PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q2–2026Q1) · Prices as of the 2026-10-02 close
Daishin Information & Communication posted lower consolidated revenue in 2025 than a year earlier, but its operating margin improved, signaling a profitability recovery in its public-sector systems integration business.
2025 consolidated revenue fell to KRW 202.9bn from KRW 256.8bn in 2024, while the operating margin improved from 3.4% to 4.5%.
Quarterly results swing sharply: a KRW 16.48bn operating profit in Q3 2025 was followed by a KRW 9.39bn operating loss in Q4 2025, and Q1 2026 posted another operating loss of KRW 0.83bn.
The company has secured a series of large public-sector maintenance and infrastructure contracts, including from Korea Land and Housing Corporation (LH) and the National Information Resources Service, reinforcing its revenue base.
In 2026 the company carried out a 5-for-1 face-value consolidation, reducing shares outstanding from roughly 38.4 million to about 7.7 million.
Company management indicated plans to expand dividend payouts, citing accumulated retained earnings.
Founded in 1987 and listed on KOSDAQ in 1995, Daishin Information & Communication is an ICT integration specialist centered on systems integration (SI) and IT infrastructure maintenance.
According to revenue-mix data, systems-construction projects account for more than half of sales, followed by other IT services, hardware distribution, and PDA/terminal devices.
The company is characterized as an SI specialist whose primary clients are government and public institutions, with Korea Land and Housing Corporation (LH) and the National Information Resources Service (ordered via the Public Procurement Service) among its key counterparties.
Its business spans SI, security, PDA, financial solutions, mobile solutions, and print-on-demand (POD) solutions, including industrial PDA development and manufacturing, financial software, and IoT solutions.
Public-sector IT maintenance and construction contracts tend to run for multiple years—LH's recent contract spans 2026 to 2028—and revenue recognition often clusters around budget execution and project completion dates.
The domestic SI market includes large conglomerate-affiliated players such as Samsung SDS and LG CNS, alongside mid-tier IT service firms like Ssangyong Information & Communications, Hanwha Systems, POSCO DX, and ITCEN.
Daishin is comparatively smaller in scale but has built a steady track record in public-sector maintenance and procurement work.
It has recently expanded its order book by joining consortium-based large procurement projects, such as a hardware purchase project for the National Information Resources Service's Daejeon center.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q1 | ₩38.6B | -₩200M | −0.5% |
| 2025Q2 | ₩48.5B | ₩2.2B | 4.5% |
| 2025Q3 | ₩132B | ₩16.5B | 12.5% |
| 2025Q4 | — | -₩9.4B | — |
| 2026Q1 | ₩42.1B | -₩800M | −2.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩180.6B | ₩2.3B | ₩2B | 1.3% | 7.1% | 189.9% |
| 2023 | ₩228.5B | ₩4.2B | -₩48,357,163 | 1.8% | −0.2% | 197.6% |
| 2024 | ₩256.8B | ₩8.8B | ₩6.6B | 3.4% | 19.1% | 203.8% |
| 2025 | ₩202.9B | ₩9.1B | ₩5.7B | 4.5% | 14.7% | 248.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual revenue rose steadily from KRW 180.6bn in 2022 to KRW 228.5bn in 2023 and KRW 256.8bn in 2024, before falling 21.0% to KRW 202.9bn in 2025.
In contrast, the operating margin improved every year—1.3% in 2022, 1.8% in 2023, 3.4% in 2024, and 4.5% in 2025—creating a divergence between top-line size and profitability.
Net income attributable to owners fell from KRW 2.05bn in 2022 into a small loss of KRW 0.05bn in 2023, recovered to KRW 6.57bn in 2024, then slipped slightly to KRW 5.74bn in 2025 even as operating profit rose from KRW 8.84bn to KRW 9.10bn, suggesting revenue contraction and non-operating factors weighed on the bottom line.
Quarterly volatility is especially pronounced: Q1 2025 posted revenue of KRW 38.6bn with an operating loss of KRW 0.18bn and a net loss of KRW 0.69bn, before swinging to an operating profit of KRW 2.19bn in Q2.
Revenue surged to KRW 132.0bn in Q3 2025, driving operating profit to KRW 16.48bn and net income to KRW 13.93bn, only to reverse into an operating loss of KRW 9.39bn and net loss of KRW 8.71bn in Q4.
Q1 2026 again showed an operating loss of KRW 0.83bn and net loss of KRW 0.87bn, repeating the first-quarter weakness seen a year earlier.
Shareholders' equity climbed steadily from KRW 29.0bn in 2022 to KRW 38.9bn in 2025, yet the debt ratio rose over the same period from 189.9% to 248.2%, indicating greater reliance on liabilities as the business expanded.
Operating cash flow was positive in 2022 (KRW 1.69bn) and 2023 (KRW 1.76bn) but turned negative in 2024 (-KRW 6.33bn) and 2025 (-KRW 8.63bn), showing that improved earnings have not yet translated into stronger cash generation.
WiseReport attributed the 2025 improvement to increased revenue from public-sector maintenance work and strong order intake in systems-construction projects.
Korea's public-sector IT outsourcing and systems-integration (SI) market is heavily influenced by government digital-transformation budgets and demand to replace aging computing infrastructure.
The upper tier of the market is dominated by conglomerate-affiliated SI firms such as Samsung SDS and LG CNS, with mid-tier IT service providers—including Ssangyong Information & Communications, Hanwha Systems, POSCO DX, and ITCEN—competing below them.
Within this landscape, Daishin Information & Communication is a comparatively smaller player that has built its position through a track record in public-sector maintenance and procurement projects.
Because public-sector SI work is tied to annual budget cycles, project completions and revenue recognition tend to concentrate around fiscal year-end, giving the industry as a whole a seasonal, lumpy character.
Ongoing demand for cloud migration, AI infrastructure adoption, and data-center redundancy in the public sector appears to be sustaining the underlying market.
However, procurement projects are typically awarded through competitive bidding and consortiums, meaning an individual contractor's allocated share of a contract is often small relative to headline deal size, which complicates forecasting of revenue contribution.
A trend toward stricter incident-response and quality-management rules from ordering agencies such as the National Information Resources Service also adds to the administrative burden for maintenance contractors.
In December 2025 the company signed a KRW 17.85bn information-infrastructure maintenance service contract with Korea Land and Housing Corporation (LH), running for three years from January 2026 to December 2028 and equal to about 8.8% of recent revenue.
Prior to that, in November 2025, it joined a five-company consortium for a fire-recovery computer equipment procurement project at the National Information Resources Service's Daejeon center, securing roughly KRW 34.27bn worth of the order based on a 28% allocation share.
Both contracts are expected to be recognized as revenue over the coming years, adding some visibility to the public-sector maintenance and infrastructure segment.
In the first half of 2026 the board approved a 5-for-1 face-value consolidation that reduced shares outstanding from about 38.4 million to roughly 7.7 million, with the new shares relisted on August 19, 2026; the company described the move as aimed at stabilizing the stock through an appropriate float and enhancing corporate value.
Management stated that, with retained earnings exceeding KRW 30bn, it plans to expand dividend payouts relative to the prior year, continuing a dividend track record of more than a decade.
Whether this plan materializes into a confirmed year-end dividend proposal will need to be verified through future board and shareholder-meeting disclosures. In the procurement market, additional hardware-related tenders continue to be issued, leaving further order wins as a key variable for future revenue growth.
The steady improvement in operating margin and the return to profitability over the past few years are constructive elements for the earnings picture. The stock trades at a level below the company's net asset value, and the market appears to assign a limited multiple to earnings even as profitability has recovered.
At the same time, the rising debt ratio each year and two consecutive years of negative operating cash flow are factors that warrant attention alongside the quality of reported earnings.
Because the 5-for-1 face-value consolidation carried out in the first half of 2026 changed the basis for share count and per-share metrics, comparing pre-consolidation per-share figures directly with current ones requires caution.
Dividends have been paid consistently for more than a decade and management has signaled plans to expand payouts, but the actual dividend yield level varies considerably across the industry and is difficult to generalize.
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 2026-09-05
The operating margin improved for four consecutive years, from 1.3% in 2022 to 4.5% in 2025. The fact that margins improved even in 2025 when revenue scale declined suggests room for improvement in cost structure or business portfolio. Whether this trend continues needs to be confirmed in future quarterly results.
Large public-sector contracts continue to be secured, including a 3-year maintenance contract worth KRW 17.85 billion with LH and a supply order worth KRW 34.27 billion secured through participation in a National Information Resources Service consortium. Given the long contract periods, these can support part of the revenue base for the coming years.
The company's CEO has publicly announced plans to expand dividends based on accumulated retained earnings. Along with a dividend track record spanning more than 10 years, whether the dividend expansion is actually implemented in future settlements is a key point to watch.
2025 revenue fell 21.0% year-over-year to KRW 202.86 billion, breaking the growth trend that had continued through 2024. Even with improved margins, a shrinking top line itself is a burden in terms of expanding business scale.
The company swung sharply from an operating profit of KRW 16.48 billion in Q3 2025 to an operating loss of KRW 9.39 billion in Q4 2025, and continued to post losses in Q1 2026.
Because results fluctuate significantly depending on the timing of project completion and revenue recognition, it is difficult to judge the trend based on a single quarter's results.
Cash flow from operating activities was negative for two consecutive years in 2024 and 2025, and the debt ratio rose every year from 189.9% in 2022 to 248.2% in 2025. Separate from the improvement in net income, cash generation capacity and financial structure are becoming relatively weaker.
Revenue is heavily dependent on orders from government and public institutions, meaning the timing and scale of revenue recognition can vary depending on the timing of public budget execution or policy changes.
High dependence on individual large contracts (LH, National Information Resources Service, etc.) means delays or reductions in specific contracts can have a direct impact on results.
In 2025, it was reported that a maintenance consortium (including Daishin Information & Communications) caused a system outage due to a command input error at the Overseas Koreans Civil Affairs Portal managed by the National Information Resources Service.
As ordering agencies' regulations on incident response become stricter, a recurrence of similar incidents could burden contractual relationships or reputation.
The debt ratio has risen for four consecutive years, reaching 248.2% in 2025, while cash flow from operating activities was negative for two consecutive years in 2024-2025. If cash generation capacity fails to keep pace with the scale of profit, the burden of future fund procurement could increase.
Preliminary Q3 2026 (July–September) results are due to be disclosed. It will be worth checking whether the seasonal surge in revenue and profit seen in Q3 2025 recurs.
Annual results and dividend disclosures are expected. It will be important to verify whether management's stated plan to expand dividends is confirmed in the actual year-end dividend proposal.
Revenue recognition progress on the LH information-infrastructure maintenance contract (2026–2028) and any additional order disclosures from the Public Procurement Service or National Information Resources Service should be monitored.
The annual general shareholders' meeting, where the final dividend proposal is confirmed, offering a chance to verify actual implementation of the dividend-expansion policy.
Daishin Information & Communication showed signs of a profitability recovery in its public-sector SI business in 2025, with the operating margin improving even as revenue declined.
However, very large quarter-to-quarter swings in results, a rising debt ratio, and two consecutive years of negative operating cash flow are factors that should be weighed alongside the quality of reported earnings.
Multi-year contracts with public entities such as LH and the National Information Resources Service may support part of the future revenue base, but reliance on individual contracts and project-execution risk also remain.
The 5-for-1 face-value consolidation carried out in the first half of 2026 changed the basis for share count and per-share metrics, so direct comparison with historical figures requires caution.
Key items to watch going forward include whether management's stated dividend-expansion plan is reflected in the actual year-end proposal, and whether future quarterly results move toward a steadier trajectory beyond the seasonal volatility observed to date.
This report does not contain an investment opinion or a buy/sell recommendation and is provided for informational purposes only.
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.