KOSDAQOthers038870

EcoSimplex

₩2,115▲ 0.24%2026-10-02 close

Market Cap

₩29.1B

Turnover

₩21,790,297

Volume

10K

Shares out.

14M

PER

—

PBR

0.3×

EPS

-₩28

Dividend Yield

0.00%

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

Report overview

Hydrogen Expansion Continues Amid Persistent Losses

EcoSimplex renamed itself in March 2026 and is expanding into clean hydrogen and AI-related new business, but consolidated operating losses have continued for four straight years since 2022.

1
In March 2026 the company changed its name from EcoBio Holdings to EcoSimplex, declaring an expansion into AI-based new business and hydrogen operations.
2
2025 consolidated revenue was KRW 17.2 billion with an operating loss of KRW 2.7 billion, marking a fourth consecutive year of operating losses.
3
In 1Q26 revenue fell 30.3% year over year, the operating loss narrowed 16.4%, but the net loss widened 16.9%.
4
The Seonam clean hydrogen production facility was slated for completion around June 2026, during which the existing hydrogen station has been temporarily suspended.
5
In October 2025 the company signed an MOU with Yeongcheon City for an integrated clean hydrogen production project with a total budget of KRW 26 billion.

Business structure

EcoSimplex (ticker 038870) was established in 1997 as an ESG specialist company and listed on KOSDAQ in 2001. In March 2026, the company changed its name from EcoBio Holdings to EcoSimplex and is pursuing expansion into AI-based new business and hydrogen-related operations. The company holds two subsidiaries.

Its business structure centers on renewable energy (electricity, gas, hydrogen) and bio-sulfur related operations based on biogas generated from landfills, organic waste treatment facilities, and sewage treatment plants.

Its main product and service has been described as a landfill gas power plant in the environment/energy-gas sector, operated through its subsidiary EcoEnergy at the Sudokwon Landfill.

More recently, the company has expanded its footprint to Seoul's Magok area and Yeongcheon in North Gyeongsang Province, building biogas-based clean hydrogen production facilities as a core growth axis.

It also runs a bio-sulfur related business as a byproduct stream, and carried out a national R&D project related to BioSulfa, lime modification, and high durability in 2023. The AI-based new business mentioned alongside the name change appears to still be at an early stage.

Earnings trend

Quarterly revenue · Operating profit

₩4.7B₩300M25Q2₩4.1B-₩500M25Q3₩4.3B-₩1.2B25Q4₩2.8B-₩1B26Q1₩3.5B-₩500M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩16.8B-₩100M2022₩15.8B-₩2.6B2023₩18B-₩2.4B2024₩17.2B-₩2.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩4.7B	₩300M	5.4%
2025Q3	₩4.1B	-₩500M	−13.3%
2025Q4	₩4.3B	-₩1.2B	−27.4%
2026Q1	₩2.8B	-₩1B	−34.6%
2026Q2	₩3.5B	-₩500M	−15.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩16.8B	-₩100M	-₩4.7B	−0.9%	−6.8%	37.9%
2023	₩15.8B	-₩2.6B	₩2.5B	−16.5%	2.9%	27.2%
2024	₩18B	-₩2.4B	-₩3.7B	−13.1%	−4.6%	46.0%
2025	₩17.2B	-₩2.7B	-₩2.3B	−15.4%	−2.9%	45.9%

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

Earnings analysis

Consolidated revenue in 2025 was KRW 17.24 billion, slightly down from KRW 18.02 billion in 2024, and revenue has stayed narrowly within a KRW 15.8-18.0 billion range from 2022 to 2025 without a clear growth trajectory.

The operating loss widened from KRW -0.15 billion in 2022 to KRW -2.60 billion in 2023, KRW -2.36 billion in 2024, and KRW -2.66 billion in 2025, marking four consecutive years of operating losses, while the operating margin deteriorated from -0.9% in 2022 to a -13% to -17% range in 2023-2025 and stayed there.

Net income attributable to owners was highly volatile with no clear direction: KRW -4.70 billion in 2022, a positive KRW +2.45 billion in 2023, KRW -3.67 billion in 2024, and KRW -2.26 billion in 2025.

On a quarterly basis, the company posted a small operating profit of KRW 0.25 billion in 2Q25, before losses widened to KRW -0.55 billion in 3Q25 and KRW -1.19 billion in 4Q25, with losses continuing into 1Q26 (KRW -0.99 billion) and 2Q26 (KRW -0.53 billion).

The narrower operating loss in 2Q26 versus 1Q26 is interpreted as reflecting partial cost-cutting effects.

Owner net income swung even more sharply on a quarterly basis, from KRW +1.89 billion in 3Q25 to KRW -3.92 billion in 4Q25, KRW -0.36 billion in 1Q26, and KRW +1.98 billion in 2Q26, suggesting a large influence from one-off, non-operating items.

Cumulative owner net income over the trailing four quarters (3Q25-2Q26) was KRW -0.41 billion, a comparatively modest loss despite the large quarterly swings.

On the cash flow side, operating cash flow was a marginally positive KRW 0.14 billion in 2025, but an outflow of KRW -2.55 billion in 2024, showing year-to-year inconsistency. The debt ratio rose from 27.2% in 2023 to 46.0% in 2024 and 45.9% in 2025, indicating a somewhat greater capital structure burden.

Industry analysis

South Korea's clean hydrogen industry is expanding under the government's hydrogen economy roadmap; according to a 2023 government announcement on hydrogen production base construction, 18 hydrogen production bases have been completed or are under construction.

Biogas-based hydrogen production began when the Ministry of Environment first selected Boryeong City and Hyundai Motor as biogas-based hydrogen production operators last year and supported facility installation costs, and later continued as the Ministry of Environment selected Yeongcheon City (public) and EcoBio Holdings (private) as 2024 biogas-based hydrogen production operators, providing national subsidies of 70% for the public sector and 50% for the private sector out of a two-year total project cost of KRW 26 billion (KRW 13 billion each).

This structure shows a considerable reliance on government subsidies.

Large construction and energy companies are also entering the hydrogen infrastructure space, broadening the competitive landscape: Hyundai Engineering & Construction built the country's first commercial water-electrolysis-based hydrogen production facility, holding a completion ceremony at a renewable energy complex in Buan County, North Jeolla Province, while SK Innovation E&S, together with Korea Midland Power, is building a plant in Boryeong that reforms LNG to produce blue hydrogen.

Within this landscape, EcoSimplex is characterized as a KOSDAQ-listed niche company that has pursued biogas resource recycling and renewable energy development for 36 years, and has expanded its business territory to Seoul's Magok area and Yeongcheon after being selected for biogas-based private-sector public tenders in 2024 and 2025.

However, the pace of hydrogen vehicle and refueling station adoption downstream, along with the continuity of government subsidy policy, remain variables that will determine the pace of business expansion.

Outlook

The company stated that revenue from the renewable energy infrastructure construction and maintenance segment declined, and hydrogen station operations were temporarily suspended due to the installation of the Seonam clean hydrogen production facility, adding that the Seonam clean hydrogen production facility is scheduled for completion in June 2026, and the company is pursuing clean hydrogen business expansion in line with the government's hydrogen economy roadmap.

This facility was selected under a 2024 Ministry of Environment/Korea Environment Corporation private-sector tender, under which the company disclosed plans to receive roughly KRW 6.3 billion in national subsidies to invest a total of KRW 12.7 billion in a 500 kg/day clean hydrogen production facility, capable of supplying fuel to more than 100 hydrogen vehicles per day, near the Magok Eco Hydrogen Station.

Once completed, the resumption of hydrogen station operations could partly offset the current revenue gap.

Separately, in October 2025 the company signed an MOU with Yeongcheon City on an 'integrated biogas-based clean hydrogen production project,' under which a total of KRW 26 billion will be invested, with Yeongcheon City and EcoBio Holdings jointly building a clean hydrogen production facility with the nation's largest capacity of 1,000 kg/day.

The AI-based new business referenced alongside the name change remains at an early stage, with no specific investment plan or revenue contribution timeline disclosed yet.

The government's hydrogen economy roadmap provides policy support cited by the company as a basis for its business expansion, but the actual timing and scale of revenue and profit contribution will likely depend on facility completion and utilization trends.

Valuation

PER

—

PBR

0.3×

ROE

-0.5%

EPS

-₩28

BPS

₩5,202

Dividend per share

₩0

The company has posted operating losses for the past four years without showing a clear profit improvement trend, and net income attributable to owners has swung between profit and loss without a consistent direction.

The share price tends to trade below net asset value, suggesting the market has taken a cautious stance while the results of the new hydrogen business have yet to be confirmed in earnings. As the company has not paid dividends in recent years, its appeal from a shareholder return perspective remains limited.

Given that periods of operating profit have been rare historically, conventional earnings-based valuation metrics remain difficult to apply.

Whether new investments such as the Seonam facility completion and the Yeongcheon project translate into actual revenue and profit will likely be an important benchmark for future valuation.

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

Bull factors

Potential Benefit from Clean Hydrogen Policy

Under the government's hydrogen economy roadmap, biogas-based clean hydrogen production projects are expanding with national subsidy support.

In October 2025, the company signed an integrated project MOU with Yeongcheon City to invest a total of KRW 26 billion to build the nation's largest clean hydrogen production facility, with a daily capacity of 1,000 kg.

The Seonam clean hydrogen facility is also nearing completion, which could allow the resumption of hydrogen station operations and a normalization of related revenue. The track record of collaboration with local governments and the Ministry of Environment could also serve as a foundation for further business expansion.

Narrowing Operating Loss Trend

The operating loss narrowed from KRW -0.99 billion in 1Q26 to KRW -0.53 billion in 2Q26, and the year-over-year operating loss decline in 1Q26 was reported at 16.4%. The narrowing loss despite declining revenue suggests some progress in cost structure efficiency.

The company also posted a small operating profit in 2Q25, indicating room for further improvement if cost management is sustained.

Stable Demand Base from Waste-Resource Operations

Landfills, sewage treatment plants, and organic waste treatment facilities are infrastructure-type businesses with steady underlying waste treatment demand, so raw material availability faces relatively low uncertainty as long as biogas generation is maintained.

Its roughly two decades of operating experience, dating back to the 2007 commercial operation launch of the 50MW landfill gas power plant 'EcoEnergy Co., Ltd.' at the Sudokwon Landfill, is also considered a strength.

Bear factors

Four Consecutive Years of Operating Losses

Revenue was stuck in a KRW 15.8-18.0 billion range from 2022 to 2025, while the operating result posted losses every year and the operating margin remained stuck in a -13% to -17% band. Without clear top-line growth or margin improvement, the possibility of continued losses cannot be ruled out.

Revenue Gap and Earnings Volatility

During the installation of the Seonam clean hydrogen production facility, existing hydrogen station operations have been temporarily suspended, leaving a revenue gap until completion.

Quarterly net income attributable to owners has also swung sharply, falling from KRW +1.89 billion in 3Q25 to KRW -3.92 billion in 4Q25, reflecting large one-off swings that make earnings difficult to predict.

Rising Debt Ratio

The debt ratio rose from 27.2% in 2023 to 45.9% in 2025, and operating cash flow recorded an outflow of KRW -2.55 billion in 2024, suggesting that the burden of new investment could affect the financial structure going forward.

Risk factors

Policy and Subsidy Dependence

The biogas-based clean hydrogen production business relies heavily on national subsidies covering 70% for the public sector and 50% for the private sector, so changes to government hydrogen policy or budget allocation could affect the pace and economics of project execution.

New Business Uncertainty

The AI-based new business introduced alongside the company's name change has not yet revealed a concrete business model or investment scale, meaning it may take considerable time before it translates into actual revenue.

Earnings Volatility and Financial Structure

Quarterly net income swings widely due to one-off factors, and the debt ratio has been trending upward, so increased investment burden from new facilities warrants close monitoring of financial stability.

What to watch next

Mid-November 2026 (3Q26 report filing)
Check whether the Seonam clean hydrogen facility has been completed, whether hydrogen station operations have resumed, and how these are reflected in 3Q26 revenue and earnings.
Q4 2026
Verify through disclosures the design and construction progress of the Yeongcheon integrated clean hydrogen project (total budget KRW 26 billion) and whether national subsidy funding has been finalized.
Around March 2027 (FY2026 annual report filing)
Confirm finalized FY2026 annual results and whether concrete plans and investment scale for the AI-based new business have been disclosed.
At each subsequent regular disclosure
Continue monitoring changes in financial structure, including trends in the debt ratio and operating cash flow.

Overall view

Following its March 2026 name change, EcoSimplex is attempting to broaden its scope from its existing biogas and landfill-gas-based renewable energy business into clean hydrogen and AI-related new ventures.

However, revenue remained confined to a KRW 15.8-18.0 billion range from 2022 to 2025, operating losses persisted for four consecutive years, and net income attributable to owners swung between profit and loss without showing a clear improvement trend.

Entering 2026, the company's existing hydrogen station has been suspended ahead of the Seonam clean hydrogen facility's completion, while separately it has signed an integrated hydrogen production MOU with Yeongcheon City worth a total of KRW 26 billion as it seeks further business expansion.

Quarterly net income has swung widely due to one-off factors, making earnings difficult to predict, and the debt ratio has also risen from 27.2% in 2023 to 45.9% in 2025, adding to the financial structure burden.

Government hydrogen economy policy and national subsidy support provide an important backing for business growth, but the timing and scale at which this translates into actual revenue and profit improvement remain unconfirmed.

Continued monitoring of the start-up timing for the Seonam and Yeongcheon facilities, as well as the concretization of the AI-based new business, will be warranted.

Sources

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

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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.