Shin Dae Yang Paper makes the base paper used in the corrugated boxes found on parcel, moving, and produce cartons - a resource-recycling manufacturer that breaks down waste paper and re-forms it into linerboard and corrugating medium; results are directly driven by waste-paper purchase prices, base-paper selling prices, energy costs, and packaging cargo volume, a materials industry with entry barriers. On March 27 a voluntary corporate-value-up disclosure formalized its direction on enhancing shareholder value, on March 12 it kept a cash dividend of 225 won per share (29.9% payout ratio, about 2.4%) even in a year of lower profit, and the May 15 quarterly report set the confirmed results. What stands out lately is that an asset-type undervaluation at a P/B of 0.59x, the dividend and value-up intent, plus a narrowing profit decline and a first-quarter net profit that turned positive - forming a base - are strengths, while a 3.5% operating margin and 3.8% ROE make profitability thin, and results are heavily swayed by external variables such as waste-paper and energy prices and cargo volume.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 2.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.5% lower than a year earlier.
- ROE is 3.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.5%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Shin Dae Han Board 18.91% (corporate)
Controlling bloc incl. related parties 59.78%
With the controlling bloc holding 60%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Shin Dae Yang Paper makes the base paper for corrugated boxes.
- The outer face and the inner wavy paper of the parcel, moving, and produce cartons we commonly see are all corrugated base paper, and the company produces linerboard and corrugating medium by breaking down waste paper (used paper and newsprint) and re-forming it into paper.
- In other words, it is a resource-recycling manufacturer that uses recycled waste paper as its main raw material rather than fresh wood pulp.
- Because most revenue comes from this single product, corrugated base paper, results are directly driven by (1) waste-paper purchase prices, (2) base-paper selling prices, (3) energy costs such as electricity and steam, and (4) packaging cargo volume tied to parcel delivery and domestic consumption.
- As an industrial packaging material, the product tracks the economy relatively quickly, and because only a company with facilities to steadily gather waste paper and re-form it at scale can run this business, it is a materials industry with entry barriers.
- The latest close is 9,740 won and the market cap is 392.5 billion won.
- The price sits above its 20-day line (9,690 won) and below its 60-day line (10,933 won).
- With the short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supplementary gauge that scores the strength of gains against losses over the past 14 days on a 0-100 scale) is 48.7, a neutral level.
- The one-month change is +5.9%, the three-month change is -23.9%, and the position versus the 52-week high is -40.6%.
- Relative strength against the KOSPI is 12 (1-99; the past year's return versus the index, weighted toward recent performance - higher means stronger than the market).
- That places it in roughly the top 89% of all listed names for strength.
- Over the past three months it has lagged the index by 35.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On confirmed full-year figures (2025 business report, consolidated), the P/E (how many times one year's net profit the price represents) is about 15.7x and the P/B (how many times per-share net assets the price represents) is 0.65x.
- A P/B well below 1x means the market cap is priced far below book net assets, so it is cheap on asset value alone.
- It is higher than the P/B of Asia Paper (0.35x), its closest analog, but the absolute level itself is below net assets, so it is clearly an asset-type undervaluation zone.
- On profitability, ROE (how much was earned in a year on shareholders' equity) is 3.8% and the operating margin 3.5%, net margin 3.6% - the margin level of a materials industry with limited pricing power.
- On the balance sheet, the debt ratio (debt against equity) is 153.4%, a middling level, and the current ratio is 242%, so short-term liquidity is ample.
- One point to note is that this P/E is on last year's confirmed profit (trailing, the already-past one year's results).
- In an inflection zone where earnings dipped once and are finding direction again, the forward P/E (price against future earnings) based on this year's earnings is closer to the true picture than a multiple calculated on past profit.
- The key point is that this forward P/E is lower than the trailing one.
- Viewed over a long span, the top line has been flat while profit dipped deeply once, then narrowed its decline.
- Revenue was essentially unchanged, from 645.4 billion won in 2023 to 639.5 billion won in 2025, and operating profit nearly halved from 58.5 billion won in 2023 to 29.3 billion won in 2024.
- What matters is that the 2024 decline rate of -50.0% narrowed to -24.1% in 2025, so the pace of the profit decline itself has slowed.
- Net profit in 2025 was 22.8 billion won.
- In the most recent period, first-quarter 2026, the grain shifts once more.
- Revenue was 156.5 billion won, essentially flat (-0.5%), and operating profit of 3.8 billion won still fell, but net profit rose to 7.9 billion won, up +21.8%.
- Revenue not falling further and net profit turning positive is a sign of a base forming.
- The forward P/E on this year's earnings being set lower than last year's trailing (15.7x) reflects a picture in which, with waste-paper and price-spread margins not worsening further and packaging cargo volume holding up, this year's earnings recover from last year.
- Paper is a materials product that tracks the economy, so the business has a cycle, but on the numbers alone, this looks less like a phase of earnings peaking and rolling over and more like one where they were pressed down once and are finding direction toward recovery.
- The recent flow centers on two things.
- First, on March 27 a voluntary corporate-value-up plan disclosure formalized the company's direction on enhancing shareholder value.
- The very fact that a name with a P/B well below 1x voluntarily disclosed such a plan is a signal of intent on dividends and capital allocation (specific numeric targets in the disclosure text need separate verification).
- Second, a cash dividend was decided on March 12 at 225 won per share and a 29.9% payout ratio, providing a dividend yield of about 2.4% at the current price.
- Keeping the dividend even in a year of lower profit supports the returns stance.
- In addition, the May 15 first-quarter 2026 quarterly report and the March 19 2025 business report are the primary basis for the confirmed results, and the May 26 large-holding report is a disclosure signaling an ownership change, worth noting on the supply-demand side.
- The strengths are clear.
- An asset-type undervaluation at a P/B of 0.59x, below per-share net assets; a returns intent shown by an about 2.4% dividend and the value-up disclosure; an entry barrier in its waste-paper-based recycling facilities; and a base forming as the profit decline narrows and first-quarter net profit turns positive.
- The forward P/E on this year's earnings is lower than last year's trailing and not a burdensome value within the same pulp-and-paper industry.
- The cautions are also clear.
- A 3.5% operating margin and 3.8% ROE make profitability thin, and results are heavily swayed by external variables such as waste-paper and energy prices and packaging cargo volume.
- In sum, as long as waste-paper and price-spread margins do not worsen from here and cargo volume holds, the undervaluation against net assets and the dividend gain prominence and traction; conversely, if price pressure deepens again, the thin margin can drag it down.
- Either way, the starting point is the fact that it is cheap against assets and an undemanding value even on this year's earnings.
🔎 Valuation vs peers Fairly valued
The primary comparison is the same business group making corrugated base paper and industrial packaging paper. Asia Paper is closest in business mix as a waste-paper-based corrugated base-paper maker, while Hansol Paper is placed as a same pulp-and-paper industry reference despite a different product range centered on printing and industrial paper.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Asia Paper Manufacturing | 10.38x | 0.36x | 3.50% |
| Hansol Paper | 40.23x | 0.22x | 0.56% |
Compared with Asia Paper, its closest analog, Shin Dae Yang Paper has both a higher P/E and P/B, closer to a slight premium than a discount within the same business group. That said, ROE at 3.8% is a similarly thin level to Asia Paper (3.5%), so there is no large profitability gap to justify a premium. Hansol Paper, with a P/E of 38.7x and ROE of 0.6%, has profit near a bottom, so its P/E comparison is weak and used only for reference. The core limit is that last year's trailing profit was struck at an earnings inflection point. Whether this year's operating profit on a seasonality approximation (about 12.7 billion won) actually materializes is the key, and until it is confirmed, it is a balanced reading to see it as a fairly valued zone - cheap against net assets but with profitability not backing it up. It is a valuation that hinges on whether profit recovers, rather than being called outright cheap or expensive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩161.8 billion | approx. ₩5.0 billion | approx. ₩8.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩9,740 and the market capitalization is ₩392.5 billion. The price sits above its 20-day moving average (₩9,690) and below its 60-day moving average (₩10,933). 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 48.7, a neutral level. The one-month change is +5.9%, the three-month change is -23.9%, and the position relative to the 52-week high is -40.6%. 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 35.2%. 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 -35.17% / 6M -51.49% / 12M -68.37%
Key metrics vs whole-market median
Valuation
The P/E of 17.22x is above the whole-market median (13.81x). The P/B of 0.65x is below the whole-market median (1.15x).
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.8%, below the whole-market average (5.0%). The operating margin is 3.5%. The debt ratio is 153.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $427.7M | $436.4M | $423.9M | -2.88% ↓ slower |
| Operating profit | $38.8M | $19.4M | $14.7M | -24.05% ↑ faster |
| Net profit | $31.7M | $23.3M | $15.1M | -35.12% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $451.7M | $448.3M | $427.7M | $436.4M | $423.9M |
| Operating profit | $36.1M | $33.7M | $38.8M | $19.4M | $14.7M |
| Net profit | $35.9M | $31.5M | $31.7M | $23.3M | $15.1M |
| Revenue CAGR | 4-yr avg -1.58% | ||||
Revenue fell 2.9% year over year (2023 ₩645.4 billion → 2024 ₩658.5 billion → 2025 ₩639.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 24.1% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.6%. The two-year revenue CAGR is -0.4%. In the most recent quarter (Q1 2026), revenue was 0.5% 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.
Points to watch
- Revenue fell 2.9% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-27FilingCorporate-value-up plan voluntary disclosure - the company formalizes its direction on enhancing shareholder valueMedium term: a disclosure setting the direction of dividend and capital-allocation policy. It reads as a returns signal for a sub-1x P/B name, though specific numeric targets in the text need separate verification. Source
- 2026-03-12DividendCash/in-kind dividend decision - 225 won per share, payout ratio about 29.9%A dividend yield of about 2.4% at the current price. Keeping the dividend even in a year of lower profit confirms the returns stance. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report - revenue 156.5 billion won (-0.5%), operating profit 3.8 billion won (-35.9%), net profit 7.9 billion won (+21.8%)The key short-term basis. Confirms with actual results that revenue held but operating-margin pressure persisted. Source
- 2026-03-19Earnings2025 business report (consolidated) - revenue 639.5 billion won (-2.9%), operating profit 22.2 billion won (-24.1%)Confirmed full-year results. The reference document confirming a second straight year of profit decline amid a flat top line. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest close | ₩9,740 | ₩9,740 | Confirmed | link |
| 2025 annual revenue (consolidated) | ₩639.5 billion | ₩639,529,019,559 | Confirmed | link |
| First-quarter 2026 operating profit | ₩3.8 billion(-35.9% YoY) | ₩3,778,186,518 | Confirmed | link |
| 2026 full-year operating profit (seasonality approximation) | approx. ₩12.7 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-26OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-27Disclosure
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12DividendCash/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.