PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
SCD maintains a strong position in core refrigerator and air-conditioner components, but its operating margin has narrowed every quarter since 2025 and turned to a net loss in the second quarter of 2026.
Holds leading domestic and global market share in core refrigerator parts such as ice makers
2025 revenue rose slightly year over year, but operating profit fell 32.5% and net income fell 23.8%
Operating margin declined for five consecutive quarters from 2Q25 through 2Q26, culminating in a net loss in the latest quarter
The debt ratio has steadily declined while equity has grown, indicating maintained balance-sheet stability
Growing European cooling demand is an opportunity, while intensifying price competition from Chinese makers is a risk, coexisting side by side
SCD Co., Ltd. was established in 1987 as Hyupjin Precision, renamed to its current name in 1999, and listed on KOSDAQ in 2000, and it operates unlisted subsidiaries in Guangzhou, China and Hong Kong.
Its core products are refrigerator components such as timers, refrigerant valves, dampers, and ice makers, along with air-conditioner components such as BLDC motors and stepping motors. Among these, ice makers hold a 65% domestic and 54% global market share, giving the company a solid position in that product category.
Its disclosed development track record includes a 160W BLDC motor for air-conditioner outdoor units and an 85W BLDC motor for system air-conditioner indoor units, and it has a confirmed history of developing and supplying components for Samsung Electronics and LG Electronics appliance platforms.
Its customer structure reflects a typical component-supplier model with high dependence on large domestic and overseas finished-goods makers.
On the competitive front, the growth of Chinese and other regional makers has intensified price competition in low- and mid-tier products, prompting domestic appliance makers to concentrate on specialized refrigerators and premium air conditioners.
In response, the company is focusing on advanced technology development and cost and productivity innovation to improve price competitiveness and quality, while expanding investment in new products and higher value-added areas.
As a result, expanding the share of premium and eco-friendly products has become a core strategic direction for the company.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩52.4B | ₩1.6B | 3.1% |
| 2025Q3 | ₩53.1B | ₩1.3B | 2.5% |
| 2025Q4 | ₩51.1B | ₩600M | 1.2% |
| 2026Q1 | ₩51B | ₩500M | 1.0% |
| 2026Q2 | ₩47.9B | ₩88,592,232 | 0.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩218.9B | ₩11.3B | ₩8.3B | 5.2% | 7.0% | 40.0% |
| 2023 | ₩194B | ₩5.7B | ₩4.8B | 3.0% | 4.0% | 37.1% |
| 2024 | ₩214B | ₩9.3B | ₩8.4B | 4.4% | 6.4% | 29.2% |
| 2025 | ₩216.1B | ₩6.3B | ₩6.4B | 2.9% | 4.7% | 28.0% |
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
In 2025, consolidated revenue was KRW 216.14 billion, up 1.0% from KRW 213.98 billion in 2024, while operating profit fell 32.5% to KRW 6.31 billion and net income fell 23.8% to KRW 6.40 billion.
This pattern reflects intensifying price competition in low- and mid-tier products driven by the growth of Chinese and other regional makers, combined with rising raw-material costs and currency instability.
Looking at the four years from 2022 to 2025, the operating margin fell from 5.2% in 2022 to 3.0% in 2023, rebounded to 4.4% in 2024, and then declined again to 2.9% in 2025, showing repeated fluctuation.
On a quarterly basis, first-quarter 2025 revenue rose 9.3% year over year, yet operating profit fell 19.2% and net income fell 5.6%, showing an early divergence between revenue and profitability.
Revenue held near KRW 52.4 billion and KRW 53.1 billion in the second and third quarters of 2025, respectively, before gradually contracting to KRW 51.1 billion in the fourth quarter, KRW 51.0 billion in the first quarter of 2026, and KRW 47.9 billion in the second quarter of 2026, while operating profit fell for five straight quarters from roughly KRW 1.6 billion in 2Q25 to about KRW 89 million in 2Q26.
Notably, in the second quarter of 2026, despite a marginally positive operating profit, net income attributable to owners turned negative at roughly negative KRW 62 million, suggesting non-operating factors weighed on the bottom line.
On the cash-flow side, operating cash flow was negative at about KRW 523 million in 2024 before improving to a positive roughly KRW 5.91 billion in 2025.
Equity grew steadily from KRW 119.3 billion in 2022 to KRW 136.5 billion in 2025, while the debt ratio fell from 40.0% to 28.0% over the same period, showing that the balance sheet actually became more stable despite earnings volatility.
In the domestic appliance-parts market, intensifying price competition in low-cost products has pushed finished-goods makers to concentrate on premium products such as kimchi refrigerators, side-by-side refrigerators, and system air conditioners.
In this environment, component demand remains stable, but rising competition from Chinese and other regional makers in low- and mid-tier products has become a persistent margin pressure for the industry.
More recently, record heatwaves across Europe have rapidly increased cooling-equipment demand, prompting Samsung Electronics and LG Electronics to expand sales of locally tailored products; Samsung reportedly posted double-digit sales growth in markets such as Italy and Spain, while LG Electronics saw roughly 20% growth in residential air-conditioner sales and about 10% growth in commercial air-conditioner sales across southern and western Europe.
As the share of inverter and system air conditioners rises, BLDC motor adoption tends to expand accordingly, drawing market attention to suppliers of such components.
However, the industry also notes that Chinese makers are stepping up their push into the European market on the back of price competitiveness, leaving domestic component makers with the challenge of defending market position through localized technology and high-efficiency product competitiveness.
Rising raw-material costs and currency instability continue to constrain profitability, but the industry is being reshaped by premium appliance expansion and emerging-market growth that partly offset these pressures.
The company has stated it will keep focusing on advanced technology development and cost/productivity innovation to improve price competitiveness and quality, while continuing to expand investment in new products and higher value-added areas.
Record heatwaves in Europe have continued to boost sales of locally tailored air conditioners for Samsung Electronics and LG Electronics, creating a somewhat favorable demand environment for the company as a supplier of BLDC motors, stepping motors, actuators, and refrigerant control valves to those finished-goods makers.
However, how much of this tailwind actually translates into orders and revenue will need to be confirmed through coming quarterly results.
The shift by domestic appliance makers toward premium and eco-friendly products provides a stable foundation for component demand, but at the same time, the stronger push by Chinese makers into Europe and emerging markets is expected to keep intensifying price competition.
Raw-material costs and currency volatility remain key variables affecting profitability, and how much the company's stated cost and productivity innovation efforts can offset these pressures is a point worth watching.
Given that operating margin has declined for five straight quarters and the company posted a net loss in the second quarter of 2026, whether this trend reverses from the second half onward will be a key variable for the earnings outlook.
The current share price trades below the company's net asset value per share, placing the price-to-book ratio in a range under 1x. This can be seen as reflecting the market's not-yet-fully-restored confidence in earnings stability, given the repeated fluctuations in results over recent years.
On the earnings side, while the company remained profitable on a full-year 2025 basis, profit size has shrunk in more recent quarters and turned into a net loss in the second quarter of 2026, so profit metrics calculated over the most recent four quarters are lower than the confirmed full-year results.
The company has a track record of maintaining annual cash dividends, preserving continuity on the shareholder-return side, but if the recent profit contraction persists, it remains a variable that could affect future dividend policy.
Ultimately, the current valuation can be understood as reflecting both a discount to net asset value and uncertainty over whether earnings will recover, and how this is assessed may shift depending on the direction of coming quarterly results.
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
SCD holds a 65% domestic and 54% global market share in ice makers, giving it a firm entry barrier in that component category. It also has a history of holding the majority of the domestic market in core refrigerator components such as refrigerant valves and step valves. This share advantage underpins long-term supply relationships with finished-goods makers.
The debt ratio steadily declined from 40.0% in 2022 to 28.0% in 2025, while equity grew from KRW 119.3 billion to KRW 136.5 billion over the same period. Operating cash flow, which was negative in 2024, turned positive again in 2025. Despite earnings volatility, balance-sheet health indicators actually improved.
Record heatwaves across Europe have expanded sales of locally tailored air conditioners for Samsung Electronics and LG Electronics. As the share of inverter and system air conditioners rises, BLDC motor adoption tends to increase, which could create a favorable demand environment for a supplier of such components.
However, whether this benefit actually translates into orders and revenue needs to be confirmed through future results.
The operating margin fell for five straight quarters, from roughly 3.1% in the second quarter of 2025 to about 0.2% in the second quarter of 2026. Revenue over the same period also declined, from KRW 52.4 billion to KRW 47.9 billion. In the second quarter of 2026, despite a marginally positive operating profit, net income turned negative.
Multiple sources point out that the growth of Chinese and other regional makers is continuously intensifying price competition in low- and mid-tier product segments. Analyses also suggest that Chinese makers are stepping up their push into the European market on the back of price competitiveness. This could remain a persistent pressure on the company's pricing power and margins in core components.
Full-year 2025 revenue grew just 1.0% year over year, and at KRW 216.1 billion in 2025 it was actually lower than the KRW 218.9 billion recorded in 2022. Recent quarterly revenue has also shown a sequential declining trend. The company faces a double squeeze of stalled top-line growth combined with narrowing margins.
Rising raw-material costs and currency instability have repeatedly been cited as factors limiting profitability. The company operates an overseas production base in Guangzhou, China, exposing it to fluctuations in the Chinese yuan and other currencies. If cost burdens increase further, this could add further pressure to an already-narrowed operating margin.
The company has a typical component-supplier structure with a high supply share to large finished-goods makers such as Samsung Electronics and LG Electronics. Changes in those makers' production and sales plans, or a slowdown in global appliance demand, can flow directly through to revenue.
A structure with high dependence on specific customer groups can pose a risk both to bargaining power and to revenue stability.
The low-price offensive by Chinese makers is expanding beyond the domestic market into overseas markets such as Europe, leaving long-term market-share defense as an ongoing challenge.
If policy changes such as tighter eco-friendly refrigerant or energy-efficiency regulations occur, additional investment burdens could arise from changes to valve and motor specifications. How quickly the company adapts to such changes could determine its medium- to long-term competitiveness.
Check whether the five-quarter operating-margin decline and the 2Q26 net loss trend continue into the third quarter, or whether they reverse.
It is worth checking how much of the heatwave-driven European cooling demand actually translated into orders and revenue, and monitoring inventory and follow-on order flow after the season ends.
Check whether the cash dividend policy is maintained despite the recent profit contraction, and whether full-year 2026 results remain profitable.
The intensity of price competition from Chinese makers at home and abroad, and the impact of raw-material and currency trends on margins, need to be monitored on an ongoing basis.
SCD is a specialized appliance-parts maker with a solid market position in core refrigerator components such as ice makers, and its balance sheet has actually become more stable, with a declining debt ratio and growing equity.
However, following a 32.5% drop in operating profit and a 23.8% drop in net income in 2025 versus the prior year, the operating margin declined for five consecutive quarters from the second quarter of 2025 through the second quarter of 2026, turning into a net loss in the most recent quarter.
Revenue scale has also yet to fully recover to 2022 levels and has shown a contracting trend in recent quarters.
Expanding cooling demand driven by the European heatwave is cited as a favorable external factor for component supply to Samsung Electronics and LG Electronics, but at the same time, intensifying price competition from Chinese makers continues to weigh on margins.
The current share price trades at a discount to net asset value, which appears to limit valuation strain, but this can also be read as reflecting the market's cautious view of recent earnings stability.
Ultimately, the key points to watch going forward are whether the recent margin pressure eases from the third quarter onward, and how much the benefit from expanding European demand is actually confirmed in results.
Report written 2026-09-05 · Data as of 2026-09-04
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