DN Automotive (007340) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
DN Automotive runs, as its own businesses, automotive anti-vibration rubber parts that dampen vibration and noise (world No. 3) and automotive lead-acid batteries, while also holding about 85% of DN Solutions, the machine-tool maker it acquired and grew from 2022 (No. 1 in Korea and No. 3 worldwide), giving it an operating-holding structure. Its own businesses alone deliver an ROE of 14% and an operating margin of 14%, its May quarterly report confirmed strong Q1 results, and its subsidiary is in the final stages of a 100% acquisition of Germany's Heller Group as of early 2026. What stands out lately is that the value of the DN Solutions stake alone approaches or exceeds the current market cap, so the undervaluation runs deeper than the P/E and P/B suggest, and it is strong when machine-tool demand recovers and relisting talks resume; the cautions are that acquisition-related borrowing pushes the debt ratio high and that the subsidiary's results move with the capital-investment cycle.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Battery Cells & Packs” (Secondary Batteries), a type typically read first through EV/EBITDA.
Battery cell and pack makers carry heavy capacity build-outs and depreciation, so net income alone understates how much cash the core business really generates. That is why EV/EBITDA — which looks at operating cash before depreciation and folds in debt — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 89.5%).
- Revenue rose 7.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.8% higher than a year earlier.
- ROE is 13.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 14.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Sang-heon 33.43% (individual)
Controlling bloc incl. related parties 52.16%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
DN Automotive earns money along three broad tracks. First, automotive anti-vibration rubber parts: mounts, bushings, and the like that dampen the vibration and noise of the engine and body, where it is the world's No. 3 maker. Second, automotive lead-acid batteries, which it supplies to the finished-vehicle and aftermarket markets. Third, and now the large pillar of the company's results, machine tools: in 2022 it acquired the former Doosan Machine Tools for more than ₩2 trillion and grew it into today's DN Solutions (about an 85% stake), a company that is No. 1 in Korea and No. 3 worldwide in cutting machine tools that shape metal into parts. In other words, though it is classified on the surface as 'electrical equipment,' it in fact runs its own auto-parts and battery businesses alongside a large machine-tool subsidiary. Because DN Solutions' share is heavily reflected in consolidated results, this company is best viewed by separating its own businesses from the value of the subsidiary stake.
The latest close is ₩47,800 and the market capitalization is ₩2.8 trillion. The price sits above its 20-day moving average (₩39,358) and above its 60-day moving average (₩41,038). 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 67.1, a neutral level. The one-month change is +30.6%, the three-month change is -3.4%, and the position relative to the 52-week high is -6.6%. Relative strength versus the KOSPI is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 11.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation metrics are on the low side: a P/E ratio (how many times one year's profit the share price represents) of 9.93x, a P/B (how many times book net assets the share price represents) of 1.31x, and a P/S (how many times revenue the share price represents) of 0.6x. Profitability is sound, with an ROE (how much it earns in a year on its equity) of 14.0% and an operating margin of 14.4%, above the manufacturing average. The dividend yield is 2.6% (₩1,000 per share). The point to watch is the financial structure. The debt ratio (debt versus equity) is a high 262.8%, largely because the borrowing raised for the DN Solutions acquisition is captured on a consolidated basis. A current ratio of 82% means current assets fall somewhat short of debt due within a year, but with an interest-coverage ratio of 5.5x, the ability to cover interest out of operating profit itself is secured.
Revenue rose steadily, from ₩3.27 trillion in 2023 to ₩3.43 trillion in 2024 to ₩3.68 trillion in 2025, and the 2025 growth rate (7.0%) in fact accelerated from the prior year (5.1%). That said, 2025 net profit of ₩281.6 billion slipped slightly (down 1.2%) from the prior year, so profit growth briefly stalled. The trend turned in 2026: cumulative Q1 consolidated revenue rose 15.8% year on year and net profit rose 14.2%, putting it back on a profit-growth track. On top of that, once subsidiary DN Solutions' acquisition of Germany's Heller Group is reflected in consolidation from this year, the revenue and profit base broadens a notch. Reflecting this Q1 recovery and the Heller consolidation effect, this year's net profit has ample room to exceed last year's, in which case the current share price works out lower on this year's expected profit than the P/E on last year's results.
Recent disclosures are centered on regular and governance matters. The May 15 quarterly report confirmed strong Q1 results, and on the same day it announced an investor-relations (IR) session. In late May, large-business-group status disclosures came out in succession, showing that the DN Group is managed as a large business group under the Fair Trade Act. In May there were two disclosures of decisions to guarantee the debt of affiliates and related parties, a feature of the operating-holding structure in which the parent backstops subsidiary financing. The biggest variable is subsidiary DN Solutions, which, after withdrawing a large IPO in April 2025 citing market conditions, has been pursuing a 100% acquisition of Germany's Heller Group (high-end machine tools) and is in the final stages as of early 2026.
The observation points are clear. This company delivers solid profitability, an ROE of 14% and an operating margin of 14%, from its own businesses alone (world No. 3 in anti-vibration parts and automotive batteries). On top of that it holds about 85% of DN Solutions, Korea's No. 1 machine-tool maker, and the value of that single stake alone approaches or exceeds the company's current market cap (even calculated on the lowered enterprise value from when the subsidiary's IPO was withdrawn). In other words, on P/E and P/B alone it looks undervalued, but once the holding structure is accounted for, that undervaluation is in fact deeper. It is strong when machine-tool demand recovers and the Heller consolidation lifts subsidiary results, and when talks on relisting DN Solutions resume and the stake value is re-valued in the market. The cautions are that acquisition-related borrowing keeps the debt ratio high and that the subsidiary's results move with the machine-tool capital-investment cycle. In conclusion, this stock is better viewed by separating 'the value of the subsidiary stake it holds plus the value of its own operations' than by a 'consolidated P/E of so many times,' to match its substance.
🔎 Valuation vs peers Undervalued
Compared against listed companies in the automotive value chain adjacent to the core business (automotive anti-vibration parts), such as finished-vehicle and tire makers, on profit, assets, and profitability. Note that DN Automotive has a strong operating-holding character controlling a machine-tool subsidiary, so a simple P/E comparison has clear limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hankook Tire & Technology | 8.02x | 0.69x | 9.04% |
| Kia | 6.90x | 0.85x | 11.35% |
(a) Position versus peers: the P/E of 7.9x is similar to listed automotive value-chain companies such as finished-vehicle and tire makers (Kia at 7.5x, Hankook Tire at 7.7x), yet its ROE of 14% is higher than theirs (in the 9-12% range). On its own businesses alone, the share price is cheap relative to profit and assets. (b) The core is the discount arising from the holding structure. This company holds about 85% of DN Solutions, Korea's No. 1 machine-tool maker, and even calculated only on the lowered enterprise value from when the subsidiary's listing was withdrawn, the stake value is around ₩3.5 trillion, above the current market cap (₩2.2 trillion). Adding the value of its own operations widens the gap further. (c) On top of the P/E looking low on 2025 results, Q1 2026 profit is again growing at double digits and the Heller consolidation effect is expected, so the valuation works out even lower on this year's expected profit. That said, because the subsidiary is unlisted, the stake value has a wide estimation range, and the debt burden from acquisition borrowing must be weighed in balance alongside it.
Price history Close · MA20 · MA60
The latest close is ₩47,800 and the market capitalization is ₩2.8 trillion. The price sits above its 20-day moving average (₩39,358) and above its 60-day moving average (₩41,038). 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 67.1, a neutral level. The one-month change is +30.6%, the three-month change is -3.4%, and the position relative to the 52-week high is -6.6%. Relative strength versus the KOSPI is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 11.1%. 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 +11.06% / 6M +55.27% / 12M -15.68%
Key metrics Computed vs sector median
Valuation
The P/E of 9.93x is below the sector median (12.50x). The P/B of 1.31x is in line with the sector median (1.21x).
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 13.8%, above the sector average (1.0%). The operating margin is 14.0%. The debt ratio is 181.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.3B | $2.4B | $2.6B | +7.02% ↑ faster |
| Operating profit | $344.5M | $367.4M | $370.9M | +0.95% ↓ slower |
| Net profit | $193.0M | $200.2M | $197.8M | -1.17% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $653.9M | $2.2B | $2.3B | $2.4B | $2.6B |
| Operating profit | $63.0M | $296.1M | $344.5M | $367.4M | $370.9M |
| Net profit | $56.8M | $127.1M | $193.0M | $200.2M | $197.8M |
| Revenue CAGR | 4-yr avg 40.97% | ||||
Revenue rose 7.0% year over year (2023 ₩3.3 trillion → 2024 ₩3.4 trillion → 2025 ₩3.7 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 0.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 41.0%. The two-year revenue CAGR is 6.0%. In the most recent quarter (Q1 2026), revenue was 15.8% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 13.8% points to solid profitability.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed. Consolidated revenue of ₩1,017.6 billion (up 15.8% year on year), operating profit of ₩144.6 billion (up 5.0%), and net profit of ₩99.2 billion (up 14.2%), a resumption of profit growth.Positive short to medium term. Confirms that profit, which stalled in 2025, has returned to double-digit growth. Source
- 2026-05-15IRNotice of an investor-relations (IR) session. Foreshadows a forum to explain Q1 results and business conditions to investors.Medium term. An official channel for the company to explain its subsidiary structure and results. Source
- 2026-05-29FilingLarge-business-group status disclosure filed. Officially confirms that the DN Group is an operating-holding system designated and managed as a large business group under the Fair Trade Act (holding numerous subsidiaries including DN Solutions).Medium term. Reaffirms the structural feature of controlling both its own businesses and a large subsidiary together. Source
- 2026-05-22FilingDisclosure of a decision to guarantee third-party debt. The parent backstops affiliate and subsidiary financing through guarantees (a disclosure of the same nature also existed on May 11).Medium term. A hallmark of the operating-holding structure in which the parent supports subsidiary funding, and it ties into the debt burden. Source
- 2026-06-04UpdateReport on large-scale holdings of stock (general) filed. Notification of changes in major shareholders' holdings (multiple filings from April to June).Short term. A supply-and-demand reference point not directly tied to business results. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-04OwnershipOwnership-change filing
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-22Disclosure
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-16OwnershipOwnership-change filing
📖 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.