PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩20 per share · Prices as of the 2026-10-02 close
Export growth in the core automotive powertrain parts business combined with the newly consolidated defense subsidiary has driven five consecutive quarters of improving revenue and profit from late 2025 through mid-2026.
Q2 2026 revenue reached KRW 36.5 billion and operating profit KRW 3.7 billion, marking five straight quarters of sequential growth since Q2 2025.
In July 2025 the company acquired defense precision-parts maker Shinsegae Jeonggong for KRW 13 billion, renaming it DYC Dynamics to enter the defense sector.
In July 2026, LIG Defense & Aerospace (formerly LIG Nex1) invested KRW 2 billion via a third-party share allotment, becoming an indirect shareholder.
Net profit fell to roughly KRW 0.6 billion in 2024 before recovering to KRW 3.7 billion in 2025, with the trailing four quarters (Q3 2025-Q2 2026) totaling about KRW 7.4 billion in owner net profit.
The company recently outlined plans to expand its precision machining business into robotics, aerospace, and data centers beyond automotive parts.
DYC was founded in 2000 and listed on KOSDAQ in 2021 through a SPAC merger, specializing in precision-machined automotive powertrain parts. Its core products—shafts, flanges, pinions, diff cases, and yokes—are supplied to global automakers including Mercedes-Benz, BMW, Audi, Porsche, Stellantis, and GM.
As of Q1 2026 the export ratio reached 88%, reflecting heavy reliance on overseas sales. In response to the shift toward electrified vehicles, the company has expanded into EV and HEV components such as EV shafts for the Mercedes-Benz EQC and flanges for the BMW X3 and X5.
In July 2025 the company acquired 100% of defense precision-parts maker Shinsegae Jeonggong for KRW 13 billion and renamed it DYC Dynamics in August 2025, marking its formal entry into the defense industry.
DYC Dynamics has supplied fuze components for 155mm shells used in K9 self-propelled howitzers and precision parts for guided-weapon systems such as Cheongung-II and Hyungung to clients including Hanwha Aerospace and Poongsan FNS.
In July 2026, LIG Defense & Aerospace (formerly LIG Nex1) invested KRW 2 billion through a third-party share allotment, becoming an indirect shareholder of DYC Dynamics, which has raised the possibility of elevation to tier-1 vendor status for LIG D&A's Cheongung-II, Hyungung, and Bigung production lines.
More recently, the company has announced plans to leverage its precision machining capabilities built in defense to expand into robotics, aerospace, and data-center components.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩25.8B | ₩500M | 1.8% |
| 2025Q3 | ₩28.5B | ₩700M | 2.5% |
| 2025Q4 | ₩30.7B | ₩1.5B | 4.9% |
| 2026Q1 | ₩33.2B | ₩2.6B | 7.7% |
| 2026Q2 | ₩36.5B | ₩3.7B | 10.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩120.7B | ₩9.6B | ₩4.3B | 7.9% | 9.2% | 153.9% |
| 2023 | ₩122.4B | ₩9.1B | ₩4.4B | 7.5% | 8.6% | 109.3% |
| 2024 | ₩100.1B | ₩4.9B | ₩600M | 4.9% | 1.2% | 103.6% |
| 2025 | ₩111B | ₩5.1B | ₩3.7B | 4.6% | 6.8% | 143.6% |
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
On an annual basis, revenue was KRW 120.7 billion with operating profit of KRW 9.6 billion (7.9% margin) in 2022, and KRW 122.4 billion with KRW 9.1 billion operating profit (7.5% margin) in 2023—both showing stable profitability.
In 2024, revenue fell to KRW 100.1 billion, the operating margin compressed to 4.9%, and owner net profit collapsed to roughly KRW 0.6 billion. In 2025, revenue recovered to KRW 111.0 billion with a similar 4.6% operating margin, but owner net profit rebounded sharply to KRW 3.7 billion.
Quarterly, Q2 2025 revenue was KRW 25.8 billion with operating profit of KRW 0.47 billion (1.8% margin) and an owner net loss of KRW 0.2 billion, before improving to KRW 28.5 billion revenue, KRW 0.70 billion operating profit (2.5%), and KRW 0.88 billion net profit in Q3, and KRW 30.7 billion revenue, KRW 1.5 billion operating profit (4.9%), and KRW 0.85 billion net profit in Q4.
Momentum continued into 2026 with Q1 revenue of KRW 33.2 billion, operating profit of KRW 2.56 billion (7.7%), and net profit of KRW 2.65 billion, followed by Q2 revenue of KRW 36.5 billion, operating profit of KRW 3.73 billion (10.2%), and net profit of KRW 3.03 billion—marking five consecutive quarters of simultaneous revenue and margin expansion.
This improvement reflects both increased sales of powertrain parts to global automakers and the consolidation effect of the newly acquired defense subsidiary, with the operating margin's rise from 1.8% in Q2 2025 to 10.2% in Q2 2026 across five straight quarters standing out.
The trailing four-quarter (Q3 2025-Q2 2026) sum of owner net profit reached approximately KRW 7.4 billion, more than ten times the full-year 2024 net profit.
The global auto market continues its shift from internal combustion engines to EV and hybrid powertrains, and the company recently stated that the eco-friendly vehicle market has entered a renewed growth phase, expecting related powertrain parts demand to expand.
Domestically, the defense industry has been growing on the back of overseas exports of key weapons systems such as the K9 self-propelled howitzer, Cheongung-II, and Hyungung, with DYC Dynamics participating as a partner of major domestic defense firms including Hanwha Aerospace and Poongsan FNS.
LIG Defense & Aerospace's equity investment is interpreted as a signal that raises the possibility of entry into the domestic guided-weapons value chain.
The company views the growing miniaturization and structural complexity of components in emerging industries such as robotics, aerospace, and data centers as increasing the importance of high-precision machining technology, and notes rising related inquiries.
However, DYC remains smaller in scale compared to major tier-1 suppliers in both the automotive and defense parts markets, and its expansion into new industries is still at an early stage with limited revenue contribution so far.
The automotive parts business, given its high export share, remains sensitive to currency fluctuations and shifts in global automakers' production plans.
In its August 2026 earnings announcement, the company stated it expects growth momentum to continue in the second half. In the core business, it is negotiating new parts supply with global automakers and conducting sales activities to expand applied models with existing customers and win new vehicle orders.
Since March, mass production of ten types of shafts applied to BMW vehicles has ramped up, generating new revenue.
On the defense side, the company said it is pursuing new projects within the year in response to growing global demand for guided weapons, and DYC Dynamics recorded first-half revenue of KRW 5 billion, contributing to consolidated results.
For new markets such as robotics, aerospace, and data centers, no specific orders or revenue plans have yet been disclosed, with the company offering only qualitative comments about rising inquiries.
The company also noted that its solar business has begun generating revenue, showing early signs of portfolio diversification.
Given that profitability has swung from loss to profit and continued improving over several quarters, market valuation judgments in this name appear especially sensitive to the pace of that recovery.
The company's five-year average price-to-earnings ratio has been reported at around 17.9x and its price-to-book ratio at around 0.78x, with the multiples currently applied sitting below those long-term averages. In terms of book value, the shares also appear to trade at a discount to net assets.
Dividend policy remains conservative relative to the scale of earnings, suggesting room for expanded shareholder returns going forward.
However, since the recent earnings improvement is intertwined with the inorganic factor of the defense subsidiary consolidation, upcoming quarterly results are likely to be the key variable determining whether this valuation gap narrows or persists.
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
The operating margin rose for five consecutive quarters, from 1.8% in Q2 2025 to 10.2% in Q2 2026, driven simultaneously by expanded powertrain parts sales to automakers and the consolidation of the defense subsidiary. Revenue also grew steadily from KRW 25.8 billion to KRW 36.5 billion over the same period.
After entering the defense industry via the July 2025 acquisition of Shinsegae Jeonggong, LIG Defense & Aerospace made an equity investment through a third-party share allotment in July 2026, becoming an indirect shareholder.
This has raised the possibility of elevation to tier-1 vendor status for LIG D&A's production of Cheongung-II, Hyungung, and Bigung systems. The continued strategic investment from a major domestic defense firm is a notable reference point for business validation.
The company recently outlined plans to expand into precision components for robotics, aerospace, and data centers, leveraging DYC Dynamics' 5-axis machining centers, wire EDM equipment, and reverse-engineering and prototyping capabilities. The company said related inquiries have been increasing.
Analysis suggests the sharp 2024 drop in owner net profit to roughly KRW 0.6 billion stemmed partly from one-off costs and early-stage investment in new businesses.
The company also posted a net loss in Q2 2025, so whether the recent profit improvement can continue without such volatility factors needs to be confirmed through upcoming quarterly results.
The Shinsegae Jeonggong acquisition amounted to 12.59% of total assets and 25.62% of equity, and the 2025 debt ratio rose to 143.6% from 103.6% in 2024.
Analysis has also noted the need to monitor the funding structure, including the use of a third-party share allotment for follow-on investment in the defense subsidiary.
DYC Dynamics' first-half revenue of KRW 5 billion still represents a small portion of total sales, and the robotics, aerospace, and data-center businesses remain at an early inquiry stage without concrete orders or revenue plans. It may take time before these new businesses contribute meaningfully to earnings.
With exports accounting for 88% of sales, the company is highly exposed to overseas revenue, meaning a stronger won or changes in global automakers' production plans could directly affect results. Revenue concentration in a small number of major clients such as Stellantis and BMW is also a risk factor.
The 2025 debt ratio rose to 143.6% from 103.6% the prior year, and with large-scale acquisitions and follow-on capital raises continuing, the funding structure warrants ongoing monitoring. Further business expansion could potentially lead to additional borrowing or equity dilution.
New business areas such as defense, robotics, aerospace, and data centers involve high entry barriers and rigorous qualification processes, meaning additional time and investment may be required before orders and mass production materialize. By the company's own account, these remain at an early stage without concrete order plans disclosed.
Check whether Q3 2026 earnings are disclosed and whether the five-quarter streak of revenue and margin improvement continues.
Watch for concrete disclosure of the new defense project the company said it is pursuing within the year.
Monitor disclosures and news for whether the collaboration with LIG Defense & Aerospace translates into actual tier-1 vendor status or new orders.
Check whether inquiries related to robotics, aerospace, and data centers convert into actual orders or revenue, alongside changes in DYC Dynamics' share of total sales.
Check the financial statements to see whether the debt ratio, which rose to 143.6% in 2025, and cash flow trends stabilize.
DYC is in an expansion phase, building on its stable core business of automotive powertrain parts while adding a defense subsidiary and pursuing new industries such as robotics, aerospace, and data centers.
Following a sharp drop in net profit in 2024, the company showed a clear recovery trend with five consecutive quarters of joint revenue and operating-margin improvement from Q3 2025 through Q2 2026.
LIG Defense & Aerospace's equity investment is interpreted as an event that raises the possibility of entry into the defense value chain, but most new businesses remain at an early stage, and the debt ratio has risen due to large-scale acquisitions and capital raises—factors worth watching alongside the growth story.
Valuation multiples currently sit below the company's long-term historical averages, but since the recent earnings improvement is intertwined with the inorganic factor of the defense subsidiary's consolidation, the sustainability of upcoming quarterly results will be a key point to watch.
Investors may find it useful to track Q3 earnings, progress on the new defense project, and concrete order wins in the new business areas.
Report written 2026-09-05 · Data as of 2026-09-04
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