PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩80 per share · Prices as of the 2026-10-02 close
Frompast, a single-segment PB pipe maker, saw both revenue and operating profit contract in 2025 before returning to an operating profit in the second quarter of 2026, but quarterly earnings volatility has widened.
2025 revenue fell year over year to KRW 25.23 billion, with operating profit turning negative at KRW -0.44 billion
After an operating and net loss in Q1 2026, Q2 2026 revenue reached KRW 7.23 billion with operating profit returning to positive at about KRW 0.03 billion
The company imports all its PB resin from Japan's Mitsui, and with only three global suppliers the entry barrier is high but cost exposure to raw material swings remains
The debt ratio has stayed low in the 9-12% range, and the company paid a year-end dividend with a disclosed dividend yield of 2.13% at the time of announcement
Declining housing starts and a slowing construction cycle have been cited as the key drivers of the earnings deterioration
Frompast was established in 1992 as Dongyang Plastic, renamed to its current name in 2001, and listed on KOSDAQ in 2002 as a plumbing materials specialist.
The company's core business is manufacturing and selling heating and water-supply piping and connectors, and its reportable segment is structured as a single plumbing materials business.
Its main products center on PB (polybutylene) pipe, along with PPC pipe, XL pipe, AS pipe, manifolds, joints, double-pipe fittings, and brass water fittings used in building plumbing systems. Sales are conducted through both direct contracts with construction companies and a nationwide distributor network.
All PB resin, the key raw material, is imported from Japan's Mitsui, and with only three suppliers of this resin worldwide, the supply chain carries a high barrier to entry. The company operates production facilities in Korea and through a subsidiary in China.
Frompast is a family-managed company in which the largest shareholder and related parties participate in management, and it has had no history of rights offerings or convertible bond issuance over the past five years.
The plumbing materials industry is directly tied to the construction cycle, particularly new housing starts and apartment sales volumes, giving it a distinctly lagging, cyclical demand profile.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6.7B | ₩43,856,268 | 0.7% |
| 2025Q3 | ₩6B | -₩100M | −1.9% |
| 2025Q4 | ₩5.9B | -₩400M | −7.5% |
| 2026Q1 | ₩5.2B | -₩300M | −6.4% |
| 2026Q2 | ₩7.2B | ₩33,978,598 | 0.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩30.2B | ₩1.5B | ₩1.3B | 5.1% | 3.6% | 10.7% |
| 2023 | ₩29.5B | ₩1.4B | ₩1.4B | 4.9% | 3.8% | 9.1% |
| 2024 | ₩29.7B | ₩1.6B | ₩1.9B | 5.5% | 4.9% | 11.9% |
| 2025 | ₩25.2B | -₩400M | ₩1B | −1.8% | 2.7% | 9.7% |
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 moved from KRW 30.23 billion in 2022 to KRW 29.48 billion in 2023 and KRW 29.66 billion in 2024, before contracting to KRW 25.23 billion in 2025.
Operating profit stayed in the KRW 1.4-1.6 billion range from 2022 to 2024 but turned negative at KRW -0.44 billion in 2025, with the operating margin flipping from 5.5% in 2024 to -1.8% in 2025.
Net income attributable to owners rose from KRW 1.32 billion in 2022 to KRW 1.42 billion in 2023 and KRW 1.92 billion in 2024, then fell to KRW 1.02 billion in 2025; the fact that net income stayed positive despite an operating loss suggests non-operating items played a role.
On a quarterly basis, Q2 2025 posted modest profitability with revenue of KRW 6.71 billion, operating profit of KRW 0.04 billion, and net income of KRW 0.18 billion, while Q3 2025 saw revenue of KRW 6.02 billion and an operating loss of KRW 0.12 billion, yet net income jumped to KRW 0.97 billion, pointing to a possible one-off non-operating item.
Q4 2025 worsened further to revenue of KRW 5.92 billion, an operating loss of KRW 0.44 billion, and a net loss of KRW 0.28 billion, and Q1 2026 continued the trend with revenue of KRW 5.18 billion and both operating and net losses of about KRW 0.33 billion.
Q2 2026, however, showed a recovery with revenue rising to KRW 7.23 billion, operating profit turning positive at KRW 0.03 billion, and net income at KRW 0.16 billion, consistent with a seasonal peak effect.
On the cash flow side, operating cash flow declined sharply from KRW 2.57 billion in 2023 and KRW 2.01 billion in 2024 to KRW 0.56 billion in 2025, while total equity edged up from KRW 36.83 billion in 2022 to KRW 37.98 billion in 2025, and the debt ratio has remained low in the 9-12% range throughout.
The plumbing materials industry is a classic lagging sector tied closely to the construction cycle, particularly new housing starts and apartment sales volumes.
Because defective piping can cause significant losses for construction companies, reliability and a track record of installation act as entry barriers that make it difficult for new competitors to break in.
According to company disclosures, cumulative consolidated revenue for the first three quarters of 2025 fell 8.8% year over year, operating profit turned negative, and net income declined 7.7%, as reduced housing starts and a slowing construction market cut PB pipe demand and seasonal factors limited construction activity, worsening results.
On the raw material side, the company purchases all of its PB, the most critical raw material, from Japan's Mitsui, exposing manufacturing costs and price competitiveness to price and exchange rate changes, and with only three global suppliers of this resin, the industry has a high barrier to entry due to raw material concentration.
Korea's PB pipe market is understood to be an oligopolistic structure with only a small number of competing producers. Whether housing start statistics enter a gradual recovery phase will be the key variable for plumbing demand going forward.
Alongside managing its existing product lineup, the company continues a strategy of strengthening its market position under the Dongyang PB Pipe brand, seeking additional suppliers and new buyers, and commercializing new patented technologies such as a one-touch pipe fastening device.
This can be read as an attempt to partially cushion the impact of the construction slowdown by securing new sales channels beyond existing distributor and builder relationships.
The joint recovery in revenue and operating profit in Q2 2026 can be seen partly as a seasonal peak effect and partly a reflection of this sales strategy, though its durability has not yet been confirmed.
On the dividend front, at the March 2026 annual general meeting, a year-end cash dividend of KRW 80 per common share was resolved, with a total dividend payout of about KRW 627 million and a disclosed dividend yield of 2.13% at the time of announcement.
The future earnings path is likely to depend heavily on the pace of recovery in domestic housing starts and pre-sales, as well as trends in PB resin prices and the yen-won exchange rate. No specific quantitative revenue or profit guidance from the company has been confirmed publicly.
On a trailing four-quarter basis (Q3 2025 through Q2 2026), net income has shrunk considerably relative to prior annual results, placing the earnings-based price multiple above the trading range seen during years of more stable performance.
By contrast, the share price trades below book value per share, indicating a gap between how the market prices earnings versus net assets.
On the dividend side, the company has a multi-year history of paying cash dividends, though the recently disclosed dividend yield level is not notably high compared with sectors known for high payouts.
The pattern of an operating loss in 2025, a net loss in Q1 2026, and a profit recovery in Q2 2026 suggests that valuation metrics could remain sensitive to whether the earnings recovery proves durable.
Ultimately, assessing the current price level requires watching both the pace of construction-sector recovery and whether quarterly earnings stability returns.
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
After posting both an operating and net loss in Q1 2026, the company returned to profitability in Q2 2026 with revenue of KRW 7.23 billion, operating profit of KRW 0.03 billion, and net income of KRW 0.16 billion. This appears to reflect a seasonal peak effect, and revenue also expanded from the prior quarter. Whether this quarter-over-quarter rebound continues into the second half is worth watching.
With only three global suppliers of PB resin, structural barriers limit new entrants to the market. The industry's requirement for years of delivery track record and installation reliability also favors incumbent players. While this limits rapid revenue expansion, it works to defend the company's existing market position.
The debt ratio has stayed in the 9-12% range throughout 2022-2025, indicating a stable balance sheet. The company also maintained its cash dividend based on 2025 results, and operating cash flow remained positive despite shrinking profit. Low leverage can serve as a financial buffer during a construction downturn.
2025 revenue fell to KRW 25.23 billion from KRW 29.66 billion the prior year, and operating profit turned negative at KRW -0.44 billion. The company itself cited declining housing starts and a slowing construction market as the main causes.
With the timing of a construction recovery uncertain, the pace of any revenue rebound is equally hard to predict.
In Q3 2025, net income surged to KRW 0.97 billion despite an operating loss, while Q4 2025 and Q1 2026 both posted net losses. This recurring gap between operating and net results lowers earnings predictability. Such volatility adds uncertainty to any forward assessment of performance.
Because all PB resin is imported from Japan's Mitsui, costs are directly exposed to yen-won exchange rate and global resin price fluctuations. With only a handful of suppliers, the company's bargaining power may also be constrained. If cost pressure rises, delayed pass-through to selling prices could squeeze margins.
Demand for plumbing materials is directly linked to new housing starts and apartment pre-sale volumes, making it sensitive to shifts in government real estate and construction policy.
Further deceleration in housing starts could deepen revenue contraction, while policy measures to stimulate construction could provide a catalyst for demand recovery.
Since the core raw material, PB resin, is entirely imported from Japan, yen-won exchange rate movements and rising global resin prices flow directly into costs. With only three suppliers worldwide, alternative sourcing options are limited. If cost increases cannot be immediately passed through to selling prices, margin pressure could persist.
As a family-managed company where the largest shareholder and related parties participate in management, alignment of interests with minority shareholders is a factor to monitor. Given its small market capitalization and limited trading liquidity, the stock can be prone to heightened price volatility.
There is also a history of the share price moving in connection with political or policy themes, exposing it to volatility unrelated to fundamentals.
This is when the Q3 2026 quarterly report is due, providing the first indicator of whether the Q2 profit recovery extends into the second half.
Housing start and pre-sale statistics from the Ministry of Land, Infrastructure and Transport, along with the yen-won exchange rate and global resin price trends, warrant monitoring to gauge shifts in downstream demand and cost pressure.
At the annual general meeting covering fiscal year 2026 results, the size of the cash dividend and continuity of dividend policy are expected to be determined.
Progress in commercializing new patented technologies such as the one-touch pipe fastening device, and any disclosures regarding new buyer acquisition, should be checked to assess the tangible progress of channel expansion.
Frompast is a small-cap KOSDAQ company with a single-segment plumbing materials business that saw both revenue and operating profit contract in 2025, directly reflecting the construction sector slowdown.
The loss streak that extended into Q1 2026 was reversed with a return to profit in Q2 2026, though the recurring gap between operating and net results keeps earnings predictability relatively low.
The structure of relying entirely on a small number of overseas raw material suppliers creates a high entry barrier but also exposes the company to cost and currency risk. Its financial health looks relatively stable, supported by a low debt ratio and a consistent history of cash dividends.
Future assessment of the stock and its earnings is likely to hinge on the pace of construction-sector recovery, whether quarterly earnings stability returns, and the tangible progress of new sales channels and patented technology commercialization. This report is provided for informational purposes only and does not include a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
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