KOSDAQOthers066980

Hansung Cleantech

₩1,520▼ 0.33%2026-10-02 close

Market Cap

₩81.9B

Turnover

₩300M

Volume

200,000 shares

Shares out.

53.8M

PER

—

PBR

1.4×

EPS

-₩98

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

Record Backlog, Earnings Turnaround Still Unfolding

Backed by capex from Samsung Electronics, SK Hynix and DB HiTek, order backlog has expanded sharply, but the translation into revenue and profit is still a work in progress.

1
Consolidated 2025 revenue recovered to KRW199.9bn (+28.8% year-on-year) and operating profit turned positive at KRW2.8bn, though the base effect of the large 2024 loss still lingers.
2
New orders have followed one after another in 2026 from Samsung Electronics' Pyeongtaek P4/P5, SK Hynix's Yongin Y1, and DB HiTek's Eumseong Sangwoo plant.
3
Over the trailing four quarters (Q3 2025-Q2 2026), the cumulative net loss attributable to owners was about KRW5.1bn, with operating profit swinging positive even as bottom-line losses persisted.
4
As the lead agency for the government's ultra-pure water (UPW) localization project, the company was selected in April 2026 for a next-generation, energy-saving research program as well.
5
The debt ratio eased to 148% in 2025 from 174% in 2024, but remains above the 112% level recorded in 2023.

Business structure

Founded in 1990 and listed on KOSDAQ in 2003, Hansung Cleantech is a specialized EPC contractor for industrial water treatment and ultra-pure water (UPW) systems.

It provides one-stop engineering, procurement and construction for UPW production, wastewater treatment and water supply facilities required at semiconductor and display plants.

In the first quarter of 2026, the environmental facility EPC segment generated KRW28.4bn of the company's KRW44.9bn consolidated revenue, accounting for 63.4% of the total and driving overall performance.

The remainder comes from subsidiaries EN Water, which handles operation and maintenance of environmental facilities, and EN Water Solution and E-Clean Water, which handle liquid designated waste treatment and recycling.

Major clients include Samsung Electronics' Pyeongtaek campus, SK Hynix's Yongin semiconductor cluster, and DB HiTek, among other large domestic chipmakers. The company has accumulated a decade of UPW construction track record and secured a major reference contract with SK Siltron in 2022.

The global UPW equipment market has long been dominated by Japanese engineering firms, and Hansung Cleantech has been a key beneficiary of the Korean government's localization push since Japan's 2019 export controls. As a core subsidiary of parent EN Corporation, it is dedicated to the water treatment EPC business.

Earnings trend

Quarterly revenue · Operating profit

₩54.2B₩2.2B25Q2₩50.8B₩500M25Q3₩47.9B-₩1.7B25Q4₩44.9B-₩500M26Q1₩50.5B₩1.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩322.5B₩5.6B2022₩368.4B₩1.4B2023₩155.2B-₩50.7B2024₩199.9B₩2.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩54.2B	₩2.2B	4.1%
2025Q3	₩50.8B	₩500M	1.0%
2025Q4	₩47.9B	-₩1.7B	−3.6%
2026Q1	₩44.9B	-₩500M	−1.2%
2026Q2	₩50.5B	₩1.5B	3.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩322.5B	₩5.6B	-₩4.2B	1.7%	−3.7%	155.1%
2023	₩368.4B	₩1.4B	₩900M	0.4%	0.7%	112.0%
2024	₩155.2B	-₩50.7B	-₩78.3B	−32.7%	−128.9%	174.0%
2025	₩199.9B	₩2.8B	₩100M	1.4%	0.2%	148.0%

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

Earnings analysis

Consolidated revenue in 2025 was KRW199.9bn, up 28.8% from KRW155.2bn in 2024. In 2024, revenue had plunged 57.9% from KRW368.4bn in 2023 amid reduced semiconductor capex and project suspensions, resulting in a large operating loss of KRW50.7bn and a net loss attributable to owners of KRW78.3bn.

Operating profit turned positive in 2025 at KRW2.8bn, with the operating margin improving to 1.4%, though net income attributable to owners was a thin KRW0.1bn. On a quarterly basis, Q2 2025 was solid with revenue of KRW54.2bn, operating profit of KRW2.2bn, and net income attributable to owners of KRW1.9bn.

Performance then softened through Q3 2025 (revenue KRW50.8bn, operating profit KRW0.5bn, net loss KRW0.6bn) and Q4 2025 (revenue KRW47.9bn, operating loss KRW1.7bn, net loss KRW2.8bn).

Losses continued into Q1 2026 with revenue of KRW44.9bn and an operating loss of KRW0.5bn, before revenue recovered to KRW50.5bn in Q2 2026 alongside a return to operating profit of KRW1.5bn.

Even so, Q2 2026 still posted a net loss attributable to owners of KRW0.8bn, showing that operating profit improvement has not yet flowed through to the bottom line.

Over the trailing four quarters (Q3 2025-Q2 2026), the cumulative net loss attributable to owners was KRW5.1bn, indicating earnings volatility has persisted even after the full-year 2025 turnaround.

Industry analysis

Ultra-pure water (UPW) is an essential material for advanced processes such as wafer cleaning, and demand is being driven by chipmakers' capacity competition amid the spread of AI and high-bandwidth memory (HBM).

UPW production consumes more energy than ordinary water treatment, making energy-saving design technology a common industry challenge in recent years.

The global UPW equipment market has long been led by Japanese engineering firms, and since Japan's 2019 export controls, the Korean government has provided policy support for localizing the entire design, construction and operation process.

As of 2023, the domestic UPW market was estimated at about KRW1 trillion, while the overseas market exceeded KRW20 trillion.

Hansung Cleantech has been the lead agency for the government's UPW localization project since 2021 and is regarded as a domestic leader with construction experience across major projects for Samsung Electronics, SK Hynix and DB HiTek.

In April 2026, it was additionally selected for a next-generation national project targeting energy-efficient UPW plant design, reaffirming its technical competitiveness. The industry views the company's new order wins in the global UPW EPC market as a meaningful development for a domestic player.

Outlook

Hansung Cleantech has secured a string of Samsung Electronics Pyeongtaek campus projects in 2026, winning the P4 Phase 2 green-building wastewater treatment contract in January, the P5 Phase 1 green-building wastewater treatment contract in February, and the P4 Phase 2 UPW complex building contract in March.

In May, it added an expansion contract for the P5 Phase 1 project (about KRW14.1bn) and a UPW EPC contract at DB HiTek's Eumseong Sangwoo plant (about KRW15.5bn), together totaling roughly KRW30bn.

In June, it won an additional contract from Samsung E&A worth about KRW22.2bn for a UPW system installation at Pyeongtaek P5, further expanding the scope of the P5 project.

Regarding SK Hynix's Yongin semiconductor cluster Y1 Phase 1 wastewater treatment system, the company received a second purchase order worth KRW11.9bn in February and continues to execute the project.

The progress rate on last year's Samsung Electronics P4 Phase 4 UPW construction stood at 54.7% as of the end of Q1 2026.

Independent research house ValueFinder stated in a May 2026 report that this year marks the inaugural period in which Samsung Electronics' and SK Hynix's large-scale expansion cycles are converting into actual earnings, and that it expects a turnaround as revenue recognition accelerates in the second half.

The company has said it plans to respond to longer-term pipeline opportunities including Samsung Electronics' P6, a new co-prosperity foundry fab, and the Yongin mega cluster.

Valuation

PER

—

PBR

1.4×

ROE

-8.3%

EPS

-₩98

BPS

₩1,146

Dividend per share

₩0

Following the sharp erosion of equity from the large 2024 loss, the return to profit in 2025 has renewed attention on how the share price is valued relative to net assets.

Because the net loss attributable to owners has continued on a trailing four-quarter basis, the multiple the market assigns to book value may vary depending on whether the earnings recovery proves durable.

There has been no dividend payout in the most recent fiscal year, so the key variable for assessment is less about dividend appeal and more about whether earnings improve in line with the semiconductor capex cycle.

Historically, operating margins stayed in the low single digits even when revenue reached the KRW300bn range in 2022-2023, and after the large 2024 loss, 2025 saw only a modest return to profit, leaving the market to watch how durable this recovery proves to be.

Independent research house ValueFinder assessed in a May 2026 report that record backlog has raised medium-to-long-term growth visibility, but this reflects that research house's own view, and the actual pace of revenue recognition still needs to be confirmed through upcoming 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

Bull factors

Expanding Order Backlog

In 2026 the company secured a series of new orders from Samsung Electronics' Pyeongtaek campus, SK Hynix's Yongin cluster and DB HiTek.

Contracts followed in sequence: January's P4 wastewater treatment, February's P5 wastewater treatment and Y1 second order, March's P4 UPW complex building, May's P5 expansion and DB HiTek EPC, and June's P5 UPW installation.

Independent research house ValueFinder characterized this as a record backlog and pointed to potential turnaround as revenue recognition accelerates in the second half.

Signs of Return to Operating Profit

After suffering a large operating loss of KRW50.7bn and net loss of KRW78.3bn in 2024, the company returned to operating profit of KRW2.8bn in 2025. Operating profit recovered again to KRW1.5bn in Q2 2026, showing signs of quarterly improvement.

This can be read as a signal of recovery from the 2024 shock caused by project suspensions amid a downturn in the end-market.

Beneficiary of UPW Localization Policy

Having been selected as the lead agency for the government's UPW localization project in 2021, the company was additionally chosen in April 2026 for a next-generation energy-saving national research program.

UPW equipment has long been an area of Japanese dominance, so the localization policy offers domestic firms a structural opportunity. As capacity expansion competition tied to AI chips and HBM continues, the underlying demand base is also widening.

Bear factors

Lag Between Backlog and Revenue Recognition

Despite the assessment of a record backlog, Q1 2026 revenue of KRW44.9bn and Q2 2026 revenue of KRW50.5bn remained below Q2 2025's KRW54.2bn.

Because progress on new order projects remains at an early stage (for example, the P4 Phase 4 UPW project stood at 54.7% completion), the point at which orders convert into revenue is still pushed to the second half or later. If this lag extends longer than expected, the pace of earnings improvement could be delayed.

Persistent Earnings Volatility

Despite the full-year 2025 return to profit, the cumulative net loss attributable to owners over the trailing four quarters (Q3 2025-Q2 2026) reached KRW5.1bn.

Even in quarters where operating profit turned positive, net income remained negative repeatedly, indicating that the quality and durability of earnings still need further confirmation. The large 2024 loss illustrates how much earnings can swing depending on project timing.

Customer Concentration

A significant portion of revenue depends on capex projects from a small number of large chipmakers, namely Samsung Electronics, SK Hynix and DB HiTek. The sharp earnings decline in 2024 was directly linked to reduced investment and project suspensions by these chipmakers. Going forward, changes in customers' investment pace or project schedules can directly affect results.

Risk factors

Financial Structure

The debt ratio was 148% at the end of 2025, down from 174% in 2024 but still above the 112% seen in 2023. Equity attributable to owners, which was eroded by the large 2024 loss, has not fully recovered even in 2025. With leverage already elevated, any additional losses could leave limited capital buffer.

Project Execution Risk

Profitability on large EPC projects can shift depending on contract amendments, schedule extensions and cost inflation. The Samsung P5 project, for instance, has seen multiple expansion and amendment contracts following the initial award. If such changes recur, managing project-level margins may become more difficult.

Industry and Policy Dependence

The company's growth narrative assumes continued large-scale capex from chipmakers and continued government support for UPW localization. If a semiconductor downturn or a shift in policy priorities occurs, a repeat of the order and revenue gap seen in 2024 cannot be ruled out. This represents an external variable largely outside the company's control.

What to watch next

Mid-November 2026 (expected Q3 earnings release)
Check whether revenue recognition from new orders accelerates and whether net income attributable to owners returns to sustained profitability.
Q4 2026
Watch for additional order disclosures related to Samsung Electronics' P6 investment and the Yongin mega cluster.
Second half of 2026 through 2027
Track the completion timing and revenue recognition schedule of major projects such as the P4 Phase 4 UPW construction, which was 54.7% complete as of the end of Q1 2026.
On an ongoing basis from the second half of 2026
Monitor for additional single-sale-and-supply contract (order) disclosures from Samsung E&A, DB HiTek, SK Hynix and other clients.

Overall view

Hansung Cleantech turned from a large 2024 loss to a 2025 profit, and in 2026 it has substantially expanded its order backlog through new contracts from Samsung Electronics, SK Hynix and DB HiTek.

However, recent quarterly revenue has actually stayed below the year-earlier level, and the trailing four-quarter net loss attributable to owners has persisted, leaving the timing of an actual conversion from orders into revenue and profit still to be confirmed.

Structural tailwinds from UPW localization policy and rising capex among major chipmakers are notable growth opportunities, but the sharp 2024 earnings deterioration also illustrates the volatility risk tied to project timing and customer concentration.

Financial leverage has improved from 2024 but has not yet returned to prior lower levels. With no dividend track record, the key variable for assessment is whether revenue recognition accelerates from the second half onward and whether net income sustains a return to profitability.

Upcoming quarterly results and further order disclosures will offer clues to the actual pace of this transition.

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.