Dongkuk Industries, founded in 1967, is a steel company that processes and sells cold-rolled steel sheet, producing steel sheet at manufacturing sites in Pohang, Siheung, and Gyeongju, with results tied to steel prices and end-demand. In March 2026 annual revenue of ₩608.0 billion, operating profit of ₩7.0 billion, and net profit of -₩10.0 billion were confirmed, and on the same day a cash and in-kind dividend and a corporate value-up plan were also disclosed. What stands out recently is that in a phase where the steel cycle is bottoming out and value-up efforts feed into an earnings recovery, the P/B of 0.32x and a 6.7% dividend yield carry weight; however, if weak prices and demand persist, the operating loss that has returned and the high debt could remain a burden.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 235.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 6.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 13.7% lower than a year earlier.
- ROE is -2.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.2%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Jang Se-hee 26.91% (individual)
Controlling bloc incl. related parties 50.22%
With the controlling bloc holding 50%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dongkuk Industries, founded in 1967, is a steel company whose core business is processing and selling cold-rolled steel sheet.
- Its head office is in Da-dong, Jung-gu, Seoul, and it produces steel sheet at manufacturing sites in Pohang, Siheung, and Gyeongju.
- It listed on the KOSDAQ in 1999 and has paid-in capital of ₩54.2 billion.
- The CEO and related parties hold a 50.22% stake, so management control is on the stable side.
- As a stock with a small market cap, it is worth examining together how a single earnings or financing disclosure affects finances and share count.
- The latest close is ₩2,265 and market capitalization is ₩122.9 billion.
- The price sits below the 20-day line (₩2,406) and below the 60-day line (₩2,877).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the past 14 days on a 0-100 scale) is 37.2, a neutral level.
- The one-month change is -7.9%, the three-month change is -28.1%, and the position versus the 52-week high is -44.8%.
- Relative strength against the KOSDAQ is 57 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 43% of all stocks by strength.
- Over the past three months it lagged the index by 6.1%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Recent annual revenue is ₩608.0 billion, operating profit ₩7.0 billion, and net profit -₩10.0 billion, a loss.
- The operating margin is 1.2%, ROE (how much is earned on equity in a year) is -2.7%, and the debt ratio (debt against equity) is 235.2%.
- Because earnings are in the red, the P/E (how many times a year's earnings the price reflects) is not calculated, but the P/B (how many times book value the price reflects) is 0.33x, about a third of book value.
- Given that adjacent peers in the same sector are at 0.3-0.9x, the price is clearly low relative to assets.
- In other words, the price is set cheaply, and what is lacking is not the valuation but current profitability.
- The high debt ratio and the tight interest coverage from operating profit are points to watch together during the loss phase.
- Revenue moved up and down in the ₩600 billion range — ₩622.6 billion in 2023, ₩650.1 billion in 2024, and ₩608.0 billion in 2025 — while operating profit swung from a loss in 2023 (-₩27.1 billion) to a positive ₩12.0 billion in 2024, then fell to ₩7.0 billion in 2025.
- In the most recent quarter, Q1 2026, revenue of ₩149.4 billion was down 13.7% from a year earlier, and operating profit of -₩4.6 billion and net profit of -₩10.7 billion returned to a loss.
- Steel processing has the characteristic that results swing with steel prices and end-demand (steel sheet for autos, home appliances, and construction), and right now it sits in a phase where both demand and prices have weakened.
- This year's revenue is estimated at around ₩572.4 billion, reflecting the Q1 flow — a step lower than last year.
- The key to recovery is when steel prices and end-demand turn, and until then both revenue and profit could stay in a subdued flow.
- On March 26, 2026, the company's own 'corporate value-up plan' (voluntary disclosure) was released.
- As material in which the company states it will lift its own value, if it contains specific figures it serves as primary evidence for direction, and if not, as a signal of intent.
- On March 6, a profit-structure change disclosure confirmed annual revenue of ₩608.0 billion, operating profit of ₩7.0 billion, and net profit of -₩10.0 billion, and on the same day a cash and in-kind dividend decision was also disclosed.
- It is worth checking together whether the dividend continues even in a loss phase and whether it is supported by cash flow.
- This is a stock where strengths and weaknesses split clearly.
- The strength is price.
- At a P/B of 0.32x it trades at a third of book value, and the dividend yield reaches 6.7%, so on asset value and dividends alone it is clearly a cheap spot.
- The weakness is the profitability of the core business.
- With revenue falling, operations back in the red, and a high debt ratio, the earnings burden can persist while steel prices and end-demand are weak.
- In sum, in a phase where the steel cycle bottoms out and the company's value-up efforts feed into an actual earnings recovery, the low P/B and high dividend carry weight; conversely, if weak prices and demand persist, the loss and debt hold it back.
🔎 Valuation vs peers Undervalued
Peers close in market cap within steel and primary metals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Cho-il Aluminium | 14.06x | 0.54x | 3.81% |
| Kumkang Kind | — | 0.32x | -12.42% |
| KBI Dongyang Steel Pipe | — | 0.81x | -2.19% |
Within steel and primary metals, we prioritized public-data peers close in market cap. The current P/E (how many times a year's earnings the price reflects) is not available, and the P/B (how many times book value the price reflects) is 0.33x. That said, for smaller-cap names, earnings swings and financing disclosures carry a large impact, so we did not draw a firm conclusion from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩572.4 billion | — | — |
| Next quarter | Q2 2026 | ₩155.9 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩2,265 and the market capitalization is ₩122.9 billion. The price sits below its 20-day moving average (₩2,406) and below its 60-day moving average (₩2,877). 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 37.2, a neutral level. The one-month change is -7.9%, the three-month change is -28.1%, and the position relative to the 52-week high is -44.8%. Relative strength versus the KOSDAQ is 57 (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 57% of all stocks. Over the past three months it lagged the index by 6.1%. 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 -6.07% / 6M +2.52% / 12M -43.70%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.33x is below the sector median (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 -2.7%, below the sector average (2.0%). The operating margin is 1.2%. The debt ratio is 235.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $412.7M | $430.9M | $403.0M | -6.48% ↓ slower |
| Operating profit | -$18.0M | $7.9M | $4.7M | -41.36% |
| Net profit | -$3.4M | -$4.2M | -$6.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $483.3M | $570.3M | $412.7M | $430.9M | $403.0M |
| Operating profit | $23.2M | $780,644 | -$18.0M | $7.9M | $4.7M |
| Net profit | $13.1M | $4.3M | -$3.4M | -$4.2M | -$6.6M |
| Revenue CAGR | 4-yr avg -4.44% | ||||
Revenue fell 6.5% year over year (2023 ₩622.6 billion → 2024 ₩650.1 billion → 2025 ₩608.0 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 41.4% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.4%. The two-year revenue CAGR is -1.2%. In the most recent quarter (Q1 2026), revenue was 13.7% 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 6.4%, is on the high side.
Points to watch
- Debt is somewhat higher than equity (debt ratio 235.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 6.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure) (2026 Dongkuk Industries corporate value-up plan): confirm the company's plan in the original textMaterial the company presented itself. If figures are included, treat it as primary evidence for the outlook box; if not, treat it only as directional information. Source
- 2026-03-06EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩608.0 billion, operating profit ₩7.0 billion, net profit -₩10.0 billionRecently confirmed or preliminary results. We check whether it runs in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-03-06UpdateCash and in-kind dividend decision: confirm the return termsA disclosure related to cash returns or changes in share count. We confirm whether earnings capacity and cash flow provide support. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩2,265 | ₩2,265 | Confirmed | link |
| Latest quarterly results | revenue ₩149.4 billion, operating profit -₩4.6 billion | revenue ₩149.4 billion, operating profit -₩4.6 billion | Confirmed | link |
| Annual results | revenue ₩608.0 billion, operating profit ₩7.0 billion | revenue ₩608.0 billion, operating profit ₩7.0 billion | Confirmed | link |
| Outlook/plan disclosure text | ): | ): | Confirmed | link |
| Earnings disclosure text | revenue30%: revenue ₩608.0 billion · operating profit ₩7.0 billion · net profit -₩10.0 billion | revenue30%: revenue ₩608.0 billion · operating profit ₩7.0 billion · net profit -₩10.0 billion | Confirmed | link |
| Shareholder-return disclosure text | ㆍ: | ㆍ: | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Shareholders' meeting notice
- 2026-03-06DividendCash/stock dividend decision
📖 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.