Daechang, founded in 1974, is a copper-alloy specialist that makes and sells brass rods and copper-alloy products used broadly as base materials across industries such as semiconductors, electrical and electronic components, automobiles, and ships; it is a materials-processing business with annual revenue of about ₩1.5 trillion. In May 2026 there was a filing on the exercise of conversion, warrant, and exchange rights, in December 2025 the 7th private-placement exchangeable bond of ₩12 billion was paid in, and in March 2026 a filing confirmed annual revenue of ₩1.5 trillion, operating profit of ₩51.5 billion, and net profit of ₩2.1 billion. What stands out recently is that operating profit, once in the red, has climbed to ₩51.5 billion in two years, and Q1 revenue, operating profit, and net profit all rose sharply, making the recovery clear, with the stock trading at a P/B of 0.34x, about a third of book value. On the other hand, the debt ratio of 219% is somewhat high and operating profit barely covers interest, so whether the earnings recovery continues is the crux.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 219.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 10.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.2% higher than a year earlier.
- ROE is 0.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.5%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Seowon 37.2% (corporate)
Controlling bloc incl. related parties 39%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Daechang, founded in 1974, is a copper-alloy specialist whose flagship products are brass rods (brass bars) and copper-alloy products.
- Brass rods are used broadly as base materials across many industries, including semiconductors, electrical and electronic components, automobiles, ships, and industrial machinery.
- The company has built a firm base in the domestic brass-rod market and, alongside brass rods, also sells related products and some other items.
- The main thread of the business is a materials-processing operation that buys copper, processes it, and sells it in the form of industrial rods and pipes, with annual revenue of about ₩1.5 trillion.
- That said, because the market cap is small, it is worth watching how individual filings such as financing and results changes affect the share count and finances alongside the business flow.
- The latest close is ₩1,107 and the market cap is ₩100.9 billion.
- The price sits below the 20-day line (₩1,185) and below the 60-day line (₩1,417).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward strength over the past 14 days on a 0-100 scale) is 36.1, at a neutral level.
- The one-month change is -11.6%, the three-month change is -16.4%, and the position versus the 52-week high is -39.8%.
- Relative strength versus the KOSPI is 12 (on a 1-99 scale, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 89% of all stocks by strength.
- Over the past three months it lagged the index by 36.1%.
- Chart interpretation is best done alongside trading volume and filing dates.
- Recent annual revenue was ₩1.5 trillion, operating profit ₩51.5 billion, and net profit ₩2.1 billion.
- The operating margin is 3.5%, the ROE (how much is earned in a year on equity) is 0.8%, and the debt ratio (debt relative to equity) is 219.2%.
- The P/E ratio (how many times a year's profit the stock is priced at) is 47.51x, which looks high at first glance, but this stems from last year's net profit being temporarily depressed by items such as financing costs.
- Operating profit already grew 64% over the prior year and quarterly profit is recovering quickly, so once profit returns to a normal track this multiple naturally comes down.
- On the other hand, the P/B ratio (how many times book value the stock is priced at) is 0.35x, meaning the stock trades at about a third of the company's net asset value on the books.
- The facts that debt is somewhat larger than equity and the interest burden is not small should be watched, but the price relative to asset value is set considerably low.
- Revenue grew steadily from ₩1.32 trillion in 2023 to ₩1.34 trillion in 2024 and ₩1.47 trillion in 2025, and the pace of growth is gradually picking up (revenue +10.0% year over year this year).
- The more notable change is in profit.
- Operating profit turned from a loss in 2023 (-₩9.3 billion) to ₩31.3 billion in 2024 and ₩51.5 billion in 2025, growing quickly after turning positive (+64% year over year).
- In the most recent quarter (Q1 2026), revenue of ₩429.1 billion (+15.2% year over year), operating profit of ₩23.8 billion (+63.5% year over year), and net profit of ₩14.6 billion (+276.7% year over year) made the earnings recovery even clearer.
- With a single quarter's net profit exceeding the whole of last year's annual net profit, the company appears to have entered an inflection point where profit is reviving in earnest after the loss phase.
- This year's revenue outlook is around ₩1.6 trillion, consistent with a flow in which revenue growth and earnings recovery proceed together.
- As long as copper-processing margins and downstream demand hold up, the earnings-improvement trend can continue.
- The May 13, 2026, filing on the exercise of conversion, warrant, and exchange rights is a matter where the purpose of the cash inflow must be considered together with the change in share count.
- In the December 1, 2025, results of a rights offering or issuance of stock-linked bonds (voluntary disclosure), the 7th private-placement exchangeable bond of ₩12 billion was paid in full; the key is where the financing is used, between facilities and operations, and whether it actually connects to revenue.
- The March 11, 2026, filing of a change of 15% or more in revenue or profit structure (correction) confirmed annual revenue of ₩1.5 trillion, operating profit of ₩51.5 billion, and net profit of ₩2.1 billion.
- It is best to check whether this points the same way as the earnings-recovery flow and whether any one-off factors are present.
- Daechang's strengths are clear.
- Operating profit, once in the red, has climbed to ₩51.5 billion in two years, and heading into Q1 2026 revenue, operating profit, and net profit all rose sharply, making the earnings recovery all the clearer.
- At the same time, the stock is at about a third of book value (P/B of 0.34x) and pressed down to -41.9% versus the 52-week high, so it is not a zone of heavy price burden.
- Unlike adjacent peers with negative ROE, this company is turning a profit, which is a difference.
- What to watch is the financial structure.
- With a debt ratio of somewhat high 219% and operating profit barely enough to cover interest, whether the earnings recovery continues is the crux.
- In sum, if brass-rod demand and processing margins hold up and the earnings recovery continues, the appeal relative to low asset value comes to the fore, while if earnings momentum stalls or financing burdens grow, the structure can weaken.
🔎 Valuation vs peers Overvalued
A market-cap-adjacent peer set within steel and primary metals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumkang Kind | — | 0.32x | -12.42% |
| Dongkuk Industries | — | 0.33x | -2.69% |
| Cho-il Aluminium | 14.06x | 0.54x | 3.81% |
We first looked at a public-data peer set with nearby market cap within steel and primary metals. The current P/E ratio (how many times a year's profit the stock is priced at) is 47.51x, and the P/B ratio (how many times book value the stock is priced at) is 0.35x. Because lower-market-cap names are heavily affected by earnings swings and financing filings, we did not draw firm conclusions from last year's confirmed-results metrics alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩1.6 trillion | — | — |
| Next quarter | Q2 2026 | ₩407.1 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩1,107 and the market capitalization is ₩100.9 billion. The price sits below its 20-day moving average (₩1,185) and below its 60-day moving average (₩1,417). 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 36.1, a neutral level. The one-month change is -11.6%, the three-month change is -16.4%, and the position relative to the 52-week high is -39.8%. Relative strength versus the KOSPI is 12 (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 11% of all stocks. Over the past three months it lagged the index by 36.1%. 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 -36.09% / 6M -53.14% / 12M -66.94%
Key metrics vs sector median
Valuation
The P/E of 47.51x is above the sector median (16.39x). The P/B of 0.35x is below the sector median (0.50x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 0.8%, below the sector average (2.0%). The operating margin is 3.5%. The debt ratio is 219.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $876.9M | $886.0M | $974.4M | +9.98% ↑ faster |
| Operating profit | -$6.1M | $20.8M | $34.2M | +64.37% |
| Net profit | -$12.9M | $2.9M | $1.4M | -51.54% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $846.8M | $955.2M | $876.9M | $886.0M | $974.4M |
| Operating profit | $40.0M | $6.0M | -$6.1M | $20.8M | $34.2M |
| Net profit | $17.3M | $2.5M | -$12.9M | $2.9M | $1.4M |
| Revenue CAGR | 4-yr avg 3.57% | ||||
Revenue rose 10.0% year over year (2023 ₩1.3 trillion → 2024 ₩1.3 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 64.4% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.6%. The two-year revenue CAGR is 5.4%. In the most recent quarter (Q1 2026), revenue was 15.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13UpdateExercise of conversion, warrant, and exchange rights: check the detailed terms in the original filingThis is a filing where both the purpose of the cash inflow and the change in share count must be considered together. Where a facilities or operating purpose is stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2025-12-01UpdateResults of a rights offering or issuance of stock-linked bonds (voluntary disclosure): -11-21 actual shares issued (shares) - actual issuance amount (won) 12,000,000,000 payment date 2025-12-01. 4. Other material matters relevant to investment judgment: the company's 7th unregistered, coupon-free, unguaranteed private-placement exchangeable bond, per the board resolution of November 21, 2025, was paid in as described aboveThis is a filing where both the purpose of the cash inflow and the change in share count must be considered together. Where a facilities or operating purpose is stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2026-03-11Earnings[Correction] Change of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩1.5 trillion, operating profit ₩51.5 billion, net profit ₩2.1 billionThis is recent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,107 | ₩1,107 | Confirmed | link |
| Latest quarterly results | revenue ₩429.1 billion, operating profit ₩23.8 billion | revenue ₩429.1 billion, operating profit ₩23.8 billion | Confirmed | link |
| Annual results | revenue ₩1.5 trillion, operating profit ₩51.5 billion | revenue ₩1.5 trillion, operating profit ₩51.5 billion | Confirmed | link |
| Financing filing (original text) | ㆍㆍ: | ㆍㆍ: | Confirmed | link |
| Financing filing (original text) | : -11-21 - 12,000,000,000 2025-12-01 4. 2025 11 21 7 | : -11-21 - 12,000,000,000 2025-12-01 4. 2025 11 21 7 | Confirmed | link |
| Earnings filing (original text) | []revenue30%: revenue ₩1.5 trillion · operating profit ₩51.5 billion · net profit ₩2.1 billion | []revenue30%: revenue ₩1.5 trillion · operating profit ₩51.5 billion · net profit ₩2.1 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report (amended)
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Disclosure
- 2026-03-11Shareholders' meeting notice
- 2026-03-11EarningsAmended filing
- 2026-02-25Shareholders' meeting notice
📖 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.