Daou Technology (023590) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daou Technology is a two-faced company: it runs an IT business directly (enterprise software, systems integration, cloud, and IT-infrastructure distribution) and, as the largest shareholder holding about 40.8% of Kiwoom Securities, also serves as a holding company. Most of its ₩17.5 trillion in consolidated revenue comes from the securities-trading operations of its subsidiary Kiwoom Securities, so its earnings and value hinge heavily on Kiwoom's results. In June 2026 it filed an electronic disclosure of a merger decision, making the question of whether it will simplify its multi-layered governance a focal point, and in March it signaled shareholder returns with a share cancellation and a dividend yield in the 5% range. Worth noting recently is that a deep discount to net asset value is the strength - the market value of its Kiwoom stake alone (about ₩3.5 trillion) is more than double the company's own market cap (about ₩1.5 trillion) - while the caution is that the holding-company discount rarely narrows until governance is cleaned up, so the direction and terms of this merger will drive the size of the discount.
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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 “Holding Companies”, a type typically read first through discount to NAV.
A holding company is less a maker of products than a vessel that holds stakes in several subsidiaries. So rather than an earnings multiple, the first lens is the discount to NAV — the market value against the summed worth of everything it owns.
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 far exceeds equity (debt ratio 2433.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.7%).
- Revenue rose 50.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 153.0% higher than a year earlier.
- ROE is 20.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.0%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Daou Data 45.2% (corporate)
Controlling bloc incl. related parties 47.34%
With the controlling bloc holding 47%, the ownership structure is stable.
Net asset value (NAV) assessment 50% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Korea Information Certificate Authority | 43.88% |
| Kiwoom Securities | 41.55% |
| Saramin | 32.59% |
| Kidari Studio | 3.7% |
| Kiwoom Securities | 0% |
🔎 In-depth analysis Reading
Daou Technology has two faces. The first is the IT business it runs directly. It handles enterprise software, systems integration (SI), cloud and security solutions, and distribution of IT infrastructure such as servers and storage. The second and more important face is its role as a holding company. Daou Technology is the largest shareholder, holding about 40.8% of Kiwoom Securities. It also keeps several affiliates within the group, including the recruiting platform Saramin. As a result, most of its ₩17.5 trillion in consolidated revenue in fact comes from the securities-trading operations of its subsidiary Kiwoom Securities. The company's earnings and value hinge far more on Kiwoom's results than on its own IT business.
The latest close is ₩38,600 and the market capitalization is ₩1.7 trillion. The price sits above its 20-day moving average (₩36,560) and above its 60-day moving average (₩38,232). 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 55.4, a neutral level. The one-month change is +3.5%, the three-month change is -22.9%, and the position relative to the 52-week high is -37.2%. Relative strength versus the KOSPI is 24 (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 24% of all stocks. Over the past three months it lagged the index by 6.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the surface the metrics look very cheap. The P/E ratio (how many times a year's earnings the price represents) is 3.31x and the P/B (how many times book net assets the price represents) is 0.46x. For a holding company, however, these two metrics should not be taken at face value. There is a reason. The debt ratio (debt relative to equity) appears to be 2,189% because the subsidiary Kiwoom Securities is consolidated. A financial subsidiary's financial statements carry large customer deposits and trading-related liabilities, which are different in nature from pure borrowings the company must repay. In other words, it is not that the holding company itself is buried in debt; it is an illusion created by the accounting characteristics of a financial subsidiary mixing in. The P/B looking low at 0.45x is also largely because book equity records the subsidiary stake at its low original acquisition cost. Reflecting the actual market value of the stake, assets are far larger than book. So this company is more accurately viewed not by P/E or P/B but by net asset value, explained below. Profitability itself is solid: ROE (how much the company earns in a year on its equity) is 14.7%. The dividend yield is high at 5.1%, and it paid ₩1,800 per share.
The top line grew quickly. Consolidated revenue in 2025 was ₩17.5 trillion, up 50.5% from the prior year, with a five-year revenue CAGR in the 30% range. Net profit also jumped, from ₩226.0 billion in 2023 to ₩505.0 billion in 2025. A major driver of this growth is the strong results of the subsidiary Kiwoom Securities. The first quarter of 2026 was especially pronounced. Cumulative first-quarter net profit of ₩487.2 billion already approached the full-year net profit of last year (₩505.0 billion), up 105% year on year. That said, a holding company's net profit is driven by equity-method income from subsidiaries and swings widely quarter to quarter. So simply multiplying the first-quarter figure by four would overstate the year. It is likely that this year's earnings will clearly exceed last year's, but given the nature of equity-method income, it is hard to pin down an exact annual net profit. For this company, the real meaning of growth lies not in the net-profit number but in the fact that the value of its holdings grows alongside it.
The biggest recent matter is the group merger. In June 2026, Daou Technology filed an electronic disclosure of a merger decision. In early June it also submitted the merger agreement (including an amended version). The Daou Kiwoom group has a multi-layered governance chain running from eMoney to Daou Data, Daou Technology, and Kiwoom Securities, and the need to simplify the structure has long been discussed. Whether this merger moves in the direction of making that governance simpler is a focal point. On shareholder returns, it disclosed a share-cancellation decision in March 2026. Cancelling treasury shares reduces the share count, increasing the stake of remaining shareholders. Together with the dividend yield in the 5% range, it reads as a shareholder-friendly signal. Beyond this, regular holding-company disclosures such as the large business-group status report and the corporate governance report continued.
The core is a deep discount to net asset value. The market value of Daou Technology's Kiwoom Securities stake (about 40.8%) alone is about ₩3.5 trillion. By contrast, Daou Technology's own market cap is about ₩1.5 trillion. In other words, the Kiwoom stake by itself is more than double the company's market cap. Adding the value of other affiliate stakes such as Saramin and the company's own IT business widens the gap between holding-asset value and the share price further. This is deeper than the 30-50% discount typically applied to holding companies. The strength is clear: Kiwoom Securities, the source of the discount, is a quality asset with high ROE and results that have not turned down. The 5%-range dividend and treasury-share cancellation also show intent on shareholder returns. There is a caution, too: a holding-company discount tends not to narrow until governance is cleaned up. So the direction and terms in which this group merger is concluded are the variable that will drive the size of the discount. In sum, the stock is clearly cheap relative to asset value, and for that undervaluation to narrow, a governance event needs to act as a catalyst.
🔎 Valuation vs peers Undervalued
Because it is substantively an operating holding company, asset value is gauged not against IT-business peers but against (1) Kiwoom Securities, the subsidiary at the core of its value, and (2) fellow listed affiliate Saramin. Given the holding-company nature, the discount to holding-stake value is the key, more than comparing absolute P/E or P/B.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kiwoom Securities | 6.84x | 1.09x | 19.47% |
| Saramin | 1.98x | 0.69x | 36.11% |
The surface P/E of 3.0x and P/B of 0.45x look low, but for a holding company these metrics are distorted by subsidiary consolidation and acquisition-cost accounting. The accurate yardstick is net asset value. The market value of the Kiwoom Securities stake (about 40.8%) alone is about ₩3.5 trillion, far above the company's market cap (about ₩1.5 trillion). Adding affiliate stakes such as Saramin and the value of the IT business deepens the discount to assets further. This is a larger gap than the typical holding-company discount. Because Kiwoom Securities, the source of the discount, is not a troubled asset but a quality asset with high ROE, this discount is seen not as due to asset weakness but as a structural discount from unfinished governance cleanup. We judge it undervalued, but for the discount to narrow, a governance event such as the group merger must act as a catalyst.
Price history Close · MA20 · MA60
The latest close is ₩38,600 and the market capitalization is ₩1.7 trillion. The price sits above its 20-day moving average (₩36,560) and above its 60-day moving average (₩38,232). 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 55.4, a neutral level. The one-month change is +3.5%, the three-month change is -22.9%, and the position relative to the 52-week high is -37.2%. Relative strength versus the KOSPI is 24 (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 24% of all stocks. Over the past three months it lagged the index by 6.3%. 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 -6.29% / 6M -36.85% / 12M -43.00%
Key metrics Computed vs sector median
Valuation
The P/E of 3.31x is below the sector median (16.39x). The P/B of 0.46x is below the sector median (1.17x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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 20.9%, above the sector average (7.0%). The operating margin is 8.0%. The debt ratio is 2433.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $6.9B | $8.2B | $12.3B | +50.48% ↑ faster |
| Operating profit | $449.5M | $825.2M | $1.1B | +32.74% ↓ slower |
| Net profit | $158.7M | $250.0M | $354.9M | +41.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.3B | $6.5B | $6.9B | $8.2B | $12.3B |
| Operating profit | $883.2M | $504.9M | $449.5M | $825.2M | $1.1B |
| Net profit | $264.2M | $261.7M | $158.7M | $250.0M | $354.9M |
| Revenue CAGR | 4-yr avg 30.21% | ||||
Revenue rose 50.5% year over year (2023 ₩9.9 trillion → 2024 ₩11.6 trillion → 2025 ₩17.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 32.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 30.2%. The two-year revenue CAGR is 33.2%. In the most recent quarter (Q1 2026), revenue was 153.0% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 4.7%, is on the high side.
- ROE of 20.9% points to solid profitability.
- Revenue grew 50.5% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 2433.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.7%).
Recent news & events searched · sourced
- 2026-06-04FilingFiled the merger agreement (amended version) for the merger decision via electronic disclosure. Following the initial June 2 decision disclosure, it supplemented the contract details.A core item in the group's governance overhaul. A medium-term variable that will decide whether the discount to net asset value narrows, depending on the merger's direction and terms. Source
- 2026-06-02FilingInitial disclosure of the merger decision. Interpreted as a structural overhaul in the direction of simplifying the multi-layered group governance.Governance simplification is a classic catalyst for narrowing a holding-company discount. Uncertainty also coexists until the terms are finalized. Source
- 2026-03-26FilingDisclosed a share-cancellation decision. A shareholder-return measure that cancels treasury shares to reduce the number of shares outstanding.The lower share count raises per-share value. Together with the 5%-range dividend, it supports a shareholder-friendly stance. Source
- 2026-05-15EarningsFiled the Q1 2026 quarterly report. Cumulative first-quarter net profit of ₩487.2 billion, up about 105% year on year, already approaching last year's full-year net profit.Strong results at subsidiary Kiwoom Securities are reflected through equity-method income. But given the nature of equity-method income, quarterly swings are large, so simple annualization is inappropriate. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Kiwoom Securities stake and stake value | approx. 4.1 | (039490) approx. 40.8%, approx. 8.5 approx. 3.5 | Confirmed | link |
| Merger-decision disclosure | 2026-06-02 06-04 (base disclosures) | — | Confirmed | link |
| Q1 2026 net profit | 1 net profit 4,872(base quarter) | 1 (2026.03) | Confirmed | link |
| Annual net profit outlook | — | — | Unverified | link |
Recent filings Source
- 2026-06-04Material-fact report (amended)
- 2026-06-02Disclosure
- 2026-06-02Material-fact report
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07OwnershipOwnership-change filing
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-13Disclosure
- 2026-03-30OwnershipOwnership-change filing
- 2026-03-30OwnershipLargest-shareholder ownership change report
- 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.