PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
DK&D, which operates four business lines spanning synthetic leather, nonwoven fabric and hat OEM, posted five consecutive quarters of revenue growth through Q2 2026 while its debt ratio fell sharply from 2022 levels.
FY2025 revenue reached KRW 142.6bn (+26.7% YoY) with operating profit of KRW 12.2bn, lifting operating margin back to 8.6%
Q2 2026 revenue of KRW 48.1bn and operating profit of KRW 5.2bn marked the highest quarterly figures on record
The debt ratio fell sharply from 77.3% in 2022 to 36.6% in 2025, signaling a meaningfully improved balance sheet
Four-segment portfolio (synthetic leather, nonwoven fabric, hat OEM, trading) serves diversified customers across fashion, sports, automotive and audio equipment
New growth initiatives underway include the in-house hat brand 'NextCap,' robotics materials development, and a cosmetics M&A under review
Founded in 2000 and listed on KOSDAQ in November 2018, DK&D operates across four business segments.
These include the parent company's synthetic leather business at its Ansan plant in Korea, the nonwoven fabric business run by Vietnamese subsidiary DK Vina, hat OEM/ODM manufacturing through Bangladesh-based subsidiary Dada C&C, and raw material trading via Shanghai DK&D in China.
The Korea IR Service research center estimated the 2022 revenue mix at 32% for synthetic leather, 19% for nonwoven fabric, 28% for hats and 21% for trading, while noting the hat segment accounted for 53% of operating profit and nonwoven fabric another 25%, making these two smaller-revenue segments the core profit drivers.
The company's synthetic leather clients span far beyond fashion, supplying names such as Valentino and Moncler in apparel, Renault in automotive, and Sony in audio equipment. DK&D acquired Dada C&C in 2021 to add hat OEM/ODM manufacturing to its portfolio.
In a late-2024 media interview, CEO Choi Min-seok said the company supplies fabric to luxury apparel brands including Stone Island, Moncler and Max Mara, headset fabric to audio makers such as Bose, and automotive seat fabric to Hyundai and Kia.
The company also supplies raincoat fabric to the Swedish and Dutch militaries, spreading its end markets across fashion, sports, automotive, audio and defense procurement.
In terms of competitive positioning, Taiwan's Sanfang Chemical—whose annual revenue far exceeds DK&D's—holds the top spot in the global footwear synthetic leather market, placing DK&D in a relatively smaller-scale vendor position that maintains cooperative ties with the larger player.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩34B | ₩3.4B | 9.9% |
| 2025Q3 | ₩36.3B | ₩3.2B | 8.9% |
| 2025Q4 | ₩38.8B | ₩3.8B | 9.9% |
| 2026Q1 | ₩39.7B | ₩2.2B | 5.5% |
| 2026Q2 | ₩48.1B | ₩5.2B | 10.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩110.6B | ₩11.5B | ₩7.1B | 10.4% | 11.5% | 77.3% |
| 2023 | ₩89.8B | ₩8.2B | ₩6.8B | 9.1% | 10.4% | 37.2% |
| 2024 | ₩112.5B | ₩8.5B | ₩6.9B | 7.5% | 9.4% | 39.6% |
| 2025 | ₩142.6B | ₩12.2B | ₩7.9B | 8.6% | 10.3% | 36.6% |
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
Annual revenue fell from KRW 110.6bn in 2022 to KRW 89.8bn in 2023, then expanded for two straight years to KRW 112.5bn in 2024 and KRW 142.6bn in 2025. Operating margin declined from 10.4% in 2022 to 9.1% in 2023 and 7.5% in 2024 before recovering to 8.6% in 2025.
Net income attributable to owners rose modestly from KRW 7.1bn in 2022 to KRW 6.8bn in 2023, KRW 6.9bn in 2024 and KRW 7.9bn in 2025.
On a quarterly basis, revenue climbed for five consecutive quarters—from KRW 34.0bn with KRW 3.4bn operating profit in Q2 2025, to KRW 36.3bn/KRW 3.2bn in Q3 2025, KRW 38.8bn/KRW 3.8bn in Q4 2025, KRW 39.7bn/KRW 2.2bn in Q1 2026, and KRW 48.1bn/KRW 5.2bn in Q2 2026.
In Q1 2026, owner net income actually rose slightly to KRW 2.2bn even as operating profit dipped from the prior quarter, suggesting non-operating items played a role. Q2 2026 marked the highest revenue, operating profit and owner net income (KRW 4.4bn) within this reporting window.
On the balance sheet side, the debt ratio fell sharply from 77.3% in 2022 to 37.2% in 2023 and has stayed in a stable range at 39.6% in 2024 and 36.6% in 2025, pointing to simultaneous capital buildup and debt management.
However, operating cash flow dropped notably from KRW 12.5bn in 2023 and KRW 12.3bn in 2024 to KRW 4.1bn in 2025, a divergence from the net income recovery worth noting.
As a tier-three supplier of materials to global brands, DK&D's results are closely tied to US-centric footwear and apparel retail trends as well as automakers' adoption of interior materials.
Over 90% of the hat OEM segment's revenue is exported to the United States, making it, like the footwear-related businesses, heavily exposed to US consumer spending patterns.
On the industry side, growing carbon-neutrality demands from global fashion brands are driving demand for eco-friendly synthetic leather, or vegan leather.
Volvo has committed to eliminating all leather products from its vehicles by 2030, Ford has offered an all-vegan-leather interior on certain models, and Tesla has switched to vegan leather steering wheels on newer models.
Market researcher Vantage Market Research projected the global vegan leather market would grow at a compound annual rate of 9.5% to reach $106 million by 2030.
In terms of competitive dynamics, Taiwan's Sanfang Chemical is the world's largest footwear synthetic leather maker with annual revenue of roughly KRW 1.5 trillion, and DK&D has signed a memorandum of understanding with the firm to jointly develop new nonwoven fabric products, securing technology access and market reach through the partnership.
Diversifying end markets into automotive interiors, headsets, defense procurement and its own brand can be seen as a factor reducing dependence on any single industry cycle.
In a February 2026 media interview, CEO Choi Min-seok said the company is expanding its Vietnam and Bangladesh production bases in response to a boom in the leather market. He noted the second Vietnam plant began operations in November 2025 and has been contributing to revenue growth.
The company plans to produce its own hat brand, 'NextCap,' at its second Bangladesh plant, having already begun sales on Amazon and pursuing entry into Walmart through its US office.
On the new-business front, he said DK&D is developing synthetic-leather-based smart materials in partnership with a domestic robotics company and is reviewing a cosmetics company acquisition to boost earnings.
Earlier, at its Q3 2025 earnings disclosure in November 2025, the company said expanded automotive sales and higher Bose headset volumes drove the results, and that expanding military-use fabric sales was a core strategy within the synthetic leather segment.
The company has also said it has pursued vegan leather R&D since 2023 and obtained a top-tier European eco-textile certification.
How these production expansions, the new brand launch, and prospective new-business reviews will affect revenue and profit composition over coming quarters will require confirmation through further disclosures and quarterly results.
Annual operating profit and owner net income declined through 2023-2024 before turning higher again in 2025, and quarterly results continued that improving trend through Q2 2026. On a net-asset basis, the current share price trades below the company's book equity, placing the price-to-book ratio in a sub-1x range.
The Korea IR Service research center noted in a May 2023 report that the stock's then-forecast price-to-earnings ratio stood at a historically low level, illustrating that the stock's trading band has historically been wide.
On dividends, the company has a track record of paying a year-end cash dividend, though the recent dividend yield is not notably high relative to the sector.
The concurrent improvement in balance sheet strength (falling debt ratio) alongside earnings recovery is a factor worth weighing together when assessing valuation.
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
Revenue expanded for five consecutive quarters from Q2 2025 through Q2 2026, with Q2 2026 posting the highest figures in the window at KRW 48.1bn in revenue and KRW 5.2bn in operating profit. Operating margin also improved to 8.6% in 2025 versus the 2023-2024 period.
The company has attributed the growth partly to expanding automotive and headset sales outside its core footwear-related business.
The debt ratio fell sharply from 77.3% in 2022 to 36.6% in 2025. Total equity also grew steadily from KRW 62.8bn in 2022 to KRW 81.1bn in 2025. Financial stability has improved compared with prior years.
The company maintains four business segments—synthetic leather, nonwoven fabric, hat OEM and trading—serving diversified end markets spanning fashion, sports, automotive, audio and defense.
Multiple new initiatives are underway, including the in-house 'NextCap' brand, robotics material development, and a cosmetics M&A under review. Growing automaker adoption of vegan leather amid sustainability trends is also cited as a favorable backdrop.
Operating margin declined from 10.4% in 2022 to 7.5% in 2024. Past results show profitability can waver even amid revenue growth if cost pressures intensify. Q1 2026 also saw operating profit decline from the prior quarter, underscoring quarter-to-quarter volatility.
Over 90% of hat OEM segment revenue is exported to the United States, making results sensitive to shifts in US consumer spending. Footwear- and apparel-related synthetic leather and nonwoven fabric sales are also ultimately tied to sales by US-affiliated brands.
Operating cash flow dropped sharply from KRW 12.3bn in 2024 to KRW 4.1bn in 2025. This diverges from the rise in net income and suggests possible increases in inventory or other working-capital needs.
Fluctuations in petrochemical raw material prices such as polyurethane, along with won/dollar exchange rate movements, can directly affect revenue and margins. There have been past periods when rising cost pressures compressed operating margin.
With over 90% of hat OEM revenue dependent on US exports, the company is exposed to external factors such as a US consumer slowdown or tariff policy changes. Shifts in contractual relationships with global brand customers are also a risk factor.
Initiatives such as the NextCap brand, robotics material development, and the cosmetics acquisition under review are still at an early stage, with uncertain timing and scale of earnings contribution.
The pace of execution and eventual profitability of planned overseas production capacity expansions also warrant monitoring.
The Q3 2026 quarterly report is expected around this time, offering a chance to check whether the five-quarter revenue growth streak continues and how operating margin trends.
Progress on the 'NextCap' brand's Amazon sales and Walmart entry, and whether it begins contributing to revenue, is worth confirming.
It is worth watching for further disclosures on the cosmetics company M&A the company has said it is reviewing.
The FY2026 annual report and regular shareholders' meeting will confirm finalized annual results and the dividend decision.
DK&D is a KOSDAQ-listed materials company supplying synthetic leather, nonwoven fabric and hat OEM products across four business segments to diversified customers in fashion, sports, automotive, audio equipment and defense.
After margin pressure in 2023-2024, annual revenue, operating profit and net income all recovered in 2025, and quarterly results extended a five-quarter revenue growth streak through Q2 2026, setting new highs along the way.
The debt ratio improved markedly from 77.3% in 2022 to 36.6% in 2025, though this contrasts with a sharp decline in operating cash flow in 2025.
The company is simultaneously pursuing several new initiatives—expanding Vietnam and Bangladesh production capacity, launching the in-house NextCap hat brand, developing robotics materials, and reviewing a cosmetics acquisition—though the timing of their earnings contribution remains uncertain.
Regional and customer concentration remains a lingering risk, with over 90% of hat OEM revenue dependent on US exports. Continued monitoring of upcoming quarterly disclosures and new-business updates will be needed to assess whether the growth trend and margin stability persist.
Report written 2026-09-05 · Data as of 2026-09-04
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