Daehan Flour Mills actually earns money in three places, the core being B2B flour that mills imported wheat and supplies it to instant-noodle and confectionery makers, together with Gompyo household flour and premix (about two-thirds), joined by pet and feed (about 18%) and coffee and bakery, with affiliate stake values also mattering alongside. In April a 10-for-1 stock split increased the number of shares outstanding, and in May the Fair Trade Commission imposed a penalty of about ₩179.27 billion (17.76% of shareholders' equity) as a sanction for B2B flour price-fixing; the company said it would respond after review and signaled a value-up plan disclosure during Q2. The points worth watching now: the Gompyo brand and oligopoly position, low debt (52%), a P/B of 0.18x, a high dividend, and the flagged value-up plan are strengths, while the penalty, roughly on par with the market cap, is a variable that would dent net assets and profit if confirmed, so it should be viewed together with affiliate results.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 0.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.9% lower than a year earlier.
- ROE is -2.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.5%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2023-12-31
Largest shareholder D&B Company 27.82% (corporate)
Controlling bloc incl. related parties 39.58%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Daehan Flour Mills actually earns money in three main places.
- The first and core is the flour (wheat flour) business, where B2B flour milled from imported wheat and supplied to instant-noodle, noodle, and baking and confectionery makers, along with 'Gompyo'-brand household flour and premix (frying and pancake mixes), account for about two-thirds of revenue.
- The second is the pet and feed business (about 18%), handled by the affiliates 'Woriwa' (pet) and 'Daehan Feed' (compound feed).
- The remaining roughly 15% is coffee and beverages, bakery, Mexican food, and the like.
- Through 'Daehan Silo,' which handles grain unloading and port storage, it is linked in a single line from raw-material import through storage, manufacturing, and distribution.
- So in assessing the company's value, not only the operating profit of the core business but also the value of affiliate stakes matters together.
- The latest close is ₩11,020 and the market cap is ₩186.2 billion.
- The price sits below its 20-day line (₩11,268) and below its 60-day line (₩66,611).
- Being under both the short- and mid-term moving averages, the trend is on the depressed side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 9.8, close to depressed territory.
- The price is down 4.3% over one month and 92.2% over three months, and stands 93.5% below its 52-week high.
- Relative strength versus the KOSPI is 1 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 100% of all stocks by strength.
- Over the past three months it trailed the index by 93.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- (Note: the sharp three-month move reflects the 10-for-1 stock split, a technical discontinuity rather than a price collapse.)
- This is a stock where 'clearly cheap against assets' reads first.
- The P/B (how many times the book net assets the price represents) is 0.18x, far lower than the same food-products peer set (0.53-0.71x).
- With shareholders' equity of about ₩1,009.2 billion and book value per share (BPS) of about ₩59,600, it trades at roughly one-fifth the value of its book net assets.
- The debt ratio (debt against equity) is low at about 52% and the current ratio is 153%, so financial stability itself is sound.
- In 2025 operating profit was positive at about ₩62.3 billion, but net profit was a loss of about -₩25.3 billion.
- This was not because the core business collapsed but because non-operating items such as equity-method gains and losses reflecting affiliate results swung sharply (which is why no P/E based on last year's earnings can be computed).
- The important point here is that an empty trailing (last year's confirmed earnings) metric does not mean 'expensive' at all.
- As long as the core business stays profitable, the fact of being undervalued against assets holds.
- The top line is close to stagnant.
- Revenue was almost flat over the past three years (2023-2025) at ₩1,441.5 billion, ₩1,374.7 billion, and ₩1,375.2 billion, and Q1 2026 revenue was also down 1.9% from the same period a year earlier.
- The core milling business steadily turns a profit, so revenue and earnings do not swing much, but in exchange it is a mature industry that is hard to grow explosively.
- This company's profit therefore moves more with affiliate equity-method gains and losses than with the core business.
- In Q1 2026 operating profit fell year on year, but net profit was positive at about ₩7.35 billion.
- That said, the very direction of this year's net profit could be heavily swayed by the accounting timing and amount of the price-fixing penalty discussed later, so it is hard to pin down this year's expected earnings (forward) as a single number.
- Rather than forcing a figure, it is more accurate to view it as 'the core business is stably profitable, while net profit hinges on the penalty variable.'
- Recent disclosures have three centers of gravity.
- First, in April 2026 a 10-for-1 stock split increased the number of shares outstanding from 1.69 million to 16.9 million (new shares relisted on May 18).
- Being a move to boost liquidity, the 'plunge' on the chart is an optical illusion.
- Second, and most important, on May 20, 2026 the Fair Trade Commission disclosed that, in sanctioning seven flour millers for price and volume collusion in B2B flour, it imposed a penalty of about ₩179.27 billion (17.76% of shareholders' equity) on Daehan Flour Mills.
- It is not yet finalized, and the company said it would respond after reviewing the decision.
- Third, the company falls under 'high-dividend company' status under the Special Tax Treatment Control Act and signaled that it would formally disclose a 'corporate value-up plan' during Q2 2026.
- In short, a large uncertainty (the penalty) and a signal of stronger shareholder returns (value-up and high dividend) are proceeding at the same time.
- Starting with the strengths, they are clear.
- It has the strong consumer brand Gompyo, a B2B market oligopoly (about 88% combined share among the seven firms), low debt (52%), and thick net assets, and above all trades cheapest among the food-products peer set at a P/B of 0.18x.
- The dividend was raised from ₩3,500 to ₩4,000 per share, and with high-dividend-company status and a flagged value-up plan, it is a stock with distinct appeal on the asset and dividend side.
- The point to be careful about is the roughly ₩179.27 billion price-fixing penalty.
- On a scale roughly on par with the market cap, if finalized and paid it would deal a considerable blow to net assets and profit.
- Even so, subtracting this entire amount from net assets would leave the P/B at about 0.24x, still lower than the peer set, which is worth noting alongside.
- In sum, this is a stock where 'cheap against net assets, backed by dividends and value-up' works strongly, while volatility rises around the two variables of 'whether the penalty is finalized and affiliate results.' Depending on how one views the penalty risk, the same low P/B can read either as a larger margin of safety or as an uncertainty that stays unresolved for a while.
🔎 Valuation vs peers Inconclusive
We use, as the peer set, domestic listed food and grain-processing companies close in business character; but because Daehan Flour Mills carries a large weight of affiliate stakes, a net-asset-value (NAV) view is more fitting than a simple P/E or P/B comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Nongshim | 12.50x | 0.75x | 6.01% |
| Ottogi | 19.19x | 0.64x | 3.34% |
| Daesang | — | 0.57x | -28.41% |
On the surface, a P/B of 0.2x is the lowest among the peer set of Nongshim (0.78), Ottogi (0.62), and Daesang (0.58), making it look 'extremely undervalued.' But there are two limitations. First, 2025 net profit was a loss due to non-operating (equity-method and similar) factors, so a trailing P/E does not even hold and an earnings-based comparison is impossible. Second, and decisively, a price-fixing penalty of about ₩179.27 billion is pending unfinalized, posing a risk that part of the book net assets could be eroded. Even so, subtracting the entire penalty (about ₩179.3 billion) from net assets would leave the P/B at about 0.24x, still lower than the peer set. In other words, the fact of being 'cheap' holds even under the worst-case scenario, but with large uncertainty over whether the penalty is finalized and over affiliate results, at present it is more appropriate to leave it inconclusive than to conclude undervalued or fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩11,020 and the market capitalization is ₩186.2 billion. The price sits below its 20-day moving average (₩11,268) and below its 60-day moving average (₩66,611). 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 9.8, near oversold territory. The one-month change is -4.3%, the three-month change is -92.2%, and the position relative to the 52-week high is -93.5%. Relative strength versus the KOSPI is 1 (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 1% of all stocks. Over the past three months it lagged the index by 93.8%. 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 -93.80% / 6M -95.22% / 12M -96.96%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.18x is below the sector median (0.51x).
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 -2.5%, below the sector average (4.0%). The operating margin is 4.5%. The debt ratio is 52.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $955.4M | $911.1M | $911.4M | +0.03% ↑ faster |
| Operating profit | $36.4M | $47.9M | $41.3M | -13.90% ↓ slower |
| Net profit | $53.8M | $32.3M | -$16.7M | -151.83% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $736.6M | $906.8M | $955.4M | $911.1M | $911.4M |
| Operating profit | $16.5M | $28.7M | $36.4M | $47.9M | $41.3M |
| Net profit | $57.9M | $27.3M | $53.8M | $32.3M | -$16.7M |
| Revenue CAGR | 4-yr avg 5.47% | ||||
Revenue rose 0.0% year over year (2023 ₩1.4 trillion → 2024 ₩1.4 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 13.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.5%. The two-year revenue CAGR is -2.3%. In the most recent quarter (Q1 2026), revenue was 1.9% 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.
- The dividend yield, at 36.3%, is on the high side.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-20UpdateThe Fair Trade Commission sanctioned seven flour millers for B2B flour price and volume collusion (Nov 2019-Oct 2025), imposing a penalty of about ₩179.273 billion (17.76% of shareholders' equity) on Daehan Flour Mills. The amount is not finalized, and the company plans to respond after reviewing the decision.On a scale roughly on par with the market cap, if finalized it would deal a large short- and medium-term shock to net assets and profit. Being at an unfinalized stage, the uncertainty itself is the biggest variable weighing on the price. Source
- 2026-05-13FilingAs a 'high-dividend company' under Article 104-27 of the Special Tax Treatment Control Act, it signaled (informational disclosure) that it would formally disclose a 'corporate value-up plan' during Q2 2026. Specific ROE, dividend, and treasury-share targets are not yet presented.A signal of stronger shareholder returns over the medium term, but since this disclosure itself contains no figures, the actual content must be confirmed in the formal Q2 disclosure. Source
- 2026-04-24FilingA 10-for-1 stock split (par value ₩5,000 to ₩500) took effect. Shares outstanding expanded from 1.69 million to 16.9 million, with new shares relisted on May 18. The purpose is to expand the number of shares outstanding.Technical indicators such as price and moving averages are discontinuous across the split, so the 'plunge' on the chart is an optical illusion. A neutral-to-slightly-positive event aimed at improving liquidity. Source
- 2025-12-31DividendThe dividend for fiscal 2025 was set at ₩4,000 per share (up from ₩3,500 in 2024). On a pre-split share basis this is a reported yield of about 2.6%.Steady dividend increases and high-dividend-company status are positive for shareholder returns over the medium term. Note, however, that the 34.1% yield shown in the base is a split-related optical illusion. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dividend yield (at current price) | 34.1% (base, DPS ₩4,000) | approx. 2.6% | Mismatch | link |
| Fair Trade Commission price-fixing penalty | base | approx. 1,792.73 | Confirmed | link |
| P/B | 0.20x (base) | — | Unverified | link |
| Shares outstanding after the stock split | 16,900,000 (base shares) | 1,690 | Confirmed | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-20Amended filing
- 2026-05-20Amended filing
- 2026-05-20Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/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.