Daechang Forging (015230) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daechang Forging is a small-to-mid-cap stock with a market capitalization of ₩147.1 billion that uses forging technology, hammering hot metal into shape, to make core structural parts for automobiles and construction equipment such as axles, knuckles and crankshafts that bear heavy loads; the process of first forming a strong metal frame before precision machining is central to the company. In February 2026 it disclosed full-year revenue of ₩346.3 billion, operating profit of ₩38.0 billion and net profit of ₩28.8 billion, with operating profit rising sharply from the prior year, and it decided on a cash-and-in-kind dividend (a dividend yield of about 3.3%); first-quarter revenue of ₩98.4 billion, operating profit of ₩11.5 billion and net profit of ₩10.6 billion continued the growth. What stands out recently is that when downstream demand holds up, the cheap valuation of a 4.61x forward P/E and a 0.46x P/B, together with a solid balance sheet (a 600% current ratio and a 6.89x interest coverage ratio), become strengths; but because forged-part volumes hinge on the automobile and construction-equipment cycle, both the top line and margins can be squeezed if downstream demand cools.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Automobiles & Parts”, a type typically read first through P/E.
Autos and parts live and die by unit sales and volume, but they are a mature industry that generates steady profit on scale. For this kind of business earnings are the heart of the story, so price-to-earnings (P/E) — the price set against net profit — is the first thing to read.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 7.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 12.8% higher than a year earlier.
- ROE is 9.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.7%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Park An-sik 2.19% (individual)
Controlling bloc incl. related parties 45.78%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
Daechang Forging is a company that uses forging technology, hammering hot metal into shape, to make core parts for automobiles and construction equipment. Its mainstay is structural parts that bear heavy loads, such as axles, knuckles and crankshafts, and the process of first forming a strong metal frame before precision machining is central to the company. As a small-to-mid-cap stock with a market capitalization of ₩147.1 billion, it is worth watching part prices and volumes alongside the effect a single filing can have on earnings and share count.
The latest close is ₩5,890 and the market capitalization is ₩159.9 billion. The price sits above its 20-day moving average (₩5,716) and below its 60-day moving average (₩6,001). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.5, a neutral level. The one-month change is -3.1%, the three-month change is -17.7%, and the position relative to the 52-week high is -19.5%. Relative strength versus the KOSPI is 22 (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 21% of all stocks. Over the past three months it lagged the index by 4.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Annual revenue was ₩346.3 billion, operating profit ₩38.0 billion and net profit ₩28.8 billion. The operating margin of 11.0% is solid for a parts maker, and ROE (how much is earned in a year on equity) of 8.9% is above the sector average. The debt ratio (debt relative to equity) is 124.4%, but with a current ratio (assets convertible to cash within a year against debt due within a year) of 600% and an interest coverage ratio of 6.89x, the capacity to service debt is ample. The current 5.11x P/E and 0.46x P/B are based on last year's confirmed results, but with earnings set to grow again this year, the more meaningful yardstick for this stock is the 4.61x forward P/E. A P/B below half of book value and a forward P/E in the low single digits point to a price set cheaply relative to both earnings and assets.
Revenue rose 7.5% from ₩322.2 billion in 2024 to ₩346.3 billion in 2025, turning back to growth, and operating profit rebounded even faster, up 26.5% from ₩30.1 billion to ₩38.0 billion. In the first quarter of 2026, revenue of ₩98.4 billion (+12.8%), operating profit of ₩11.5 billion (+2.3%) and net profit of ₩10.6 billion (+15.7%) extended the growth in both the top line and net profit. This year's outlook calls for revenue of ₩376.3 billion, operating profit of ₩38.7 billion and net profit of ₩33.3 billion, a picture in which the double-digit revenue growth and higher net profit confirmed in the first quarter carry through the year. Because forged parts are structured so that volumes rise together when downstream demand from autos and construction equipment revives, it is not an unreasonable assumption that this year's net profit exceeds last year's if a downstream recovery and margin maintenance align. Current data shows no basis for next year and beyond falling below this year.
On February 26, 2026, a revenue or profit-structure change (voluntary disclosure) confirmed full-year revenue of ₩346.3 billion, operating profit of ₩38.0 billion and net profit of ₩28.8 billion as confirmed or provisional figures. The key point is that operating profit rose sharply from the prior year; check whether it moves in the same direction as the annual trend and whether any one-off factors are present. A cash-and-in-kind dividend decision was filed the same day, and the point to confirm is whether earnings strength and cash flow support the payout (the dividend yield is around 3.3%). On May 14, 2026, a quarterly report disclosed first-quarter 2026 revenue of ₩98.4 billion, operating profit of ₩11.5 billion and net profit of ₩10.6 billion, showing that early-year results continued the growth.
The strengths are clear. Even in a stretch where earnings are growing again this year, the forward P/E is 4.77x and the P/B is 0.46x, cheaply priced relative to peers, while a 600% current ratio and a 6.89x interest coverage ratio keep the balance sheet stable, supported by a 3.3% dividend yield. Profitability, at an 11% operating margin and 8.9% ROE, is also above the sector average. In other words, the price has fallen while both financial strength and valuation hold up. That said, because forged-part volumes hinge on the downstream industrial cycle in autos and construction equipment, both the top line and margins can be squeezed if downstream demand softens. Also, given small-to-mid-cap traits, a single quarterly result or filing tends to carry a large effect, so confirming whether next quarter's revenue growth and margins hold up would firm up any assessment. When downstream demand holds up, the cheap valuation and solid balance sheet are strengths; when downstream cools, falling volumes are the weakness.
🔎 Valuation vs peers Undervalued
A peer group within auto parts with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Fuel-Tech | 3.66x | 0.59x | 15.37% |
| Motrex | 16.67x | 0.46x | 1.47% |
| KNW | — | 0.96x | -4.72% |
Within auto parts, we first looked at a public-data peer group with adjacent market capitalization. The current P/E (how many times a year's earnings the price is) is 5.55x and the P/B (how many times book value the price is) is 0.48x. That said, for lower-market-cap names, earnings swings and financing filings carry a large effect, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩376.3 billion | ₩38.7 billion | ₩33.3 billion |
| Next quarter | Q2 2026 | ₩98.5 billion | ₩10.7 billion | ₩8.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,890 and the market capitalization is ₩159.9 billion. The price sits above its 20-day moving average (₩5,716) and below its 60-day moving average (₩6,001). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.5, a neutral level. The one-month change is -3.1%, the three-month change is -17.7%, and the position relative to the 52-week high is -19.5%. Relative strength versus the KOSPI is 22 (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 21% of all stocks. Over the past three months it lagged the index by 4.3%. 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 -4.28% / 6M -29.95% / 12M -49.51%
Key metrics Computed vs sector median
Valuation
The P/E of 5.55x is in line with the sector median (6.24x). The P/B of 0.48x is in line with the sector median (0.46x).
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 9.0%, above the sector average (5.0%). The operating margin is 10.7%. The debt ratio is 27.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $261.4M | $226.4M | $243.3M | +7.46% ↑ faster |
| Operating profit | $32.6M | $21.1M | $26.7M | +26.47% ↑ faster |
| Net profit | $23.8M | $23.6M | $20.2M | -14.26% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $249.0M | $296.1M | $261.4M | $226.4M | $243.3M |
| Operating profit | $20.7M | $35.0M | $32.6M | $21.1M | $26.7M |
| Net profit | $18.7M | $25.8M | $23.8M | $23.6M | $20.2M |
| Revenue CAGR | 4-yr avg -0.58% | ||||
Revenue rose 7.5% year over year (2023 ₩372.1 billion → 2024 ₩322.2 billion → 2025 ₩346.3 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 26.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.6%. The two-year revenue CAGR is -3.5%. In the most recent quarter (Q1 2026), revenue was 12.8% 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.
- The dividend yield, at 3.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-02-26EarningsChange of less than 30% (15% for large corporations) in revenue or profit structure (voluntary disclosure): full-year revenue ₩346.3 billion, operating profit ₩38.0 billion, net profit ₩28.8 billionRecent confirmed or provisional earnings material. Check whether it moves in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-02-26UpdateCash and in-kind dividend decision: confirm the payout termsA filing related to cash returns or a change in share count. Confirm whether earnings strength and cash flow provide support. Source
- 2026-05-14EarningsQuarterly report (2026.03): Q1 2026 revenue ₩98.4 billion, operating profit ₩11.5 billion, net profit ₩10.6 billionRecent confirmed or provisional earnings material. Check whether it moves in the same direction as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩5,890 | ₩5,890 | Confirmed | link |
| Latest quarterly results | revenue ₩98.4 billion, operating profit ₩11.5 billion | revenue ₩98.4 billion, operating profit ₩11.5 billion | Confirmed | link |
| Annual results | revenue ₩346.3 billion, operating profit ₩38.0 billion | revenue ₩346.3 billion, operating profit ₩38.0 billion | Confirmed | link |
| Earnings filing source text | revenue30%: revenue ₩346.3 billion · operating profit ₩38.0 billion · net profit ₩28.8 billion | revenue30%: revenue ₩346.3 billion · operating profit ₩38.0 billion · net profit ₩28.8 billion | Confirmed | link |
| Shareholder-return filing source text | cash/stock dividend declared: check the payout terms | cash/stock dividend declared: check the payout terms | Confirmed | link |
| Earnings filing source text | (2026.03): 2026 1 revenue ₩98.4 billion · operating profit ₩11.5 billion · net profit ₩10.6 billion | (2026.03): 2026 1 revenue ₩98.4 billion · operating profit ₩11.5 billion · net profit ₩10.6 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-05-13OwnershipLargest-shareholder ownership change report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-30Amended filing
- 2026-03-27Shareholders' meeting notice
- 2026-03-23Amended filing
- 2026-03-23Amended 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.