Dongsuh earns money on two axes: its own business of distributing coffee, tea, seasoned laver, and cereal and making packaging materials (about ₩532.9 billion in 2025 revenue), and a 50% stake in Dongsuh Foods, which makes Maxim and Kanu, from which it receives equity-method income; the fact that net profit (about ₩144.9 billion) is more than three times its own operating profit (₩45.3 billion) is because most of the difference comes from the Dongsuh Foods stake. At the March 2026 AGM there were changes to the CEO and outside directors, followed by filings on changes in the largest shareholder's holdings and a corporate governance report, with no separate large-order or capital-investment disclosures. The key point to watch is the solid earnings base of a 50% stake in Dongsuh Foods, which holds Korea's top instant-coffee brands, near-net-cash financials, and a 4.8% dividend with a 77.6% payout ratio - while, on the other side, as a 50:50 joint venture with Mondelez the stake cannot be freely sold or consolidated, and cash comes up only through dividends, so it takes time for the stake's value to be reflected in the share price.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.0% higher than a year earlier.
- ROE is 8.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.5%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2019-12-31
Largest shareholder Kim Sang-heon 17.59% (individual)
Controlling bloc incl. related parties 62.21%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dongsuh earns money on two axes.
- First, through its own business, it distributes coffee, tea, seasoned laver, cereal, and health foods and makes packaging materials used in products such as coffee sticks.
- In 2025 its own revenue was about ₩532.9 billion and operating profit about ₩45.3 billion (an operating margin of 8.5%).
- Second, and more importantly, it holds a 50% stake in Dongsuh Foods, a 50:50 joint venture with the U.S.'s Mondelez.
- Dongsuh Foods, which effectively dominates Korea's instant-coffee market, makes Maxim, Kanu, and Prima.
- As a result, Dongsuh's net profit (about ₩144.9 billion in 2025) is more than three times its own operating profit (₩45.3 billion) - most of the difference is equity-method income from the Dongsuh Foods stake.
- In other words, although outwardly classified as food wholesale, in substance it is closer to an operating holding company that holds a coffee-brand stake.
- The latest close is ₩26,250 and the market cap is ₩2.6 trillion.
- The price sits above its 20-day line (₩24,752) and above its 60-day line (₩25,352).
- With the price above both its short- and mid-term moving averages, the trend looks favorable.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 59.6, near neutral.
- The one-month change is +4.8%, the three-month change is -3.1%, and it sits -17.2% below its 52-week high.
- Relative strength versus the KOSPI is 27 (on a 1-99 scale, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- Among all stocks, it sits in roughly the top 73% by strength.
- Over the past three months it lagged the index by 23.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The valuation metrics are a P/E of 18.06x (how many times one year's earnings the share price is) and a P/B of 1.52x (how many times book net assets the share price is).
- At Dongsuh, however, reading these two at face value leads to a misunderstanding.
- Because a large part of net profit is equity-method income from Dongsuh Foods (the share reflected in proportion to its stake in the unlisted joint venture), the P/E is not calculated on its own operating performance alone, and because book equity (BPS of ₩17,272) carries the Dongsuh Foods stake at close to acquisition cost, the P/B also understates the true value.
- On profitability, ROE (how much is earned in a year on equity) of 8.4% is above the sector average, and the financials are very stable - a debt ratio (debt relative to equity) of 104% is mostly interest-free items, and with a current ratio of 1,767% and interest coverage of 103x it is effectively a net-cash company.
- On dividends, it pays ₩1,140 per share at a payout ratio of 77.6%, returning much of its earnings to shareholders.
- Over five years revenue moved from ₩535.3 billion (2021) to ₩556.5 billion (2022) to ₩489.7 billion (2023) to ₩488.9 billion (2024) to ₩532.9 billion (2025), a mature, flat pattern fluctuating in the ₩500 billion range.
- In 2025 revenue rebounded +9.0% year on year, but net profit fell -7.9% to ₩144.9 billion, driven largely by a one-year decline in Dongsuh Foods' net profit rather than the own business.
- In Q1 2026, revenue rose +5.0%, operating profit fell -11.7%, and net profit fell -1.4% - its own operating margin was squeezed, but equity-method income from Dongsuh Foods cushioned net profit to roughly flat.
- Looking ahead, because coffee and food consumption is a mature market that structurally holds up gradually, earnings are likely to continue steadily around current levels rather than surge or slump.
- As this is not a stock with sharp earnings inflection, this year's net profit is estimated at around ₩147.0 billion, similar to last year - on that basis the current share price is in the low-16x range on earnings, not an unreasonable level for a mature dividend stock.
- Recent disclosures center on governance, shareholder returns, and regular results rather than large events.
- At the March 2026 AGM there were changes to the CEO and outside directors (management succession and board reshaping), and filings on changes in the largest shareholder's holdings recurred in March and May, showing an adjustment in the largest shareholder's stake.
- In May, a trading plan by executives and major shareholders for specified securities was disclosed in advance, and a corporate governance report was disclosed at the end of May.
- The March business report (Dec 2025) and the May quarterly report (Mar 2026) are the basis for the regular results.
- There are no separate large-order or capital-investment disclosures, which reflects that this company weights stable profit distribution over growth investment.
- The strengths are clear: a solid earnings base in a 50% stake in Dongsuh Foods, which holds Korea's top instant-coffee brands (Maxim and Kanu); stable, near-net-cash financials; and a high dividend of 4.8% with a 77.6% payout ratio.
- With the share price pressured by a correction, the dividend appeal has actually grown.
- The cautions, conversely, are that because Dongsuh Foods is a 50:50 joint venture with Mondelez, the stake cannot be freely sold, consolidated, or expanded via exports, and, since cash comes up only through dividends, it takes time for the stake's value to be fully reflected in the share price.
- The own coffee market is also already mature, so explosive growth is hard to expect.
- In sum, it is strong from the standpoint of steadily receiving stable profit and dividends rather than a rapid share-price rise, and a stock with weak catalysts from the standpoint of short-term trading gains.
🔎 Valuation vs peers Inconclusive
A comparison with domestic mature food/holding-natured companies that own and distribute instant-coffee and food-and-beverage brands; that said, since Dongsuh's earnings come from equity-method income in an unlisted joint venture, giving it an operating-holding character, a simple P/E comparison has its limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Orion | 14.00x | 1.41x | 10.05% |
| Ottogi | 19.19x | 0.64x | 3.34% |
| Binggrae | 10.91x | 0.82x | 7.47% |
| Lotte Wellfood | 12.97x | 0.43x | 3.30% |
(a) Same-natured food and holding peers generally have P/Es of roughly 11-18x and P/Bs of 0.4-1.4x. Dongsuh's P/E of 16.5x and P/B of 1.39x look on the high side within that range, but (b) there is an important trap here. A large share of Dongsuh's net profit is equity-method income from the unlisted joint venture Dongsuh Foods, and book equity carries that stake at close to acquisition cost. So the P/B understates the true value of the held stake, and accounting for the market value of that stake, the share price relative to net assets is not as expensive as the headline number. (c) Conversely, as a 50:50 joint venture the stake is hard to sell or to grow via consolidation or exports, and cash comes up only through dividends, which justifies a holding-company discount. These two forces offset each other, making it hard to declare it overvalued on a simple P/E or undervalued on NAV alone. Hence we view it as Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩26,250 and the market capitalization is ₩2.6 trillion. The price sits above its 20-day moving average (₩24,752) and above its 60-day moving average (₩25,352). 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 59.6, a neutral level. The one-month change is +4.8%, the three-month change is -3.1%, and the position relative to the 52-week high is -17.2%. Relative strength versus the KOSPI is 27 (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 26% of all stocks. Over the past three months it lagged the index by 23.3%. 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 -23.27% / 6M -36.98% / 12M -62.85%
Key metrics vs sector median
Valuation
The P/E of 18.06x is above the sector median (9.68x). The P/B of 1.52x is above the sector median (0.80x).
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 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.017x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.4%, above the sector average (7.0%). The operating margin is 8.5%. The debt ratio is 104.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $324.6M | $324.0M | $353.2M | +9.00% ↑ faster |
| Operating profit | $29.0M | $29.5M | $30.0M | +1.93% ↑ faster |
| Net profit | $96.0M | $104.2M | $96.0M | -7.87% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $354.8M | $368.8M | $324.6M | $324.0M | $353.2M |
| Operating profit | $25.4M | $26.0M | $29.0M | $29.5M | $30.0M |
| Net profit | $75.1M | $111.3M | $96.0M | $104.2M | $96.0M |
| Revenue CAGR | 4-yr avg -0.11% | ||||
Revenue rose 9.0% year over year (2023 ₩489.7 billion → 2024 ₩488.9 billion → 2025 ₩532.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 1.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.1%. The two-year revenue CAGR is 4.3%. In the most recent quarter (Q1 2026), revenue was 5.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 quarterly report filed - revenue of about ₩135.3 billion (+5.0%), operating profit of about ₩10.4 billion (-11.7%), net profit of about ₩43.6 billion (-1.4%). The own operating margin was squeezed, but equity-method income from Dongsuh Foods defended net profit to roughly flat.Short term: confirms cost pressure in the own business. Medium term: reaffirms that the earnings base lies with Dongsuh Foods. Source
- 2026-03-20FilingAGM result and changes to the CEO and outside directors - management reshaping and a change in board composition.Medium term: affects stability related to governance and management succession. Source
- 2026-03-12Earnings2025 business report filed - revenue of about ₩532.9 billion (+9.0%), operating profit of about ₩45.3 billion, net profit of about ₩144.9 billion (-7.9%). The net-profit decline reflects a reduction in Dongsuh Foods-related equity-method income.Medium term: confirms in figures the structure in which most earnings come from the Dongsuh Foods equity-method income. Source
- 2026-05-06FilingReport on a trading plan for specified securities by executives and major shareholders - advance disclosure of an insider stake-trading plan.Short term: a point at which to watch the flow of changes in the largest shareholder's and insiders' holdings. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-14PeriodicQuarterly report
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-20OwnershipOwnership-change filing
- 2026-03-20Disclosure
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-05Amended filing
- 2026-03-05Shareholders' meeting notice
- 2026-03-03OwnershipLargest-shareholder ownership change report
📖 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.