Dongwon Systems (014820) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Dongwon Systems is a broad-line food-and-beverage packaging maker, producing metal cans such as tuna and beverage cans, aluminum stock, PET bottles and glass bottles, and flexible film for ramen and snack pouches. It ships steadily to affiliates such as Dongwon F&B while also supplying outside food and beverage companies, giving it a defensive, less cyclical business mix. In the first quarter of 2026 it posted revenue of ₩337.8 billion, operating profit of ₩13.0 billion and net profit of ₩16.2 billion (+52.3%), and it maintains a dividend of ₩600 per share (a 32.7% payout ratio, a yield of roughly 3.3%) alongside a corporate value-up plan. What stands out lately is that with a P/B of 0.62x and a forward P/E of around 8x, the shares trade below net asset value even as earnings improve, so if raw-material costs settle, the low price and the dividend can shine together; the caution is that revenue has plateaued in the ₩1.3 trillion range with an operating margin around 5%, leaving margins exposed to swings in aluminum, resin prices and the exchange rate.
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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 “Other Materials” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Materials businesses ride cycles in raw-material prices and downstream demand, so profits balloon in good years and can swing to losses in bad ones. When earnings are this uneven, current-year multiples lose reliability, so price-to-book (P/B) — the share price against asset value — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 2.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.3% higher than a year earlier.
- ROE is 6.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.9%.
Ownership & governance As of 2025-12-31
Largest shareholder Dongwon Industries 71.04% (corporate)
Controlling bloc incl. related parties 100%
With the controlling bloc holding 100%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Dongwon Systems makes and sells packaging that holds food and beverages. Its range is wide: metal cans such as tuna and beverage cans, aluminum stock, PET bottles, glass bottles, and the flexible plastic film used in ramen and snack pouches. It supplies steadily to fellow Dongwon Group affiliates such as Dongwon F&B (tuna and beverages) while also selling to outside food, beverage and household-goods companies. In other words, 'food packaging that is not very cyclical' forms the root of its revenue, with materials businesses such as industrial aluminum and film layered on top. Prices of its raw materials — aluminum, tin and plastic resin (a crude-oil derivative) — and the exchange rate affect its costs, but demand for food and beverage packaging itself tends to arise steadily regardless of the economic cycle.
The latest close is ₩21,350 and the market capitalization is ₩619.0 billion. The price sits above its 20-day moving average (₩19,980) and above its 60-day moving average (₩20,739). 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 60.2, a neutral level. The one-month change is +9.2%, the three-month change is -19.7%, and the position relative to the 52-week high is -31.4%. 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 5.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a confirmed annual (2025) basis, the P/E (how many times one year's earnings the price represents) is 11.53x and the P/B (how many times net asset value the price represents) is 0.70x. A P/B well below 1x means the market cap is lower even than book net assets. ROE (how much is earned in a year on equity) is 6.2% and the operating margin is 4.8%; the margin itself is not thick, as is typical of the packaging industry, but the company is consistently profitable. The debt ratio (debt to equity) is 77.5%, the current ratio is 115% and interest coverage is 3.4x, a stable financial position with no strain in servicing debt. One important point is that this P/E uses 'last year's confirmed results' as the denominator. Because first-quarter 2026 net profit jumped +52%, the forward P/E based on this year's earnings is lower, at about 8.0x. Compared with the same packaging peer group, that level in the 8x range is not demanding — if anything it sits on the low side, reading as a stretch where the price is cheap relative to earnings.
Over five years, revenue was ₩1.25 trillion in 2021, ₩1.44 trillion in 2022, ₩1.28 trillion in 2023, ₩1.33 trillion in 2024 and ₩1.37 trillion in 2025, moving with little variation in the ₩1.3 trillion range. The top line is stable but does not grow explosively. Profit swung in one year: operating profit fell from ₩91.9 billion in 2024 to ₩66.2 billion in 2025, and the margin was pressed once. The key change comes in the most recent quarter. First-quarter 2026 revenue was ₩337.8 billion (+0.3%) and operating profit ₩13.0 billion (+3.9%), yet with revenue flat, net profit rose to ₩16.2 billion, up +52.3% year on year. Earnings jumping while revenue is nearly unchanged signals an improving cost and expense structure, closer to a recovery in which last year's compressed earnings return to a normal path. The forward P/E based on this year's earnings falling to about 8.0x reflects this earnings recovery as well. As long as raw-material prices such as aluminum and resin stay settled and food and beverage packaging demand holds up steadily, this year's earnings are likely to form above last year's trough. That said, the pace of top-line growth itself is gradual, and this should be kept in view.
Recent disclosures cluster around two threads: shareholder returns and earnings improvement. On April 28 the company issued a 'corporate value-up plan (voluntary disclosure),' formalizing its intent to lift shareholder value. On April 30 it first announced preliminary first-quarter results (fair disclosure) of ₩337.8 billion in revenue, ₩13.0 billion in operating profit and ₩16.2 billion in net profit (+52.3%), then confirmed these in its quarterly report on May 14, disclosing the detailed income statement. On April 23 it also amended a disclosure related to new facility investment, signaling an intent to expand capacity. The dividend is maintained at ₩600 per share (a 32.7% payout ratio, a yield of roughly 3.3% at the current price), so as the price has fallen the dividend appeal has, if anything, grown.
This company's strengths are clear: a defensive food-packaging business supports revenue, the balance sheet is stable and the dividend is steady. Added to this are a P/B of 0.62x below even net asset value, a +52% rise in first-quarter 2026 net profit, a low forward P/E of about 8x, and a commitment to shareholder returns shown by the value-up plan. The price is 43% below its 52-week high and the RSI is in depressed territory, so with earnings turning, the stock looks amply pressed down. Points to watch alongside these: revenue has been gradual in the ₩1.3 trillion range for several years, and with an operating margin around 5%, margins can swing with aluminum and resin prices and the exchange rate. In short, if raw materials settle and earnings improvement like the first quarter continues, this is a stretch where the low price and the dividend shine together; conversely, if raw materials spike again and margins wobble, the gradual top-line growth could come to the fore. It is a stock with clear strengths at a low price, whose appeal grows as the durability of the earnings recovery is confirmed.
🔎 Valuation vs peers Fairly valued
Compared not with tires or general chemicals but with the actual business of 'food and beverage packaging,' using Yulchon Chemical (flexible film and packaging), the closest business fit on the site, as the primary comparison, alongside the general margin and valuation profile of the packaging industry.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Yulchon Chemical | 84.93x | 1.23x | -1.03% |
Viewed by the substance of the packaging business, Dongwon Systems has (a) a lower net-asset price (P/B of 0.7x) and (b) higher profitability (ROE of 6.2%) than its peers, placing it at least in discount territory. However, (c) the current P/E of 10.86x is limited by being based on 'last year's confirmed results.' With first-quarter 2026 net profit up +52%, this is an inflection point, and if this year's momentum continues the forward P/E falls further — a different character from peers like Yulchon Chemical whose P/E is inflated at an earnings trough. The forward basis is only a seasonality approximation computed from DART quarterly results (this year's net profit of about ₩79.3 billion), not an official company forecast, so rather than concluding firmly it is treated conditionally as 'low price burden + confirmation of durable earnings recovery.' With few comparison samples it is set at 'Fairly valued,' but there is room in both directions — toward undervalued if first-quarter earnings improvement continues, or toward stagnation coming to the fore if it retreats to last year's level.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩362.6 billion | approx. ₩23.2 billion | approx. ₩23.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩21,350 and the market capitalization is ₩619.0 billion. The price sits above its 20-day moving average (₩19,980) and above its 60-day moving average (₩20,739). 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 60.2, a neutral level. The one-month change is +9.2%, the three-month change is -19.7%, and the position relative to the 52-week high is -31.4%. 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 5.8%. 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 -5.76% / 6M -37.61% / 12M -64.52%
Key metrics Computed vs sector median
Valuation
The P/E of 11.53x is above the sector median (9.49x). The P/B of 0.70x is above the sector median (0.53x). 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 6.7%, above the sector average (4.0%). The operating margin is 4.9%. The debt ratio is 82.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $896.9M | $937.3M | $964.4M | +2.89% ↓ slower |
| Operating profit | $56.8M | $64.6M | $46.5M | -28.02% ↓ slower |
| Net profit | $45.1M | $50.9M | $37.7M | -25.88% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $878.7M | $1.0B | $896.9M | $937.3M | $964.4M |
| Operating profit | $63.2M | $64.5M | $56.8M | $64.6M | $46.5M |
| Net profit | $28.0M | $50.8M | $45.1M | $50.9M | $37.7M |
| Revenue CAGR | 4-yr avg 2.35% | ||||
Revenue rose 2.9% year over year (2023 ₩1.3 trillion → 2024 ₩1.3 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 28.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.4%. The two-year revenue CAGR is 3.7%. In the most recent quarter (Q1 2026), revenue was 0.3% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 2.9% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-04-28FilingCorporate value-up plan (voluntary disclosure) — the company formalizes its direction for enhancing shareholder valueBuilds expectations over the medium term for stronger shareholder returns such as dividends and buybacks. Actual execution and scale need to be confirmed through follow-up disclosures and results. Source
- 2026-04-30EarningsFirst-quarter 2026 operating (preliminary) results fair disclosure — revenue ₩337.8 billion, operating profit ₩13.0 billion, net profit ₩16.2 billion (+52.3%)A near-term catalyst that first flagged the surge in net profit. With revenue flat, the nature of the improvement (operating versus non-operating) needs to be verified via the quarterly report. Source
- 2026-04-23Filing[Amended] New facility investment (voluntary disclosure) — correction to the capital expenditure planA medium-term signal of capacity expansion, but the payback depends on utilization and orders, and in the short term it can act as a cost weighing on earnings. Source
- 2026-05-14UpdateFirst-quarter 2026 quarterly report — confirmation of preliminary results and disclosure of the detailed income statementA primary source, in the short term, for confirming the cause (operating versus non-operating) of the first-quarter net profit surge. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 full-year operating profit | ₩66.2 billion | ₩66.2 billion | Confirmed | link |
| First-quarter 2026 net profit | ₩16.2 billion | ₩16.2 billion | Confirmed | link |
| 2026 full-year operating profit (seasonality approximation) | approx. ₩67.1 billion | — | Unverified | link |
| Dividend per share (DPS) | ₩600 | — | Unverified | link |
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-05-14PeriodicAnnual business report (amended)
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-28Disclosure
- 2026-04-23Amended filing
- 2026-04-22EarningsEarnings disclosure
- 2026-04-02Amended filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
📖 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.