PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
DMS has secured a string of large equipment orders from Chinese panel makers since mid-2026 to drive a second-half rebound, but its most recent quarterly operating results remain in the red.
Since June 2026, DMS signed large contracts with CSOT (KRW 67.7bn) and HKC (KRW 41.2bn) among Chinese panel makers, with combined orders exceeding KRW 100bn.
Owner net profit surged to roughly KRW 200.3bn in Q3 2025, while operating profit that quarter was only about KRW 10.4bn, suggesting a large non-operating, likely one-off, contribution.
Delisting concerns triggered by an audit disclaimer in March 2025 were resolved with an unqualified opinion in January 2026, yet three of the last five quarters still posted operating losses.
The annual operating margin fell from the 17-18% range in 2022-2024 to 2.7% in 2025, leaving core profitability recovery as the key watch point.
Beauty device affiliate Viol, in which DMS held a 34.8% stake, was sold to a private equity buyer and delisted in 2025, simplifying the consolidated business structure going forward.
Founded in 1999 and listed on KOSDAQ in 2004, DMS specializes in wet-process equipment for display and semiconductor manufacturing. The business is organized into a manufacturing segment covering display, semiconductor, and solar-cell equipment, and a separate segment covering wind-power and other energy operations.
Its core products are the four major wet-process tools used in flat panel manufacturing: cleaners, developers, etchers, and strippers, and the company has held the global No.1 share in wet cleaning equipment since developing its High-Density Cleaner (HDC) in 2001.
Major customers include LG Display, Samsung Electronics, China's Tianma, BOE-OT, and TEL, with the top five customers accounting for roughly 75% of total revenue, indicating meaningful customer concentration.
Recently the company has been winning new orders as Chinese panel makers such as CSOT, HKC, BOE, and Visionox expand investment in Generation 8.6 OLED and LCD lines.
Building on its wet-process expertise, DMS has already supplied cleaning equipment for OLEDoS processes to overseas customers and has stated plans to expand into cleaning equipment for semiconductor glass-substrate processes.
The company previously held a 34.8% stake in beauty-device affiliate Viol (KOSDAQ 335890), whose equity value was once highlighted as a hidden asset, but sold its controlling stake to private equity firm VIG Partners in 2025; Viol was subsequently delisted in December 2025 and is no longer part of the consolidated group. The energy segment operates wind farms and pursues wind-turbine manufacturing through special-purpose vehicles.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩7B | -₩17.1B | −244.6% |
| 2025Q3 | ₩61.6B | ₩10.4B | 16.9% |
| 2025Q4 | ₩41.1B | -₩1.5B | −3.7% |
| 2026Q1 | ₩13.8B | -₩8.6B | −62.3% |
| 2026Q2 | ₩28.8B | -₩5.6B | −19.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩317B | ₩53.5B | ₩25.7B | 16.9% | 8.5% | 29.1% |
| 2023 | ₩164.5B | ₩28.9B | ₩16.4B | 17.6% | 5.2% | 32.3% |
| 2024 | ₩167.8B | ₩30.6B | ₩15.2B | 18.3% | 5.0% | 45.2% |
| 2025 | ₩155.5B | ₩4.2B | ₩131.4B | 2.7% | 30.3% | 32.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Annual revenue nearly halved from KRW 317.0bn in 2022 to KRW 164.5bn in 2023, then drifted lower to KRW 167.8bn in 2024 and KRW 155.5bn in 2025. The operating margin held at a solid 16.9-18.3% range from 2022 to 2024 but collapsed to 2.7% in 2025, indicating significant deterioration in core profitability.
Owner net profit was stable at KRW 25.7bn in 2022, KRW 16.4bn in 2023, and KRW 15.2bn in 2024, but jumped to KRW 131.4bn in 2025 — a figure far larger than that year's operating profit of just KRW 4.2bn, suggesting most of it stemmed from a non-operating, likely one-time item.
On a quarterly basis, after a weak Q2 2025 (revenue KRW 7.0bn, operating loss KRW 17.1bn, net loss KRW 10.0bn), Q3 2025 swung to an operating profit of KRW 10.4bn on revenue of KRW 61.6bn, yet net profit reached KRW 200.3bn, far exceeding operating performance.
That quarter coincides with the scheduled change-of-control date for the Viol stake sale (September 17, 2025), suggesting a disposal gain or similar one-off item may have been recorded.
The company then swung back to losses in Q4 2025 (revenue KRW 41.1bn, operating loss KRW 1.5bn, net loss KRW 65.5bn), followed by Q1 2026 (revenue KRW 13.8bn, operating loss KRW 8.6bn, net profit KRW 3.1bn) and Q2 2026 (revenue KRW 28.8bn, operating loss KRW 5.6bn, net loss KRW 2.4bn) — three of the last five quarters posted operating losses.
Operating cash flow in 2025 was KRW 36.0bn, well below the KRW 131.4bn in owner net profit, supporting the view that a large share of net income was non-cash and one-off in nature.
The debt ratio rose from 29.1% in 2022 to 45.2% in 2024 before easing back to 32.5% in 2025, keeping the balance sheet within a broadly stable range.
The display equipment industry has been navigating a structural transition from a shrinking LCD market toward OLED, a period during which reduced capital spending and order flow weighed broadly on equipment makers' results.
Still, growing demand for foldable OLED, IT-use OLED, and automotive displays is seen supporting a medium-term recovery in capital investment.
Chinese panel makers in particular are expanding Generation 8.6 OLED investment: BOE is building its roughly KRW 11 trillion 'B16' line in Chengdu, Visionox its roughly KRW 11 trillion 'V5' line in Hefei, and China Star (CSOT) its roughly KRW 6 trillion 'T8' line in Guangzhou.
In Korea, Samsung Display is investing a total of KRW 4.1 trillion in its Generation 8.6 IT OLED line (A6) at its Asan campus, targeting full-scale mass production from 2026 to meet growing OLED demand in notebooks and tablets.
LG Display, by contrast, has yet to formally commit to Generation 8.6 investment and is instead focusing on upgrading its existing Generation 6 lines, reflecting divergent strategies across panel makers.
In the wet-cleaning equipment segment, DMS maintains a global No.1 position based on its High-Density Cleaner technology, while competitors such as Wonik IPS, Nara Nanotech, and Canon Tokki are pursuing similar diversification into semiconductor and packaging equipment.
In June 2026, the company signed successive equipment supply contracts worth KRW 67.7bn with China's CSOT and KRW 41.2bn with HKC, taking combined new orders above KRW 100bn.
The CSOT contract runs from June 26, 2026 to March 4, 2027, with no upfront deposit and payment structured as 60% interim and 40% final installments, meaning revenue recognition will likely be spread across the contract period.
The HKC equipment is slated for delivery to the Generation 6 LCD 'H7' line under construction in Mianyang, Sichuan Province, China. A company representative said rising order flow from Chinese display makers has raised expectations for a second-half earnings turnaround.
The company has also stated it intends to accelerate mid- to long-term growth by expanding from its wet-process equipment strengths into semiconductor glass-substrate equipment and OLEDoS equipment.
However, the timing for these large orders to translate into recognized revenue and profit will likely be staggered from the second half of 2026 into early 2027 depending on contract progress, so the pace and magnitude of any near-term earnings improvement will need to be confirmed through future disclosures.
Net profit over the trailing four quarters includes a substantial one-off gain recognized in Q3 2025, so valuation ratios derived directly from that figure warrant careful interpretation. The share price trades below book value per share, placing it in a discount range relative to net assets.
The price-to-earnings ratio appears low compared with the trading bands seen during the company's earlier downturn, but this largely reflects non-operating rather than core operating results.
Dividend capacity has expanded alongside the recent jump in net profit, though whether this is backed by sustainable operating cash generation remains to be confirmed through future results. Market capitalization remains in small-cap territory, which warrants attention to trading liquidity and price volatility.
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 2026-08-21
Since June 2026, DMS has signed large contracts with China's CSOT (KRW 67.7bn) and HKC (KRW 41.2bn), pushing combined new orders above KRW 100bn. This reflects the company's global No.1 position in wet cleaning equipment and its track record supplying Chinese customers.
Continued investment in new Generation 8.6 OLED and Generation 6 LCD lines could open further order opportunities.
Leveraging its established wet-process technology, DMS has already supplied cleaning equipment for OLEDoS processes to overseas customers.
The company has also outlined plans to expand into cleaning equipment for semiconductor glass-substrate processes, seeking new growth avenues beyond a maturing display equipment market.
The debt ratio stood at a manageable 32.5% in 2025. Delisting concerns triggered by the March 2025 audit disclaimer were resolved with an unqualified opinion in January 2026, substantially reducing accounting-related uncertainty. Shares trade below book value per share.
Three of the last five quarters (Q2 2025, Q4 2025, and Q1 2026) posted operating losses. The 2025 annual operating margin fell to 2.7%, a sharp retreat from the 17-18% range seen in 2022-2024. It will take time for recent large orders to translate into an actual profit recovery.
The KRW 131.4bn in owner net profit for 2025 diverges sharply from that year's operating profit of just KRW 4.2bn, suggesting most of it stemmed from non-operating, one-off items. 2025 operating cash flow of KRW 36.0bn also fell well short of net profit, raising questions about the sustainability of reported earnings.
The top five customers account for roughly 75% of total revenue, indicating heavy reliance on a small number of large clients. Revenue swings sharply from quarter to quarter depending on the investment and order timing of Chinese panel makers, limiting earnings predictability.
DMS received an audit disclaimer on its 2024 financial statements in March 2025, triggering a formal delisting cause and a trading halt. While an unqualified opinion in January 2026 resolved that delisting cause, the change in audit opinion separately triggered a KRX eligibility review requirement. The possibility of similar accounting issues recurring in the future cannot be ruled out.
A significant share of revenue is concentrated among Chinese panel makers and a handful of large customers. Changes in trade policy or delays and cutbacks in Chinese panel makers' investment plans could directly affect order flow and revenue.
Amid the structural shift from declining LCD investment to a maturing OLED market, results remain highly dependent on whether the new Generation 8.6 investment cycle continues. The semiconductor-adjacent new business is still at an early stage, with uncertain timing and scale for revenue contribution.
Q3 2026 (July-September) results are due around this time, offering a chance to check whether CSOT and HKC order volumes are being reflected in revenue and how operating profit trends.
This marks the end of the execution period (March 4, 2027) for the KRW 67.7bn CSOT contract, a point to check whether the contract has been completed and the final payment recognized.
Follow-up disclosures on the delivery and inspection schedule of HKC-bound LCD equipment for the 'H7' line in Mianyang, Sichuan should be monitored.
The FY2026 audit report is due around this time; given the prior disclaimer history, whether the unqualified opinion is maintained should be verified.
Watch for new customer wins in the OLEDoS and glass-substrate cleaning equipment segments and the point at which this new business begins contributing to revenue.
Since mid-2026, DMS has secured a string of large orders from Chinese panel makers, laying the groundwork for a potential second-half rebound.
However, three of the last five quarters posted operating losses, and the 2025 annual operating margin fell sharply from prior years, leaving the recovery of core profitability still in progress.
The large net profit reported in 2025 diverges sharply from operating profit, suggesting it was driven substantially by a one-off item that should not be treated as a baseline for future earnings.
Accounting-related uncertainty was resolved with an unqualified audit opinion in January 2026, but the history of a subsequent KRX eligibility review remains a factor for investors to monitor.
New orders and expansion into semiconductor-adjacent equipment could serve as medium- to long-term growth drivers, but the actual timing and scale of their contribution to revenue and profit will need to be confirmed through successive disclosures.
Overall, the company sits at a juncture where signs of order-momentum recovery coexist with signals that core profitability has not yet fully normalized.
Report written 2026-09-05 · Data as of 2026-09-04
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