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
DASAN DMC (formerly Engis Technologies) restructured into a dual software-and-hardware business after absorbing automotive rubber parts maker DMC in 2025, posting a net loss that year on merger-related one-off impairment, while quarterly operating profit has expanded in consecutive periods through 2026.
2025 consolidated revenue surged to KRW 113.7 billion from KRW 11.2 billion a year earlier, but net income swung to a loss on merger-related intangible asset impairment.
Following a large net loss in 2025Q4, both operating profit and net income expanded in both 2026Q1 and 2026Q2 within the trailing four-quarter window (2025Q3-2026Q2).
Controlling shareholder DASAN Networks' stake edged down from 63.51% to 61.53% after a convertible bond put-option exercise.
A telematics platform development contract with LG Uplus was terminated in February 2026, affecting the software segment's revenue.
A KRW 25 billion debt guarantee for controlling shareholder DASAN Networks was decided in December 2025, creating affiliate-related exposure relative to equity.
DASAN DMC operates a dual business structure spanning connected-car software and automotive rubber parts manufacturing.
The software segment, centered on the Navlink navigation solution, supplies connected car solutions and taxi mobility solutions to global electronics suppliers and automakers, providing location-based and navigation software in roughly 90 countries and connected navigation solutions to GM and the Geely/Volvo group.
The segment also offers over-the-air update and telematics solutions to automakers and electronics suppliers.
The hardware segment stems from the 2025 absorption merger with DMC's automotive rubber parts business, producing anti-vibration parts, weather strips, intake hoses, radiator mounts and spring pads at production bases in Korea's Yeongcheon plant as well as China, Mexico and Uzbekistan, supplying domestic and overseas automakers including Hyundai, Kia and GM.
The company has recently expanded research and production of eco-friendly and future-mobility parts such as high-strength EV spring pads and hydrogen fuel cell separator gaskets.
The combination was pursued to fuse software (Engis Technologies) and hardware (DMC) to build automotive electronics synergies and improve cost efficiency through organizational integration, carried out via a no-capital-increase merger effective October 31, 2025.
The software segment carries a recurring license-and-development revenue structure, while the rubber parts segment follows a typical OEM supply model tied to automaker orders, giving the two businesses distinct margin characteristics.
The company is listed on KOSDAQ, with DASAN Networks as the de facto controlling shareholder and this unit forming one pillar of the group's electronics and mobility expansion strategy.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | — | — |
| 2025Q3 | ₩35.5B | ₩300M | 0.8% |
| 2025Q4 | ₩35.4B | -₩900M | −2.5% |
| 2026Q1 | ₩33B | ₩1.2B | 3.7% |
| 2026Q2 | ₩36.1B | ₩2.9B | 8.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩3.5B | -₩5.2B | -₩900M | −150.1% | −14.2% | 406.5% |
| 2023 | ₩4.9B | -₩3B | -₩6B | −60.5% | −72.4% | 270.8% |
| 2024 | ₩11.2B | ₩1.8B | ₩3.2B | 16.0% | 6.2% | 13.3% |
| 2025 | ₩113.7B | ₩2.8B | -₩7B | 2.4% | −12.6% | 102.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annually, the company posted revenue of KRW 3.49 billion with an operating loss of KRW 5.25 billion (operating margin -150.1%) and a net loss of KRW 0.95 billion in 2022, followed by continued losses in 2023 with revenue of KRW 4.94 billion, an operating loss of KRW 2.99 billion (margin -60.5%), and a net loss of KRW 6.03 billion.
In 2024, the company turned profitable on a standalone software basis, with revenue of KRW 11.2 billion, operating profit of KRW 1.79 billion (margin 16.0%), and net income of KRW 3.25 billion.
However, after the 2025 absorption merger with DMC, consolidated revenue jumped 914% year-on-year to KRW 113.7 billion, yet results swung back to a net loss of KRW 6.74 billion (owners' net loss of KRW 7.03 billion) as results fluctuated sharply due to intangible asset impairment related to goodwill and customer relationships stemming from the merger with DMC.
Operating profit itself rose to KRW 2.76 billion but the operating margin fell to 2.4%, indicating profitability was diluted even as revenue scale expanded.
On a quarterly basis, 2025Q3 revenue of KRW 35.5 billion produced a modest operating profit of KRW 0.29 billion and owners' net income of KRW 1.15 billion, but 2025Q4 revenue of KRW 35.4 billion coincided with an operating loss of KRW 0.90 billion and a large owners' net loss of KRW 10.1 billion, a swing interpreted as tied to the timing of merger-related impairment recognition.
Subsequently, 2026Q1 revenue of KRW 33.0 billion generated operating profit of KRW 1.22 billion and owners' net income of KRW 2.16 billion, while 2026Q2 revenue of KRW 36.1 billion produced operating profit of KRW 2.95 billion and owners' net income of KRW 3.93 billion, marking two consecutive quarters of expanding operating and net profit.
The trailing four-quarter (2025Q3-2026Q2) sum of owners' net income remains a loss of KRW 2.86 billion, but on a quarterly basis a gradual profit recovery trajectory is visible following the impairment.
The connected-car software market is growing alongside expanding demand for autonomous driving, over-the-air updates and telematics, as automakers transition toward software-defined vehicles.
Within this market, DASAN DMC holds experience supplying navigation software across roughly 90 countries along with global customer references such as GM and the Geely/Volvo group, but competes against large global electronics and mapping suppliers.
In contrast, the automotive rubber parts industry is a mature sector, assessed as one where quality and technology are improving alongside domestic and overseas growth, with revenue growth and market expansion opportunities secured through overseas market entry.
However, this segment carries the typical characteristics of a parts industry, with performance tied to automaker production cycles and raw material (rubber and chemical feedstock) prices, and competes on price and quality against numerous domestic and overseas parts suppliers.
As a combined consolidated entity, the group mixes the software segment's high-margin, low-revenue structure with the parts segment's low-margin, high-revenue structure, meaning the overall margin profile is heavily influenced by the share of parts revenue.
Changes in automaker or electronics supplier ordering policies, or termination of specific customer contracts, can create relatively large volatility in the software segment's revenue.
Following the merger's completion on October 31, 2025, the company has been operating its software and hardware organizations on an integrated basis, aiming to improve cost efficiency while creating automotive electronics synergies.
In the rubber parts segment, it is preparing to expand research, development and production of eco-friendly and future-mobility parts such as high-strength EV spring pads and hydrogen fuel cell separator gaskets, with plans for expanded overseas production capacity also mentioned.
In the software segment, a telematics service platform and UI/UX planning and development contract with LG Uplus was terminated in February 2026, a result of a contract termination between the primary contractor and the ordering party further up the chain, rather than reflecting the company's own sales execution.
On the financial side, a KRW 25 billion debt guarantee for controlling shareholder DASAN Networks was decided in December 2025, covering the period from January 26, 2026 to February 26, 2027, a structure under which any credit issue at the affiliate during this window could affect DASAN DMC as well.
Controlling shareholder DASAN Networks' stake has fallen to 61.53% following a convertible bond put-option exercise, and further ownership changes remain a point to monitor.
Looking ahead, the key point to watch is whether the profit recovery trend seen in the first and second quarters of 2026 continues into the third quarter and beyond.
The trailing four-quarter sum of owners' net income shows a loss, meaning a price-to-earnings ratio based on net income cannot currently be calculated. The share price trades at a level below net asset value per share, indicating a discount to book value.
Dividends have not been paid recently, so dividend-related comparisons carry limited meaning.
Looking at the multi-year earnings pattern, the company moved from losses in 2022-2023 to profitability in 2024, then swung back to a loss in 2025 due to one-off merger-related impairment, before showing a gradual profit-recovery direction on a quarterly basis through 2026.
This earnings volatility and the ongoing business restructuring following the merger are factors that can be seen as feeding into how the market assesses the company's value.
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 2026-09-04
The combined structure of connected-car software and automotive rubber-part hardware carries potential for integrated proposals to automakers and electronics suppliers. The company has stated it expects electronics-business synergy and cost efficiency from the merger.
New product development for EV and hydrogen vehicle parts is also underway, diversifying the business portfolio.
After a large impairment was recognized in 2025Q4, operating profit and net income expanded in both 2026Q1 and 2026Q2. Revenue scale has also remained stable in the KRW 33-36 billion range. This shows a normalized earnings trajectory following the dissipation of one-off factors.
The share price trades below net asset value per share, providing an asset-value cushion. As with the 2024 return to profitability, if the software business's own earnings power recovers, the gap between asset value and earnings value could narrow. This is a factual observation, not a prediction of share price direction.
The 2025 consolidated net loss of KRW 6.74 billion was disclosed as primarily driven by intangible asset impairment related to goodwill and customer relationships from the DMC merger. Separate from the increase in revenue scale, profitability metrics actually deteriorated. The possibility of further intangible asset impairment or recurring one-off factors cannot be ruled out.
A KRW 25 billion debt guarantee for controlling shareholder DASAN Networks was decided in December 2025, representing a significant proportion of equity. Total outstanding debt guarantees have also grown to KRW 26.8 billion. If a credit issue arises at the affiliate, it could burden DASAN DMC's financial structure.
The termination of the telematics platform development contract with LG Uplus in February 2026 raised questions about software segment revenue stability.
The termination stemmed from a change further up the contracting chain between the primary contractor and ordering party, illustrating the vulnerability of a business structure with high dependence on specific customers. The possibility of similar contract changes recurring cannot be ruled out.
The KRW 25 billion debt guarantee for controlling shareholder DASAN Networks remains in effect until February 2027, with total outstanding guarantees of KRW 26.8 billion representing a significant share of equity.
If the affiliate's financial condition deteriorates, contingent liabilities from the joint guarantee could materialize. Fund flows among group affiliates also warrant ongoing monitoring.
As in 2025Q4, one-off factors such as merger-related intangible asset impairment have caused large earnings swings. If additional impairment or similar non-recurring items reappear, the predictability of quarterly results diminishes.
Because the software and parts businesses are combined in consolidated results, distinguishing segment-level performance is not straightforward.
The software segment carries revenue dependence on contracts with specific customers or ordering parties, meaning contract terminations tied to changes further up the ordering chain can immediately affect revenue. The rubber parts segment is similarly heavily influenced by orders from a small number of automakers.
This customer concentration amplifies the impact that changes in specific trading relationships can have on overall results.
The Q3 report filing period; it will be important to check whether the operating profit expansion trend seen in 2026Q1 and Q2 continues into Q3.
The expiry of the KRW 25 billion debt guarantee period for controlling shareholder DASAN Networks; whether the related debt is repaid normally or the guarantee is extended should be checked.
Whether new contracts or replacement customers are announced for the software segment following the LG Uplus contract termination should be monitored.
Progress on mass production and supply contracts for eco-friendly parts such as EV spring pads and hydrogen fuel cell gaskets, and whether overseas (China, Mexico, Uzbekistan) production expansion plans become concrete, should be checked.
DASAN DMC saw a sharp expansion in revenue scale after its 2025 merger with automotive rubber parts maker DMC, but recorded a net loss that year due to merger-related one-off impairment.
Entering 2026, both operating profit and net income expanded in Q1 and Q2, indicating a gradual normalization of results following the impairment.
However, financial and business risk factors also remain, including a KRW 25 billion debt guarantee for controlling shareholder DASAN Networks and customer contract volatility such as the LG Uplus termination.
Whether synergy is realized from combining the software and hardware businesses, and whether the quarterly profit recovery trend persists, are likely to be the key variables shaping future results.
Investors should monitor upcoming quarterly earnings releases, debt guarantee-related disclosures, and any new contract announcements.
Report written 2026-09-05 · Data as of 2026-09-04
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