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
SDN, which runs solar downstream operations and Honda outboard motor distribution as its two pillars, returned to operating profit in 2025 but remains net-loss-making, and faces a 10-to-1 share consolidation.
Dual business structure of solar module/EPC/O&M and Honda outboard motor distribution (No.1 domestic small vessel engine share)
2025 consolidated operating profit of KRW 0.46 billion marked a return to profit after two years of losses, though net income remained negative
Quarterly results show high volatility, with a large Q4 2025 loss followed by renewed operating profits in Q1-Q2 2026
A 10-to-1 share consolidation is set for new share listing on September 18, 2026, changing par value from KRW 500 to KRW 5,000
Small-cap risk linked to tightening KOSDAQ market-cap delisting thresholds, rising to KRW 30 billion in January 2027
SDN was founded in 1994 as Seoul Marine, starting with small vessel outboard motors, before entering the solar business in 2004 through the establishment of the Korea New and Renewable Energy Research Institute; it listed on KOSDAQ in 2009 and changed its name to the current one in 2010.
The company operates through two segments: solar and marine engine (shipbuilding-related).
The solar segment provides an integrated solution spanning solar module manufacturing and development, EPC (engineering, procurement, construction), and power plant maintenance, covering both the downstream area of building and operating plants using purchased cells and modules, and midstream manufacturing of modules and inverters.
It produces various carbon-grade modules under its own brand and collaborates with overseas manufacturers on premium products such as high-efficiency back-contact modules, while also undertaking ODA solar power projects linked with government agencies such as KOICA.
The engine and marine segment has held the No.1 domestic market share in small vessel engines for three consecutive years since signing a domestic distribution agreement with Honda in 1994.
It supplies four-stroke, fuel-efficient outboard motors along with genuine parts and marine accessories to fishing, leisure sports, and government vessel customers, with fishing-use outboard motors typically seeing replacement demand on roughly a five-year cycle.
These two businesses have contrasting characteristics, forming a structure where the policy- and price-sensitive solar cycle is complemented by the relatively stable, replacement-driven cash flow of the marine engine business.
SDN is the only listed entity within its group, which operates through several domestic and overseas affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩24.5B | ₩1.4B | 5.9% |
| 2025Q3 | ₩26.1B | ₩1.8B | 6.7% |
| 2025Q4 | ₩22B | -₩1.5B | −7.0% |
| 2026Q1 | ₩17.2B | ₩200M | 1.1% |
| 2026Q2 | ₩30B | ₩200M | 0.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩104.5B | ₩300M | ₩800M | 0.3% | 0.7% | 73.9% |
| 2023 | ₩75.7B | -₩7.6B | -₩8.7B | −10.1% | −9.3% | 100.0% |
| 2024 | ₩84.4B | -₩6.5B | -₩27.6B | −7.7% | −43.5% | 149.2% |
| 2025 | ₩87.5B | ₩500M | -₩1.7B | 0.5% | −2.2% | 103.6% |
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
SDN's annual revenue fell sharply from KRW 104.47 billion in 2022 to KRW 75.69 billion in 2023, then recovered for two straight years to KRW 84.36 billion in 2024 and KRW 87.45 billion in 2025.
On profitability, operating profit moved from KRW 0.28 billion (0.3% margin) in 2022 to losses of KRW -7.65 billion (-10.1%) in 2023 and KRW -6.50 billion (-7.7%) in 2024, before returning to profit at KRW 0.46 billion (0.5%) in 2025.
Net income attributable to owners swung from a KRW 0.76 billion profit in 2022 to losses of KRW -8.69 billion in 2023 and a sharply widened KRW -27.58 billion in 2024, before narrowing to KRW -1.70 billion in 2025.
Quarterly trends show high volatility: after Q2 2025 revenue of KRW 24.45 billion, operating profit of KRW 1.45 billion, and an owners' net loss of KRW -0.67 billion, Q3 2025 revenue rose to KRW 26.12 billion with operating profit of KRW 1.76 billion, while owners' net profit jumped to KRW 3.62 billion, likely reflecting non-operating items whose specific details are not confirmed.
In Q4, revenue fell to KRW 22.02 billion while operating profit swung to KRW -1.53 billion and the owners' net loss widened to KRW -4.20 billion, a large loss that weighed on full-year results.
In Q1 2026, revenue seasonally declined to KRW 17.22 billion, yet operating profit stayed slightly positive at KRW 0.18 billion even as net income posted a loss of KRW -0.91 billion; in Q2, revenue jumped to KRW 30.03 billion with operating profit of KRW 0.15 billion and owners' net profit returning to positive at KRW 0.80 billion.
Operating cash flow was negative at KRW -9.27 billion and KRW -6.95 billion in 2022 and 2023, respectively, before turning positive for two consecutive years at KRW 7.08 billion in 2024 and KRW 4.52 billion in 2025, indicating improved cash generation. The debt ratio rose from 73.9% in 2022 to 149.2% in 2024 before easing to 103.6% in 2025.
The global solar industry continues to face oversupply, keeping module and polysilicon prices structurally low, while cell technology is rapidly shifting from P-type to N-type/TOPCon.
Based on renewable energy market research, the South Korean solar market is estimated at approximately 35.67 GW in 2026, with an average annual growth rate of about 9.35% projected through 2031, supported by the 11th Basic Plan for Electricity Supply and Demand.
However, on a new installation basis, the domestic market in 2026 is expected to remain around 4 GW, similar to 2025, indicating slowing volume expansion, while qualitative restructuring combining power purchase agreements (PPA) and energy storage systems (ESS) is emerging as the key industry variable.
Facing intensified competition from low-cost Chinese products, domestic manufacturers are focusing on next-generation technologies such as high-efficiency tandem cells to maintain export competitiveness, and compared to larger rivals such as Hanwha Qcells and OCI Holdings, SDN occupies a relatively smaller position centered on downstream, EPC, and O&M operations.
In the outboard motor segment, the company's position as Honda's domestic distributor and its three consecutive years holding the No.1 market share provide a relatively stable buffer against the cyclicality of the solar business.
Overall, the company straddles two different industry positions: solar, a growth industry with high policy and price volatility, and marine engines, a mature but stable replacement-demand-driven business.
In June 2026, SDN's board decided on a share consolidation combining ten common shares into one, changing par value from KRW 500 to KRW 5,000 and reducing total common shares from 62,944,350 to 6,294,435 after consolidation.
Trading will be suspended from August 21 to September 17, 2026 due to this consolidation, with new shares scheduled to list on September 18, and fractional shares arising from the consolidation will be settled in cash based on the closing price on the first day of new share trading.
The company stated that this decision is a share consolidation that maintains corporate value rather than a capital reduction, with the stated purpose being share price stabilization and enhancement of shareholder value.
The backdrop cited for this move includes regulatory changes under which financial authorities are set to tighten delisting requirements for stocks trading below KRW 1,000 starting the following month, while also raising the KOSDAQ market-cap threshold from KRW 15 billion to KRW 20 billion, with a further increase to KRW 30 billion planned for January of the following year.
On the earnings front, the return to operating profit in 2025 and continued operating profits in Q1 and Q2 2026 have been confirmed, but quarterly net income remains volatile, so whether a stable profitable trend takes root will require confirmation through additional quarterly results.
In the solar segment, a key point to watch is how the company responds to industry trends such as government-linked ODA projects and expanding PPA-ESS combined projects, while in the outboard motor segment, maintaining its existing No.1 market share position is the item to monitor.
SDN's price-to-book ratio, on a self-calculated basis, trades below 1x, suggesting a discount relative to net asset value per share. The company paid no cash dividend per share in the most recent fiscal year, a dividend yield level below the sector average.
Net income moved from a profit in 2022 to widening losses in 2023-2024 and then a narrowed loss in 2025, while operating profit has shown a directional recovery, following two years of losses, with small profits sustained in 2025 and in both Q1 and Q2 of 2026.
This combination of an improving earnings trend alongside a discount to net asset value can be interpreted as the market weighing both past earnings volatility and financial structure burdens, including a debt ratio in the triple digits.
The upcoming 10-to-1 share consolidation changes the per-share price structure but does not affect underlying corporate value, so per-share metrics should be interpreted with this par-value change in mind when comparing valuations before and after the consolidation.
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
Following two consecutive years of operating losses in 2023-2024, SDN returned to operating profit of KRW 0.46 billion in 2025, and continued posting operating profits in both Q1 (KRW 0.18 billion) and Q2 (KRW 0.15 billion) of 2026.
Revenue also showed two consecutive years of recovery in 2024-2025 after bottoming in 2023, suggesting that cost structure or business portfolio adjustments are having some effect.
Based on its domestic distribution relationship with Honda, SDN has maintained the No.1 domestic market share in small vessel engines for three consecutive years.
Fishing-use outboard motors generate replacement demand on a roughly five-year cycle, providing a relatively predictable revenue base unlike the policy- and price-sensitive solar business, which can act as a buffer during periods of solar segment weakness.
The domestic solar market is projected to grow at an average annual rate of about 9.35% through 2031 based on the 11th Basic Plan for Electricity Supply and Demand, with structural demand factors such as expanding RE100 and PPA arrangements.
The company decided on a 10-to-1 share consolidation aimed at stabilizing its share price and enhancing shareholder value, responding to tightened KOSDAQ management-issue requirements. This can be viewed as an attempt to structurally improve liquidity and investor accessibility going forward.
While operating profit turned positive in 2025, net income attributable to owners remained negative at KRW -1.70 billion, marking a fourth consecutive year of losses.
On a quarterly basis, the owners' net loss reached KRW -4.20 billion in Q4 2025 and KRW -0.91 billion in Q1 2026, with operating profit and net loss appearing simultaneously, indicating low predictability of results.
The solar industry continues to face oversupply in modules and polysilicon, intensifying competition with low-cost Chinese products. Domestic new installation capacity is also expected to remain around 4 GW in 2026, similar to 2025, indicating stagnant volume growth. This could constrain revenue and margin expansion for SDN, which is centered on downstream and EPC operations.
The debt ratio rose to 149.2% in 2024 before easing to 103.6% in 2025, but remains above 100%. Non-controlling interests have been negative across multiple years relative to owners' equity, indicating a fragile capital structure that could result in greater financial strain if performance weakens in the future.
Financial authorities plan to tighten delisting requirements for stocks trading below KRW 1,000 and raise the KOSDAQ market-cap threshold from KRW 15 billion to KRW 20 billion, with a further increase to KRW 30 billion in January 2027.
SDN, as a small-cap stock, falls directly within the scope of this tightened regulation. Since the share consolidation adjusts the price level but does not increase market capitalization itself, the risk of being designated an administrative issue requires ongoing monitoring.
Solar module and polysilicon prices remain structurally low amid global oversupply, and import restrictions in major countries such as the United States, along with domestic policy changes such as the RPS, can directly affect results.
Given the company's exposure to government-linked business such as ODA projects, changes in related budgets and policies also represent a risk factor.
There is a possibility of schedule changes during the trading suspension from August 21 to September 17, 2026 and the new share listing process on September 18, and fractional shares arising from the consolidation will be settled in cash.
The company itself has noted that details may change depending on the shareholders' meeting outcome and consultations with relevant authorities, so procedural delays or changes cannot be ruled out.
The scheduled date for new share listing and trading resumption following the 10-to-1 share consolidation; watch for changes in outstanding share count and per-share price structure, and initial trading volume and supply-demand after resumption.
The expected timing of Q3 2026 earnings disclosure; it will be important to check whether the operating profit trend continues after Q1-Q2 2026 and whether net income volatility eases.
The point at which the KOSDAQ market-cap threshold for listed companies rises further to KRW 30 billion; it will be necessary to continuously check whether SDN's market capitalization meets this threshold.
Watch for disclosures on new ODA, PPA, or ESS-linked project awards in the solar segment, as well as reports or disclosures related to maintaining market share in the outboard motor segment.
SDN, through its two dissimilar businesses of solar downstream/EPC operations and Honda outboard motor distribution, achieved a return to operating profit in 2025 and continued posting profits in Q1-Q2 2026, but net income attributable to owners has yet to escape losses for a fourth consecutive year.
Quarterly results have shown large swings, such as the surge in net profit in Q3 2025 followed by a large loss in Q4, meaning further confirmation is needed on whether a stable profit trend takes hold.
On the financial structure side, the debt ratio eased from 149.2% in 2024 to 103.6% in 2025, and operating cash flow posted net inflows for two consecutive years, both signs of improvement.
In response to tightened KOSDAQ listing maintenance requirements, the company faces a 10-to-1 share consolidation on September 18, 2026, which changes the per-share price structure but not the underlying corporate value.
The solar industry combines contrasting factors of domestic policy-driven growth prospects and global oversupply, while the outboard motor business provides a relatively stable cash flow base.
Investors will need to track three upcoming milestones—the post-consolidation new share listing, Q3 earnings, and the further increase in the KOSDAQ market-cap threshold—to gauge the company's future direction.
Report written 2026-09-05 · Data as of 2026-09-04
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