DongSung Finetec mainly makes cryogenic insulation (polyurethane-foam insulation) that lines the inside of the cargo tanks of LNG carriers, which transport LNG at minus 163 degrees, and supplies it to domestic shipyards such as Hanwha Ocean, HD Hyundai Heavy Industries and Samsung Heavy Industries; most of its revenue is tied to LNG carrier construction volume, and it also runs a business in rigid PU insulation for buildings and industrial use. Riding an LNG carrier construction boom, its revenue doubled over five years, its first-quarter 2026 operating margin improved rapidly, and its ROE of 21.6% makes profitability high. The key point to note recently is that its forward P/E of 6.6x based on this year's expected earnings is lower than that of rival Korea Carbon (about the 14x range) or the large shipbuilders, so the share price is depressed relative to earnings, but because revenue depends heavily on the single downstream industry of LNG carrier orders and construction, earnings volatility can rise if the shipbuilding order cycle slows.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 24.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.9% lower than a year earlier.
- ROE is 21.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DongSung Chemical 38.01% (corporate)
Controlling bloc incl. related parties 38.01%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- DongSung Finetec mainly makes the cryogenic insulation that lines the inside of the cargo tanks of LNG (liquefied natural gas) carriers, which transport LNG at minus 163 degrees.
- Its core product is polyurethane (PU) foam insulation, a component that insulates the cargo-tank walls so that gas does not leak or warm up and evaporate.
- This insulation is supplied to domestic shipyards such as Hanwha Ocean, HD Hyundai Heavy Industries and Samsung Heavy Industries, and most of its revenue is tied to LNG carrier construction volume.
- On top of this, it also runs a business in rigid PU insulation (systems) for buildings and industrial use.
- Ultimately, this company's results are directly linked to how many LNG carriers are ordered and built, so even as a chemical materials company it moves as part of the shipbuilding-equipment supply chain.
- The recent close is ₩15,700 and the market cap is ₩470.8 billion.
- The price is below its 20-day line (₩18,006) and below its 60-day line (₩22,259).
- Sitting below both the short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (an auxiliary indicator comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 34.6, at a neutral level.
- The one-month change is -13.7%, the three-month change is -36.3%, and the position versus the 52-week high is -53.9%.
- Relative strength versus the KOSDAQ is 45 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market), placing it in roughly the top 55% of all stocks by strength.
- Over the past three months it lagged the index by 16.0%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Based on confirmed annual results (2025), the P/E ratio (how many times a year's net profit the price represents) is 8.43x and the P/B (how many times net assets the price represents) is 1.82x.
- ROE (how much is earned in a year on equity) is 21.6%, above the peer average, and the operating margin is 9.8%.
- The debt-to-equity ratio (debt relative to equity) is 93.7%, not a heavy level, and with an interest coverage ratio of 118x and a current ratio of 150%, short-term solvency is also stable.
- One point to note is that the P/E and P/B above are based on last year's confirmed results and year-end equity.
- Entering 2026, quarterly earnings are in a phase of sharp growth, so the forward P/E recalculated with this year's expected earnings falls to 6.6x.
- This is a level below that of direct peers or the downstream shipbuilders, and reflecting the growing-earnings trend it reads as a signal that the share price is cheap relative to earnings.
- Five-year revenue more than doubled from ₩365.0 billion in 2021 to ₩742.2 billion in 2025 (an annual average of +19.4%), and operating profit grew from ₩30.2 billion to ₩72.6 billion over the same period.
- After passing through a slump in which 2022 operating profit fell to ₩15.3 billion, it recovered sharply from 2023, and in 2025 the pace of increase actually quickened, with revenue +24.2%, operating profit +34.4% and net profit +42.0%.
- In the first quarter of 2026 the top line was flat with revenue of ₩169.1 billion (-1.9% year on year), but earnings jumped a notch, with operating profit of ₩19.9 billion (+58.4%) and net profit of ₩17.1 billion (+89.7%).
- This is because the structure is shifting toward leaving more profit on the same revenue as higher-priced new insulation volume is loaded in.
- This year's (forward) earnings growing far above last year's comes from this improvement in unit price and volume.
- It is the result of the LNG carrier order boom continuing so that the insulation volume in hand is loaded onto the construction schedule in turn, coinciding with a phase in which the share of high-unit-price products rises.
- The forward P/E of 6.6x reflecting this year's expected earnings is lower than last year's 9.2x, placing it in a stretch where earnings growth pulls the valuation down.
- The core of recent disclosures is orders and shareholder returns.
- On April 8, 2026, disclosures of single-sale and supply contracts appeared in three cases including corrections, key events for new insulation supply contracts that will be reflected in subsequent revenue and results.
- On April 30, a treasury-stock disposal result report was issued, finalizing the results of the disposal of treasury shares held.
- The May 14 quarterly report (2026.03) is the document that officially confirmed the first-quarter surge in earnings.
- At the March 26 annual general meeting, periodic agenda items such as approval of the 2025 financial statements were handled.
- Since LNG carrier construction is the starting point of the company's results, tracking the scale of order disclosures and the timing of revenue recognition alongside the quarterly report helps gauge the earnings trend.
- This is a stock with relatively clear strengths.
- Riding the structural demand of an LNG carrier construction boom, its revenue doubled over five years, and in the first quarter of 2026 its operating margin improved rapidly and earnings jumped a notch.
- With ROE of 21.6%, profitability is high and the financial structure is also stable.
- On valuation too, the forward P/E of 6.6x based on this year's expected earnings is below that of direct rival Korea Carbon (about the 14x range) or the large downstream shipbuilders, so the share price is depressed relative to earning power.
- A point to view together is the business structure.
- Because revenue depends heavily on the single downstream industry of LNG carrier orders and construction, it is directly affected by the shipbuilding order cycle.
- Thus, as long as LNG carrier construction volume is maintained or expanded and new contracts feed into revenue, both earnings and valuation work favorably, while in a phase where the shipbuilding order trend slows, earnings volatility can rise.
- At this point the numbers lean toward "earnings rising, share price depressed."
🔎 Valuation vs peers Inconclusive
Compared together with peers in the same business of LNG carrier cryogenic insulation and thermal insulation, and with the large shipbuilders as the downstream demand source; on-site figures were confirmed with tools/peers.py.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Carbon | 11.81x | 2.07x | 17.54% |
| HD Korea Shipbuilding & Offshore Engineering | 10.69x | 1.74x | 16.32% |
| Hanwha Ocean | 19.33x | 3.90x | 20.19% |
(a) Compared with Korea Carbon, which is in essentially the same business, DongSung Finetec has a lower P/E and P/B and a higher ROE, placing it at a discount versus its direct peer. (b) This discount can be seen as partly reflecting the fact that its market cap is about a third of Korea Carbon's and that its revenue is more concentrated in the single downstream industry of LNG carriers, making it more volatile. (c) That said, the current P/E of 8.43x is based on last year's confirmed (trailing) results. Because 2026 is an inflection stretch of surging quarterly earnings, last year's number can distort current earning power either too low or too high, and on a forward basis approximated from DART seasonality the P/E falls further. It looks cheap versus peers, but the durability of earnings (the shipbuilding cycle) needs to be verified, so we do not declare a view and leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩185.3 billion | ₩30.0 billion | ₩20.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩15,700 and the market capitalization is ₩470.8 billion. The price sits below its 20-day moving average (₩18,006) and below its 60-day moving average (₩22,259). 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 34.6, a neutral level. The one-month change is -13.7%, the three-month change is -36.3%, and the position relative to the 52-week high is -53.9%. Relative strength versus the KOSDAQ is 45 (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 45% of all stocks. Over the past three months it lagged the index by 16.0%. 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 -15.98% / 6M -27.44% / 12M -35.18%
Key metrics vs sector median
Valuation
The P/E of 8.43x is below the sector median (14.79x). The P/B of 1.82x is above the sector median (0.97x). 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 21.6%, above the sector average (4.0%). The operating margin is 9.8%. The debt ratio is 93.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $353.8M | $395.9M | $491.9M | +24.23% ↑ faster |
| Operating profit | $26.5M | $35.8M | $48.1M | +34.40% ↓ slower |
| Net profit | $19.7M | $26.1M | $37.0M | +42.04% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $241.9M | $287.7M | $353.8M | $395.9M | $491.9M |
| Operating profit | $20.0M | $10.1M | $26.5M | $35.8M | $48.1M |
| Net profit | $17.5M | $5.6M | $19.7M | $26.1M | $37.0M |
| Revenue CAGR | 4-yr avg 19.41% | ||||
Revenue rose 24.2% year over year (2023 ₩533.8 billion → 2024 ₩597.4 billion → 2025 ₩742.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 34.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 19.4%. The two-year revenue CAGR is 17.9%. In the most recent quarter (Q1 2026), revenue was 1.9% 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.
- ROE of 21.6% points to solid profitability.
- Revenue grew 24.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-08UpdateDisclosure of a single-sale and supply contract (three cases including corrections). A new order for products such as LNG carrier insulation, directly linked to the company's mainstay revenue.Medium-term impact. Because insulation supply contracts are recognized as revenue in line with shipyard construction schedules, the contract scale and the timing of recognition determine the direction of future quarterly results. Source
- 2026-04-30UpdateTreasury-stock disposal result report. The results of the disposal of treasury shares held were finalized.Short-term impact. A treasury-stock disposal can affect the free float and supply-demand, so it is best to check the purpose of the disposal and the volume together. Source
- 2026-05-14EarningsQuarterly report (2026.03). First-quarter revenue of ₩169.1 billion, operating profit of ₩19.9 billion (+58.4%) and net profit of ₩17.1 billion (+89.7%) officially confirmed the profitability improvement.Medium-term impact. The top line was flat but margins improved greatly, so whether this trend carries through on an annual basis is the core point to watch. Source
- 2026-03-26FilingAGM results. Periodic agenda items such as approval of the fiscal 2025 financial statements were handled.Short-term impact. Material for checking the outcome of governance and shareholder-return items such as dividends and director appointments. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue | ₩742.2 billion | ₩742.2 billion | Confirmed | link |
| First-quarter 2026 operating profit | ₩19.9 billion(+58.4% YoY) | ₩19.9 billion | Confirmed | link |
| Latest closing price | ₩15,700 | — | Unverified | link |
| This year's seasonality-approximated operating profit | approx. ₩130.0 billion | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30TreasuryTreasury-stock disposal decision
- 2026-04-08Single supply/sales contract
- 2026-04-08Single supply/sales contract (amended)
- 2026-04-08Single supply/sales contract (amended)
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-05Amended 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.