Daehan Sugar is the founding company of TS Group, where sugar refining — an oligopoly served by only a few domestic players — steadily anchors profit, joined by feed, livestock distribution, and flour milling to make consolidated revenue of ₩1.36 trillion, with international grain prices and the exchange rate setting the swing in earnings. In April 2026 it decided to retire treasury shares and in May released a corporate value-up plan, signaling a direction of resolving undervaluation and returning capital to shareholders, and as the one-off customs back-tax charge behind the 2025 net loss is cleared, Q1 net profit returned to the black. What stands out is that operating profit of ₩56.5 billion — its best in three years — along with a P/B of 0.41x, a P/S of 0.15x, a dividend in the 5.0% range, and treasury-share retirement are strengths, while a 159.9% debt ratio and 1.76x interest coverage carry an interest burden, and the feed and livestock segments can swing the profit range with grain prices and the exchange rate.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 1.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.3% lower than a year earlier.
- ROE is -12.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.2%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2022-12-31
Largest shareholder Seol Yun-ho 23.28% (individual)
Controlling bloc incl. related parties 47.32%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis
- Daehan Sugar is the founding company of 'TS Group,' and its revenue comes largely from four lines.
- First, sugar refining, an oligopoly served by only a few domestic players, making it the most stable, high-margin mainstay of profit.
- Second, feed (the 'Rainbow Feed' brand of compound feed) and third, livestock distribution (distribution of livestock and livestock products), whose results move with international grain prices, the exchange rate, and headcount of animals raised.
- Fourth, flour milling and other food businesses.
- In other words, stable sugar anchors profit while feed and livestock pass through external grain prices and the exchange rate directly, so a given year's results split between 'the stability of sugar and the swings of feed and livestock.' Consolidated revenue is about ₩1.36 trillion, with costs (grain and raw sugar) and the exchange rate setting the swing in earnings.
- The latest close is ₩2,795 and market capitalization is ₩241.0 billion.
- The price sits above both the 20-day line (₩2,438) and the 60-day line (₩2,663).
- Trading above its short- and mid-term moving averages, the trend is favorable.
- The RSI (a gauge comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 63.4, a neutral level.
- The one-month change is +15.5%, the three-month change is -6.0%, and the price sits -16.6% below its 52-week high.
- Relative strength versus the KOSPI is 27 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 73% of all stocks by strength.
- Over the past three months it lagged the index by 24.3%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The P/B (how many times book net asset value the price represents) is 0.50x, below liquidation value, and the P/S (how many times revenue the price represents) is 0.15x, so market cap is very low relative to revenue scale.
- The P/E ratio (how many times one year of earnings the price represents) cannot be computed because 2025 was a net loss — but the key is that this loss came not from operations but from one-off costs such as a customs back-tax charge.
- Operating profit in fact rose 52.9% year on year to ₩56.5 billion.
- So the trailing (last confirmed year) metrics understate the company's real earning power, and the forward P/E stripping out the one-off reasonably values a company whose earnings are normalizing.
- Add a P/B of 0.41x and undervaluation signals appear on both assets and normalized earnings.
- That said, the debt ratio (debt against equity) is somewhat high at 159.9% and interest coverage is only 1.76x, so it is worth noting that the interest burden eats into profit to a degree.
- The dividend yield, in the 5.0% range, is high within the industry.
- Revenue moved in a flat band between ₩1.26 trillion and ₩1.38 trillion over five years, and 2025 revenue edged down -1.3% year on year.
- Operating profit, by contrast, rose +52.9% to ₩56.5 billion in 2025, its best in three years, as cost savings and a strong sugar segment worked together.
- The swing of net profit to a loss of -₩60.4 billion came not from operations but from one-off non-operating costs such as a customs back-tax charge; indeed, Q1 2026 net profit returned to the black at +₩9.4 billion.
- This is exactly where the forward P/E is grounded — once the one-off is stripped out, the ₩56.5 billion of operating earning power flows straight to the bottom line, with the sugar-oligopoly margin holding the floor.
- This is not a simple extension of last year's loss but a figure fitted to the real earning power of operations.
- The variable is the feed and livestock segments, whose profit range can swing up or down with grain prices and the exchange rate, so the trend is worth watching alongside.
- Recent disclosures run on two threads.
- One is strengthened shareholder returns: in April 2026 the company decided to retire treasury shares and in May released a corporate value-up plan (voluntary disclosure), formalizing a direction of resolving undervaluation and returning capital.
- Paired with a dividend in the 5.0% range, this reads as a capital-policy signal.
- The other is the one-off charge behind the 2025 net loss: 'imposition of a fine, etc.' disclosures came out in April-May including a correction, a one-off cost in the nature of a customs back-tax.
- In the same May quarterly report, Q1 2026 net profit was confirmed to have returned to the black, showing clues of earnings normalization alongside the one-off cost drawing to a close.
- The strengths are clear.
- Operating profit of ₩56.5 billion is the best in three years; at a P/B of 0.41x and a P/S of 0.15x the stock sits in undervalued territory relative to assets and revenue; and the forward P/E stripping out the one-off is at a reasonable level.
- Add a dividend in the 5.0% range, treasury-share retirement, and a corporate value-up plan, which show capital-policy intent, and Q1 net profit has already turned positive.
- Points to watch alongside are the interest burden from a 159.9% debt ratio and 1.76x interest coverage, and the feed and livestock segments that can swing the profit range with grain prices and the exchange rate.
- In sum, undervaluation relative to assets and earnings becomes clearer when the one-off wraps up, the sugar-oligopoly margin holds, and grain prices and the exchange rate stabilize, whereas if one-off costs recur or feed and livestock margins worsen, the interest burden and thin operating margin reach the bottom line first.
🔎 Valuation vs peers Inconclusive
As an agriculture-livestock and food company holding both a sugar-refining oligopoly and feed and food businesses, the peer set is Samyang (a fellow sugar-oligopoly player) and Daesang and Sajo Industries (food-diversified companies).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samyang Corporation | 0.00x | 0.30x | -19.53% |
| Daesang | 0.00x | 0.57x | -28.41% |
| Sajo Industries | 0.00x | 0.42x | -5.44% |
All peers are in a net-loss or earnings-inflection zone, so they cannot be lined up on trailing P/E. On asset value (P/B) instead, Daehan Sugar's 0.43x sits in the middle — above Samyang (0.28x) and below Daesang (0.58x) — placing it in a similar undervalued zone relative to book net assets. That said, since the 2025 net loss came not from operations but from one-offs such as a customs back-tax, the trailing metrics understate the company's real earning power. On a forward basis stripping out the one-off, the normal earning power of operating profit (₩56.5 billion, +52.9%) revives and there is room for the P/B and dividend appeal to come into focus, but the 159.9% debt ratio and interest burden, along with the grain-price and exchange-rate variables in feed and livestock, add volatility, so rather than concluding it is cheap or expensive either way, the read is inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩2,795 and the market capitalization is ₩241.0 billion. The price sits above its 20-day moving average (₩2,438) and above its 60-day moving average (₩2,663). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 63.4, a neutral level. The one-month change is +15.5%, the three-month change is -6.0%, and the position relative to the 52-week high is -16.6%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 24.3%. 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 -24.34% / 6M -37.49% / 12M -61.72%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B is 0.50x.
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 -12.5%, below the sector average (4.0%). The operating margin is 4.2%. The debt ratio is 159.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $883.0M | $910.5M | $898.9M | -1.28% ↓ slower |
| Operating profit | $31.3M | $24.5M | $37.5M | +52.87% ↑ faster |
| Net profit | $21.6M | $13.6M | -$40.0M | -394.74% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $836.0M | $913.4M | $883.0M | $910.5M | $898.9M |
| Operating profit | $27.9M | $25.2M | $31.3M | $24.5M | $37.5M |
| Net profit | $13.4M | $16.9M | $21.6M | $13.6M | -$40.0M |
| Revenue CAGR | 4-yr avg 1.83% | ||||
Revenue fell 1.3% year over year (2023 ₩1.3 trillion → 2024 ₩1.4 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 52.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.8%. The two-year revenue CAGR is 0.9%. In the most recent quarter (Q1 2026), revenue was 4.3% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.3%, is on the high side.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 1.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-12FilingRelease of a corporate value-up plan (voluntary disclosure) — formalizing a direction of resolving undervaluation and returning capitalA mid-term capital-policy signal on dividends and treasury shares. A potential catalyst for resolving the 0.43x P/B undervaluation. Source
- 2026-04-21DividendDecision to retire treasury shares — enhancing shareholder value by reducing shares outstandingPrevents per-share value dilution and strengthens shareholder returns. A positive capital-policy signal alongside the 5.0% dividend. Source
- 2026-05-12UpdateImposition of a fine, etc. (correction) — disclosure of a one-off charge in the nature of a customs back-taxThe direct backdrop of the 2025 net loss in the near term. Whether it recurs is the key to earnings normalization. Source
- 2026-05-15EarningsQ1 2026 quarterly report — net profit returned to the black at +₩9.4 billion (operating profit slowed year on year)A mid-term signal of emerging from the one-off loss. That said, the -33.6% operating-profit slowdown is a point to note. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Amended filing
- 2026-05-12Disclosure
- 2026-04-30Amended filing
- 2026-04-21Disclosure
- 2026-04-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/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.