KOSPIChemicals017860

Ds Dansuk

₩13,070▲ 5.15%2026-10-02 close

Market Cap

₩229.9B

Turnover

₩2.3B

Volume

180,000 shares

Shares out.

17.7M

PER

—

PBR

0.8×

EPS

-₩697

Dividend Yield

0.08%

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

Report overview

SAF/VMR Transition Amid Collusion Probe

DS Dansuk is showing early signs of earnings recovery in its bioenergy business and advancing new growth pillars in sustainable aviation fuel (SAF) and valuable metal recovery (VMR), even as an industry-wide biofuel bid-rigging review poses a key risk.

1
Owner-attributable net profit turned positive at KRW 2.52 billion in Q2 2026, the first profit in five quarters.
2
2025 annual revenue fell to KRW 954.9 billion, the third consecutive annual decline, with the operating margin narrowing to 0.8%.
3
The SAF pretreatment (PTU) facility and battery valuable metal recovery (VMR) business are being developed as new growth pillars.
4
In July 2026, Korea's Fair Trade Commission began review proceedings against seven biofuel companies over roughly KRW 9.7 trillion in suspected bid-rigging.
5
The debt ratio rose from 160.0% in 2024 to 180.8% in 2025, increasing financial leverage.

Business structure

DS Dansuk originated as a fine chemicals maker in 1965 and has since expanded into resource-circulation and eco-friendly businesses, listing on the KOSPI market in December 2023.

Its operations are organized into bioenergy, battery recycling, and plastic recycling, with biodiesel (for vehicles and heavy equipment), bio-heavy oil (for power generation and industrial use), and bio-marine fuel as core bioenergy products.

As of 2023, the bioenergy segment accounted for 60% of revenue, using feedstocks such as used cooking oil, animal fats, and palm oil mill effluent (POME) to supply domestic and overseas refiners.

In battery recycling, the company is expanding its valuable metal recovery (VMR) business, extracting black mass and non-ferrous metals such as electrolytic copper and brass from spent batteries; its Gunsan plant has an annual black mass production capacity of about 5,000 tons with a recovery rate of 95-96%.

More recently, DS Dansuk completed a 300,000-ton-per-year SAF pretreatment (PTU) facility at its Pyeongtaek No.1 plant, producing high-quality SAF feedstock refined from used cooking oil and animal fats, and is expanding sales to US and European refiners.

The company has designated SAF and VMR as core growth businesses toward 2030, while also newly pursuing energy storage systems (ESS) and micro modular reactor (MMR) businesses. Competitively, SK Ecoprime, Aekyung Chemical, and JC Chemical are cited as major rivals in the domestic biodiesel market.

To support the value chain from sourcing to certification, storage, and shipment, the company operates 56 storage tanks with 180,000 KL of capacity in the Pyeongtaek area and holds international certifications including US EPA registration, LCFS, and EU ISCC-EU/ISCC-CORSIA.

Earnings trend

Quarterly revenue · Operating profit

₩221.7B-₩1.3B25Q2₩254.8B₩1.4B25Q3₩230.2B-₩1.1B25Q4₩278.1B₩4.4B26Q1₩310.1B₩6.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩1.1T₩74B2022₩1.1T₩76.2B2023₩961.7B₩12.2B2024₩954.9B₩8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩221.7B	-₩1.3B	−0.6%
2025Q3	₩254.8B	₩1.4B	0.5%
2025Q4	₩230.2B	-₩1.1B	−0.5%
2026Q1	₩278.1B	₩4.4B	1.6%
2026Q2	₩310.1B	₩6.3B	2.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩1.1T	₩74B	₩27.2B	6.5%	19.5%	304.7%
2023	₩1.1T	₩76.2B	₩40B	7.1%	14.4%	155.7%
2024	₩961.7B	₩12.2B	-₩9.2B	1.3%	−3.3%	160.0%
2025	₩954.9B	₩8B	-₩12B	0.8%	−4.4%	180.8%

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

Annual results have shown a declining trend. Revenue fell for four consecutive years, from KRW 1,133.7 billion in 2022 to KRW 1,070.4 billion in 2023, KRW 961.7 billion in 2024, and KRW 954.9 billion in 2025.

Operating profit was solid in 2022 (KRW 74.0 billion) and 2023 (KRW 76.2 billion) but dropped sharply to KRW 12.2 billion in 2024 and KRW 8.0 billion in 2025, with the operating margin narrowing from 6.5% and 7.1% in 2022-2023 to 1.3% and 0.8% in 2024-2025.

Owner-attributable net profit was positive at KRW 40.0 billion in 2023 but turned negative for two straight years, at -KRW 9.2 billion in 2024 and -KRW 12.0 billion in 2025. On a quarterly basis, however, the trend has clearly improved.

After an operating loss of KRW 1.3 billion in Q2 2025, a profit of KRW 1.4 billion in Q3, and another loss of KRW 1.1 billion in Q4, operating profit rose for two consecutive quarters to KRW 4.4 billion in Q1 2026 and KRW 6.3 billion in Q2 2026.

Net profit also improved, with the large Q4 2025 loss of KRW 11.4 billion narrowing to a loss of KRW 1.9 billion in Q1 2026 before turning positive at KRW 2.5 billion in Q2 2026, the first quarterly profit in five quarters.

Total equity jumped from KRW 139.7 billion in 2022 to KRW 281.2 billion in 2023 following the IPO capital raise, but has since plateaued at KRW 283.0 billion in 2024 and KRW 270.3 billion in 2025, while liabilities kept rising, pushing the debt ratio up from 155.7% in 2023 to 180.8% in 2025.

Operating cash flow declined from KRW 35.8 billion in 2023 and KRW 47.7 billion in 2024 to KRW 19.0 billion in 2025.

Industry analysis

Korea's biodiesel industry operates under a mandatory demand structure based on the Renewable Fuel Standard (RFS), with the blending mandate set to expand to 8% by 2030, supporting structural demand growth.

Combined with IMO greenhouse gas regulations for shipping and ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the markets for bio-marine fuel and sustainable aviation fuel (SAF) are also expected to expand.

However, feedstock costs such as palm oil and soybean oil are highly cyclical—prices spiked after the Russia-Ukraine war before stabilizing lower—meaning cost volatility directly affects margins.

FnGuide assessed that in the first quarter of 2026, the bioenergy segment was entering a transition period amid intensifying competition for eco-friendly feedstocks and shifts in the SAF market.

Competitively, SK Ecoprime, Aekyung Chemical, SK Chemicals, JC Chemical, Emac Solution, and KG Eco Solution all compete in the same bid market, supplying mandatory blending volumes to refiners and power generators through tenders.

This oligopolistic bidding structure provides stable demand but is also the backdrop for the Fair Trade Commission's ongoing bid-rigging investigation.

SAF itself remains at a pre-commercial stage; until direct SAF production plants come online across the industry, including at DS Dansuk, supplying pretreated feedstock will remain the primary revenue driver.

Outlook

At an investor relations event held in Yeouido, Seoul in April 2026, the company presented a mid-to-long-term roadmap positioning SAF, VMR, ESS, and MMR as core growth pillars to transform from a resource-circulation company into an energy platform company.

In the near term, it stated it would focus on strengthening internal capabilities by business unit and restoring plant utilization rates to build overall profit-generation capacity.

The SAF value chain is currently centered on expanding sales to US and European refiners based on the 300,000-ton-per-year pretreatment (PTU) facility at the Pyeongtaek No.1 plant, with a second-phase HVO plant planned at the Gunsan facility to directly produce SAF, targeting full-scale production by 2028.

By 2030, the company aims to reach direct SAF production capacity of 300,000 tons per year.

In the VMR business, the company recently shipped its first commercial product, and based on the Gunsan plant's black mass production capacity, it is expanding the supply of non-ferrous metals such as electrolytic copper and brass into wiring, PCB, semiconductor, and shipbuilding applications.

Battery recycling capacity is understood to have increased roughly 9% year over year, while ESS and MMR remain at the stage of technical cooperation with domestic and overseas research institutions and companies, requiring more time before commercialization.

All of these new business expansion timelines, however, could be affected in funding capacity and investment pace by the outcome of the ongoing Fair Trade Commission review and prosecutorial investigation.

Valuation

PER

—

PBR

0.8×

ROE

-4.4%

EPS

-₩697

BPS

₩15,616

Dividend per share

₩10

Since the company posted losses for two consecutive years in 2024-2025 before returning to profit only in the second quarter of 2026, conventional price-to-earnings analysis remains difficult to apply in full. The price-to-book ratio sits below 1, placing the stock in a range trading at a discount to net asset value.

Regarding dividends, comparing the most recently disclosed per-share dividend against the current price suggests a dividend yield below the sector average.

Although equity was substantially expanded after listing, liabilities also grew in tandem, leaving balance-sheet leverage higher than before—a factor that should be weighed alongside any book-value-based assessment.

The recent shift from quarterly losses to a quarterly profit is a variable worth watching in judging whether valuation metrics normalize going forward.

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

Early Buildout of SAF and VMR Value Chains

The 300,000-ton-per-year SAF pretreatment (PTU) facility at the Pyeongtaek No.1 plant is already operating, with sales expanding to US and European refiners.

In battery recycling, the first commercial VMR product has shipped, and black mass and non-ferrous metal sales channels are broadening into wiring, PCB, semiconductor, and shipbuilding applications.

A concrete roadmap—direct SAF production by 2028 and a 300,000-ton system by 2030—allows the progress of these new businesses to be tracked in stages.

Quarterly Results Emerging From Losses

After a large net loss in Q4 2025, the loss narrowed in Q1 2026, and the company returned to a net profit in Q2 2026 for the first time in five quarters. Operating profit also rose for two consecutive quarters, from KRW 4.4 billion in Q1 2026 to KRW 6.3 billion in Q2 2026.

Revenue likewise grew for three straight quarters, from KRW 230.2 billion in Q4 2025 to KRW 310.1 billion in Q2 2026.

Structurally Growing Regulation-Driven Demand

The biodiesel blending mandate is scheduled to rise to 8% by 2030, and IMO greenhouse gas shipping regulations combined with the ICAO CORSIA scheme are expected to jointly boost demand for bio-marine fuel and SAF. Policy support, including the government's SAF expansion strategy announcement, has also been confirmed. This mandatory demand structure guarantees a minimum sales volume regardless of economic cycles.

Bear factors

Biofuel Bid-Rigging Review and Investigation Risk

In July 2026, Korea's Fair Trade Commission began review proceedings against seven biofuel companies, including DS Dansuk, over roughly KRW 9.7 trillion in suspected bid and volume rigging spanning 11 years and 3 months.

Earlier, in January 2026, the Seoul Western District Prosecutors' Office raided DS Dansuk and four other companies as part of a parallel criminal investigation. If wrongdoing is confirmed, the company could face a combination of fines, criminal penalties, and damages claims from refiners and other parties.

Thin Margins and Cost Volatility

The 2025 annual operating margin was just 0.8%, and revenue has declined for four straight years since peaking in 2022.

Feedstock prices such as palm oil and soybean oil are highly cyclical, directly affecting results, and quarterly volatility has been significant, with operating losses recorded in both the second and fourth quarters of 2025.

Governance and Overhang Concerns

A large stake sale by financial investor Stonebridge during the management succession process previously drew attention to overhang risk.

The company also disclosed acquiring new headquarters real estate for KRW 116 billion while the prosecutorial investigation was ongoing, raising market concerns about internal control and decision-making procedures.

Risk factors

Legal and Regulatory Risk

The Fair Trade Commission's biofuel bid-rigging review and a parallel criminal prosecution are both ongoing.

The bidding volume under review totals roughly KRW 9.7 trillion, comprising KRW 7.76 trillion in biodiesel and KRW 1.95 trillion in bio-heavy oil, meaning fines and damages claims could be substantial if wrongdoing is confirmed. Neither the investigation nor the review has reached a final outcome.

Cost and Margin Risk

International feedstock prices such as palm oil and soybean oil are highly cyclical, directly flowing through to operating margins. As shown by the operating margin falling from 6.5% in 2022 to 0.8% in 2025, margin pressure could recur, and quarterly results have shown volatility with profits and losses alternating.

Financial Soundness Risk

The debt ratio rose from 155.7% in 2023 to 180.8% in 2025, while operating cash flow declined from KRW 47.7 billion in 2024 to KRW 19.0 billion in 2025. With multiple new business investments in SAF, VMR, ESS, and MMR proceeding simultaneously, a delayed earnings recovery could increase funding pressure.

What to watch next

Around November 2026
Q3 2026 earnings are expected to be disclosed around this time — worth checking whether the operating and net profit recovery that began in Q2 continues.
From late 2026 onward
Progress and eventual ruling of the Fair Trade Commission's biofuel collusion review (plenary session) — the timing of any determination on fines and legal violations should be monitored.
From late 2026 onward
Progress of the Seoul Western District Prosecutors' Office's criminal investigation into biofuel collusion and whether indictments follow — the outcome could alter management uncertainty.
Within 2026
Whether and when construction begins on the Gunsan plant's HVO (direct SAF production) facility — a gauge of the feasibility of the 2028 full-scale SAF production target.

Overall view

DS Dansuk is showing a combined improvement in revenue and profit starting in the second quarter of 2026, following an earnings slowdown that persisted through 2024-2025, while new growth pillars such as the operating SAF pretreatment facility and the commercializing VMR business are taking concrete shape.

At the same time, both a large-scale Fair Trade Commission review of biodiesel and bio-heavy oil bid-rigging and a parallel criminal prosecution remain ongoing, leaving legal and financial uncertainty in place.

The rising debt ratio and shrinking operating cash flow, combined with simultaneous new-business investment, remain a funding-related pressure point.

Regulation-driven mandatory demand growth—including a higher blending mandate and IMO/ICAO rules—supports medium-to-long-term growth, but the outcome and timing of the collusion review remain undetermined.

Whether the quarterly return to profit persists, and how the collusion review and investigation are ultimately resolved, are likely to be the key variables going forward. This content is intended to summarize factual information, and investment decisions rest with the reader.

Sources

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

Show 18 more articles and sources

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.