KOSDAQChemicals393970

Daejin Advanced Materials

₩2,825 0.00%2026-10-02 close

Market Cap

₩50.4B

Turnover

₩0

Volume

0 shares

Shares out.

17.9M

PER

—

PBR

0.7×

EPS

-₩2,155

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close

Report overview

Recovery Signs Cross Paths With Delisting Risk

Daejin Advanced Materials has shown a clear narrowing of quarterly operating and net losses since a trough in the fourth quarter of 2025, but an audit opinion disclaimer for fiscal 2025 has triggered a delisting review and a pending court injunction, making both the operating turnaround and the listing outcome simultaneous focal points for the market.

1
FY2025 consolidated revenue was KRW84.5bn (vs KRW89.0bn a year earlier) with an operating loss of KRW20.4bn, swinging from a prior-year profit, while the loss attributable to owners widened to KRW38.3bn.
2
On a quarterly basis, the operating loss peaked at KRW18.2bn in 2025Q4 before narrowing steadily to -KRW4.9bn in 2026Q1 and -KRW0.56bn in 2026Q2.
3
The FY2025 audit opinion came back as a disclaimer due to limited audit scope, triggering a delisting cause; the company appealed the Corporate Examination Committee's delisting resolution, moving the case to the KOSDAQ Market Committee.
4
After a delisting and liquidation-trading schedule was announced in late July 2026, the company filed for a court injunction to suspend the delisting decision's effect, pausing the process pending the court's ruling.
5
Underlying growth drivers persist, including exclusive-approved-supplier status with LG Energy Solution, customer diversification via Dyson, Bosch and Oakwood Group, and a North American CNT joint-venture production base under construction.

Business structure

Founded in 2019 and listed on KOSDAQ in March 2025, Daejin Advanced Materials is a secondary-battery process-materials specialist that operates twelve subsidiaries, including entities in the United States, Poland, the Philippines and Indonesia.

Its flagship product is the anti-static tray used in the battery activation process to prevent contamination and manage electrostatic and fire risk; the company holds exclusive-approved-supplier status with LG Energy Solution, also supplies Ultium Cells and other global cell makers, and the tray accounted for roughly 71% of total 2024 revenue.

It also produces PET release film used in the cell-stacking process and anti-static coating solutions built on carbon nanotube (CNT) surface-modification and dispersion technology.

Beyond battery materials, the company has broadened its portfolio into impact-absorbing safety plastics for automobiles and plastic electronic parts used in door locks, headsets and military radar, as well as home-appliance components.

Recently the customer base has diversified further through a large order from Dyson, a roughly KRW16bn appliance-parts contract with Bosch subsidiary BSH Home Appliances, and a vehicle-plastics supply agreement with Oakwood Group, which supplies Ford, GM and Hyundai Motor.

In its CNT business, the company set up a joint venture (76% Daejin, 24% Shandong Dajan Nano Materials) with China's Shandong Dajan Nano, the world's second-largest CNT maker, to build a 2,800-ton-per-year CNT conductive-additive production base in North America; Dajan Nano has supplied CNT powder and conductive additives to BYD, Tesla and CATL.

Production sites are spread across Michigan (trays, currently operating), Tennessee (CNT conductive additives, targeted for 2026 completion) and Poland (automotive parts).

Competitively, results hinge less on material differentiation and more on the capex cycles and supply-chain diversification needs of its battery-cell, automaker and appliance-maker customers.

Earnings trend

Quarterly revenue · Operating profit

₩12.3B-₩4.9B25Q2₩32.5B₩1.3B25Q3₩19.5B-₩18.2B25Q4₩26.3B-₩4.9B26Q1₩27B-₩600M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩64.6B₩1B2023₩89B₩6B2024₩84.5B-₩20.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩12.3B	-₩4.9B	−39.5%
2025Q3	₩32.5B	₩1.3B	3.9%
2025Q4	₩19.5B	-₩18.2B	−93.5%
2026Q1	₩26.3B	-₩4.9B	−18.6%
2026Q2	₩27B	-₩600M	−2.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩64.6B	₩1B	₩400M	1.5%	0.6%	119.9%
2024	₩89B	₩6B	-₩900M	6.7%	−1.4%	131.5%
2025	₩84.5B	-₩20.4B	-₩38.3B	−24.1%	−73.1%	193.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

FY2025 consolidated revenue came in at KRW84.5bn, a slight decline from KRW89.0bn a year earlier, while operating profit swung to a loss of KRW20.4bn from a KRW6.0bn profit in 2024, an operating margin of -24.1%. The net loss attributable to owners widened to KRW38.3bn, sharply larger than the KRW0.9bn loss in 2024.

Annual operating cash flow also deteriorated sharply to -KRW20.8bn from +KRW21.1bn in 2024, while the debt ratio jumped from 131.5% to 193.4% over the same period.

On a quarterly basis, revenue of KRW12.3bn, an operating loss of KRW4.9bn and a net loss of KRW10.2bn in 2025Q2 were followed by a surge to KRW32.5bn in revenue in 2025Q3, with operating profit turning positive at KRW1.3bn and net profit at KRW0.13bn — a pattern consistent with the company's own explanation that the second-quarter weakness reflected a temporary revenue-recognition delay that would normalize in the third quarter.

However, the fourth quarter saw revenue fall back to KRW19.5bn while the operating loss ballooned to KRW18.2bn and the net loss to KRW28.0bn, severely damaging full-year results.

In 2026, losses narrowed quarter by quarter — revenue of KRW26.3bn with an operating loss of KRW4.9bn and net loss of KRW4.2bn in Q1, followed by revenue of KRW27.0bn with an operating loss of KRW0.56bn and net loss of KRW0.91bn in Q2.

As a result, the trailing four-quarter (2025Q3–2026Q2) net loss attributable to owners stands at roughly KRW33.0bn. In the first half of 2025, selling, general and administrative expenses rose 24.1% year on year to KRW10.3bn on higher commission fees and R&D spending, weighing on near-term profitability.

Industry analysis

The electric-vehicle battery end market has gone through a demand-growth slowdown, or so-called 'chasm,' which was cited as a driver of order declines among major customers on a cumulative basis through the third quarter of 2025 and weighed on results.

Energy storage system (ESS) demand, however, has been expanding separately, and the company has responded with new products such as ESS-specific anti-static trays.

CNT conductive additives are valued because even small additions can raise energy density compared with conventional carbon black, and the single-wall CNT (SWCNT) segment in particular is projected to grow from USD310mn in 2025 to a much larger figure by 2031 at a compound annual growth rate of roughly 35.5%, underscoring the structural growth potential of this newer business line.

Competitively, the joint venture with Shandong Dajan Nano Materials — the world's second-largest CNT maker with a track record of supplying BYD, Tesla and CATL — serves as a channel for Daejin, a later entrant, to gain technology and mass-production experience.

The US Inflation Reduction Act's foreign entity of concern (FEOC) restrictions constrain Chinese-linked CNT supply chains, and the joint venture's ownership split (76% Daejin, 24% Shandong Dajan Nano) appears designed to work around that constraint.

In automotive and appliance components, contracts with Oakwood Group, Dyson and Bosch subsidiary BSH are helping to reduce reliance on the secondary-battery cycle.

In addition, from 2026 Korean financial authorities and the Korea Exchange have tightened delisting-related rules to accelerate the removal of distressed companies, creating a stricter review environment for small-cap KOSDAQ names with accounting or internal-control issues.

Outlook

The company aims to build a 2,800-ton-per-year CNT conductive-additive production system at its Tennessee plant within 2026, which together with the already-operating Michigan tray plant would complete a two-site North American production base.

It has also laid out a roadmap for mass-producing CNT-based primer coatings, applying them first to LFP (lithium iron phosphate) batteries before extending the technology to dry-electrode processes.

However, the ability to execute these plans will depend heavily on the outcome of the ongoing delisting-related proceedings.

After a delisting cause arose from the FY2025 audit opinion disclaimer, the company was notified of a delisting resolution by the KOSDAQ Market Corporate Examination Committee, appealed the decision, and the case has moved to the KOSDAQ Market Committee review stage.

In late July 2026, a delisting and liquidation-trading schedule was announced, but the process was paused after the company filed a court injunction to suspend the effect of the delisting decision.

In parallel, the company was reported to have raised roughly KRW12.9bn in investment in June 2026 and absorbed a subsidiary that accounted for a large share of revenue, moves aimed at shoring up financial health and internalizing operations.

Given that operating and net losses have narrowed for two consecutive quarters in 2026, whether this improvement trend continues will be the next thing to watch if continued listing is confirmed.

Valuation

PER

—

PBR

0.7×

ROE

-48.1%

EPS

-₩2,155

BPS

₩4,319

Dividend per share

—

The share price sits at a discount to net asset value, and the string of net losses through the most recent quarter makes a conventional price-to-earnings comparison difficult to construct.

Operating profit was still positive as recently as 2023-2024, so whether the recent narrowing of losses continues into an earnings recovery will likely be the key variable for any valuation assessment going forward.

Dividends have not been paid in any of the last three fiscal years, limiting the relevance of yield-based comparisons.

Most importantly, with legal proceedings over the delisting decision still unresolved, the outcome of the listing-status question itself is likely to matter more for price formation than routine financial-ratio comparisons.

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 2026-09-05

Bull factors

Customer and end-market diversification reduces EV-battery dependence

Large orders from Dyson, a roughly KRW16bn appliance-parts contract with Bosch subsidiary BSH, and a vehicle-plastics agreement with Oakwood Group, which supplies Ford, GM and Hyundai, are reducing the company's reliance on the secondary-battery industry alone.

This diversification could help spread revenue sources through the EV demand chasm. That said, the scale and durability of these new contracts' revenue contribution still need to be confirmed through future disclosures.

North American CNT production base positions the company in a structurally growing market

Through the joint venture with Shandong Dajan Nano Materials, the company is building a 2,800-ton-per-year North American CNT conductive-additive production system, in a single-wall CNT market projected to grow at roughly 35.5% annually from 2025 to 2031.

The joint venture's ownership structure is designed to work around FEOC restrictions under the US Inflation Reduction Act, which could strengthen its responsiveness to North American customers. That said, as a newer business it will take time to stabilize mass production and secure customer qualifications.

Quarter-by-quarter narrowing of losses

After peaking at KRW18.2bn in 2025Q4, the operating loss narrowed steadily to -KRW4.9bn in 2026Q1 and -KRW0.56bn in 2026Q2, while the net loss shrank from KRW28.0bn to KRW0.91bn over the same period.

This suggests the core manufacturing business's profitability has been gradually recovering, independent of the delisting issue. Whether this trend continues into subsequent quarters, however, has not yet been confirmed.

Bear factors

Audit disclaimer and delisting proceedings pose an existential risk

A disclaimer of opinion on the FY2025 audit, stemming from limited audit scope, created a delisting cause, and following the Corporate Examination Committee's delisting resolution, the process has been temporarily paused by a court injunction.

Until the KOSDAQ Market Committee issues its final decision, the listing status itself remains uncertain regardless of operating performance. The outcome of this process could have a direct and decisive impact on shareholder value.

Governance instability and litigation risk

After a CEO change in October 2025, the company disclosed that it had filed a criminal complaint against the former CEO for alleged embezzlement and breach of trust, which also became a cause for the listing-eligibility review.

The combination of management turnover and litigation has raised concerns about internal controls and the reliability of past financial statements. Additional financial or legal burdens cannot be ruled out depending on how the related litigation and reviews unfold.

Deteriorating balance sheet compounded by the EV demand chasm

The debt ratio jumped to 193.4% in 2025 from 131.5% a year earlier, and operating cash flow deteriorated to -KRW20.8bn. Combined with order declines among downstream customers tied to the EV demand chasm, this could increase the funding burden associated with expanding North American production facilities.

Measures such as raising outside investment and absorbing a subsidiary have been taken to shore up financial health, but their effectiveness will need to be confirmed in future results.

Risk factors

Delisting and trading-suspension risk

Since trading was suspended in March 2026, the case has progressed through an audit opinion disclaimer, a delisting resolution by the Corporate Examination Committee, an appeal, and a court injunction.

The KOSDAQ Market Committee's final review and the court's ruling on the injunction are the key variables that will determine whether the listing is maintained. If the process drags on, the trading suspension itself could also be prolonged.

Governance and litigation risk

A criminal complaint alleging embezzlement and breach of trust against the former CEO remains ongoing and is linked to the cause for the listing-eligibility review. Depending on the outcome of the related investigation and litigation, further review or restatement of past financial statements cannot be ruled out.

The effectiveness of internal-control improvements under the new management team also needs continued confirmation.

End-market cycle and competitive risk

Order reductions among battery-cell makers tied to the EV chasm are amplifying earnings volatility, and the CNT conductive-additive market includes both incumbent carbon-black suppliers and multiple CNT producers as competitors.

As North American production capacity expands, tariff, labor-cost and permitting risks tied to localization also persist. Delays in customer qualification and quality validation could push back the timing of revenue contribution from new businesses.

What to watch next

Timing of the court's injunction ruling (not yet fixed; check disclosures)
Whether the court grants the injunction to suspend the delisting decision's effect will determine whether liquidation trading begins or the delisting process resumes.
Date of the KOSDAQ Market Committee's deliberation (to be announced)
This final deliberation and resolution on the appeal, including whether an improvement period is granted, is the last gate determining whether the listing is maintained.
2026 third-quarter results disclosure (typically expected around November)
Investors should check whether the loss-narrowing trend seen in 2026Q1-Q2 continues into Q3, and whether any additional re-audit or restatement-related accounting issues emerge.
During the second half of 2026
The completion and start-up timing of the Tennessee CNT conductive-additive plant, along with initial yield and order intake, will show the real progress of the North American CNT business.

Overall view

Daejin Advanced Materials' financial metrics broadly deteriorated in FY2025 — revenue declined, operating and net losses widened, and the debt ratio rose — but after bottoming in 2025Q4, losses narrowed for two consecutive quarters in 2026Q1 and Q2, signaling a gradual recovery in the core manufacturing business.

The underlying growth story remains intact, anchored by exclusive-approved-supplier status with LG Energy Solution, customer diversification through Dyson, Bosch and Oakwood Group, and the build-out of a North American CNT joint-venture production base.

However, a delisting process triggered by the FY2025 audit opinion disclaimer has progressed through a Corporate Examination Committee resolution and is now subject to a court injunction, meaning the listing-status outcome itself remains the single largest source of uncertainty until the KOSDAQ Market Committee reaches a final decision.

Governance issues, including the criminal complaint against the former CEO for alleged embezzlement and breach of trust, also remain unresolved.

Assessing this stock therefore requires looking separately — and jointly — at the direction of operating performance and the outcome of the delisting-related legal and administrative proceedings. This report offers no investment opinion or price target and is provided for informational purposes only.

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.