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
Daechang, the leading brass rod maker in Korea, has continued its earnings recovery with sharp year-on-year gains in both revenue and operating profit in the first half of 2026.
2025 consolidated revenue reached KRW 1.4702 trillion with operating profit of KRW 51.5 billion, an expansion from the prior year
Operating profit stayed in the KRW 2 billion-plus range for two consecutive quarters in 2026, a contrast to the operating loss recorded in Q2 2025
International copper prices have maintained strength through 2026, emerging as a key variable affecting the company's raw material cost structure
Competition from low-priced imported brass rods under expanded free trade agreements remains a persistent burden
The debt ratio has remained in the 200%-plus range, keeping financial leverage at an elevated level
Daechang is a copper-alloy nonferrous metal manufacturer founded in 1974 and listed on the KOSPI since 1989.
Its core products are brass rods, brass wire, and copper balls, which are supplied as basic materials to industries including semiconductors and electronic components, as well as used in household goods manufacturing.
The company holds a leading position with roughly 45% market share in Korea's brass rod market and maintains around 500 sales outlets. As Asia's largest brass rod manufacturer, it exports to more than 20 countries and operates sales networks in the United States, China, and Thailand among other markets.
Through subsidiaries such as Essentech, the company has expanded its footprint in the nonferrous metals market, while Daechang Motors, a group affiliate, operates in the low-speed electric vehicle and secondary battery businesses.
In response to tightening environmental regulations, the company has been developing lead-free brass and other eco-friendly materials, and is pursuing tough-pitch copper material sales in line with the expansion of the electric vehicle market.
However, fluctuations in international electrolytic copper prices and competition from low-priced imports under expanded free trade agreements remain structural factors constraining profitability in the brass rod segment.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩338B | -₩900M | −0.3% |
| 2025Q3 | ₩358.9B | ₩7.7B | 2.1% |
| 2025Q4 | ₩400.9B | ₩30.1B | 7.5% |
| 2026Q1 | ₩429.1B | ₩23.8B | 5.5% |
| 2026Q2 | ₩496.8B | ₩22.4B | 4.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩9.1B | ₩3.7B | 0.6% | 1.5% | 203.6% |
| 2023 | ₩1.3T | -₩9.3B | -₩19.4B | −0.7% | −8.8% | 203.5% |
| 2024 | ₩1.3T | ₩31.3B | ₩4.4B | 2.3% | 1.6% | 165.9% |
| 2025 | ₩1.5T | ₩51.5B | ₩2.1B | 3.5% | 0.7% | 206.2% |
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
Consolidated revenue for 2025 came to KRW 1.4702 trillion, up from KRW 1.3369 trillion in 2024, while operating profit expanded to KRW 51.5 billion from KRW 31.3 billion.
Net income attributable to controlling shareholders, however, was only KRW 2.1 billion, down from KRW 4.4 billion in 2024, showing that profit volatility remains significant even after the company moved past its large 2023 loss of KRW -19.4 billion.
On a quarterly basis, Q2 2025 posted revenue of KRW 338.0 billion with an operating loss of KRW 0.85 billion and a controlling-shareholder net loss of KRW 1.7 billion, before swinging to an operating profit of KRW 7.67 billion in Q3 and improving sharply to KRW 30.1 billion in Q4 on revenue of KRW 400.9 billion.
Entering 2026, Q1 delivered revenue of KRW 429.1 billion, operating profit of KRW 23.8 billion, and controlling-shareholder net income of KRW 13.9 billion, while Q2 recorded revenue of KRW 496.8 billion, operating profit of KRW 22.4 billion, and net income of KRW 8.3 billion, marking two consecutive quarters of operating profit in the KRW 20 billion range.
This trajectory aligns with figures cited by WiseReport showing first-half 2026 consolidated revenue up 30.3%, operating profit up 236.9%, and net income up 1149.4% year-on-year. The operating margin improved gradually from -0.7% in 2023 to 2.3% in 2024 and 3.5% in 2025.
On the cash flow side, 2025 operating cash flow was negative at KRW -16.9 billion, diverging from the profit improvement trend and contrasting with the positive KRW 36.5 billion recorded in 2024.
International electrolytic copper prices rose sharply through 2025 and have maintained strength into 2026, driven by structural demand expansion from data centers, electric vehicles, and power grid infrastructure.
However, major investment banks including Citigroup, Goldman Sachs, and JPMorgan have offered differing 2026 copper price forecasts, indicating views on direction are not fully aligned.
In the brass rod (shindong) industry, rising raw copper prices tend to lift revenue figures, but profitability hinges on how much margin can be passed through in selling prices.
Daechang maintains a leading position with roughly 45% share of Korea's brass rod market, but ongoing competition from low-priced imports under expanded free trade agreements constrains its pricing power.
Industry sources note that tightening environmental regulations are expanding demand for eco-friendly materials such as lead-free brass, and that the shindong industry is expected to continue advancing in sophistication alongside IT industry development.
Expansion of the downstream electric vehicle market represents an opportunity tied to demand for higher-value-added materials like tough-pitch copper, though volatility in EV sales growth could translate directly into demand uncertainty.
The company has outlined eco-friendly material development, including lead-free corrosion-resistant brass, and expansion of tough-pitch copper material sales for EV applications as key business directions, while also pursuing new market entry through copper-alloy aquaculture net development.
Having posted two consecutive quarters of operating profit in the KRW 20 billion range in Q1 and Q2 2026, whether this momentum continues into the upcoming Q3 results will be a key point to watch.
Continued strength in international copper prices could support revenue growth, but the gap between raw material cost burden and the speed of price pass-through could affect margins.
Intensifying import competition under free trade agreements is likely to persist structurally, making expansion of high-value-added product mix and quality improvement important ongoing tasks.
It is worth noting that the standalone (non-consolidated) financial statements reportedly showed a net loss in 2025, indicating that subsidiaries contribute meaningfully to consolidated results.
At the annual shareholders meeting, approval of the 2025 financial statements, articles of incorporation amendments, and appointment of a new inside director were passed, warranting continued attention to management composition changes.
The current share price sits toward the lower end of its recent 52-week trading range, and the price-to-book ratio trades at a substantial discount to net asset value. This can be interpreted as reflecting the market's cautious view on earnings stability following the large net loss in 2023.
Dividend payments have not been confirmed based on recent disclosures, leaving the continuation of earnings improvement, rather than dividend appeal, as the key valuation variable. The debt ratio remaining in the 200%-plus range is one factor that may constrain the formation of a premium relative to net assets.
Looking at the multi-year earnings pattern, the company moved from a loss in 2023 to profitability in 2024-2025, with earnings recovery continuing into the first half of 2026, and how this directional trend feeds into market valuation perception warrants further observation through upcoming quarterly results.
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
Operating profit stayed in the KRW 20 billion-plus range for two consecutive quarters in Q1 and Q2 2026, standing in sharp contrast to the operating loss in Q2 2025. The operating margin also showed gradual improvement, rising from -0.7% in 2023 to 3.5% in 2025.
If this quarterly improvement continues, it could contribute to greater stability in overall annual performance.
Daechang maintains a leading position with roughly 45% market share in Korea's brass rod market and has secured around 500 sales outlets. It also holds scale-based competitiveness as Asia's largest brass rod manufacturer, exporting to more than 20 countries. This market position could provide a relative buffer amid industry fluctuations.
Expansion of data centers, electric vehicles, and power grid infrastructure has been identified as a structural driver of increasing demand for copper-related materials. Daechang is responding to this demand growth through tough-pitch copper materials for EV applications and development of eco-friendly lead-free brass. There is also potential for rising raw material prices to translate into expanded revenue scale.
Net income attributable to controlling shareholders was KRW 2.1 billion in 2025, down from KRW 4.4 billion in 2024, following a large loss of KRW -19.4 billion in 2023, reflecting significant earnings volatility.
Operating cash flow turned negative at KRW -16.9 billion in 2025, diverging from the profit improvement trend. This gap suggests the qualitative aspects of the earnings recovery warrant further scrutiny.
Intensifying competition from low-priced imported brass rods under expanded free trade agreements continues to constrain profitability. Raw material cost burdens driven by fluctuations in international electrolytic copper prices also directly affect margins.
Even if market share is maintained, continued price competition could limit the pace of profitability improvement.
The debt ratio has oscillated in the 200%-plus range—203.6% in 2022, 203.5% in 2023, 165.9% in 2024, and 206.2% in 2025—keeping financial leverage elevated. This could heighten sensitivity to changes in the interest rate environment or raw material funding burdens.
On a standalone basis, a net loss was reportedly recorded in 2025, warranting scrutiny of the company's reliance on subsidiaries.
International electrolytic copper prices remain volatile enough that different institutions have issued varying 2026 forecasts. Given Daechang's cost structure, sharp swings in copper prices directly affect revenue and margins. A lag in passing through price changes to selling prices could result in temporary margin erosion.
Penetration of the domestic market by low-priced imported brass rods under expanded free trade agreements remains a persistent competitive pressure. Trade environment variables such as changes in U.S. tariff policy could also affect copper raw material supply and pricing. These external variables remain risks largely outside the company's control.
With the debt ratio persisting in the 200%-plus range and 2025 operating cash flow turning negative, liquidity management warrants attention. Significant net income volatility could also affect the pace of retained earnings accumulation.
The impact of interest burden on financial soundness amid changes in the interest rate environment also merits ongoing monitoring.
Q3 2026 earnings are due for disclosure — worth checking whether the operating profit trend of around KRW 20 billion per quarter seen in Q1 and Q2 continues, and how copper price strength feeds into revenue and margins.
Further movement in international copper prices — worth comparing actual price trends against forecast revisions from major institutions such as Goldman Sachs, JPMorgan, and Citigroup.
Trends in imported brass rod volumes and pricing under free trade agreements — worth continuously monitoring how changes in low-cost import competition intensity affect domestic market share and margins.
Governance-related agenda items such as management composition and articles of incorporation changes — given the recent appointment of a new inside director, subsequent governance changes warrant continued monitoring.
Daechang is a leading company holding roughly 45% share of Korea's brass rod market, and its 2025 and first-half 2026 results show an expanding trend in both revenue and operating profit.
Having moved past a large net loss in 2023, the company shifted to a profitable footing in 2024-2025, with the improvement continuing through two consecutive quarters of operating profit around KRW 20 billion in Q1 and Q2 2026.
That said, net income attributable to controlling shareholders remained volatile at KRW 2.1 billion in 2025, and a divergence between profit and cash flow is observable, with operating cash flow turning negative.
Structural strength in international copper prices and expanding demand from data centers and electric vehicles could support the revenue base, but low-cost import competition under free trade agreements and an elevated debt ratio in the 200%-plus range remain challenges to address.
Upcoming quarterly results, raw material price trends, and shifts in the trade environment are likely to be the key variables shaping future performance direction. This report is for informational purposes only and does not constitute a buy or sell recommendation.
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.