SC Engineering

SC Engineering was founded in 1971 as an affiliate of Miwon Group and listed on the KOSPI market in 1997, with its core business being the design and construction of industrial plants for fine chemicals, pharmaceuticals, and food.

The company states it provides a distinctive Total EPC Solution built on more than 40 years of turn-key EPC execution experience.

More recently it has been diversifying order channels into advanced growth industries such as hydrogen, semiconductors, secondary batteries, and specialty chemicals, alongside its chemical and energy plant EPC business.

Its subsidiary Cellontech produces and sells biocollagen-based treatment materials and is developing composite biomaterials and commercializing biopharmaceutical delivery systems.

In February 2026, the entire stake held by the former controlling shareholder EV Advanced Materials was sold to Bando Holdings, the holding company of Bando Group, changing the controlling shareholder. This brought the company into Bando Group, which ranks 30th in Korea's construction capability evaluation for 2025.

To stabilize management, Bando Group appointed Song Han-gyu, a former Bando Holdings executive with about 20 years of tenure at the group, as CEO of the newly acquired SC Engineering.

The company's stated strategy is to secure both stability and growth in its mid- to long-term earnings structure by leveraging opportunities across plant EPC as well as housing, building, civil engineering, and overseas development markets under the Bando Group umbrella.

Consolidated 2025 revenue came to roughly KRW 172.3 billion, slightly below 2024's approximately KRW 179.9 billion, while operating profit swung to a loss of KRW 4.96 billion from a profit of KRW 6.56 billion in 2024.

Owners' net income likewise turned to a loss of KRW 4.75 billion from a profit of KRW 3.72 billion in 2024.

In 2023, revenue reached KRW 136.0 billion with a modest operating profit of KRW 0.98 billion, yet net income was -KRW 2.36 billion due to non-operating factors, while 2022 posted the best results of the four years with revenue of KRW 137.2 billion, operating profit of KRW 7.78 billion, and owners' net income of KRW 5.46 billion.

On a quarterly basis, Q3 2025 revenue rose to KRW 48.09 billion from Q2 2025's KRW 43.45 billion, but the quarter recorded an operating loss of KRW 5.23 billion and an owners' net loss of KRW 4.69 billion, suggesting a large one-off loss.

Performance temporarily recovered in Q4 2025, with revenue of KRW 44.73 billion, operating profit of KRW 0.95 billion, and net income of KRW 1.28 billion.

However, Q1 2026 revenue plunged to KRW 19.26 billion with an operating loss of KRW 1.84 billion and a net loss of KRW 3.10 billion, and Q2 2026 revenue fell further to KRW 13.83 billion as the operating loss widened to KRW 3.98 billion and the net loss to KRW 4.97 billion.

As a result, the cumulative owners' net loss across the most recent four quarters (Q3 2025 through Q2 2026) reached roughly KRW 11.47 billion. The debt ratio rose to 188.8% at the end of 2025 from 143.9% at the end of 2024, while 2025 operating cash flow remained positive at KRW 3.82 billion despite the operating loss.

In Korea's industrial plant EPC market, orders from traditional demand sources such as fine chemicals, pharmaceuticals, and food have slowed, while capital expenditure in advanced industries such as semiconductors, secondary batteries, and hydrogen has emerged as a new growth driver.

FnGuide assessed that, on a cumulative basis through Q3 2025, the industrial facility construction segment saw deteriorating profitability due to weaker manufacturing demand, fewer orders, and higher one-off costs.

It also noted that market stability remains sound thanks to rising demand from eco-friendly and advanced industries, with modular plant and smart factory technologies expected to reduce costs and safety incidents.

The company has indeed been winning orders in step with expanding semiconductor and other advanced-industry capital expenditure, and is currently participating in various project bids in semiconductors and hydrogen while concentrating on securing quality orders in the second half.

Competitively, the company vies against the plant divisions of large general contractors and specialized EPC firms; its integration into Bando Group, whose business is weighted toward housing, is seen as a strategic combination aimed at diversifying the business structure and strengthening order competitiveness simultaneously.

The medical device segment through Cellontech is expected to benefit from rising demand tied to an aging population, though its earnings contribution still appears limited.

The company has been expanding EPC orders in advanced industries through 2026.

In May it won a KRW 27.9 billion semiconductor materials/parts/equipment EPC project from DuPont Specialty Materials Korea, involving construction of a plant to produce specialty chemical materials for semiconductor processes at the Cheonan factory.

The contract runs for about a year and a half, from May 6, 2026 to November 30, 2027.

The project is planned to be awarded in sequential separate orders to build essential high-spec, high-reliability semiconductor process facilities within a short construction period, and the total contract value is expected to grow further if three additional contracts planned for this year are finalized.

In August the company signed an additional KRW 9.7 billion semiconductor materials/parts/equipment EPC contract with Qnity, bringing its cumulative contract value with Qnity this year to KRW 37.7 billion.

Management stated that since joining the Bando Group in February, it has been strengthening order competitiveness and project execution capability, is actively responding to expanding semiconductor infrastructure investment, and is focused on securing quality orders in the second half.

On the management side, CEO Song Han-gyu, who came from Bando Group, is focused on the smooth integration of SC Engineering into the group and on normalizing its governance.