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
Having emerged from a prolonged ownership dispute and trading suspension under new controlling shareholders, DKME has secured a large LNG plant equipment order, yet revenue and operating profit remain in an early, unproven stage of recovery.
In 2026, control passed to a consortium of industrial hydrogen producer Deokyang Energen and industrial boiler maker Wolf, ending a lengthy ownership dispute.
In June 2026 the company signed a KRW 38.06 billion equipment supply contract with global EPC firm TECHNIP for a Qatar LNG plant expansion, equal to 28.5% of 2025 revenue.
Quarterly revenue fell for five consecutive quarters from KRW 35.6 billion in 2025Q2 to KRW 16.5 billion in 2026Q2, and operating profit swung to a loss of KRW 5.5 billion in the latest quarter.
Annual net income attributable to owners fell from KRW 12.75 billion in 2023 to KRW 2.28 billion in 2024, then turned negative at KRW -2.88 billion in 2025.
No recent dividend has been paid, and shares trade at a level below net asset value per share.
DKME is an Ulsan-based chemical equipment manufacturer founded in 1981 and listed on the KOSPI in 1989, formerly known as Daekyung Machinery Technology and later KIB Plug Energy before adopting its current name in May 2025.
Its core business is the chemical equipment segment, producing heat exchangers, pressure vessels, and storage tanks, alongside an energy plant segment that makes industrial boilers, co-generation power boilers, and auxiliary boilers.
Building on roughly four decades of operating history and external credibility, the company has historically derived about 85% of its revenue from exports.
Its main customers are global EPC (engineering, procurement, and construction) firms, and in June 2026 it signed an equipment supply contract with France-based EPC firm TECHNIP for a Qatar LNG plant expansion project. Domestically it competes with other heat-exchanger and chemical-equipment makers such as SNT Energy.
The company had been placed under an exchange listing-eligibility review and suspended from trading for an extended period due to issues tied to former management, and control of the Ulsan-based chemical equipment specialist, which had been halted from trading for over a year amid embezzlement allegations against management, passed to a consortium of industrial hydrogen producer Deokyang Energen and industrial boiler maker Wolf.
During the ownership-change process, an earlier prospective acquirer, Enerjin, stepped aside, and the Deokyang Energen–Wolf consortium emerged as the final buyer, under a structure combining a controlling-stake purchase with a capital increase, in which all 52,862,216 common shares were transferred under a contract valued at roughly KRW 32.7 billion.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩35.6B | ₩5.8B | 16.4% |
| 2025Q3 | ₩33.4B | ₩300M | 0.9% |
| 2025Q4 | ₩27.2B | ₩400M | 1.4% |
| 2026Q1 | ₩20.4B | ₩1.2B | 6.1% |
| 2026Q2 | ₩16.5B | -₩5.5B | −33.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩105.7B | ₩12.9B | ₩11.3B | 12.2% | 10.3% | 75.4% |
| 2023 | ₩137.3B | ₩12.9B | ₩12.8B | 9.4% | 10.1% | 74.3% |
| 2024 | ₩136.6B | ₩10B | ₩2.3B | 7.3% | 1.8% | 68.8% |
| 2025 | ₩133.4B | ₩10B | -₩2.9B | 7.5% | −2.3% | 49.9% |
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
On an annual basis, revenue rose from KRW 105.7 billion in 2022 to KRW 137.3 billion in 2023, then edged down to KRW 136.6 billion in 2024 and KRW 133.4 billion in 2025. The operating margin declined from 12.2% in 2022 to 9.4% in 2023, 7.3% in 2024, and 7.5% in 2025, settling into a lower band.
More notable is the net income trajectory: net income attributable to owners was a solid KRW 11.28 billion in 2022 and KRW 12.75 billion in 2023, but collapsed to KRW 2.28 billion in 2024 and turned negative at KRW -2.88 billion in 2025. The quarterly pattern is even sharper.
Starting from revenue of KRW 35.6 billion and operating profit of KRW 5.84 billion in 2025Q2, revenue fell every quarter thereafter — KRW 33.4 billion/KRW 0.29 billion in 2025Q3, KRW 27.2 billion/KRW 0.38 billion in 2025Q4, and KRW 20.4 billion/KRW 1.23 billion in 2026Q1 — before 2026Q2 revenue dropped to KRW 16.5 billion with an operating loss of KRW 5.48 billion.
Net income showed even greater swings than operating profit: 2025Q2 (-KRW 3.59 billion) and 2025Q4 (-KRW 5.92 billion) posted net losses despite modestly positive operating profit, while 2025Q3 (+KRW 3.13 billion) and 2026Q1 (+KRW 4.60 billion) posted net income disproportionately larger than operating profit.
This divergence between operating profit and net income likely reflects one-off items tied to the ownership dispute and trading-suspension period.
The combined net income attributable to owners over the most recent four quarters (2025Q3–2026Q2) was -KRW 3.996 billion, indicating the loss trend has persisted on a trailing basis.
Cash flow has followed a similar path: operating cash flow swung from a positive KRW 6.53 billion in 2023 to negative KRW 6.06 billion in 2024 and negative KRW 4.37 billion in 2025, showing that the profitability decline has also weighed on cash generation.
The chemical equipment and heat-exchanger industry is closely tied to the global liquefied natural gas (LNG) capacity investment cycle.
One industry research firm noted that a backlog exceeding USD 150 million has built up for spiral-wound and plate-fin cryogenic units amid global LNG investment, the Qatar North Field expansion, and projects such as Golden Pass and Plaquemines in the United States and Rio Grande in Texas, illustrating how related equipment orders flow from global EPC firms to Korean chemical-equipment makers.
For a domestic industry peer, Korea Investment & Securities stated that a chemical-equipment maker whose core product is heat exchangers is expected to benefit from accelerating LNG infrastructure expansion centered on the United States and Canada, given rising demand for liquefaction facilities.
DKME's position within this cycle is distinguished by its supply track record to TECHNIP on Middle East projects such as Qatar, giving it a different geographic exposure than domestic peers with heavier North American weighting.
That said, DKME remains a small-to-mid-sized player with revenue in the KRW 130 billion range, and its order concentration is high enough that a single large contract can account for 20-30% of annual revenue, underscoring a scale gap versus larger competitors.
While the broader industry cycle appears to be in a phase of continued LNG capacity expansion centered on Qatar and the United States, individual companies' order wins and profitability can vary sharply by quarter depending on foreign exchange rates, raw material costs, and construction progress rates.
The most verifiable near-term variable is the Qatar LNG plant equipment contract with TECHNIP signed in June 2026. The contract value is KRW 38.06487 billion, equal to 28.53% of recent revenue, and runs from June 11, 2026 to February 10, 2028, with billing and payment tied to construction progress.
This suggests revenue will be recognized progressively over several coming quarters, a potential offsetting factor against the five consecutive quarters of revenue decline seen through mid-2026.
On the governance side, Deokyang Energen and Wolf are slated to additionally subscribe to 30 million new shares through a third-party allotment capital increase, meaning capital reinforcement is likely to proceed alongside a change in the shareholding structure, including dilution.
No revenue or profit guidance has been publicly disclosed by the company, and future results are likely to vary considerably by quarter depending on the pace of new order intake and the timing at which progress on existing contracts is recognized.
It also remains to be further confirmed whether residual governance-related legal risk has been fully resolved even after the change of controlling shareholder, given that a lawsuit filed by a former executive seeking an injunction against suspension of duties was dismissed by the court.
Following the swing to a net loss in 2025, DKME's net income attributable to owners has remained negative even on a trailing four-quarter basis, making a conventional price-to-earnings comparison difficult to apply meaningfully.
At the same time, the share price trades below net asset value per share, a valuation pattern not uncommon among small-cap machinery names with unstable earnings. No recent dividend has been paid, so shareholder returns through dividends are currently limited.
In the profitable 2022-2023 period the stock traded at relatively modest multiples, but the subsequent delay in earnings recovery has undermined the earnings base needed to assess valuation in the usual way.
How quickly progress recognition on the TECHNIP contract and the effects of capital injection from the new controlling shareholders flow through to actual earnings could be the trigger that makes per-share valuation discussion meaningful again.
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 June 2026 Qatar LNG plant contract with TECHNIP, worth KRW 38.06 billion or 28.5% of 2025 revenue, will be recognized on a progress basis through February 2028. Coming after five straight quarters of revenue decline, this contract could help rebuild the revenue base.
The broader global LNG capacity expansion cycle centered on Qatar and the United States also provides a favorable backdrop.
The prolonged ownership dispute and trading suspension have moved toward resolution following the change of controlling shareholder to the Deokyang Energen–Wolf consortium. Both companies plan to inject additional capital through a third-party allotment capital increase, creating room for balance sheet improvement.
For minority shareholders, this could mark a turning point after an extended period of trading suspension and management uncertainty.
The current share price trades below net asset value per share, meaning the market currently assigns a relatively modest value versus the company's capital base. Should earnings normalize going forward, this gap could draw renewed attention. This is a factual observation only, not a directional call.
Quarterly revenue fell for five straight quarters, from KRW 35.6 billion in 2025Q2 to KRW 16.5 billion in 2026Q2. Operating profit over the same period swung from KRW 5.84 billion to a loss of KRW 5.48 billion.
This likely reflects a contraction in core order intake and production activity overlapping with the ownership dispute and trading suspension.
Even after the change of controlling shareholder, a former executive filed a lawsuit seeking an injunction against suspension of duties, which was dismissed, but this shows governance-related legal disputes have not fully disappeared.
The fact that the prospective acquirer changed once, from Enerjin to the Deokyang Energen–Wolf consortium, also points to uncertainty in the deal structure.
Deokyang Energen and Wolf plan to additionally subscribe to 30 million new shares through a third-party allotment capital increase.
Relative to the existing share count of roughly 53.4 million shares, this is a substantial issuance that, once completed, could dilute existing shareholders' ownership stakes and per-share metrics.
The controlling shareholder changed twice within a short period, and there was a legal dispute involving a former executive. Whether the new controlling shareholder's management structure has fully stabilized needs further confirmation through subsequent disclosures.
The gap between operating profit and net income has been large on a quarterly basis, and operating cash flow was negative for two consecutive years in 2024-2025. A delayed profitability recovery could increase the need for further financing.
The single TECHNIP contract equals 28.5% of recent revenue, indicating high dependence on a specific customer and project. Any delay in the project or change in the client's circumstances could have an outsized impact on results.
Check whether progress-based revenue recognition from the TECHNIP contract shows up in Q3 results, and whether the five-quarter revenue decline and Q2 operating loss begin to improve.
Confirm whether the Deokyang Energen–Wolf third-party allotment capital increase (30 million new shares) is completed, the actual scale of funds injected, and the resulting impact on capital structure and dilution.
This marks the scheduled completion of the TECHNIP Qatar LNG plant equipment contract; contract fulfillment and any potential for follow-on orders should be monitored.
Continue to monitor whether further executive-related lawsuits or governance disclosures recur after the change of controlling shareholder, and whether any remaining listing-eligibility conditions have been fully resolved.
DKME enters a pivotal phase: after revenue declines and an operating-profit swing to loss that persisted through 2025 and into the first half of 2026, the 2026 change of controlling shareholder to the Deokyang Energen–Wolf consortium marked a turning point in a long-running ownership dispute.
At the same time, securing the TECHNIP Qatar LNG plant equipment contract (KRW 38.06 billion, 28.5% of 2025 revenue) provides a basis for revenue recognition over the coming quarters, which is a positive development.
On the other hand, five consecutive quarters of revenue decline, the swing to an operating loss in 2026Q2, and two straight years of negative operating cash flow in 2024-2025 indicate that a core-business recovery has not yet been confirmed.
Dilution from the third-party allotment capital increase and residual governance-related legal disputes are additional variables to monitor.
With the share price currently trading below net asset value and no dividend being paid, the more important task at this stage is to track the actual progress of contract execution and governance stabilization rather than to rely on conventional per-share valuation metrics.
Report written 2026-09-05 · Data as of 2026-09-04
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