KOSPIAutomotive480370

Ck Solution

₩2,185▲ 11.76%2026-10-02 close

Market Cap

₩62.2B

Turnover

₩1.6B

Volume

770,000 shares

Shares out.

32.5M

PER

—

PBR

0.8×

EPS

-₩1,064

Dividend Yield

0.00%

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

Report overview

Q2 Rebound Signal, H2 Is the Test

Battery dry-room specialist CK Solution turned quarterly operating profit positive in Q2 2026, but cumulative first-half losses remain large, leaving the durability of the recovery still to be confirmed.

1
A dry-room and clean-room engineering specialist deriving over 80% of revenue from secondary battery projects, with LG Energy Solution, Samsung SDI, and SK On as core customers.
2
FY2025 consolidated revenue of KRW 291.0 billion came with an operating loss of KRW 36.6 billion and a net loss attributable to owners of KRW 40.1 billion, marking a swing to loss in its first year as a listed company.
3
Q2 2026 revenue reached KRW 85.0 billion with operating profit of roughly KRW 0.6 billion turning positive on a quarterly basis, though net income for the same quarter remained negative.
4
The company is broadening its order pipeline through participation in multiple North American battery joint-venture plant projects in Ontario, Georgia, Ohio, Indiana, and Michigan.
5
Among the three major domestic clean-room/dry-room peers, the company posted the slowest revenue growth rate, indicating a relatively lagging pace of recovery within the industry.

Business structure

Founded in 2004, CK Solution is a refrigeration and air-conditioning engineering specialist that listed on the KOSPI in March 2025.

The company designs and builds dry rooms essential to electric-vehicle battery manufacturing, along with semiconductor/display clean rooms and bio clean rooms, with secondary battery-related work accounting for more than 80% of revenue.

Its main customers are Korea's three major battery makers, LG Energy Solution, Samsung SDI, and SK On, and it participates in multiple North American joint-venture plant projects these firms have formed with Stellantis, GM, Hyundai Motor, and Honda.

Beyond batteries, the company serves semiconductor/display clean-room work for LG Display, FED (Far East District) projects for US military facilities in Guam, and has recently expanded into data-center air-conditioning solutions.

Its core dehumidification rotor component is supplied through a cooperation arrangement with Japan's Nichias, under which the rotors are supplied preferentially to the three domestic battery makers.

Overseas subsidiaries span North America (United States, Canada), Latin America (Mexico, Brazil), Europe (Poland, Hungary), and Asia (Vietnam, Malaysia). Domestic competitors include Shinsung ENG and KENSOL, and together the three firms lead Korea's clean-room and dry-room market.

The largest shareholder is CEO Kim Yu-gon, with combined related-party ownership exceeding half of total shares.

Earnings trend

Quarterly revenue · Operating profit

₩58.5B-₩9.4B25Q2₩67B-₩9B25Q3₩86.6B-₩10.2B25Q4₩54.3B-₩16.2B26Q1₩85B₩600M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩215.3B₩17.7B2023₩295.8B₩16.5B2024₩291B-₩36.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩58.5B	-₩9.4B	−16.1%
2025Q3	₩67B	-₩9B	−13.5%
2025Q4	₩86.6B	-₩10.2B	−11.8%
2026Q1	₩54.3B	-₩16.2B	−29.8%
2026Q2	₩85B	₩600M	0.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩215.3B	₩17.7B	₩15.1B	8.2%	35.2%	218.8%
2024	₩295.8B	₩16.5B	₩19.8B	5.6%	21.7%	106.8%
2025	₩291B	-₩36.6B	-₩40.1B	−12.6%	−55.7%	193.0%

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 of KRW 291.0 billion was broadly similar to FY2024's KRW 295.8 billion, but operating profit swung to a loss of KRW 36.6 billion and net loss attributable to owners reached KRW 40.1 billion, marking a sharp deterioration in the company's first year as a listed firm.

In FY2024, revenue had grown 37.4% from FY2023's KRW 215.3 billion to KRW 295.8 billion, while operating profit slipped slightly to KRW 16.5 billion and net income rose to KRW 19.8 billion, a divergence between top-line growth and profit trends.

FY2023 saw revenue decline year-on-year, yet the company posted operating profit of KRW 17.7 billion and net income of KRW 15.1 billion, turning from loss to profit that year.

On a quarterly basis, revenue was KRW 58.5 billion in Q2 2025 with an operating loss of KRW 9.4 billion, KRW 67.0 billion in Q3 with an operating loss of KRW 9.0 billion, and KRW 86.6 billion in Q4 even as the operating loss widened to KRW 10.2 billion and the net loss expanded to KRW 15.2 billion.

In Q1 2026, revenue fell to KRW 54.3 billion and the operating loss widened further to KRW 16.2 billion, adding to the first-half loss burden.

However, Q2 2026 revenue rebounded to KRW 85.0 billion and operating profit turned positive at roughly KRW 0.6 billion, showing quarter-on-quarter improvement in operating performance.

Net loss attributable to owners for that same quarter, however, remained negative at KRW 1.2 billion, and the cumulative net loss attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 34.4 billion, indicating profit recovery has not yet been completed on an annual basis.

Full-year FY2025 operating cash flow was positive at KRW 16.3 billion despite the net loss, in contrast to FY2024's operating cash flow of negative KRW 38.7 billion.

Industry analysis

Korea's clean-room and dry-room industry is represented by three major companies: Shinsung ENG, KENSOL, and CK Solution.

According to analysis by industry publication kharn, combined first-half 2026 revenue for the three firms totaled roughly KRW 747.0 billion, up 18.3% from approximately KRW 631.7 billion a year earlier, though the intensity of growth varied sharply by company.

Shinsung ENG's first-half revenue surged 38.7%, accounting for 86% of the three firms' combined revenue increase and driving overall growth, while KENSOL grew 6.0% and CK Solution grew just 1.3%.

CK Solution and KENSOL recovered their first-quarter shortfalls in the second quarter, whereas Shinsung ENG sustained double-digit growth in both quarters, putting it ahead in recovery continuity and stability.

Kharn assessed that CK Solution's second-quarter results suggest its dry-room business, which had contracted amid the battery demand slowdown, may be passing through a trough.

However, the outlet also noted that because top-line growth has not yet translated into sufficient profit, normalization of project profitability will be a more important evaluation criterion than order volume in the second half.

Amid an ongoing cyclical slowdown in EV and battery demand often described as a chasm, the structure in which the three major battery makers' overseas expansion schedules and investment decisions determine dry-room order volumes remains intact.

Outlook

In its Q1 2026 IR briefing, the company stated it would focus management resources on real profit generation and cash-flow improvement rather than short-term top-line growth, setting profitability-focused management and fixed-cost structure improvement as core tasks.

On the order front, in December 2025 the company won a construction contract worth roughly KRW 47.3 billion from StarPlus Energy, the Samsung SDI-Stellantis joint venture in the United States, with the contract period running through December 31, 2026.

In 2026, it secured roughly KRW 29.9 billion in existing-facility utility and hook-up engineering work at LG Energy Solution's Lansing, Michigan plant, followed by an additional KRW 25.0 billion in equipment for the electrode assembly and activation line at the LG Energy Solution-Honda joint venture plant in Ohio (the L-H Battery project).

The company is also broadening its client base beyond batteries by working on the Hanwha Qcells solar module plant project in Georgia, and it has announced a partnership with LG Electronics to enter the data-center HVAC market as a new growth avenue.

The company said it has won multiple projects with semiconductor packaging and testing firm Amkor Technology Korea and global display panel makers, and indicated it would continue disclosing meaningful orders through voluntary filings.

Whether this diversification across North American battery joint ventures and non-battery segments translates into actual profit improvement is a key point to monitor through the second half.

Valuation

PER

—

PBR

0.8×

ROE

-43.9%

EPS

-₩1,064

BPS

₩1,923

Dividend per share

₩0

With net losses recorded over the trailing four quarters, profit-based metrics such as the price-to-earnings ratio remain unavailable for CK Solution.

The share price trades below net asset value per share, suggesting a discount relative to book value, though the short trading history since listing limits the ability to judge a long-term valuation band.

No dividends are being paid, leaving earnings turnaround rather than dividend appeal as the key variable for investors to watch.

The return to positive quarterly operating profit in Q2 2026 could mark a point at which earnings-based metrics become meaningful again, though a full annual swing from loss to profit has not yet been confirmed.

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

Diversified North American Battery JV Exposure

CK Solution is simultaneously involved in multiple North American battery joint-venture plant projects in Ontario (LG Energy Solution-Stellantis), Georgia (Hyundai Motor-LG Energy Solution), Indiana (Samsung SDI-Stellantis's StarPlus Energy), Ohio (LG Energy Solution-Honda), and Michigan (LG Energy Solution's Lansing plant).

This spread of customers and locations may limit the impact of any single project's delay on the overall order pipeline. Indeed, the StarPlus Energy, Lansing, and Ohio projects have all resulted in new or additional orders within the past year.

Q2 Quarterly Operating Profit Turnaround

Q2 2026 revenue rebounded to KRW 85.0 billion and operating profit turned positive at roughly KRW 0.6 billion, improving quarterly operating results. Industry publication kharn assessed this as a signal that the dry-room business, which had contracted amid the battery demand chasm, may be passing through a trough.

It also noted that ESS conversions at EV battery plants and new dry-room projects have begun translating into actual revenue.

Attempted Expansion Beyond Batteries

The company has said it won multiple projects with semiconductor packaging and testing firms and global display panel makers, and it is also working on the Hanwha Qcells solar module plant project in Georgia.

It announced a partnership with LG Electronics to enter the data-center HVAC market, signaling a move to broaden its growth base beyond batteries. Such diversification could reduce reliance on the investment cycles of the three major battery makers.

Bear factors

Slower Recovery Versus Peers

According to kharn's analysis, CK Solution's first-half 2026 revenue growth of just 1.3% lagged far behind Shinsung ENG's 38.7% and KENSOL's 6.0%. Shinsung ENG accounted for 86% of the three firms' combined revenue increase, leaving CK Solution's growth contribution limited.

In terms of recovery continuity and stability, the company was also assessed as trailing Shinsung ENG, which sustained double-digit growth in both quarters.

Continued First-Half Losses

Following an operating loss that widened to KRW 16.2 billion in Q1 2026, the cumulative first-half operating loss still totaled roughly KRW 15.6 billion despite the Q2 turnaround.

Analysts noted the key question is whether the Q2 revenue increase and profit turnaround extend into the second half rather than reflecting one-off project revenue recognition.

In Q4 2025, revenue rose even as the operating and net losses widened, showing that revenue recovery does not necessarily translate directly into profit recovery.

Battery Demand Chasm Uncertainty

Amid an ongoing cyclical slowdown in EV and battery demand often described as a chasm, CK Solution's performance remains heavily dependent on the overseas expansion schedules and investment decisions of the three major battery makers.

Since over 80% of revenue comes from secondary battery projects, any delay or reduction in investment by these battery makers could immediately affect both orders and revenue. With non-battery expansion still at an early stage, this dependence is unlikely to be significantly reduced in the near term.

Risk factors

Industry Demand Risk

Adjustments to the three major battery makers' investment schedules amid slowing EV demand directly affect CK Solution's new order intake and revenue recognition timing.

With more than 80% of revenue derived from secondary battery-related work, the business is highly exposed to changes in investment decisions by a concentrated set of customers. How much the expansion into non-battery segments such as semiconductors and data centers can offset this risk remains to be validated.

Financial and Cash Flow Risk

FY2025 operating loss reached KRW 36.6 billion and net loss KRW 40.1 billion, while the debt ratio rose to 193.0% from 106.8% in FY2024.

Operating cash flow swung from negative KRW 38.7 billion in FY2024 to positive KRW 16.3 billion in FY2025, and this degree of year-to-year volatility warrants attention when assessing the stability of any earnings recovery. Prolonged losses could weaken capital buffers or increase the need for additional funding.

Ownership Structure and Share Count Risk

With the largest shareholder and related parties holding more than half of total shares, alignment of interests with minority shareholders could remain an ongoing area of attention.

In February 2026, the company decided on a bonus share issue at a ratio of two new shares per existing share, sharply increasing total shares outstanding from roughly 10.93 million to roughly 32.48 million, alongside treasury share retirement and disposal for employee stock compensation during the same process.

Such changes in share count can affect free float and the interpretation of per-share metrics, warranting continued monitoring of disclosures.

What to watch next

Mid-November 2026
At the Q3 report filing, check whether the Q2 operating profit turnaround extends into Q3 and monitor revenue and profit trends.
December 31, 2026
This is the contract expiration date for the StarPlus Energy (Indiana) project; completion rate and any additional or negotiated follow-on orders should be checked.
Q4 2026
Whether the data-center HVAC partnership with LG Electronics converts into concrete orders or revenue should be verified.
Second half of 2026
Follow-on orders at the LG Energy Solution-Honda joint venture plant in Ohio and the Hyundai Motor-LG Energy Solution joint venture plant in Georgia, as well as progress on normalizing project profitability, should be reviewed.

Overall view

CK Solution is a refrigeration and air-conditioning engineering company centered on secondary battery dry rooms, expanding into semiconductor/display clean rooms, FED projects, and data-center HVAC.

In FY2025, despite being its first year as a listed company, it posted an operating loss of KRW 36.6 billion and a net loss of KRW 40.1 billion, reversing from the profitable position in FY2024, and the operating loss continued through Q1 2026.

However, Q2 2026 revenue rebounded to KRW 85.0 billion and quarterly operating profit turned positive, prompting interpretations that the dry-room business, which had contracted amid the battery demand chasm, may be passing through a trough.

Still, the fact that revenue growth was the slowest among the three major domestic clean-room/dry-room peers and that cumulative first-half operating losses remain large leaves questions about the strength and pace of the recovery.

The company is broadening its order pipeline through participation in numerous North American battery joint-venture plants, but the timing and magnitude of any actual profit conversion need to be confirmed through quarterly results from the second half onward.

Ahead of any investment decision, it is worth examining Q3 results, the normalization of profitability on major projects, and any changes in the investment schedules of the three major battery makers together.

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.