KOSPIConstruction & Materials126720

Soosan Industries

₩21,550▲ 0.47%2026-10-02 close

Market Cap

₩307.1B

Turnover

₩300M

Volume

10,000 shares

Shares out.

14.3M

PER

4.0×

PBR

0.5×

EPS

₩5,359

Dividend Yield

4.25%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩900 per share · Prices as of the 2026-10-02 close

Report overview

Nuclear Maintenance Expansion Amid Earnings Volatility

Susan Industry, a power plant maintenance specialist focused on nuclear and thermal facilities, is growing revenue on the back of expanding domestic nuclear maintenance demand and overseas contract wins such as in the UAE, while quarterly results show a widening gap between operating profit and net income.

1
2025 consolidated revenue reached KRW 337.7 billion (up 6.6% year-on-year) with operating profit of KRW 43.1 billion (operating margin 12.8%), showing revenue growth but margin compression versus 2022-2023.
2
Operating profit recovered to KRW 13.6 billion in Q1 2026 (margin roughly 15.9%) but fell sharply to KRW 5.9 billion in Q2 2026 despite revenue of KRW 92.6 billion, implying a margin of about 6.3%.
3
Over the latest four quarters (Q3 2025-Q2 2026), net income attributable to owners totaled roughly KRW 75.5 billion, with net income consistently exceeding operating profit by a wide margin each quarter.
4
The company has secured a stream of contracts including non-destructive testing work at the UAE Barakah Nuclear Power Plant (BNPP) and an amendment enlarging the Shin-Kori Units 1&2 maintenance contract from KRW 35.5 billion to KRW 70.1 billion.
5
The debt ratio remains stable in the low-20% range, but operating cash flow swung sharply from KRW 67.4 billion in 2024 to KRW 11.2 billion in 2025.

Business structure

Susan Industry was founded in 1983 for routine construction maintenance work and converted into a specialized power plant maintenance provider in 2001 under a government policy to cultivate private-sector maintenance firms, before listing on the KOSPI in 2022.

Its core business is providing routine, preventive, overhaul, and commissioning maintenance services for domestic and overseas nuclear, thermal, and renewable power plants.

Domestically, the company performs mechanical/electrical routine maintenance, instrumentation and control equipment work, and planned preventive maintenance (overhaul, or O/H) at Shin-Wolsong, Shin-Kori, Saeul, Hanul, Kori, and Hanbit nuclear plants.

Overseas, it handles commissioning work and preventive maintenance at the UAE Barakah Nuclear Power Plant (BNPP), which Korea exported.

Its subsidiaries include Susan E&S, which manufactures MMIS (nuclear power plant instrumentation and control systems) and performs related maintenance, and SH Power, which operates overseas solar power businesses.

The company positions itself as the first private firm with standalone turbine disassembly maintenance experience as a competitive edge.

More recently, through Susan E&S, it has expanded into defense and aerospace, developing an electronic warfare equipment subsystem in cooperation with LIG Nex1 and receiving a technology transfer for rocket engine combustion test facilities from the Korea Aerospace Research Institute (KARI).

The maintenance market centers on long-term contracts with clients such as Korea Hydro & Nuclear Power (KHNP), with competition between public-affiliated maintenance firms such as KEPCO KPS and private operators.

The thermal segment, despite the structural headwind of declining coal-fired generation, has been supplemented by combined-cycle and cogeneration plant maintenance work.

Earnings trend

Quarterly revenue · Operating profit

₩86.2B₩10.3B25Q2₩81.1B₩10.1B25Q3₩91.2B₩12.2B25Q4₩85.7B₩13.6B26Q1₩92.6B₩5.9B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩303.5B₩50.6B2022₩324.7B₩50.2B2023₩316.8B₩43.5B2024₩337.7B₩43.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩86.2B	₩10.3B	11.9%
2025Q3	₩81.1B	₩10.1B	12.5%
2025Q4	₩91.2B	₩12.2B	13.4%
2026Q1	₩85.7B	₩13.6B	15.9%
2026Q2	₩92.6B	₩5.9B	6.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩303.5B	₩50.6B	₩41.8B	16.7%	9.1%	24.7%
2023	₩324.7B	₩50.2B	₩48.8B	15.5%	9.8%	20.9%
2024	₩316.8B	₩43.5B	₩39.3B	13.7%	7.6%	20.3%
2025	₩337.7B	₩43.1B	₩48.9B	12.8%	8.9%	21.5%

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

Earnings analysis

On an annual basis, revenue grew from KRW 303.5 billion in 2022 to KRW 324.7 billion in 2023, KRW 316.8 billion in 2024, and KRW 337.7 billion in 2025, while operating margin steadily declined from 16.7% in 2022 and 15.5% in 2023 to 13.7% in 2024 and 12.8% in 2025.

Net income attributable to owners rose from KRW 41.8 billion in 2022 to KRW 48.8 billion in 2023, fell to KRW 39.3 billion in 2024, then recovered to KRW 48.9 billion in 2025.

Quarterly figures show profits expanding from KRW 81.1 billion in revenue, KRW 10.1 billion in operating profit, and KRW 12.8 billion in net income in Q3 2025 to KRW 91.2 billion in revenue, KRW 12.2 billion in operating profit, and KRW 21.4 billion in net income in Q4 2025.

In Q1 2026, revenue was KRW 85.7 billion with operating profit of KRW 13.6 billion, lifting the quarterly operating margin to roughly 15.9%, while net income reached KRW 22.9 billion.

However, in Q2 2026 revenue rose to KRW 92.6 billion while operating profit fell sharply to just KRW 5.9 billion, implying an operating margin of about 6.3%, even as net income of KRW 18.5 billion came in more than three times operating profit.

This recurring pattern, in which net income substantially exceeds operating profit across several quarters, suggests non-operating factors (potentially equity-method gains or asset-related items) are having a meaningful influence on reported results, warranting caution in assessing earnings quality from operating performance alone.

Over the latest four quarters (Q3 2025 through Q2 2026), net income attributable to owners totaled roughly KRW 75.5 billion, already exceeding the full-year 2025 net income figure of KRW 48.9 billion.

On the balance sheet side, the debt ratio has remained stable, moving from 24.7% in 2022 to 21.5% in 2025, though operating cash flow has fluctuated significantly year to year: KRW 18.2 billion in 2022, KRW 41.1 billion in 2023, KRW 67.4 billion in 2024, and KRW 11.2 billion in 2025.

Industry analysis

The domestic power plant maintenance industry is entering a phase of expanding demand, driven by new nuclear construction plans reflected in the 11th Basic Plan for Electricity Supply and Demand, the push toward small modular reactor (SMR) commercialization, and the continued operation of existing nuclear plants.

While the thermal segment faces a structural decline tied to falling coal-fired generation, demand for combined-cycle and cogeneration plant maintenance, along with the need to respond to surging power demand from AI and semiconductor industry growth, is feeding expectations for quantitative expansion in nuclear maintenance work.

Clients are centered on public entities such as Korea Hydro & Nuclear Power, and contracts tend to be long-term and recurring, forming a stable order base, though quarterly results can vary depending on order timing and project progress rates.

Competitively, the market comprises large public-affiliated maintenance firms such as KEPCO KPS alongside private specialists, with Susan Industry regarded as unusual among private operators for possessing specialized capabilities such as standalone turbine disassembly maintenance.

In overseas markets, the company is leveraging its experience participating in maintenance at the UAE Barakah Nuclear Power Plant to attempt marketing expansion into Eastern Europe, Africa, and Southeast Asia, including discussions with Vietnam's PV Power Service.

The SMR special act recently proposed and passed in 2026 is seen by participating companies as a mid- to long-term business opportunity, though the timing between actual contract wins and revenue recognition may lag.

Outlook

In its April 2026 value-up disclosure, the company outlined plans to expand new business segments and broaden its scope of work based on its core UAE BNPP business, pursue marketing in Eastern Europe, Africa, and Southeast Asia, enter high-value-added maintenance fields such as SMR, aviation, and defense, and pursue active M&A.

In July 2026, the company disclosed an amendment to its Shin-Kori Units 1&2 secondary-side mechanical/electrical maintenance contract with Korea Hydro & Nuclear Power, enlarging it from KRW 35.5 billion to KRW 70.1 billion and extending the contract term by a year to July 2027.

Subsidiary Susan E&S is participating in the i-SMR (innovative small modular reactor) technology development national project, and is also expanding into defense through cooperation with LIG Nex1 and into aerospace via a technology transfer for rocket engine combustion test facilities from the Korea Aerospace Research Institute.

DS Securities, in a May 27, 2026 report, cited the roughly KRW 53.1 billion UAE Barakah non-destructive testing contract and the smoothing of overhaul (O/H) workload across quarters to raise its estimates, projecting 2026 full-year revenue up 4.3% year-on-year to KRW 352.3 billion and operating profit up 14.6% to KRW 49.4 billion (a 14.0% operating margin), while lifting its target price from KRW 28,500 to KRW 41,000.

However, given that actual Q2 2026 operating profit came in much lower than that trajectory implies, whether such estimates materialize may hinge on the timing of second-half O/H schedules and the pace of revenue recognition on overseas projects.

A key point to watch going forward is how quarterly results are distributed based on the progress of domestic nuclear maintenance contracts at Shin-Wolsong, Shin-Kori, and Saeul, along with the UAE project.

Valuation

PER

4.0×

PBR

0.5×

ROE

13.8%

EPS

₩5,359

BPS

₩41,294

Dividend per share

₩900

The current share price trades below the company's net asset value, placing it in a discounted zone relative to book value.

That said, given that trailing four-quarter earnings have already surpassed the full-year 2025 net income figure, profit-based valuation metrics appear to sit in a relatively low zone compared with the trading band formed since listing.

The company has stated it decided on a record-high cash dividend at its most recent settlement, but the payout ratio itself is not markedly high relative to profit scale, so dividend appeal should be interpreted more in terms of direction than absolute magnitude.

However, as noted earlier, the recurring gap between quarterly operating profit and net income means that net-income-based metrics alone have limits in capturing the underlying profitability of the core business.

Brokerage estimate upgrades and target price increases are grounded in structural changes such as the smoothing of the overhaul schedule and overseas order expansion, but the continued high volatility in actual quarterly results is a factor worth weighing alongside any valuation interpretation.

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

Bull factors

Structural Growth in Nuclear Maintenance Demand

New nuclear construction plans and SMR commercialization reflected in the 11th Basic Plan for Electricity Supply and Demand, along with the continued operation of existing nuclear plants, point to a growing maintenance demand trend.

Contracts continue at major domestic nuclear plants including Shin-Wolsong, Shin-Kori, and Saeul, and the Shin-Kori Units 1&2 maintenance contract was recently roughly doubled from KRW 35.5 billion to KRW 70.1 billion.

The need to respond to surging power demand from AI and semiconductor industry growth also supports expectations for quantitative expansion in nuclear maintenance.

Overseas Contract Wins and New Business Diversification

The overseas maintenance portfolio is expanding, including non-destructive testing work won at the UAE Barakah Nuclear Power Plant, and the company has disclosed plans to expand marketing into Eastern Europe, Africa, and Southeast Asia.

Subsidiary Susan E&S is broadening into defense and aerospace through participation in the i-SMR national project, defense cooperation with LIG Nex1, and a technology transfer for rocket engine combustion test facilities from the Korea Aerospace Research Institute. This new business expansion has the potential to ease reliance on nuclear and thermal maintenance revenue.

Stable Financial Structure and Enhanced Shareholder Returns

The debt ratio has been managed within a stable range, moving from 24.7% in 2022 to 21.5% in 2025, keeping financial leverage burden low.

The company recently stated it decided on a record cash dividend, signaling intent to strengthen shareholder returns, and its value-up plan also presents profit-centered management alongside shareholder-friendly policies.

Bear factors

Quarterly Operating Profit Volatility

Quarterly operating margin volatility remains substantial, jumping to roughly 15.9% in Q1 2026 before dropping sharply to about 6.3% in Q2 2026, depending on the O/H schedule and project progress rates.

Because results are driven by clients' maintenance scheduling, it is difficult to draw firm annual conclusions from any single quarter's performance.

Wide Gap Between Net Income and Operating Profit

Across several quarters from Q3 2025 through Q2 2026, net income attributable to owners exceeded operating profit by a wide margin, with Q2 2026 net income more than tripling operating profit.

This suggests non-operating factors are having a meaningful influence on results, and the uncertainty over whether such factors will persist warrants caution when assessing earnings quality.

Structural Decline in Thermal Segment and Margin Pressure

Amid the structural decline in coal-fired power generation, growth in the thermal maintenance segment is limited, and the company's overall operating margin has steadily fallen from 16.7% in 2022 to 12.8% in 2025. Depending on cost structure and workforce deployment, margin recovery could progress more slowly than expected.

Risk factors

Order and Project Delay Risk

Since revenue recognition timing on power plant maintenance contracts depends on clients' O/H schedules and project progress rates, delays or schedule changes can directly affect results in a given quarter.

As seen with the Shin-Kori Units 1&2 contract, contract amounts and periods can also change, limiting predictability.

Dependence on Non-Operating Gains

The recurring pattern of net income substantially exceeding operating profit across several quarters raises the possibility that a meaningful portion of results stems from non-operating factors. The sustainability of future earnings may vary depending on whether these factors are one-off or ongoing.

Execution Risk in New Business and Overseas Expansion

Expansion into SMR, defense, aerospace, and marketing in Eastern Europe, Africa, and Southeast Asia are still early-stage initiatives, and there could be a considerable lag before they translate into actual revenue contribution.

If participation in national projects or technology transfers fails to progress to commercialization, results may fall short of expectations.

What to watch next

Around mid-November 2026
The Q3 2026 provisional earnings disclosure will show whether the operating margin, which dropped sharply in Q2, recovers, and whether the effect of a more evenly spread O/H schedule materializes in practice.
During Q4 2026
It will be worth checking the progress and revenue recognition scale on the enlarged Shin-Kori Units 1&2 contract (KRW 70.1 billion, through July 2027) and the maintenance work at Saeul Units 3&4.
During the second half of 2026
The pace of revenue recognition on the UAE Barakah non-destructive testing contract, along with whether new overseas contract wins emerge in Eastern Europe, Africa, or Southeast Asia, are worth monitoring.
During the second half of 2026
Progress on subsidiary Susan E&S's i-SMR national project and the specific timing of revenue contribution from new defense and aerospace businesses (LIG Nex1 cooperation, KARI technology transfer) are worth tracking.

Overall view

Susan Industry is in a phase of revenue growth supported by expanding domestic nuclear maintenance demand and overseas contract wins including in the UAE, with existing business also expanding through moves such as the enlarged Shin-Kori Units 1&2 contract.

However, the annual operating margin has steadily declined from 16.7% in 2022 to 12.8% in 2025, and quarterly volatility remains substantial, with the margin swinging from roughly 15.9% in Q1 2026 to about 6.3% in Q2 2026.

Notably, the recurring pattern of net income substantially exceeding operating profit across several quarters means that whether these non-operating factors persist will be a key variable in interpreting future results.

The debt ratio remains stable in the low-20% range, and the company has signaled intent to strengthen shareholder returns, stating it decided on a record cash dividend.

New business initiatives in SMR, defense, and aerospace along with expanded overseas marketing support a mid- to long-term growth narrative, but lag time and execution risk remain before these translate into actual revenue contribution.

Investors will want to continue monitoring whether the gap between operating profit and net income narrows in coming quarters and whether the smoothing effect of the O/H schedule is realized in practice.

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.