Daechang Solution

Daechang Solution manufactures metal components based on special steel casting technology, organized into five business divisions.

The energy conversion equipment division produces large engine parts and large generator parts, while the transport and industrial equipment materials division supplies industrial structural materials, bow and stern parts, and special steel ingots.

The resource extraction equipment division handles mining machinery parts and ore-processing plant parts, and the life-safety structural materials division produces special steel for high-risk materials and radioactive waste containers (RWC).

The cryogenic industry division manufactures cryogenic valves, tanks, and pipes, with liquid hydrogen storage and transport technology through subsidiary Cryos at its core.

In marine engine parts, the company has long-term supply relationships in Main Bearing Support (MBS) components with clients including Hanwha Engine, STX, and Japan's Hitachi.

In the nuclear sector, the company supplies the world's first cast-steel-type RWC to clients such as Canada's Bruce Power and Ontario Power Generation, and holds nuclear supplier certification with Doosan Enerbility.

In offshore wind, the company is reportedly the sole commercialized supplier of certain bolting materials globally.

Subsidiary Cryos was the first in Korea to localize liquid hydrogen transport tank technology and has expanded its customer base by winning orders for liquid hydrogen storage tanks used in Samsung Electronics and SK Hynix semiconductor production lines.

Consolidated revenue in 2025 was KRW 59.88 billion, a slight decline from KRW 61.40 billion in 2024, and operating profit swung to a loss of KRW 0.14 billion from a profit of KRW 0.44 billion in 2024.

Net income attributable to owners also widened to a loss of KRW 7.78 billion, compared with a loss of KRW 2.71 billion in 2024.

This marks a clear deterioration from 2023, when the company posted revenue of KRW 71.72 billion, operating profit of KRW 5.60 billion (an operating margin of 7.8%), and owners' net profit of KRW 2.80 billion.

On a quarterly basis, an operating loss of KRW 0.32 billion in Q2 2025 was followed by a rebound to operating profit of KRW 1.17 billion (net profit of KRW 0.64 billion) in Q3, before operating profit slipped back to just KRW 0.17 billion in Q4, with owners' net profit returning to a loss of KRW 0.76 billion.

Q1 2026 showed a clear turnaround with revenue of KRW 21.25 billion, operating profit of KRW 1.48 billion, and owners' net profit of KRW 1.04 billion, but Q2 revenue fell to KRW 18.89 billion with operating profit reversing to a loss of KRW 0.14 billion and owners' net profit falling to a loss of KRW 1.14 billion.

The sum of owners' net profit over the trailing four quarters (Q3 2025 through Q2 2026) was a loss of about KRW 0.22 billion, indicating that despite sharp quarter-to-quarter swings, the cumulative result remains in modestly negative territory.

This pattern suggests that beyond top-line volatility, the timing of project revenue recognition and shifts in cost ratios have a meaningful, one-off-like impact on quarterly results.

The specialty steel casting components industry that Daechang Solution operates in is simultaneously exposed to cycles across multiple downstream sectors including shipbuilding, power generation, nuclear, and offshore plants.

Recently, expanding global shipbuilding orders have increased demand for large marine engine components, while tightening environmental regulations are driving growth in LNG-propelled vessel orders and the spread of alternative-fuel engines.

In the nuclear sector, roughly 440 reactors worldwide are expected to reach the end of their service lives over the next 20 to 30 years, and US consulting firm Bates White has estimated the global nuclear decommissioning market could reach KRW 327 trillion by 2050.

Domestically, the decision to decommission Kori Unit 1 has raised expectations for demand for nuclear waste storage containers. The liquid hydrogen and cryogenic industry remains at an early stage but is seeing new demand sources expand, including liquid hydrogen storage tanks for semiconductor production lines.

In terms of competitive positioning, the company is reported to hold the world's first cast-steel-type technology in radioactive waste containers (RWC), placing it to seek first-mover opportunities in a market that still lacks a clear global leader.

However, the specialty steel materials industry is structurally sensitive to raw material and currency fluctuations, and as an order-based industry, results can swing significantly by quarter depending on project delivery timing.

The company has externally emphasized earnings improvement through expanded orders in high-value-added areas such as nuclear, shipbuilding, and marine.

The contract with Canada's Ontario Power Generation (OPG) covers two of a total of four units, leaving room for additional orders on the remaining two units, and the company has stated that existing Canadian order backlog will be reflected in results progressively.

The company has also described ongoing inquiries from Asian nuclear operators regarding RWC, though whether these translate into actual contracts remains to be confirmed.

Following Doosan Enerbility's participation in winning the Czech Dukovany nuclear project, there is also discussion of potential expansion in orders for cast-steel nuclear turbine products.

The nearest concrete event is the planned KOSDAQ listing of subsidiary Cryos, with a listing-approval agenda to be voted on at an extraordinary shareholders' meeting on September 7; the company has stated it is targeting an offering size of at least KRW 20 billion.

Cryos plans to use IPO proceeds to build a new dedicated liquid hydrogen production facility, and the company has said a successful listing would ease the parent's financial support and guarantee burden.

However, Cryos posted a standalone 2025 loss with revenue of KRW 16.5 billion, an operating loss of KRW 1.0 billion, and a net loss of KRW 2.7 billion, and its debt ratio reached 590% at the end of Q1 2026, leaving balance-sheet improvement as a task ahead of listing.