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.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 2189.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.3%).
- 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.
- Even versus the prior quarter (Q4 2025), revenue was 66.8% higher.
- ROE is 14.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.9%.
- 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.
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 Undervalued59% 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 | 41.55% |
| Saramin | 32.59% |
| Kidari Studio | 3.7% |
| Kiwoom | 0% |
🔎 In-depth analysis
- 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 ₩35,350 and the market cap is ₩1.5 trillion.
- The price sits below the 20-day line (₩36,875) and below the 60-day line (₩41,991).
- Trading under both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.7, a neutral level.
- The one-month change is -4.6%, the three-month change is -19.8%, and the price stands -42.5% below its 52-week high.
- Relative strength versus the KOSPI is 23 (on a 1-99 scale, weighting recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 78% of all stocks by strength.
- Over the past three months it lagged the index by 39.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On the surface the metrics look very cheap.
- The P/E ratio (how many times a year's earnings the price represents) is 3.03x and the P/B (how many times book net assets the price represents) is 0.44x.
- 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 | 7.42x | 1.23x | 16.61% |
| Saramin | 1.81x | 0.62x | 34.43% |
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 ₩35,350 and the market capitalization is ₩1.5 trillion. The price sits below its 20-day moving average (₩36,875) and below its 60-day moving average (₩41,991). 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 40.7, a neutral level. The one-month change is -4.6%, the three-month change is -19.8%, and the position relative to the 52-week high is -42.5%. Relative strength versus the KOSPI is 23 (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 22% of all stocks. Over the past three months it lagged the index by 39.3%. 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 -39.30% / 6M -46.29% / 12M -59.50%
Key metrics vs sector median
Valuation
The P/E of 3.03x is below the sector median (14.81x). The P/B of 0.44x is below the sector median (1.11x). 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 14.7%, above the sector average (12.0%). The operating margin is 8.9%. The debt ratio is 2189.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $6.5B | $7.7B | $11.6B | +50.48% ↑ faster |
| Operating profit | $424.1M | $778.5M | $1.0B | +32.74% ↓ slower |
| Net profit | $149.8M | $235.8M | $334.8M | +41.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.0B | $6.1B | $6.5B | $7.7B | $11.6B |
| Operating profit | $833.3M | $476.3M | $424.1M | $778.5M | $1.0B |
| Net profit | $249.3M | $246.9M | $149.8M | $235.8M | $334.8M |
| 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. Because quarterly results are relatively even in this industry, revenue also came in 66.8% higher than the prior quarter (Q4 2025), so the recent trend looks solid.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
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.
- The dividend yield, at 5.1%, is on the high side.
- ROE of 14.7% points to solid profitability.
- Revenue grew 50.5% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 2189.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.3%).
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) | approx. | 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
- 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.