Dongwha Enterprise earns money along three lines: a materials business that makes wood-based boards such as MDF and particleboard along with flooring, a chemicals business that produces the adhesives and synthetic resins used to bond them, and a business making lithium-ion battery electrolyte, built by reorganizing Panax Etec, which it acquired in 2019. As a result, construction-material boards and electrolyte that rides the EV and battery cycle sit inside a single company. In May and June it issued roughly ₩230 billion of unsecured corporate bonds for debt repayment and working capital, and first-quarter revenue rose again year on year, a sign of turning up off a revenue trough. What stands out lately is that with a P/B of 0.37x and a P/S of 0.37x the shares trade low against assets and revenue, and the stock could react strongly if the revenue recovery translates into a profit turnaround; on the other hand, both the full year and the first quarter are still in operating loss, and with a debt ratio of 278.9%, a current ratio of 31.5%, and the newly added bonds, its financial cushion is not generous.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 278.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 31.5%).
- The most recent full-year net result was a loss.
- Revenue fell 1.6% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 7.8% higher than a year earlier.
- ROE is -5.6% (controlling-interest basis). It is below the sector average.
- Operating margin is -1.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Dongwha International 49.06% (corporate)
Controlling bloc incl. related parties 67.49%
With the controlling bloc holding 67%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dongwha Enterprise makes money along three broad lines.
- The first is a materials business, supplying wood-based boards such as MDF (medium-density fiberboard) and particleboard, plus flooring and surface materials, to furniture and construction-materials makers.
- The second is a chemicals business producing the adhesives and synthetic resins (formaldehyde-based and others) used to bond those boards; what began as board-related material has gradually grown into a business pillar in its own right.
- The third, built by reorganizing Panax Etec (acquired in 2019) into Dongwha Electrolyte, makes electrolyte, a core material for lithium-ion batteries, with production bases in Korea, China, Malaysia, and Hungary, plus Tennessee in the United States.
- In other words, seeing it only as a "timber company" captures just half the picture; the starting point for understanding this company is that construction-material boards and electrolyte, which rides the EV and battery cycle, sit inside one company.
- The latest close is ₩5,720 and the market cap is ₩289.2 billion.
- The price sits below its 20-day line (₩6,808) and its 60-day line (₩9,125).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 31.0, a neutral level.
- The one-month change is -24.0%, the three-month change is -44.8%, and the position versus the 52-week high is -54.6%.
- Relative strength versus KOSDAQ is 50 (1-99, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 50% of all stocks by strength.
- Over the past three months it lagged the index by 28.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, net profit was in the red, so a P/E ratio cannot be computed.
- Looking instead at asset and revenue bases, the P/B (share price versus shareholders' equity per share) is 0.36x, meaning the shares trade below half of book equity, and the P/S (share price versus one year of revenue per share) is also low at 0.37x.
- Book value per share (BPS) is ₩16,100, more than double the closing price of ₩5,990, so relative to asset value the price is clearly in a cheap zone.
- Profitability, however, is still weak.
- ROE is -5.6% and operating margin is -1.7%, both in the red, while the debt ratio (debt versus shareholders' equity) is 278.9% and the current ratio (assets readily convertible to cash versus debt due within a year) is 31.5%, so short-term liquidity is tight.
- Because the trailing figures based on confirmed results reflect a point where profit turned to loss, this is best seen as a stock where assets are valued cheaply but the key variable is whether earnings turn back up.
- Over five years revenue eased down from ₩932.4 billion in 2021 to ₩829.6 billion in 2025 (about -2.9% a year), while operating profit swung from a ₩104.9 billion profit to a ₩13.8 billion loss over the same period.
- As the favorable board and electrolyte conditions around 2022 cooled, profitability was badly shaken.
- That said, the pace of revenue decline narrowed noticeably from -5.0% in 2024 to -1.6% in 2025, and most recently first-quarter 2026 revenue rose 7.8% year on year to ₩218.1 billion, a sign that the top line is finding a floor and turning again.
- This reads as the result of board demand no longer worsening and electrolyte shipments providing support.
- Operating profit was still a ₩4.9 billion loss in the first quarter, but the size of the loss itself was smaller at the quarterly level than the annual loss trend.
- The company has not disclosed an official earnings outlook for this year, so future earnings multiples are left undetermined; the point to watch is whether the revenue recovery leads to a profit turnaround in the next quarter's results.
- Recent disclosures center on financing and periodic reports.
- Beginning with a debt securities registration statement on May 19 and confirmed issue terms on May 26, the issuance of roughly ₩230 billion of unsecured corporate bonds was wrapped up with a securities issuance performance report on June 1.
- The proceeds are for debt repayment and working capital; being aimed at refinancing maturities and covering working capital, this helps short-term liquidity, but interest costs and changes in borrowing dependence should be watched together.
- On June 8, corrected filings of the 2025 annual report and the third-quarter 2025 report were posted, allowing the confirmed figures to be re-checked.
- Separately, the May 11 disclosure confirming criminal punishment related to a serious accident is a safety and legal risk item, to be kept in mind as a non-operating cost and reputational factor.
- The first thing to fix in mind is that this is not a simple timber play but a diversified company blending boards, chemicals, and electrolyte.
- The strengths are clear.
- With a P/B of 0.37x and a P/S of 0.37x the shares are low against both assets and revenue, book value per share is more than double the closing price, and first-quarter revenue rose again year on year, a sign of turning up off a trough.
- If board demand recovers and electrolyte utilization and profitability provide support, profit could be added on top of the low-valued asset base, giving it room to react strongly.
- On the other side, the points to check are just as clear.
- Both the full year and the first quarter are still in operating loss, so cheap assets do not by themselves mean safety; with a debt ratio of 278.9%, a current ratio of 31.5%, and the newly added ₩230 billion of bonds, the financial cushion is not generous, and boards are exposed to the construction and property cycle while electrolyte is exposed to the EV and battery cycle at the same time, making it volatile.
- In sum, this is a stock that can move strongly relative to asset value if the revenue recovery leads to a profit turnaround, and that weakens if the losses drag on or the borrowing burden grows; watching both conditions together is the balanced view.
🔎 Valuation vs peers Inconclusive
Rather than treating it as a plain timber name, peers were framed by business substance across wood-based boards (MDF/particleboard), board-use chemicals, and secondary-battery electrolyte. Dongwha Enterprise is the only name with on-site figures confirmed; individual figures for board peers (Hansol Homedeco, Eagon Industrial and others) and electrolyte peers (specialist electrolyte material makers) are verifiable only via official or DART filings, so their figures are left blank here.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dongwha Enterprise | — | 0.36x | -5.62% |
| 한솔홈데코(목질 보드 동종, 수치는 공식·DART로 별도 확인) | — | — | — |
A P/B of 0.37x and a P/S of 0.37x are low positions against assets and revenue, but this is a discount that must be read alongside the losses. The trailing P/E on confirmed prior-year results cannot be computed because net profit was negative, and future earnings cannot be pinned down for a forward view since the company gives no official figures. First-quarter revenue was up 7.8% year on year, a sign of a top-line trough, but a profit turnaround has not been confirmed, and as a diversified business it is hard to judge "cheap or expensive" against any single peer set. So while asset value is priced low, factoring in the earnings and financial burden together makes it hard to declare either fairly valued or overvalued, and it is left inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩224.9 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩5,720 and the market capitalization is ₩289.2 billion. The price sits below its 20-day moving average (₩6,808) and below its 60-day moving average (₩9,125). 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 31.0, a neutral level. The one-month change is -24.0%, the three-month change is -44.8%, and the position relative to the 52-week high is -54.6%. Relative strength versus the KOSDAQ is 50 (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 51% of all stocks. Over the past three months it lagged the index by 28.5%. 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 -28.49% / 6M -17.13% / 12M -36.07%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.36x 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.
Profitability & financials
Return on equity (ROE) is -5.6%, below the whole-market average (5.0%). The operating margin is -1.7%. The debt ratio is 278.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $587.8M | $558.6M | $549.8M | -1.57% ↑ faster |
| Operating profit | -$20.9M | $5.0M | -$9.1M | -283.04% |
| Net profit | -$56.0M | -$8.1M | -$30.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $618.0M | $729.3M | $587.8M | $558.6M | $549.8M |
| Operating profit | $69.5M | $48.0M | -$20.9M | $5.0M | -$9.1M |
| Net profit | $26.2M | $25.4M | -$56.0M | -$8.1M | -$30.3M |
| Revenue CAGR | 4-yr avg -2.88% | ||||
Revenue fell 1.6% year over year (2023 ₩886.8 billion → 2024 ₩842.8 billion → 2025 ₩829.6 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 283.0% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.9%. The two-year revenue CAGR is -3.3%. In the most recent quarter (Q1 2026), revenue was 7.8% higher 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
- Debt is somewhat higher than equity (debt ratio 278.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 31.5%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 1.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-01FilingSecurities issuance performance report filed — issuance of roughly ₩230 billion of unsecured corporate bonds completed (for debt repayment and working capital)Refinancing maturities and raising working capital during a loss period is a positive for short-term liquidity, but rising interest costs and greater borrowing dependence are a medium-term financial burden. Source
- 2026-06-08Update[Correction] Corrected 2025 annual report filed — confirmed annual results re-verifiedAs the primary source verifying confirmed figures such as 2025 revenue of ₩829.6 billion and operating profit of -₩13.8 billion, it serves as the reference for checking whether the loss reverses and for reviewing financial structure. Source
- 2026-05-19FilingSecurities registration statement (debt securities) filed — corporate bond issuance process beginsAs the starting point of the financing that led to confirmed issue terms (5/26) and the performance report (6/1), this is the disclosure for gauging the size and use (debt repayment, working capital) of the funds raised. Source
- 2026-05-11UpdateDisclosure confirming criminal punishment related to a serious accidentAs a safety and legal risk item, non-operating costs and reputational factors need to be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue | ₩829.6 billion(₩829,562,476,098) | 2025 revenue | Confirmed | link |
| Q1 2026 revenue | ₩218.1 billion(₩218,055,773,079), 比 +7.8% | 2026 3 revenue | Confirmed | link |
| Corporate bond issuance size and use | approx. ₩230.0 billion | — | Confirmed | link |
| 2026 annual revenue (forward reference) | approx. ₩900.6 billion | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-08PeriodicAnnual business report (amended)
- 2026-06-08PeriodicQuarterly report (amended)
- 2026-06-01Earnings disclosure
- 2026-06-01Disclosure
- 2026-05-26Disclosure
- 2026-05-26Amended filing
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-10OwnershipOwnership-change 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.