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
Ilseung is a shipbuilding equipment specialist operating four business segments—environmental equipment, marine LNG, pipe spool, and materials—and has shown a clear improvement in operating margin since 2022.
The pipe spool segment continued to account for the largest share of revenue, at 57.4% in the first quarter of 2026.
Operating margin rose from 5.0% in 2022 to 21.4% in 2025, and further to 36.6% in the second quarter of 2026.
The debt ratio declined from 65.4% in 2022 to 42.1% in 2025, reflecting an improving balance sheet.
Order backlog stood at KRW 28.376 billion as of the end of the first quarter of 2026, according to a disclosure dated May 14, 2026.
Samsung Securities noted in a July 2026 report that Korea's share of the large LNG carrier market had recovered to around 65-69%.
Ilseung is a shipbuilding equipment specialist operating four business segments: environmental equipment, marine LNG, pipe spool, and materials. The environmental equipment segment produces marine sewage treatment units, evaporators, and fuel oil purifiers.
The marine LNG segment manufactures outfitting materials and LNG re-gasification units, while the pipe spool segment produces carbon steel and stainless steel pipes. The materials segment sells protection film, among other products.
The company also operates the environmental equipment and pipe spool businesses jointly through its subsidiary Dongbang Sunki.
In terms of revenue mix, the pipe spool segment has been the largest, accounting for 62.3% in the first quarter of 2025, while the environmental equipment business, with roughly 30 years of operating history, is reported to hold a 91% domestic and 26% global market share.
In the first quarter of 2026, pipe spool revenue was KRW 6.938 billion (57.4%), environmental equipment KRW 3.825 billion (31.7%), marine LNG KRW 0.681 billion (5.6%), and materials KRW 0.634 billion (5.3%).
The company was founded in 1999 and listed on KOSDAQ in 2021 via a SPAC merger, and at the time of listing was introduced as a subsidiary of Sejin Heavy Industries.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩11.6B | ₩1.3B | 11.1% |
| 2025Q3 | ₩13.8B | ₩3.3B | 24.2% |
| 2025Q4 | ₩15.3B | ₩5.5B | 36.3% |
| 2026Q1 | ₩12.1B | ₩2.3B | 19.1% |
| 2026Q2 | ₩16.2B | ₩5.9B | 36.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩65B | ₩3.2B | ₩2.4B | 5.0% | 7.2% | 65.4% |
| 2023 | ₩53B | ₩5.3B | ₩3.8B | 10.0% | 10.1% | 47.0% |
| 2024 | ₩51.8B | ₩6.9B | ₩1.7B | 13.3% | 4.6% | 50.6% |
| 2025 | ₩50.7B | ₩10.9B | ₩7.5B | 21.4% | 16.3% | 42.1% |
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 gradually declined from KRW 65.0 billion in 2022 to KRW 53.0 billion in 2023, KRW 51.8 billion in 2024, and KRW 50.7 billion in 2025. Operating profit, however, expanded from KRW 3.2 billion in 2022 to KRW 10.9 billion in 2025, with the operating margin rising from 5.0% to 21.4% over the same period.
Net income attributable to owners fluctuated between KRW 2.4 billion in 2022, KRW 3.8 billion in 2023, and KRW 1.7 billion in 2024, before jumping to KRW 7.5 billion in 2025.
On a quarterly basis, revenue and operating profit improved from KRW 11.6 billion and KRW 1.3 billion (11.1% margin) in the second quarter of 2025 to KRW 13.8 billion and KRW 3.3 billion (24.2%) in the third quarter.
The fourth quarter of 2025 marked the strongest quarter on record, with revenue of KRW 15.3 billion, operating profit of KRW 5.5 billion (36.2% margin), and owner net income of KRW 4.6 billion.
The first quarter of 2026 softened somewhat to revenue of KRW 12.1 billion and operating profit of KRW 2.3 billion (19.1% margin), though owner net income held at KRW 2.5 billion.
The second quarter of 2026 rebounded to revenue of KRW 16.2 billion, operating profit of KRW 5.9 billion (36.6% margin), and owner net income of KRW 4.5 billion.
Operating cash flow turned from a deficit of KRW 1.7 billion in 2022 to surpluses of KRW 12.5 billion in 2023, KRW 9.7 billion in 2024, and KRW 6.7 billion in 2025. The debt ratio fell from 65.4% in 2022 to 42.1% in 2025, indicating improving financial stability.
South Korea's shipbuilding industry is seen as benefiting from continued order strength centered on high-value vessel types such as LNG carriers and defense-related ships.
Samsung Securities noted in a July 2026 report that Korea's share of the large LNG carrier market had recovered to around 65% on a first-half basis, with the order-backlog-based share also at roughly 69%.
That said, newbuilding price trends and order volume variability can cause equipment suppliers' results to fluctuate as well. A longer-term factor to watch is Japan's plan to resume LNG carrier construction around 2035 after halting it since 2019, alongside requests for technical cooperation from Korean shipbuilders.
Currently, Korea holds roughly 70% of the global LNG carrier market and China about 30%, and industry observers believe Japan's return is unlikely to threaten Korea's position in the near term.
The shipbuilding equipment segment that Ilseung operates in is expected to see expanding demand for environmental equipment and LNG re-gasification units as IMO carbon emission regulations tighten and LNG demand grows.
The company's leading position in the domestic environmental equipment market is cited as a favorable condition should this upstream demand expand.
The company disclosed an order backlog of KRW 28.376 billion in its first-quarter 2026 earnings release, dated May 14, 2026. This is relatively modest compared with its annual revenue scale (KRW 50.7 billion in 2025), meaning the pace of new order intake will likely determine future revenue visibility.
The company stated it is developing new environmental products and equipment through its technology research institute in response to IMO environmental regulations. Demand for LNG re-gasification equipment and LNG power vessel conversions is expected to continue growing alongside rising LNG demand.
Results through the second quarter of 2026 show operating margin climbing to the mid-30% range on a quarterly basis, indicating the profit improvement trend has continued. However, results from the third quarter of 2026 onward, along with any new order disclosures, will be key evidence for whether this trend persists.
Average trading multiples over the past five years are reported to have reached roughly the mid-50s in terms of price-to-earnings and around 3 times in terms of price-to-book. Compared with that historical average, multiples formed after the recent expansion in profit have tended to sit at a lower level.
The price-to-book ratio has stayed below its historical average, reflecting the steady growth in owner equity. There has been no recorded dividend payment based on recent disclosures, placing the stock outside a dividend-yield framework for now.
The direction of earnings has shown a clear recovery from the near-breakeven levels seen around 2022, though revenue itself has remained flat, warranting attention to the quality and durability of the profit improvement.
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
Operating margin rose clearly from 5.0% in 2022 to 21.4% in 2025, and further to 36.6% in the second quarter of 2026. Even as revenue has stagnated, this trend appears to be driven by improved cost structure and a higher mix of higher-margin products. Owner net income also increased sharply from KRW 1.7 billion in 2024 to KRW 7.5 billion in 2025.
The debt ratio declined from 65.4% in 2022 to 42.1% in 2025, and operating cash flow has remained positive for three consecutive years since 2023. This represents an improvement in cash generation compared with the operating cash flow deficit recorded in 2022.
Samsung Securities noted in a July 2026 report that Korea's share of the large LNG carrier market had recovered to around 65-69%. Ilseung, with its marine LNG and environmental equipment segments, is exposed to this upstream trend, and demand tied to IMO environmental regulation compliance is also expected to grow.
Annual revenue actually declined from KRW 65.0 billion in 2022 to KRW 50.7 billion in 2025. Since margin improvement appears to stem more from cost and mix optimization than from revenue growth, some observers note that sustaining the profit improvement may be difficult without an expansion of the revenue base itself.
The order backlog stood at KRW 28.376 billion as of the end of the first quarter of 2026, which is modest relative to annual revenue scale, according to a disclosure dated May 14, 2026. Without subsequent new order disclosures, future revenue visibility could be constrained.
As a small-cap stock, trading liquidity can be relatively limited, and there is no recorded dividend payment based on recent disclosures. These characteristics are factors worth considering from a long-term holding perspective.
Shipbuilding equipment revenue tends to lag shipyards' order and construction schedules, so a slowdown in global vessel orders could affect Ilseung's orders and revenue with a time lag. Raw material price movements (carbon steel, stainless steel, etc.) also directly affect costs in the pipe spool segment.
Japan has set a plan to resume LNG carrier construction around 2035 after halting it since 2019, and has requested technical cooperation from the Korean shipbuilding industry.
Over the long term, the LNG-related supply chain structure could shift, and low-cost competition from Chinese equipment makers remains an ongoing variable.
With the pipe spool segment accounting for more than half of revenue, dependence on a single segment is relatively high.
Since subsidiary Dongbang Sunki also operates in the environmental equipment and pipe spool businesses, the degree of overlap and performance linkage between the two entities is also worth monitoring.
A point to check the third-quarter 2026 revenue and operating margin trend, along with any change in the pipe spool segment's revenue share.
Worth checking whether the full-year operating margin holds in the 20% range and whether the order backlog has grown.
New order disclosures, such as single sales or supply contracts, should be monitored continuously as an indicator of whether the current order backlog (KRW 28.3 billion as of May 14, 2026) is recovering.
Progress on Japan's LNG carrier construction revival roadmap and any technical cooperation with Korean shipbuilders should be checked, as this could influence the competitive landscape for domestic equipment suppliers over the medium to long term.
Ilseung is a shipbuilding equipment specialist operating four business segments—environmental equipment, marine LNG, pipe spool, and materials—and has shown operating margin improve from 5.0% in 2022 to 21.4% in 2025.
This trend has continued into 2026, with operating margins of 19.1% in the first quarter and 36.6% in the second quarter.
On the other hand, annual revenue declined from KRW 65.0 billion in 2022 to KRW 50.7 billion in 2025, and the order backlog stood at around KRW 28.3 billion at the end of the first quarter of 2026, meaning the durability of revenue growth still requires further confirmation.
A declining debt ratio and stable operating cash flow can be interpreted as positive signals from a financial standpoint.
The upstream shipbuilding industry is viewed as experiencing an order recovery centered on LNG carriers, while medium-to-long-term competitive variables such as Japan's LNG carrier construction revival plan also exist.
Investors will want to continue monitoring upcoming quarterly results and new order disclosures to assess whether the current profit improvement translates into sustained revenue growth.
Report written 2026-09-05 · Data as of 2026-09-04
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