6% in a given year.

If the capex cycle turns, the recent record quarterly run can reverse. How far the parts business cushions that is worth monitoring.

Risk factors

Regulation and governance

Financial authorities have been preparing rules that restrict new dual listings in principle and permit them only by exception. Reports noted, however, that publication of the guidelines was delayed amid disagreement over the scope of exceptions.

DN Solutions has been repeatedly cited as a case within the regulation's reach. The final rules could reshape both the subsidiary's funding routes and the debate over parent-shareholder value.

Financing and investor exits

Of the KRW 2.12trn used for the 2022 acquisition, KRW 900bn came from equity, KRW 220bn from perpetual exchangeable bonds issued to financial investors and affiliates, and the remaining KRW 1trn from acquisition financing.

The debt-based acquisition structure and the need for investor exits are cited as burdens (TheBell). The debt-to-equity ratio fell to 115.4% in 2025, but interest rates and funding conditions remain variables. If a renewed listing is delayed, the cost of alternative funding also needs checking.

End demand and trade environment

Machine-tool revenue tracks manufacturing capex in the US, Europe and Asia, exposing it to regional cycles and currency moves.

HELLER operates plants in Germany, the UK, the US, Brazil and China, while DN Solutions has bases in Korea, China and India (planned), so a wider production and sales footprint also means more contact points with tariff, logistics and regulatory change.

Automotive batteries and anti-vibration parts depend on vehicle output and replacement demand. If regional demand slows simultaneously, pressure could overlap across both parts and machinery.

What to watch next

Mid-November 2026
Third-quarter 2026 results and quarterly report. Comparing the actual figures with Hana Securities' August 2026 forecast of KRW 1.21trn in consolidated revenue and KRW 184bn in operating profit would help gauge how quickly machine-tool orders convert into revenue.
Fourth quarter of 2026
Watch for finalization of the delayed dual-listing guidelines and the scope of permitted exceptions. Their publication had been postponed amid disagreement over exceptions, and the content will define both the path for a renewed DN Solutions listing and parent-shareholder protection terms.
4Q26 to 1H27
The outcome of DN Solutions' review of a renewed IPO, along with any disclosure on underwriters and schedule, is the key event. The proportion of secondary shares and any compensation for parent shareholders should be checked alongside.
February-March 2027
Confirmation of full-year 2026 results and the annual cash dividend decision. This will show how the full-year operating margin settles versus 14.4% in 2025 after HELLER's consolidation, and whether shareholder returns are adjusted in line with profit growth.
From the second half of 2026
Progress on battery capacity. Check whether groundbreaking and ramp-up timelines are confirmed via disclosures or municipal announcements for the KRW 62.1bn high-performance AGM investment in Ulsan and the planned new plant in Gijang, Busan.

Overall view

DN Automotive is a hybrid of auto anti-vibration parts and batteries plus a machine-tool business, with the machine-tool side driving the larger swings in results.

Annual revenue grew from KRW 3.1564trn in 2022 to KRW 3.6757trn in 2025, but the operating margin eased from 15.2% in 2024 to 14.4% in 2025 and owners' net profit plateaued.

In 2Q26, by contrast, revenue of KRW 1.2493trn, operating profit of KRW 205.4bn and a 16.4% operating margin were the strongest among the quarters provided, and press reports attribute this to record quarterly revenue and margins in the machine-tool division.

The HELLER acquisition completed in January 2026 widens DN Solutions' consolidated revenue base toward roughly KRW 3trn, yet with the company saying it will spend 12 to 24 months on integration and revenue recovery, the timing of its earnings contribution remains open.

On governance, the withdrawn 2025 listing now sits alongside the renewed IPO review reported in August 2026 and the policy work restricting new dual listings in principle, keeping the question of where subsidiary value accrues in play.

The balance sheet improved, with debt-to-equity falling from 305.8% in 2022 to 115.4% in 2025, though acquisition financing and financial-investor exit timelines remain items to verify.

Ultimately three axes will shape the information flow ahead: the pace of order-to-revenue conversion, HELLER's integration economics, and the final shape of regulation. This report is for information purposes only and contains no buy or sell recommendation or target price.

Sources

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

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Report written 2026-09-05 · Data as of 2026-09-04

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.