Dongsung Chemical (102260) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Dongsung Chemical both manufactures chemical materials directly and is an operating holding company whose value is largely set by its subsidiary stakes. Alongside its chemical core, which includes polyurethane for shoe soles and non-yellowing TPU that it is the only company in Korea to produce commercially, it holds a 37.94% stake in Dongsung Finetec, the domestic leader in cryogenic insulation for LNG carriers, and a 50.21% stake in Genewel. The chemical core (operating profit ₩112.0 billion) has grown revenue and operating profit together for three years running, while subsidiary Dongsung Finetec has seen earnings rise sharply on an LNG-carrier ordering boom, and that growth flows into results as equity-method income. The notable points are that the market value of the Dongsung Finetec stake alone (about ₩214.0 billion) exceeds the entire market cap (₩175.8 billion), so the value of the core business and overseas units is effectively thrown in for free, and with this year's earnings recovery and a dividend yield in the 4% range the case for undervaluation is thick, while net profit swings with equity-method income and FX so quarterly volatility is high, and the NAV discount typical of a holding company will take time to narrow.
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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 “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
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
- Revenue rose 13.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.6% higher than a year earlier.
- ROE is 8.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DSTI 41.56% (corporate)
Controlling bloc incl. related parties 42.78%
With the controlling bloc holding 43%, the ownership structure is stable.
Net asset value (NAV) assessment
💡 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
| DongSung Finetec | 38.01% |
🔎 In-depth analysis Reading
Dongsung Chemical both manufactures chemical materials directly and, at the same time, is an 'operating holding company' whose corporate value is largely set by its subsidiary stakes. Its own business runs along four lines. (1) Polyurethane (PU): it makes PU materials for shoe soles (midsoles, outsoles) and SCA materials for synthetic-leather and textile coating, supplying shoe and accessory makers. (2) TPU (thermoplastic polyurethane): a high-function plastic with rubber-like elasticity and good abrasion resistance, used in sporting goods, furniture adhesives and automotive interiors; the company is a technology leader and the only firm in Korea that commercially produces 'non-yellowing' TPU (which does not turn yellow). (3) Petrochemicals: it produces functional solvents. (4) Fine chemicals: it makes organic peroxides (catalysts and crosslinkers used in plastics processing). On top of this it holds a 37.94% stake in Dongsung Finetec, the top maker of cryogenic insulation for LNG carriers, a 50.21% stake in the medical-materials firm Genewel, and overseas production units. In other words, you have to view its two faces together: a chemical company selling materials for footwear and autos, and a holding company with a subsidiary that benefits from the LNG shipbuilding boom.
The latest close is ₩3,695 and the market capitalization is ₩187.2 billion. The price sits above its 20-day moving average (₩3,503) and below its 60-day moving average (₩3,716). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 57.1, a neutral level. The one-month change is +1.9%, the three-month change is -14.4%, and the position relative to the 52-week high is -21.7%. 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 outpaced the index by 2.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation metrics are low at a glance. The P/E (the multiple on the past year's earnings) is 5.63x and the P/B (the multiple on book-value net assets) is 0.40x, a price below half of equity, while the dividend yield is high in the 4% range. Yet there is no reason to read this stock's trailing P/E and P/B (based on last year's confirmed results and book value) as a 'burden,' for two reasons. First, last year's net profit (₩33.3 billion) was a trough figure temporarily depressed by non-operating losses, so on this year's basis, with earnings recovering, the forward P/E comes down. Second, a big reason the P/B is low is that the Dongsung Finetec stake is carried on the books at 'acquisition cost,' recorded far below its actual market value, so the true value of the net assets is larger than the book. In other words, neither metric makes the company look cheaper than it is; if anything, they understate the company's value. On profitability, ROE (how much it earns on equity in a year) is 7.3%, above the peer average, and the operating margin is a solid 9.25%. The net margin of 2.74% looks low only because of last year's non-operating burden, which is a separate story from the core margin. The debt ratio (debt against equity) is 109%, in line with the chemical-sector average, and interest coverage of 20.8x leaves ample ability to pay interest.
The core business's growth is clear. Revenue rose for three straight years from ₩993.0 billion in 2023 to ₩1,066.3 billion in 2024 and ₩1,211.6 billion in 2025, with the pace accelerating (+13.6% year on year), and operating profit climbed even more steeply, from ₩74.1 billion to ₩91.0 billion to ₩112.0 billion (+23.1%). Only net profit fell, from ₩45.0 billion in 2024 to ₩33.3 billion in 2025 (-26%), but that was because the one-off gains of 2024 disappeared and non-operating losses piled on, not because the core weakened. In fact, in Q1 2026 revenue was nearly flat (+0.6%) yet operating profit jumped +19.9% and net profit +48.7%, confirming the recovery in the numbers. The forward P/E falling further this year, from a trailing 5.29x to 3.28x, is because last year's trough net profit recovers clearly this year on core growth and inflows of subsidiary equity-method income. The supporting grounds are clear: (1) a core business whose revenue and operating profit have accelerated for three years, (2) a structure in which subsidiary Dongsung Finetec's share, its revenue and profit rising sharply on the LNG-carrier ordering boom, flows up as equity-method income, and (3) the actual recovery record of Q1 net profit +48.7%. It should be kept in mind that net profit swings quarter to quarter, driven by Dongsung Finetec's equity-method income (a non-cash profit that draws in the subsidiary's share) and by FX.
Recent disclosures are mostly periodic and administrative. The May 14 Q1 2026 quarterly report revealed the surge in net profit, a corporate governance report was disclosed on May 29, and a June 5 disclosure setting a record date (closing the shareholder register) arranged the dividend and shareholder-rights schedule. In early April there were numerous share-holding change filings by the largest shareholder (DSTI) and officers. On the business side, the most important trend is that subsidiary Dongsung Finetec's revenue and profit are rising sharply as demand for cryogenic insulation grows on the LNG-carrier ordering boom, and that growth flows up into Dongsung Chemical's results through equity-method income.
This is a stock with distinct strengths. First, the in-house chemical core (operating profit ₩112.0 billion) has grown revenue and operating profit together for three years, with technology differentiation such as non-yellowing TPU. Second, the market value of the 37.94% Dongsung Finetec stake alone (about ₩214.0 billion) already exceeds Dongsung Chemical's entire market cap (₩175.8 billion), so the value of the core business, Genewel and overseas units is effectively received for free. Third, this year's earnings recovery brings the forward P/E down, so the stock is clearly cheap against earnings too, and a dividend yield in the 4% range supports the downside. With asset value, core growth, earnings recovery and dividends all aligned in one direction, the case for undervaluation is thick. There are points to watch as well. Net profit swings with subsidiary equity-method income and FX, so quarterly volatility is high, and the NAV discount typical of a holding company (where the share price does not keep up with the value of held assets) narrows only when the shareholder-return policy and market assessment change. In short, this is a stock that is valued more strongly when LNG shipbuilding demand continues and the holding-company discount narrows, and whose re-valuation lags when that discount stays entrenched for a long time.
🔎 Valuation vs peers Undervalued
Because it holds both an in-house chemical core (polyurethane, fine chemicals) and an LNG-insulation subsidiary, the peer set consists of (1) Dongsung Finetec, the core subsidiary and value driver, (2) Songwon Industrial, a low-P/B, cycle-specialized chemical name, and (3) Isu Chemical, a mid-cap fine-chemical name. For a holding company, however, NAV takes priority over a simple multiple comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DongSung Finetec | 9.20x | 1.95x | 24.23% |
| Songwon Industrial | 117.56x | 0.35x | 1.99% |
| ISU Chemical | 0.00x | 3.10x | -32.33% |
This is a stock you should not judge 'cheap' on a simple P/E or P/B. As a holding company, the key is net asset value (NAV), not the multiple. (a) Position versus peers: subsidiary Dongsung Finetec commands a premium of P/E 10, P/B 2.2 and ROE 21% on the LNG boom, while the parent Dongsung Chemical, receiving the benefit of that same growth through its stake, sits at just a P/B of 0.41. (b) Discount/premium: the value of the Dongsung Finetec stake (₩214.0 billion) exceeds Dongsung Chemical's market cap (₩187.7 billion), so the market is in effect assigning a negative value to the core business, Genewel and overseas units, a large discount to NAV. (c) Limits of the trailing P/E: last year's net profit (₩33.3 billion) is a trough depressed by non-operating losses, so the trailing P/E of 5.65x is overstated, and the forward P/E that reflects the Q1 recovery (+48.7%) is lower. That said, the holding-company discount depends on the shareholder-return policy and on whether the LNG cycle persists, so whether the discount itself narrows is a separate question.
Price history Close · MA20 · MA60
The latest close is ₩3,695 and the market capitalization is ₩187.2 billion. The price sits above its 20-day moving average (₩3,503) and below its 60-day moving average (₩3,716). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 57.1, a neutral level. The one-month change is +1.9%, the three-month change is -14.4%, and the position relative to the 52-week high is -21.7%. 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 outpaced the index by 2.6%. 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 +2.58% / 6M -31.73% / 12M -55.58%
Key metrics Computed vs sector median
Valuation
The P/E of 5.63x is below the sector median (14.15x). The P/B of 0.40x is below the sector median (0.90x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 8.5%, above the sector average (4.0%). The operating margin is 9.6%. The debt ratio is 106.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $697.6M | $749.1M | $851.2M | +13.62% ↑ faster |
| Operating profit | $52.0M | $63.9M | $78.7M | +23.08% ↑ faster |
| Net profit | $23.5M | $31.6M | $23.4M | -26.03% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $650.5M | $800.9M | $697.6M | $749.1M | $851.2M |
| Operating profit | $31.8M | $38.9M | $52.0M | $63.9M | $78.7M |
| Net profit | $12.6M | $24.6M | $23.5M | $31.6M | $23.4M |
| Revenue CAGR | 4-yr avg 6.95% | ||||
Revenue rose 13.6% year over year (2023 ₩993.0 billion → 2024 ₩1.1 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 23.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.0%. The two-year revenue CAGR is 10.5%. In the most recent quarter (Q1 2026), revenue was 0.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 4.1%, is on the high side.
- Revenue grew 13.6% year over year, a sign of growth.
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
- 2026-05-14EarningsQ1 2026 quarterly report — revenue ₩287.0 billion (+0.6%), operating profit ₩25.4 billion (+19.9%), net profit ₩20.4 billion (+48.7% year on year), a recovery from last year's weak net profit.Short term: confirmation of the earnings recovery highlights the valuation appeal on a forward basis. Medium term: the key is whether the improvement in operating margin and the inflow of subsidiary equity-method income continue. Source
- 2026-06-05DividendDisclosure setting a shareholder-register closing period or record date — record date confirmed for shareholder-rights and dividend purposes (₩150 per share for FY2025, dividend yield about 4.05%).Short term: reaffirmation of the high dividend (4% range) is a factor supporting the downside. Medium term: whether the dividend can be sustained despite net-profit volatility is a measure of confidence. Source
- 2026-05-29FilingCorporate governance report disclosed — as an operating holding company, it discloses the state of subsidiary governance, shareholder returns and board operations.Short term: limited impact. Medium term: from the angle of resolving the holding-company discount, the direction of stronger shareholder returns and governance transparency is a re-valuation variable. Source
- 2026-04-09FilingNumerous filings received on holdings of specified securities by the largest shareholder (DSTI) and officers — a stable ownership structure centered on DSTI (41.55% stake), the apex of the governance structure, is maintained.Short term: limited impact. Medium term: with the owner family's control firm, the risk of a hostile change is low, but the driver for resolving the holding-company discount rests on the shareholder-return policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dongsung Finetec stake (37.94%) and market value of the held stake | 1,877 / 5,641 × 37.94% = approx. 2,140 | 5,641 | Confirmed | link |
| Q1 2026 net profit year-on-year growth rate | +48.7% | 2026 1 (DART) | Confirmed | link |
| 2026 forward net profit (in-house estimate) | approx. 540 | — | Unverified | link |
Recent filings Source
- 2026-06-05Disclosure
- 2026-05-29Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-04-09OwnershipLargest-shareholder ownership change report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings 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.