Daedong makes agricultural machinery, centered on tractors, combines, and rice transplanters, and extends into engines, compact construction equipment, and smart mobility. More than 65% of revenue is exported, with North America especially central (about 53% of 2024 consolidated revenue, or ₩752.2 billion), so demand for small and mid-size tractors in the United States drives its results, and the company is adding self-driving tractors as a new growth axis. In May 2026 it voluntarily disclosed a corporate value-up plan proposing to expand dividends toward 20% of net profit, and it committed about ₩21.5 billion to a rights offering by its subsidiary Daedong Gear to raise its stake. The strengths worth noting are the asset discount of a 0.42x P/B and 0.14x P/S together with 2025's record revenue and a recovery in core operating profit; the offsets are that net profit has been in the red for two straight years, the debt ratio is 469%, and U.S. tariffs are the key variable that pulled first-quarter results back down.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 469.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.6%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 4.9% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.3% lower than a year earlier.
- ROE is -3.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Jun-sik 27.53% (individual)
Controlling bloc incl. related parties 33.39%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- Daedong makes agricultural machinery such as tractors, combines (rice harvesters), and rice transplanters.
- To that it adds engines and auto parts, compact construction equipment, and a smart-mobility business spanning golf carts and electric scooters.
- More than 65% of revenue comes from exports, and North America is the core of that.
- As of 2024 it earned about 53% of consolidated revenue (₩752.2 billion) in North America and ranks around third in market share in the U.S. small and mid-size tractor market.
- In other words, how many small tractors American farmers buy drives this company's results, and on top of that it is adding self-driving tractors (targeting mass production in the first half of 2026) and smart mobility as new growth axes.
- The latest close is ₩6,690 and market capitalization is ₩192.9 billion.
- The price sits below the 20-day line (₩7,427) and below the 60-day line (₩8,795).
- Trading below both the short- and mid-term moving averages, the trend is subdued.
- The RSI (an auxiliary gauge that scores the strength of gains against declines over the past 14 days on a 0-100 scale) is 31.3, a neutral level.
- The one-month change is -7.2%, the three-month change is -27.7%, and the position versus the 52-week high is -43.3%.
- Relative strength against the KOSPI is 6 (on a 1-99 scale, converted from the past year's return versus the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 95% of all stocks by strength.
- Over the past three months it has lagged the index by 45.4%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On an asset basis this is a cheap stock.
- The P/B (how many times net assets the price represents) is 0.42x, meaning it trades below even half of book net assets (₩16,818 per share).
- The P/S (how many times revenue) is also light at 0.14x relative to the scale of sales.
- The P/E (how many times one year's earnings), however, is not calculated, because the company is currently loss-making and there is no basis to measure price against earnings.
- Profitability is in a weak phase.
- Last year's ROE (how much is earned in a year on equity) was -3.5%, slightly eroding equity, and the operating margin was 2.1%.
- What stands out on the balance sheet is a high 469% debt ratio.
- Because farm machinery involves heavy installment sales and financial assets, the debt ratio structurally runs high in this industry, so the number alone does not make it dangerous, but the current ratio (liquid assets against debt due within a year) of 99.6% is tight and worth watching.
- In short, the price is clearly cheap against assets, but earnings are in a loss phase, so their recovery has to be watched alongside.
- Over five years revenue rose gently from ₩1.18 trillion to ₩1.46 trillion, ₩1.43 trillion, ₩1.42 trillion, and ₩1.48 trillion, and 2025 revenue of ₩1,484.7 billion set a company record.
- Operating profit also rose 69% to ₩31.2 billion in 2025 from ₩18.5 billion the year before, so the core earnings trend improved.
- Net profit, however, fell from profits of ₩33.6 billion and ₩38.6 billion in 2021-2022 to a ₩17.6 billion profit in 2023, then swung to -₩30.7 billion in 2024 and -₩16.8 billion in 2025, two straight years in the red.
- The loss narrowed over the year but has not yet turned positive.
- In the first quarter of 2026 it turned down again, with revenue ₩377.7 billion (-2.3%), operating profit ₩6.0 billion (-72.3%), and net profit -₩6.1 billion, read as the direct impact of U.S. tariffs on the North American business that accounts for half of revenue.
- A point to note here is that this stock is hard to measure on P/E.
- The trailing P/E on last year's confirmed results does not exist because of the loss, and with a first-quarter loss again this year it is hard to state a positive annual profit with confidence, so a forward P/E is also not presented.
- This is therefore less a phase for judging whether the P/E is cheap or expensive than one for watching how the tariff impact resolves and whether the company turns from loss to profit.
- Separately, in a corporate value-up plan filed on DART in May 2026, the company officially presented mid-term targets of revenue rising from ₩1.4 trillion to ₩3.59 trillion and ROE from -4.6% to 20% over 2025-2030.
- The plan is to grow new businesses (AI farm machinery, agricultural robots, smart mobility) alongside existing ones (tractors, combines), but it should be clearly distinguished as the company's target for 2030, not a figure for this year.
- The center of recent activity is twofold.
- First, in May 2026 the company voluntarily filed a corporate value-up plan on DART, formalizing revenue and ROE targets through 2030 along with a shareholder-return direction of gradually expanding dividends toward 20% of net profit.
- Second, its subsidiary Daedong Gear decided on a rights offering of about ₩80 billion to secure facility and working capital, and Daedong, as the largest shareholder, will commit about ₩21.5 billion to raise its stake from 36.0% to 37.74% (scheduled payment date 2026-07-28).
- In addition, there was an IR event in May 2026 and a corporate-governance report disclosure.
- Taken together, the disclosures read as a combination of expanded investment in affiliates plus shareholder returns and governance housekeeping, and it is worth noting that in the near term the rights-offering participation comes with a cash outflow.
- This stock's strength lies in asset value.
- A 0.42x P/B, below even half of net assets, and a 0.14x P/S are low even against fellow tractor maker TYM (0.59x P/B), and 2025 revenue set a company record while core operating profit also recovered.
- On top of that comes the company's own disclosed mid-term growth and shareholder-return plan.
- To view it in balance, the points to flag are clear too.
- Net profit has been in the red for two straight years, so earnings have yet to prove value; the 469% debt ratio and 99.6% current ratio leave the balance sheet tight; and U.S. tariffs on the market that accounts for half of revenue are the key variable that pulled first-quarter 2026 results back down.
- In short, on assets alone the stock clearly trades cheaply, and for that cheap price to come alive as an appeal, the U.S. tariff impact needs to resolve and earnings need to turn positive.
- Conversely, if tariffs and slowing North American demand drag on, losses may continue and the low valuation could hold for a while.
- In the end, the North American tariff path and the timing of the return to profit are the two conditions that decide whether this stock is strong or weak.
🔎 Valuation vs peers Inconclusive
The comparison is with TYM, the fellow Korean farm-machinery (tractor) maker whose business mix is closest.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| TYM | 6.39x | 0.61x | 9.49% |
The direct peer, TYM, is profitable with a 9.5% ROE and trades at 0.64x P/B with a 4.4% dividend yield, while Daedong trades at 0.47x P/B, below TYM, despite a -3.5% ROE and a loss. On the surface that is a discount, but much of it stems from the real difference of losses and a high debt ratio. The key point is that the P/E cannot be used. The trailing P/E on last year's confirmed results is not calculated because of the loss, and at an earnings inflection point the stock can only be gauged on assets (P/B). If the ROE recovery to 20% that the company disclosed (a 2030 target) materializes, the 0.47x P/B turns into an appeal, but if U.S. tariffs and losses drag on the low P/B could be justified, so it is hard to conclude at this point that the stock is cheap.
Price history Close · MA20 · MA60
The latest close is ₩6,690 and the market capitalization is ₩192.9 billion. The price sits below its 20-day moving average (₩7,427) and below its 60-day moving average (₩8,795). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.3, a neutral level. The one-month change is -7.2%, the three-month change is -27.7%, and the position relative to the 52-week high is -43.3%. Relative strength versus the KOSPI is 6 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 5% of all stocks. Over the past three months it lagged the index by 45.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -45.41% / 6M -56.48% / 12M -73.15%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.40x is below the sector median (1.44x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -3.5%, below the sector average (5.0%). The operating margin is 2.1%. The debt ratio is 469.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $950.0M | $938.2M | $984.0M | +4.88% ↑ faster |
| Operating profit | $43.3M | $12.2M | $20.7M | +69.18% ↑ faster |
| Net profit | $11.7M | -$20.4M | -$11.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $781.5M | $970.1M | $950.0M | $938.2M | $984.0M |
| Operating profit | $25.3M | $58.5M | $43.3M | $12.2M | $20.7M |
| Net profit | $22.2M | $25.6M | $11.7M | -$20.4M | -$11.2M |
| Revenue CAGR | 4-yr avg 5.93% | ||||
Revenue rose 4.9% year over year (2023 ₩1.4 trillion → 2024 ₩1.4 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 69.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.9%. The two-year revenue CAGR is 1.8%. In the most recent quarter (Q1 2026), revenue was 2.3% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
Points to watch
- Debt far exceeds equity (debt ratio 469.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.6%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-07FilingCorporate value-up plan (voluntary disclosure): targets of revenue from ₩1.4 trillion to ₩3.59 trillion, ROE from -4.6% to 20%, and P/B from 0.5x to 2x over 2025-2030, plus a policy of gradually expanding dividends toward 20% of net profit.Over the medium term it formalizes the growth and shareholder-return direction. That said, these are 2030 targets and separate from this year's results, so the near-term impact is limited. Source
- 2026-05-22FilingParticipation as largest shareholder in subsidiary Daedong Gear's rights offering (amended): acquisition amount about ₩21.5 billion, stake after acquisition rising from 36.0% to 37.74%, scheduled payment date 2026-07-28.Strengthens responsible management by supporting the affiliate's facility and working capital. In the near term it is a cash-outflow burden. Source
- 2026-04-22FilingSubsidiary Daedong Gear's decision on a paid-and-bonus offering: a rights offering of about ₩80 billion, including ₩50 billion of facility funds and ₩30 billion of operating funds, allocated to shareholders with unsubscribed shares placed via public offering.A signal of expanded facility investment at the affiliate, but two-sided since the parent's offering participation and consolidation into the financials could follow. Source
- 2026-05-15EarningsFirst-quarter 2026 report: revenue ₩377.7 billion (-2.3%), operating profit ₩6.0 billion (-72.3%), net profit -₩6.1 billion, swinging to and widening a loss.Confirms that the recovery turned down again as the U.S. tariff burden was reflected in North American revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | 1₩484.7 billion(base fundamentals.revenue) | approx. 1₩475.0 billion | Confirmed | link |
| Corporate value-up targets (revenue / ROE) | base | revenue 1.4→₩3.59 trillion, ROE -4.6%→20% | Confirmed | link |
| First-quarter 2026 net profit | -₩6.1 billion(base quarter.net_income) | DART (2026.03) | Confirmed | link |
| 2026 estimated net profit and forward P/E | — | — | Unverified | — |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-22Amended filing
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07Disclosure
- 2026-04-22Disclosure
- 2026-04-22Bonus (free) share issue
- 2026-04-07OwnershipLargest-shareholder ownership change report
- 2026-04-07OwnershipOwnership-change filing
- 2026-04-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-07OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.