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
DAP divested its stake in aviation subsidiary Aero K Holdings at a nominal price to ease consolidated capital impairment risk, but its core PCB business has yet to escape an operating loss as of the most recent quarter.
The legal capital-loss ratio reached 304% for fiscal year 2025, triggering an administrative issue designation for the second consecutive year after 2024.
On March 31, 2026, DAP sold its entire 70.08% stake in Aero K Holdings to a related party for 1 won per share, removing the aviation unit from consolidation.
Net income attributable to owners spiked to roughly KRW 97.1 billion in the first quarter of 2026, largely reflecting one-off effects tied to the subsidiary sale.
Within the PCB segment, automotive electronics revenue has exceeded smartphone/IT revenue for several consecutive quarters.
Revenue rose for four consecutive years from 2022 to 2025, while operating profit swung from a surplus to a widening deficit over the same period.
DAP was established in 1987 to manufacture electronic components and listed on KOSDAQ in 2004 as a specialized printed circuit board (PCB) maker.
Its core products are HDI mainboards for smartphones and PCBs for automotive electronics; in the smartphone segment it supplies mainboards to Samsung Electronics, having secured a significant share of volume alongside Korea Circuit after Samsung Electro-Mechanics exited the HDI business in 2019.
In automotive electronics, DAP's key customer is Hyundai Mobis, and this segment's revenue has exceeded smartphone/IT PCB revenue every quarter since the second half of 2023.
In 2022, the company diversified into aviation by acquiring a stake in Aero K Holdings, the holding company of low-cost carrier Aero K, investing roughly KRW 36.6 billion in new shares and rights offerings plus about KRW 30 billion in loans between 2022 and 2023.
However, Aero K Airlines remained in complete capital impairment continuously since its 2021 launch, and this deficit was transferred to parent DAP through consolidated financial statements.
Ultimately, on March 31, 2026, DAP's board decided to sell its entire 70.08% stake (3,236,807 shares) in Aero K Holdings to Authentic Brands Holdings, a private holding company owned by Daemyung Chemical Group Chairman Kwon Oh-il, at 1 won per share for a total of KRW 3,236,807.
The deal included a call option allowing DAP to buy back the stake later, leading observers to note that only the nominal controlling shareholder changed while the underlying group structure remained largely intact.
The company stated the divestment's purpose was to improve its financial structure by resolving capital impairment and to concentrate on its core business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩123.7B | -₩19.8B | −16.0% |
| 2025Q3 | ₩124.8B | -₩29.6B | −23.7% |
| 2025Q4 | ₩148.5B | -₩6.9B | −4.7% |
| 2026Q1 | ₩93.8B | -₩1.8B | −1.9% |
| 2026Q2 | ₩75.8B | -₩9.3B | −12.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩333.7B | ₩9B | ₩9.1B | 2.7% | 7.2% | 137.9% |
| 2023 | ₩403.5B | -₩13.1B | -₩4.8B | −3.2% | −4.5% | 239.1% |
| 2024 | ₩488.8B | -₩30.4B | -₩32.5B | −6.2% | −50.8% | 700.1% |
| 2025 | ₩543.2B | -₩57.8B | -₩50.4B | −10.6% | −965.8% | −2774.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
Consolidated revenue rose for four straight years, from about KRW 333.7 billion in 2022 to KRW 403.5 billion in 2023, KRW 488.8 billion in 2024, and KRW 543.2 billion in 2025.
Operating profit, however, swung from a surplus of about KRW 9.0 billion in 2022 to losses of roughly KRW 13.1 billion in 2023, KRW 30.4 billion in 2024, and KRW 57.8 billion in 2025, with the operating margin deteriorating from 2.7% to -3.2%, -6.2%, and -10.6% over the same four years.
Net income attributable to owners followed a similar path, moving from a gain of about KRW 9.1 billion in 2022 to losses of roughly KRW 4.8 billion in 2023, KRW 32.5 billion in 2024, and KRW 50.4 billion in 2025.
Equity attributable to owners shrank from about KRW 127.5 billion in 2022 to roughly KRW 5.2 billion in 2025, and total consolidated equity turned negative at about -KRW 20.8 billion in 2025, entering capital impairment.
Total liabilities surged from about KRW 231.7 billion in 2023 to roughly KRW 576.2 billion in 2025, damaging the capital base to the point that the debt ratio computed as a negative figure.
On a quarterly basis, revenue was about KRW 123.7 billion with an operating loss of roughly KRW 19.8 billion in Q2 2025, KRW 124.8 billion in revenue with the widest operating loss of about KRW 29.6 billion in Q3 2025, and the loss narrowed to about KRW 6.9 billion on revenue of roughly KRW 148.5 billion in Q4 2025.
In Q1 2026, revenue was about KRW 93.8 billion and the operating loss narrowed sharply to roughly KRW 1.8 billion, while net income attributable to owners spiked to about KRW 97.1 billion, a figure interpreted as reflecting one-off effects related to the Aero K Holdings sale.
By contrast, in Q2 2026, after the aviation subsidiary was excluded, revenue fell to about KRW 75.8 billion and the operating loss widened again to roughly KRW 9.3 billion, suggesting that a clear profitability recovery has not yet materialized in the standalone PCB business.
Operating cash flow shrank from about KRW 15.0 billion in 2022, KRW 29.7 billion in 2023, and KRW 22.5 billion in 2024 to roughly KRW 1.9 billion in 2025, but remained positive for four consecutive years.
The PCB industry is broadly split between smartphone and automotive electronics end markets; the smartphone HDI mainboard market has seen slowing growth amid stagnant global smartphone shipments, while automotive electronics PCBs are viewed as having relatively more growth potential due to expanding adoption of advanced driver-assistance systems.
DAP has maintained a top-tier domestic position by sharing Samsung Electronics smartphone mainboard volume with Korea Circuit since Samsung Electro-Mechanics exited the HDI business in 2019.
However, mainboards for flagship-tier models face competition from Korea Circuit and Japan's Ibiden, so DAP's share advantage is not absolute.
In automotive electronics, Hyundai Mobis is DAP's key customer; as one example, in the first half of 2024, automotive electronics PCB revenue of about KRW 86.8 billion (49.6%) exceeded smartphone/IT PCB revenue of about KRW 81.9 billion (46.8%) out of total PCB segment revenue of roughly KRW 175.1 billion.
Meanwhile, the semiconductor package substrate (FC-BGA) market, driven by growing server, AI, and automotive demand, is projected to grow from about KRW 4.8 trillion in 2024 to KRW 8 trillion by 2028, an average annual growth rate of roughly 14%, but this segment is led by Samsung Electro-Mechanics, LG Innotek, Daeduck Electronics, Simmtech, and Korea Circuit, a different product category from DAP's current portfolio.
In other words, DAP competes in the more traditional smartphone mainboard and automotive PCB segments rather than in the higher value-added semiconductor package substrate growth cycle.
The aviation business has been removed from consolidated results following the subsidiary sale, but with a call option still in place, the possibility of it being reincorporated into the group structure in the future cannot be ruled out.
DAP has formally set resolving capital impairment and concentrating on its core business as objectives through the Aero K Holdings sale. The company has stated it will focus on restoring PCB business competitiveness after the divestment, but no specific capacity expansion or new order guidance has been confirmed.
The exclusion of the subsidiary has partly eased consolidated capital impairment concerns, but since the fiscal 2025 legal capital-loss ratio reached 304%, whether fiscal 2026 results cross that threshold again remains a key variable determining whether the administrative issue designation is maintained or lifted.
Industry observers have raised concerns that Aero K could fall back into complete capital impairment this year amid high fuel costs and intensifying competition, meaning related-party risk has not been fully resolved regardless of the possibility of reincorporation via the call option.
In the core PCB business, the expanding share of automotive electronics revenue is likely to continue, but the fact that an operating loss persisted in Q2 2026 even after the aviation segment was excluded shows that a profitability recovery in the core business itself has not yet become visible.
Future quarterly and annual disclosures should be watched both for resolution of the administrative issue designation and for the pace of standalone profitability improvement in the PCB segment.
The price-to-earnings ratio calculated on a recent four-quarter basis stands at a very low level, but this largely reflects a one-off gain related to the subsidiary stake sale recognized in Q1 2026, which sharply inflated net income, so it should not be read as a measure of sustained operating profitability.
Conversely, the price-to-book ratio sits in a range with a substantial premium over net assets, which stems more from a thinned-out equity base that came close to capital impairment than from the share price itself being elevated.
Dividend-related metrics remain below the industry average, reflecting the net-loss structure of recent years.
Compared with the trading multiples from the period when the company generated stable profits, recent valuation metrics appear to be in a range distorted by one-off items and capital erosion rather than ordinary business conditions.
It is therefore more useful to examine the quarterly operating profit trend of the standalone PCB business excluding the former aviation subsidiary than to draw fundamental conclusions from a simple comparison of the price-to-earnings and price-to-book ratios.
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 2026-08-24
Revenue expanded for four consecutive years from 2022 to 2025, growing from roughly KRW 333.7 billion to about KRW 543.2 billion. In particular, automotive electronics PCB revenue has come to exceed smartphone/IT revenue, diversifying the company's revenue base.
This can be interpreted as securing a relatively stable demand base through the automotive electrification trend even as smartphone market growth has stagnated.
The March 2026 stake sale removed Aero K Holdings, which had been in chronic losses and complete capital impairment, from consolidation. This cut off the structure by which further aviation subsidiary losses would be directly reflected in consolidated financial statements.
The company stated this move aims to resolve capital impairment and mitigate the risk of a listing eligibility review.
Even as operating profit posted losses for four consecutive years, operating cash flow remained positive every year from 2022 to 2025.
This reflects non-cash items such as depreciation and working-capital management, showing that immediate cash-generating capacity has not been entirely depleted despite the accounting losses.
Even in Q2 2026, after the aviation subsidiary was excluded, revenue fell to about KRW 75.8 billion while the operating loss widened to roughly KRW 9.3 billion. This suggests that a clear profitability improvement in the core PCB business itself has not emerged even after removing the aviation drag. The operating margin has deteriorated for four consecutive years, from 2.7% in 2022 to -10.6% in 2025.
The fiscal 2025 legal capital-loss ratio reached 304%, triggering an administrative issue designation for the second consecutive year following 2024. If fiscal 2026 crosses the same threshold again, the stock could become subject to a listing eligibility review.
The subsidiary sale has eased some of the burden, but whether this requirement is fully resolved on an annual basis has not yet been confirmed.
Equity attributable to owners shrank from about KRW 127.5 billion in 2022 to roughly KRW 5.2 billion in 2025, and total consolidated equity turned negative in 2025. Total liabilities rose sharply over the same period, worsening the debt ratio to a level where it no longer computes normally.
The thin capital base is a concern, as further losses could bring the company close to complete capital impairment again.
With the legal capital-loss ratio exceeding 50% for two consecutive years, the company has been designated as an administrative issue stock, and failing to meet the requirement again could lead to a listing eligibility review and trading suspension.
This has been partly improved by the subsidiary sale, but uncertainty remains until annual results are finalized.
The buyer of the Aero K Holdings stake, Authentic Brands Holdings, is a private company controlled by Daemyung Chemical Group Chairman Kwon Oh-il, DAP's parent-group figure, and DAP retains a call option to reacquire the stake in the future.
Market observers have noted that only the nominal controlling shareholder changed with limited real change in group structure, meaning similar risks could resurface if the subsidiary is reincorporated later.
The smartphone HDI mainboard market remains competitive against Korea Circuit and Japan's Ibiden, exposing DAP to volume fluctuations if global smartphone demand slows. The automotive electronics segment is also structurally dependent on automaker production plans and raw material and foreign-exchange fluctuations.
The Q3 2026 report should be checked for the legal capital-loss ratio, the degree of equity recovery, and any change in the administrative issue designation status.
The fiscal 2026 annual report should be checked to see whether the legal capital-loss ratio stabilizes below 50% for two consecutive years and whether the administrative issue designation is lifted.
If any disclosure emerges regarding exercise of the Aero K Holdings call option or a potential reacquisition, the possibility of aviation risk returning to consolidation should be reassessed.
News on automotive electronics PCB orders and volumes for customers such as Hyundai Mobis, as well as Samsung Electronics smartphone volume allocation, should be monitored.
The Q4 and full-year 2026 earnings release should be checked to see whether the standalone PCB business, excluding the former aviation segment, shows an improving operating profit trend.
Since 2022, DAP's attempt to diversify through the acquisition of an aviation subsidiary led to chronic complete capital impairment at that unit and a sharp rise in the legal capital-loss ratio, resulting in consecutive administrative issue designations for fiscal 2024 and 2025.
At the end of March 2026, DAP divested its Aero K Holdings stake at a nominal price, removing the aviation deficit from consolidation, and a one-off gain from this transaction significantly inflated net income in Q1 2026.
However, in Q2 2026, after the aviation segment was excluded, both a revenue decline and a widening operating loss appeared simultaneously, meaning a profitability recovery in the standalone PCB business has not yet been confirmed.
Revenue itself grew for four consecutive years from 2022 to 2025, showing the positive development of an expanding automotive electronics PCB share, but the operating margin worsened every year over the same period, deepening the losses.
Since the call option provision remains in place, it is difficult to conclude that aviation-related risk has been fully resolved, and the possibility of a listing eligibility review cannot be ruled out if the legal capital-loss ratio exceeds the threshold again.
Watching for resolution of the administrative issue designation and the pace of standalone profitability recovery in the PCB business in future quarterly and annual disclosures will be a key point for understanding this stock going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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