[Click e-Stock] "DukSan Tecopia: Core Business Recovery and Secondary Batteries Set to Make 2026 a Landmark Year for Earnings and Share Price Rebound"

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On April 16, SK Securities analyzed that 2026 will be a landmark year for both earnings and share price rebound for DukSan Tecopia.

DukSan Tecopia, established in 2006 and listed on the KOSDAQ market in 2019, is a company specializing in IT and bio-based materials. Its main businesses include materials for semiconductors and displays (such as HCDS and OLED organic intermediates), materials for secondary batteries (electrolyte additives and finished electrolyte products), and pharmaceutical intermediates (including treatments for metabolic diseases). Its key clients include Samsung Electronics, Samsung Display, SK On, and several global pharmaceutical companies. As of 2025, its sales breakdown is projected to be 50% from semiconductors, 35% from OLED, 6% from secondary batteries, 5% from pharmaceuticals, and 4% from other sectors.

Sunjae Heo, a researcher at SK Securities, explained, "DukSan Tecopia deserves attention now because the recovery in the NAND industry-driven by increased data center investment-and customer diversification are expected to lead to stable growth in its core semiconductor and display materials business. Additionally, the full-scale operation of the North American electrolyte plant of its subsidiary, DukSan Electera, which received investments of over 200 billion won over the past three years, is expected to drive a consolidated performance turnaround in 2026."

The semiconductor and OLED divisions are expected to serve as stable cash cows. DukSan Tecopia supplies HCDS, a key precursor for semiconductor deposition processes, to Samsung Electronics' 3D NAND production line. The expansion of investments in AI data centers is driving increased demand for SSDs and NAND, and as the number of layers increases, the number of ALD process cycles rises, thereby structurally increasing HCDS consumption.

The company is currently setting new monthly sales records in the first quarter of 2026, based on its 60-70% market share of HCDS supplied to Samsung Electronics, and is expected to achieve record annual sales as well. The OLED division is also projected to experience stable growth as it recovers market share among existing clients.

Researcher Heo explained, "The expansion of investment in AI data centers leads to increased demand for SSD and NAND, and as the number of layers increases, the number of ALD process cycles rises, structurally increasing the use of HCDS."

The secondary battery business is expected to enter a full-fledged growth trajectory. This business consists of electrolyte additives and finished electrolyte products produced by its subsidiary, DukSan Electera. In particular, this year marks the first full-scale operation of DukSan Electera's Tennessee plant in North America. The recovery of the energy storage system (ESS) industry, expansion of local production in North America due to the IRA, and the acquisition of new global automotive and cell manufacturer clients (including companies L, S, and A) are expected to jointly drive an increase in initial operating rates.

Researcher Heo stated, "The company's secondary battery sales are projected to surge from 6.3 billion won in 2025 to 127.1 billion won in 2026 and 263.2 billion won in 2027. The share of ESS sales is expected to rise from 40% in 2025 to over 70% in 2026." He added, "On the profit side, after turning profitable in 2026, full-scale profit generation is expected to begin in 2027."

The bio business is also expected to become a medium- to long-term growth driver. DukSan Tecopia supplies pharmaceutical intermediates for global CDMO clients, including those for diabetes, MASH, and anticancer drugs, based on peptide synthesis technology derived from OLED organic synthesis. The company is expected to begin full-scale mass production after completion of its second plant in the fourth quarter of this year and obtaining K-GMP certification in the first half of 2027. Combined production capacity for plants 1 and 2 is estimated at approximately 160 billion won, and with about 10 pipelines and multiple global clients, the company is projected to reach break-even point in 2026 and contribute to profits in earnest starting in 2027.

Heo concluded, "With the growth of the core business and the full-scale launch of the new secondary battery business centered on DukSan Electera, 2026 will be a landmark year for both earnings and share price rebound."

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