KOSDAQAutomotive104040

Dsm

₩2,980▲ 3.11%2026-10-02 close

Market Cap

₩80.8B

Turnover

₩300M

Volume

100,000 shares

Shares out.

26.8M

PER

33.1×

PBR

0.6×

EPS

₩75

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Auto Parts Firm Repositions as Physical AI Company

Formerly a precision auto-parts maker, DSM has restructured into a three-division mobility, energy, and entertainment company following its merger with theme park developer Monolith and subsequent name change, with recent quarters showing both revenue growth and a narrowing operating loss.

1
The 2025 merger between Daesung Fine Tec and Monolith, followed by the March 2026 name change to DSM, restructured the business into three divisions: mobility (auto parts), energy, and Monolith (theme parks).
2
H1 2026 revenue reached 28.96 billion won, already about 55% of Leading Investment Securities' full-year forecast of 52.4 billion won, with the company targeting over 60 billion won for the full year.
3
Recent quarterly trends show revenue expanding from 7.9 billion won in Q2 2025 to 16.4 billion won in Q2 2026, while the operating loss narrowed from 3.3 billion won in Q1 2026 to roughly 0.2 billion won in Q2 2026.
4
The mobility division plans to begin mass supply of an electric swivel seat mechanism for the Genesis GV90 Neolun in Q4 2026, while the energy division is pursuing commercialization of supercapacitors.
5
In full-year 2025, the company posted an operating loss of 7.9 billion won yet a net profit of 2.0 billion won, a divergence likely reflecting non-operating items tied to the merger.

Business structure

DSM traces its roots to Daesung Fine Tec, a precision auto-parts maker founded in 1988, which merged with IT-based theme park developer Monolith in 2025 and changed its name to DSM in March 2026.

The company now operates three divisions under a co-CEO structure: mobility and energy under CEO Kim Byung-jun, and Monolith under CEO Kim Jong-seok.

The mobility division produces door locks, seat recliners, and transmission-related parts using fine blanking mold technology, supplying domestic automakers including Hyundai, Kia, GM, Ssangyong, and Renault, as well as overseas OEMs through global tier-1 suppliers such as Magna International, Brose, and Valeo.

The energy division's traditional base is solar water heaters, boilers, and solar power installation, while it now pursues supercapacitors and large-capacity energy storage devices as a new growth axis.

The Monolith division develops content based on its proprietary indoor racing theme park IP '9.81 Park,' operating a Jeju park since 2019 through wholly owned subsidiary Monolith Jeju Park.

The company has framed these three divisions under a common 'physical AI' concept spanning manufacturing, energy, and entertainment. The company has stated that combined divisional revenue for 2025 was approximately 48 billion won.

Earnings trend

Quarterly revenue · Operating profit

₩7.9B-₩300M25Q225Q3₩12.9B-₩2.8B25Q4₩12.5B-₩3.3B26Q1₩16.4B-₩200M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩27.3B-₩2.3B2022₩29.4B-₩2B2023₩36.7B₩700M2024₩28.5B-₩7.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩7.9B	-₩300M	−3.8%
2025Q3	—	—	—
2025Q4	₩12.9B	-₩2.8B	−21.5%
2026Q1	₩12.5B	-₩3.3B	−26.6%
2026Q2	₩16.4B	-₩200M	−0.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩27.3B	-₩2.3B	-₩3.1B	−8.5%	−6.0%	55.0%
2023	₩29.4B	-₩2B	-₩2.1B	−6.9%	−4.1%	50.7%
2024	₩36.7B	₩700M	₩800M	2.0%	1.2%	37.6%
2025	₩28.5B	-₩7.9B	₩2B	−27.8%	1.8%	102.0%

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

Earnings analysis

Consolidated revenue moved between 27.3 billion won (2022), 29.4 billion won (2023), 36.7 billion won (2024), and 28.5 billion won (2025). 2024 was the only year with an operating profit, at 750 million won (2.0% margin), while 2025 saw revenue decline 22% year over year and the operating result swing back to a loss of 7.9 billion won (-27.8% margin).

Despite this, 2025 net income attributable to owners was a positive 2.0 billion won, a divergence between operating and net results that likely reflects non-operating items tied to the Monolith merger; total equity indeed jumped from 64.8 billion won at end-2024 to 114.4 billion won at end-2025.

Total liabilities also surged from 24.4 billion won to 116.7 billion won over the same period, pushing the debt ratio from 37.6% to 102.0%, while operating cash flow turned negative at -4.0 billion won in 2025.

On a quarterly basis, revenue rose from 7.9 billion won with a 0.3 billion won operating loss in Q2 2025, to 12.9 billion won revenue and a 2.8 billion won operating loss in Q4 2025, to 12.5 billion won revenue and a 3.3 billion won operating loss in Q1 2026, before improving markedly to 16.4 billion won revenue and only a 0.15 billion won operating loss in Q2 2026.

The net loss attributable to owners also narrowed from 3.9 billion won in Q1 2026 to roughly 0.7 billion won in Q2 2026, indicating revenue growth and loss reduction occurring in tandem. Q3 2025 figures could not be confirmed, limiting visibility into that specific quarter.

Industry analysis

The auto parts industry's performance is closely tied to automakers' production volumes and factory utilization rates, with utilization and fixed-cost management increasingly seen as more important variables than sales volume alone in the current cycle.

DSM's mobility division, which supplies door locks and seat parts based on fine blanking mold technology to global tier-1 suppliers such as Magna, Brose, and Valeo, has traditionally operated within a supply chain routed through parts suppliers rather than direct OEM contracts.

More recently, the company has been shifting toward direct supply by providing an electric seat mechanism co-developed with Hyundai Transys directly to Genesis, marking a change from the prior supplier-routed structure.

The theme park (Monolith) segment operates separately from auto parts, expanding within the domestic indoor leisure and tourism content market.

The Jeju 9.81 Park has reportedly continued to grow on the back of rising foreign tourist numbers and repeat visitor demand, while a second park under construction near Incheon Airport targets both domestic and international visitors simultaneously.

The energy segment's supercapacitor business targets high-output, high-durability applications such as electric vehicles, robotics, drones, energy storage systems, and defense power systems, but remains at an early commercialization stage.

Outlook

The company has set a 2026 full-year revenue target of over 60 billion won, and after already exceeding half of that forecast in H1, expressed expectations for a seasonal boost and new revenue streams in H2.

The Monolith division cited the summer peak season and group tourist demand at the Jeju park as factors supporting H2 results, and is also pursuing licensing of the 9.81 Park IP overseas, with a first supply contract in China potentially possible in H2.

The second park under construction near Incheon Airport is planned at roughly twice the visitor capacity of the Jeju location; as of May 2026 it was about 65% complete, targeting year-end completion and a spring 2027 opening, with a first-year visitor target of one million.

The company is also discussing joint promotions and lodging packages with a nearby five-star integrated resort timed to the opening.

The mobility division plans to begin mass production of the electric swivel seat mechanism for the Genesis GV90 Neolun in Q4 2026, with the company expecting a shift from a supplier-routed structure to direct supply to improve profitability.

The energy division has set a goal of completing mass-production verification of supercapacitors in 2026 before starting commercial output. However, specific supply volumes or contract values for the GV90 part have not been disclosed, leaving the actual revenue contribution unconfirmed.

Valuation

PER

33.1×

PBR

0.6×

ROE

1.8%

EPS

₩75

BPS

₩4,268

Dividend per share

₩0

Given DSM's unstable earnings history—consecutive losses in 2022-2023, a brief profit in 2024, and a return to an operating loss in 2025—comparisons based on historical valuation multiples warrant caution.

With profit over the most recent four quarters remaining modest, the price-to-earnings multiple stands above the trading range seen during past profitable periods. The share price trades below net asset value, placing it at a discount on an asset basis.

There is no recent dividend payment history, limiting the relevance of yield-based comparisons.

Considering that the company's new businesses—theme park expansion, EV parts, and supercapacitors—are still in early revenue-contribution stages, current valuation metrics likely reflect market expectations for these new ventures as much as the performance of the legacy auto parts business.

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

Bull factors

Theme Park Expansion and IP Licensing

Following Jeju 9.81 Park, a second park nearly twice the scale of the Jeju location is being built near Incheon International Airport, targeting a spring 2027 opening, with a goal of attracting 1 million visitors in its first year.

Targeting transit passengers and overseas tourists at Incheon International Airport, the park is also expected to serve as a showroom for the overseas licensing business.

A licensing business supplying IP, technology, and facilities to overseas theme park markets including China is also being pursued, with the possibility of a first contract signing in the second half mentioned.

Shift to Direct Supply of High-Value EV Parts

An electric swivel seat mechanism jointly developed with Hyundai Transys over approximately four years is set to be applied to the Genesis GV90 Neolun, with mass production scheduled to begin in Q4 2026.

A shift from the existing supply structure via a partner company to a direct supply system is expected to improve profitability. This aligns with the growing demand for space utilization in premium electrified vehicles.

Simultaneous Revenue Growth and Loss Reduction

In recent quarterly results, revenue expanded from KRW 7.9 billion in Q2 2025 to KRW 16.4 billion in Q2 2026, while operating loss significantly narrowed from KRW 3.3 billion in Q1 2026 to about KRW 150 million in Q2 2026. First-half revenue has already exceeded half of the annual target.

The company aims for annual revenue of over KRW 60 billion, reflecting peak-season effects and new revenue sources in the second half.

Bear factors

Fragile Core Operating Profitability

The full-year 2025 operating loss was KRW 7.9 billion (operating margin of -27.8%), marking a return to the loss-making phase seen in 2022-2023. The 2025 net profit is presumed to have resulted from non-operating factors related to the merger, and operating cash flow also deteriorated to -KRW 4.0 billion. Volatility in operating profit and loss is likely to continue until new business revenue becomes substantial.

Unconfirmed Revenue Contribution from New Businesses

The supply volume and contract value for the GV90 swivel seat components have not been disclosed, and the supercapacitor business is also still in its early commercialization stage. The Incheon Airport 9.81 Park targets a spring 2027 opening, so it will not be reflected in 2026 results. The actual revenue contribution and timing of new businesses can only be confirmed through future disclosures.

Rising Balance Sheet Burden

Total liabilities surged from KRW 24.4 billion in 2024 to KRW 116.7 billion in 2025, pushing the debt ratio from 37.6% to 102.0%. If funding needs continue due to new theme park development and new business investments, the need for additional capital raising may increase.

Operating cash flow has also turned negative, making it difficult to cover investments solely through internal cash generation.

Risk factors

Business Transition Risk

The transition from a single automotive parts business to three business divisions—mobility, energy, and entertainment—is still in its early stages, and the integrated financial structure and synergies between divisions following the merger have not been fully verified.

If business diversification fails to deliver results as expected, the low-growth phase of the existing automotive parts business could resurface.

Dependence on OEM Production

Revenue from the mobility division is linked to production volumes of domestic automakers including Hyundai and Kia, as well as overseas automakers through global Tier 1 suppliers such as Magna, Brose, and Valeo.

Changes in automakers' production plans or declines in utilization rates could directly lead to reduced parts orders.

Small-Cap Liquidity and Financial Risk

As a small-cap stock with a relatively small market capitalization, share price volatility may be relatively high.

A 5-for-1 share consolidation was carried out in May 2026, and the possibility of additional external funding needs or increased financial burden cannot be ruled out if the rising debt ratio and deteriorating operating cash flow occur simultaneously.

What to watch next

Mid-November 2026 (expected Q3 earnings disclosure)
Once Q3 2026 consolidated results are disclosed, check whether the revenue growth and loss narrowing seen through Q2 continues, and whether new parts revenue has begun to appear.
Q4 2026 (planned start of swivel seat mass production)
Confirm whether mass production of the electric swivel seat mechanism for the Genesis GV90 Neolun begins as planned, and monitor initial supply volumes and actual revenue contribution.
Year-end 2026 (targeted completion of 9.81 Park Incheon Airport)
Check whether construction of 9.81 Park Incheon Airport is completed on schedule and whether the planned spring 2027 opening date changes.
H2 2026 (potential disclosure of China licensing contract)
Monitor whether the first licensing supply contract for the 9.81 Park IP in the China market is actually signed, and if so, review the contract size and terms.
Early 2027 (targeted completion of supercapacitor mass-production verification)
Check whether commercial supercapacitor production begins as targeted, and monitor initial customer engagement and revenue contribution.

Overall view

DSM is pursuing a transition into a 'physical AI' company by adding theme park (Monolith) and energy (supercapacitor) businesses on top of its nearly 40-year-old precision auto-parts operation.

Full-year 2025 results showed an unusual combination of a 7.9 billion won operating loss alongside a 2.0 billion won net profit, while the debt ratio jumped from 37.6% to 102.0%, indicating a substantial shift in the balance sheet following the merger.

Recent quarterly trends, however, show steady revenue growth alongside a shrinking operating loss, and H1 2026 revenue already exceeded half of the company's stated full-year target.

That said, most of the new growth drivers—the Incheon Airport theme park, EV seat parts, and supercapacitors—are not expected to contribute meaningfully to revenue until Q4 2026 or 2027, meaning confirmed results to date reflect these effects only to a limited degree.

On the financial side, the rising debt ratio alongside deteriorating operating cash flow warrants attention regarding future funding needs. The success of this diversification will need to be verified progressively through upcoming quarterly disclosures and the actual materialization of new-business revenue.

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.