KOSDAQOthers067900

Y-entecco

₩5,940▼ 0.17%2026-10-02 close

Market Cap

₩108.3B

Turnover

₩100M

Volume

20,000 shares

Shares out.

18.2M

PER

3.6×

PBR

0.3×

EPS

₩1,654

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close

Report overview

Waste-Shipping Conglomerate Restarts Incinerator Expansion

Y-Entec is a diversified company built on waste treatment and tanker shipping, and it recently disclosed a new incinerator investment in early 2026 after years of limited capacity expansion.

1
The company runs four business lines—environmental services, shipping, golf course operation, and ready-mixed concrete—with shipping and environmental services forming the core of revenue and profit.
2
In January 2026, the company disclosed a new incinerator investment worth about KRW 39.1 billion, equal to 12.9% of equity.
3
The operating margin declined from 27.1% in 2022 to 22.3% in 2025, and annual revenue fell from 2022 through 2024 before a modest rebound in 2025.
4
In the first quarter of 2026, revenue grew on a favorable tanker market while operating profit declined, and the environmental segment's margin stayed limited due to cost pressure.
5
The debt ratio has remained stable in the low-to-mid 40% range.

Business structure

Y-Entec operates four main businesses: environmental services, shipping, golf course operation, and ready-mixed concrete.

In environmental services, the company handles the full chain of industrial waste treatment from collection and transport to intermediate incineration and final landfill disposal, and it generates additional revenue by selling steam produced during the incineration process.

Its facilities are located near the Yeosu industrial complex in South Jeolla Province, where it maintains annual contracts with numerous petrochemical and refining customers for a steady stream of waste to process.

In shipping, the company operates its own chemical tankers together with vessels owned by its subsidiary BS Shipping, transporting a range of chemical products across Asia. The golf course segment operates the 18-hole public Boseong Country Club, built in 2008.

The ready-mixed concrete segment is geographically constrained by transport-time limits on the product and is directly exposed to local construction activity.

The waste treatment industry has high entry barriers due to strict permitting requirements and the heavy capital needed to build incineration and landfill facilities, and it tends to be structured as regional oligopolies dominated by a few operators.

In pricing terms, the company's landfill and incineration rates have reportedly sat close to or between those of industry peers such as Coentec and Insun ENT.

Earnings trend

Quarterly revenue · Operating profit

₩30.1B₩9.2B25Q2₩29.2B₩6.4B25Q3₩30.6B₩6B25Q4₩28.9B₩4.2B26Q1₩34.1B₩6.4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩123.8B₩33.5B2022₩121.4B₩32.1B2023₩113.8B₩30.3B2024₩117B₩26.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩30.1B	₩9.2B	30.6%
2025Q3	₩29.2B	₩6.4B	21.9%
2025Q4	₩30.6B	₩6B	19.7%
2026Q1	₩28.9B	₩4.2B	14.6%
2026Q2	₩34.1B	₩6.4B	18.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩123.8B	₩33.5B	₩24.6B	27.1%	12.3%	40.7%
2023	₩121.4B	₩32.1B	₩24.1B	26.5%	9.6%	45.0%
2024	₩113.8B	₩30.3B	₩31.3B	26.6%	10.3%	45.2%
2025	₩117B	₩26.1B	₩30.4B	22.3%	8.8%	44.3%

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

Looking at annual results, revenue fell for three straight years from KRW 123.8 billion in 2022 to KRW 121.4 billion in 2023 and KRW 113.8 billion in 2024, before rebounding modestly to KRW 117.0 billion in 2025.

Operating profit contracted even faster, from KRW 33.5 billion in 2022 to KRW 32.1 billion in 2023, KRW 30.3 billion in 2024, and KRW 26.1 billion in 2025, pushing the operating margin down from 27.1% to 22.3% over the period.

By contrast, net income attributable to owners actually rose from around KRW 24.6–24.1 billion in 2022–2023 to KRW 31.3 billion in 2024 and KRW 30.4 billion in 2025, moving in the opposite direction to operating profit for stretches of this period—a pattern suggesting non-operating items played a meaningful role in shaping the bottom line.

This dynamic is visible at the quarterly level as well: in the fourth quarter of 2025, revenue was KRW 30.6 billion and operating profit only KRW 6.0 billion, yet net income attributable to owners reached KRW 14.3 billion, more than double operating profit.

In the first quarter of 2026, revenue was KRW 28.9 billion, operating profit KRW 4.2 billion, and net income KRW 4.4 billion, with operating profit continuing to decline year over year; according to WiseReport, consolidated revenue rose 6.9% year over year in this period while operating profit fell 4.9% and net income rose 22.3%.

The second quarter of 2026 showed revenue of KRW 34.1 billion, the highest in the recent quarterly window, with operating profit recovering to KRW 6.4 billion.

Over the trailing four quarters from the third quarter of 2025 through the second quarter of 2026, cumulative revenue totaled roughly KRW 122.6 billion and net income attributable to owners roughly KRW 29.9 billion.

Industry analysis

Korea's industrial waste treatment sector has high barriers to new entry given the government permitting and large-scale facility investment required, resulting in regional markets typically dominated by a handful of operators.

Y-Entec is seen as well positioned within its regional competitive landscape because it holds both incineration and landfill capabilities centered on the Yeosu industrial complex, allowing integrated processing.

That said, landfill and incineration processing rates have fluctuated with waste generation volumes, remaining landfill capacity, and recycling-expansion policies, and pricing dynamics versus industry peers such as Coentec and Insun ENT remain relevant.

The shipping segment is tied to the intra-Asia chemical tanker market, and recent conditions have reportedly been supported by higher cargo volumes tied to lower oil prices and increased demand for storage vessels.

The golf course and ready-mixed concrete businesses are exposed to distinct cycles—domestic golf demand and local construction activity, respectively—so the overall portfolio combines the defensive benefits of diversification with exposure to several unrelated end-market cycles simultaneously.

Outlook

In January 2026, the company disclosed a decision to invest in a new incinerator to boost revenue and secure growth momentum, with the investment amount set at about KRW 39.12 billion, equal to 12.9% of equity, and an investment period running from March 1, 2026 to April 30, 2028.

This marks a departure from a multi-year lull in expansion investment that had persisted since the seventh landfill expansion was approved in 2019.

According to reports, the forward schedule involves securing regulatory approval before starting construction, with waste-treatment business permit changes and integrated-law permit changes cited as the relevant procedures.

Amid an industry shift from landfill-centered to incineration- and resource-recovery-centered waste management, expanding the higher-priced incineration business is being read as an upgrade to the company's earnings structure.

In shipping, previously announced plans indicated the company intended to expand its tanker fleet in stages through 2026, and how the shipping business navigates market conditions remains a separate point of interest alongside the incinerator investment.

However, a prior incinerator expansion application was rejected once in 2021, so the new investment will still need to clear the permitting process before it can translate into actual operation.

Valuation

PER

3.6×

PBR

0.3×

ROE

8.8%

EPS

₩1,654

BPS

₩20,532

Dividend per share

—

The current share price trades below the level implied by the company's book value per share, which can be read as a discount relative to net assets.

Past brokerage reports have described the stock trading at price-to-earnings multiples in roughly the mid-single to low-double-digit range based on estimated earnings, and one report published in 2023 cited a lower multiple than the weighted average of domestic waste-treatment and shipping peers at the time.

On the earnings side, the fact that operating profit has trended down gradually over several years while net income improved in some periods due to non-operating factors complicates straightforward valuation interpretation.

Confirmed dividend figures are not available for this report and are therefore not discussed, while the debt ratio's stability in the low-to-mid 40% range is a relevant reference point for financial soundness.

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

Expansion Investment Restarts After Years of Pause

The January 2026 disclosure of a roughly KRW 39.1 billion incinerator investment marks the resumption of expansion spending that had been paused since the 2019 landfill expansion.

This is being interpreted as an attempt to upgrade the business mix from landfill-centered toward incineration-centered operations, which carries room for margin improvement given that incineration rates run higher than landfill rates.

Because the company had maintained a conservative investment stance for years, the decision itself is being read as a signal of strategic change.

Regulation-Based Barriers and Regional Oligopoly Structure

The waste-treatment business is difficult to enter given strict permitting requirements and the large capital needed for incineration and landfill facilities.

Y-Entec benefits from a regional oligopoly structure with few competitors, supported by its integrated incineration-and-landfill capability centered on the Yeosu industrial complex. Its structure of annual contracts with numerous petrochemical and refining customers also contributes to revenue stability.

Revenue Contribution From a Favorable Shipping Market

As of the first quarter of 2026, the shipping segment reportedly benefited from a favorable tanker market driven by higher cargo volumes tied to lower oil prices and increased demand for storage vessels.

This has been identified as a factor driving consolidated revenue growth, illustrating that shipping functions as a separate growth pillar alongside the environmental business. The diversified portfolio structure carries the potential for one segment's softness to be offset by another.

Bear factors

Multi-Year Decline in Operating Margin

The operating margin declined for four consecutive years, from 27.1% in 2022 to 22.3% in 2025. Even in the first quarter of 2026, revenue rose but operating profit fell year over year, with cost burdens in the environmental segment cited as a constraint on profitability.

If revenue recovery continues without a corresponding improvement in operating profit, questions about the quality of earnings could persist.

Uncertainty Around Expansion Permitting

This incinerator expansion follows a prior instance in 2021 in which a similar application was rejected, so there is no guarantee that the new investment disclosure will translate directly into operation.

Based on the reported schedule, a substantial amount of time appears necessary before permit approval and construction can begin. Any delay or renewed rejection in permitting could push back both the investment timeline and its eventual revenue contribution.

Earnings Volatility From a Heterogeneous Business Mix

Because the company also runs shipping, golf course, and ready-mixed concrete businesses unrelated to waste treatment, several distinct industry cycles influence results at the same time.

There have been periods where operating profit and net income moved in opposite directions, suggesting a significant contribution from non-operating factors. In this kind of structure, investors should be mindful that a given quarter's net income surprise or shortfall may not repeat.

Risk factors

Regulatory and Permitting Risk

The waste-treatment business is heavily dependent on government permitting, and the current incinerator expansion also must pass related permit-change procedures. A similar expansion application was rejected in the past, so permitting delays or altered conditions could affect the investment plan.

While tighter environmental regulation can be positive for processing rates over the long run, it can also act as a constraint during the process of securing new facilities.

Shipping Market Volatility

The shipping segment, operated through subsidiary BS Shipping, is exposed to the intra-Asia chemical tanker market, with results influenced by oil prices and cargo volumes. Recently, lower oil prices and increased demand for storage vessels have been positive factors, but these market conditions could also reverse. The cyclicality of tanker freight rates lowers predictability relative to the environmental business.

Earnings Volatility From One-Off Items

In some quarters, net income expanded much more than operating profit, a pattern presumed to reflect non-operating gains. If such one-off factors do not recur every quarter, future net income could come in below recent levels. Investors need to distinguish periods where operating profit and net income diverge when interpreting results.

What to watch next

Around November 2026
At the third-quarter 2026 earnings release, it will be worth checking the trend in environmental-segment margins and whether favorable shipping market conditions persist.
First half of 2027 through September 2027
According to the reported schedule, approval of the waste-treatment business permit change and integrated-law permit change needed for the incinerator expansion is expected to be confirmed around this time.
Around October 2027
If the permit is approved, it will be important to check whether construction on the planned incinerator expansion begins and monitor its progress.
At each quarterly earnings release
It is worth checking each quarter whether trends in global oil prices and intra-Asia tanker freight rates continue to positively contribute to shipping segment revenue and profit.

Overall view

Y-Entec combines integrated waste-treatment capability centered on the Yeosu industrial complex with chemical tanker shipping, alongside golf course and ready-mixed concrete operations.

Annual revenue declined from 2022 through 2024 before rebounding modestly in 2025, while the operating margin fell steadily over the same period even as net income improved in some periods due to non-operating factors, warranting closer attention to earnings quality.

The roughly KRW 39.1 billion incinerator investment disclosed in January 2026 marks a resumption of expansion activity after years of pause, but given a prior rejection of a similar application, permitting approval remains a variable that must be cleared before it can lead to actual operation.

The shipping segment has recently driven revenue growth on the back of lower oil prices and increased demand for storage vessels, though its market-dependent nature means this direction could also reverse.

On valuation, the share price trades below book value per share, and the debt ratio has remained stable in the low-to-mid 40% range.

Going forward, the key items to watch will be the trend in environmental-segment margins in third-quarter results, progress on the incinerator expansion permit, and whether favorable shipping market conditions persist.

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.