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
Wooyang HC is showing a recovery in operating profit through the first half of 2026 after a sharp earnings decline in 2025, even as expectations for new LNG plant orders in North America and the Middle East coexist with recurring contract-correction disclosures and audit findings.
FY2025 consolidated revenue fell to KRW 100.85bn with operating profit of just KRW 0.71bn (0.7% margin), sharply down from FY2024's KRW 183.25bn revenue and KRW 31.09bn operating profit, with a net loss of KRW 4.31bn.
After consecutive operating losses in Q3 2025 (-KRW 1.25bn) and Q4 2025 (-KRW 3.91bn), the company posted consecutive operating profits in Q1 2026 (KRW 3.01bn) and Q2 2026 (KRW 2.01bn).
In July 2026 the company signed a USD 22.7 million (about KRW 33.3bn) contract with JGC Fluor BC LNG II JV and secured a notice of award for Qatar's NFW LNG project.
In June 2026 the company signed a KRW 3bn treasury-stock trust agreement with KB Securities for cancellation purposes, continuing shareholder-return efforts.
Recent audit reports have repeatedly flagged uncertainty in revenue recognition and total contract cost estimation as key audit matters, and frequent corrections to supply-contract disclosures have left the market with lingering questions about financial transparency.
Founded in 1993, Wooyang HC is an integrated plant equipment company that designs, manufactures, and supplies equipment across the chemical and energy plant industries.
Its business is split between a chemical plant segment supplying oil and gas refining equipment and an energy plant segment supplying balance-of-plant (BOP) equipment for power stations; as of Q1 2026, the chemical plant segment accounted for 94.9% of revenue, energy plant 0.88%, and other segments 4.25%, showing near-total reliance on the chemical plant business.
The largest shareholders are Solbrain Holdings Co., Ltd. and CJ W Global, holding 38.7% and 18.2% stakes respectively.
In 2024 the company registered as a qualified supplier to Korea Hydro & Nuclear Power (KHNP), laying groundwork for entry into the small modular reactor (SMR) and nuclear plant markets, and it has been expanding its engineering workforce to strengthen its eco-plant business and respond to carbon capture, utilization and storage (CCUS) national projects.
The currently listed entity re-listed on KOSDAQ in March 2025 through a merger with KB No.26 SPAC, after an initial listing application in April 2024 was withdrawn due to audit issues and refiled in November of that year following reinforcement of internal audit systems.
Peer companies in the plant equipment industry include BHI, SNT Energy, Hantec, and the currently suspended Sewon E&C and KIB Plug Energy.
However, the predecessor of the current entity faced large-scale accounting fraud allegations following its 2012 KOSDAQ listing, leading to delisting and court-led corporate rehabilitation in 2015, a history that is still often referenced by the market as background regarding accounting reliability.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩27B | ₩2.5B | 9.3% |
| 2025Q3 | ₩20.4B | -₩1.3B | −6.1% |
| 2025Q4 | ₩23.4B | -₩3.9B | −16.7% |
| 2026Q1 | ₩31.2B | ₩3B | 9.7% |
| 2026Q2 | ₩19.8B | ₩2B | 10.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩120.7B | ₩5.2B | ₩2.1B | 4.3% | 1.7% | 105.6% |
| 2023 | ₩200.1B | ₩25.3B | ₩21.8B | 12.6% | 14.9% | 74.7% |
| 2024 | ₩183.2B | ₩31.1B | ₩27.4B | 17.0% | 15.8% | 50.7% |
| 2025 | ₩100.9B | ₩700M | -₩4.3B | 0.7% | −2.3% | 36.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
FY2025 consolidated revenue came to KRW 100.85bn, down sharply from KRW 183.25bn in FY2024, while operating profit fell to KRW 0.71bn (0.7% margin), a steep drop from the 17.0% margin recorded in 2024. Net profit also swung to a loss of KRW 4.31bn from a KRW 27.43bn profit in 2024.
Looking further back, revenue rose from KRW 120.65bn in 2022 to KRW 200.06bn in 2023 before falling to KRW 183.25bn in 2024, while the operating margin improved steadily from 4.3% in 2022 to 12.6% in 2023 and 17.0% in 2024, independent of the direction of revenue.
On a quarterly basis, after posting revenue of KRW 27.00bn and operating profit of KRW 2.51bn (net loss of KRW 0.19bn) in Q2 2025, the company recorded consecutive operating losses in Q3 2025 (revenue KRW 20.40bn, operating loss KRW 1.25bn, net profit KRW 0.06bn) and Q4 2025 (revenue KRW 23.42bn, operating loss KRW 3.91bn, net loss KRW 2.21bn).
This was followed by a clear recovery, with Q1 2026 revenue of KRW 31.16bn, operating profit of KRW 3.01bn and net profit of KRW 4.48bn, and Q2 2026 revenue of KRW 19.84bn, operating profit of KRW 2.01bn and net profit of KRW 2.62bn.
In other words, operating profit over the most recent four quarters (Q3 2025 through Q2 2026) swung from -KRW 1.25bn to -KRW 3.91bn to KRW 3.01bn to KRW 2.01bn, underscoring significant earnings volatility.
The debt-to-equity ratio steadily declined from 105.6% in 2022 to 74.7% in 2023, 50.7% in 2024 and 36.0% in 2025, indicating an improved financial structure, and operating cash flow remained positive at KRW 22.86bn in 2025 despite the net loss.
The chemical and energy plant equipment industry is heavily dependent on the global capital investment cycle in oil, gas, and power infrastructure. KB Securities has projected that global investment in offshore and LNG plants will increase amid surging energy demand driven by the expansion of AI data centers.
Wooyang HC is expecting new orders in 2026 from multiple LNG plant construction projects, primarily in its key North American market, and has also secured a notice of award for Qatar's NFW LNG project.
Rising power plant investment tied to growing electricity demand in major countries, along with the potential for entry into the SMR market, are cited as key industry checkpoints.
Peer companies frequently referenced in the plant equipment sector include BHI, SNT Energy, Hantec, and the currently trading-suspended Sewon E&C and KIB Plug Energy. However, KB Securities has also flagged delayed revenue improvement due to US tariff policy and continued Middle East instability as risk factors.
The plant equipment industry as a whole tends to exhibit relatively high earnings volatility given the long lag between order intake and revenue recognition and the industry's reliance on percentage-of-completion accounting.
The company continues to expect new LNG plant orders centered on North America in 2026, and in July it signed a supply contract with JGC Fluor BC LNG II JV for columns and heavy-wall drums (CS, SS, CLAD) with a confirmed contract value of USD 22.7 million (about KRW 33.3bn).
For the Qatar NFW LNG project, the company has secured a notice of award, with the conclusion of a definitive contract being the next point to watch.
In the energy plant segment, it secured a KRW 14.3bn power equipment order from ATE Energy in June, and its 2024 registration as a qualified supplier to KHNP continues to lay the groundwork for entry into the SMR and nuclear plant markets.
The company is also expanding its engineering workforce to strengthen its eco-plant business and build capacity for CCUS national projects.
However, KB Securities has flagged delayed revenue improvement from US tariff policy and continued Middle East instability as risks, meaning the pace at which new orders translate into actual revenue and profit recognition warrants continued monitoring.
On the shareholder-return front, the company signed a KRW 3bn treasury-stock trust agreement with KB Securities in June (for cancellation, contract period June 17 to December 16, 2026) and is proceeding with the purchase of up to 322,927 common shares.
The share price has fluctuated significantly alongside earnings volatility since the company's 2025 relisting, and it has recently traded at a discount to net asset value.
The price-to-earnings multiple implied by peer comparisons at the time of listing was in the mid-to-high teens, but with 2025 earnings deteriorating sharply into a loss and profits recovering again in the first half of 2026, the underlying earnings trend itself has become unstable, leaving the market divided on which earnings base to use for valuation.
The company currently pays no regular dividend, so the logic behind the share price rests less on dividend appeal and more on the durability of the profit recovery and order momentum.
The treasury-stock purchase and cancellation plan decided in June would reduce shares outstanding, but its effect can only be assessed once the cancellation is completed and future earnings trends are confirmed.
Ultimately, valuation for this stock is heavily tied to the pace at which quarterly orders convert into recognized revenue, so the order-to-revenue conversion trend warrants attention rather than judging based on a multiple at a single point in time.
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 2026-09-05
In July 2026 the company signed a USD 22.7 million (about KRW 33.3bn) contract with JGC Fluor BC LNG II JV and secured a notice of award for Qatar's NFW LNG project. In the energy plant segment it won a KRW 14.3bn power equipment order from ATE Energy in June.
Expectations for expanded LNG plant investment centered on North America have been raised by KB Securities, making the translation of order flow into future earnings a key point to watch.
After consecutive operating losses in Q3 and Q4 2025, the company returned to profitability with operating profit above KRW 2bn in both Q1 and Q2 2026. KB Securities noted that Q1 operating profit rose 51.4% year-on-year on the back of improved revenue mix. The debt-to-equity ratio also improved, falling from 105.6% in 2022 to 36.0% in 2025.
In June 2026 the company signed a KRW 3bn treasury-stock trust agreement through KB Securities, with cancellation planned after the contract ends. The planned purchase of 322,927 common shares would reduce shares outstanding.
While there is still no regular dividend, efforts to enhance shareholder value through share cancellation continue.
The FY2025 consolidated operating margin fell sharply to 0.7% from 17.0% in 2024, and net profit swung to a loss of KRW 4.31bn.
Quarterly results also swung significantly, with consecutive operating losses in Q3 2025 (-KRW 1.25bn) and Q4 2025 (-KRW 3.91bn), reflecting how strongly results depend on order and revenue recognition timing. Whether the profit recovery of the first half of 2026 continues remains to be confirmed in coming quarters.
In the most recent audit report, Samjong KPMG flagged uncertainty in revenue recognition accounting policy and total contract cost estimation as key audit matters, similar to findings under the previous auditor, Samil PwC.
There have also been several corrections to single sales/supply contract disclosures so far this year.
The predecessor of this company was delisted in 2015 and underwent court-led rehabilitation following large-scale accounting fraud allegations after its 2012 KOSDAQ listing, leaving the market relatively sensitive to accounting reliability.
KB Securities has cited delayed revenue improvement from US tariff policy and continued Middle East instability as risk factors. Because most revenue is generated from exports, results can be affected by currency movements and changes in overseas order schedules.
In its first quarter as a newly listed company, Q1 2025, revenue and operating profit were reported to have fallen 41.5% and 72.8% year-on-year respectively, based on Financial Supervisory Service filings.
Because the plant equipment business recognizes revenue on a percentage-of-completion basis, quarterly results can vary significantly depending on order timing and construction progress.
In fact, the company swung from consecutive operating losses in Q3-Q4 2025 to consecutive profits in Q1-Q2 2026, with direction changing across all four quarters.
Since quarterly results can be swayed by the revenue recognition timing of a single large contract, it is necessary to continuously monitor the progress of individual contracts.
In recent audit reports, uncertainty in revenue recognition and total contract cost estimates has repeatedly been flagged as a key audit matter, and corrections to single sales/supply contract disclosures have also been frequent.
The fact that this company's predecessor has a history of delisting and court receivership in the past is also a background reason for investors to scrutinize disclosure reliability more closely.
The impact of US tariff policy and Middle East instability, as pointed out by KB Securities, could affect overseas clients' investment decisions and payment collection schedules. Since most of its revenue comes from exports, the company is also exposed to exchange rate fluctuations.
Given its high dependence on the US market, changes in US energy and trade policy could directly affect its performance.
This is the point to check whether the consecutive operating losses seen in Q3–Q4 2025 recur, or whether the profitable trend from the first half of 2026 continues.
This marks the end of the KRW 3bn treasury-stock trust agreement with KB Securities, when the actual purchase volume and subsequent cancellation progress should be confirmed.
It is necessary to confirm whether a definitive contract is actually concluded following the notice of award, and how the contract value and delivery schedule are finalized.
It is worth monitoring whether key audit matters such as uncertainty in revenue recognition and total contract cost estimation recur again, and whether the frequency of contract disclosure corrections decreases.
Wooyang HC posted a sharp revenue and earnings decline with a net loss in 2025, but has since shown a clear profit recovery signal with consecutive operating profits in Q1 and Q2 2026.
At the same time, growth stories such as LNG projects in North America and Qatar and preparation for entry into the SMR market are underway, and in June the company signaled shareholder-return intent through a KRW 3bn treasury-stock purchase and cancellation plan.
However, the structural tendency for quarterly results to swing significantly based on percentage-of-completion accounting and order timing remains, as evidenced by consecutive operating losses in Q3–Q4 2025, and recent key audit matters along with frequent contract-correction disclosures have stoked market caution about financial transparency.
The fact that the company's predecessor was delisted and underwent court-led rehabilitation due to past accounting fraud is also part of the backdrop that warrants closer investor scrutiny of disclosures and audit opinions.
Ultimately, this stock sits at a juncture where positive signals of order momentum and profit recovery coexist with caution factors around earnings volatility and disclosure reliability.
It will be important to track coming quarterly results, whether definitive contracts are concluded for major projects, and how key audit matters evolve in future audit reports.
Report written 2026-09-05 · Data as of 2026-09-04
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