Daesung Industrial is a diversified group spanning energy and distribution. Its largest revenue pillar is distribution, as the biggest general dealer for GS Caltex buying and reselling petroleum products, joined by LNG power and district energy, eco-friendly boiler manufacturing, and the D-Cube department store distribution and real estate business. In its May quarterly report, revenue of ₩412.5 billion, operating profit of ₩21.8 billion (up 53.5% year on year), and net profit of ₩12.7 billion confirmed a swing to profit, an inflection signal from a 2025 annual loss to a quarterly profit. The points worth watching now: a deep asset discount at a P/B of 0.32x and a low forward P/E based on recovering earnings are strengths, while the thin margin of around 1% operating margin and financial sensitivity from a 174.7% debt ratio and a 0.34x interest coverage ratio are things to weigh together with the durability of the recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 6.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.9% lower than a year earlier.
- ROE is -9.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2022-12-31
Largest shareholder Kim Young-dae 31.91% (individual)
Controlling bloc incl. related parties 32.29%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Daesung Industrial is a diversified group spanning energy and distribution.
- Its largest revenue pillar is petroleum and gas distribution, buying and reselling gasoline, diesel, and other petroleum products to gas stations and filling stations as the biggest general dealer for GS Caltex.
- Its second pillar is LNG-fueled power and district energy, supplying heat and electricity to apartment complexes and the like.
- Added to these are a manufacturing business making and selling eco-friendly boilers, and a distribution and real estate business centered on the D-Cube department store in Sindorim, Seoul.
- That most of its annual revenue in the ₩1.5 trillion range comes from petroleum distribution, which is bought and resold, leaving an operating margin of around 1%, is the crux of its business structure.
- The latest close is ₩4,130 and the market cap is ₩186.8 billion.
- The price sits below its 20-day line (₩4,568) and below its 60-day line (₩5,887).
- Being under both the short- and mid-term moving averages, the trend is on the depressed side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 28.8, close to depressed territory.
- The price is down 19.8% over one month and 36.1% over three months, and stands 65.0% below its 52-week high.
- Relative strength versus the KOSPI is 19 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 82% of all stocks by strength.
- Over the past three months it trailed the index by 52.4%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/B (how many times its net assets the price represents) is 0.30x, so the stock trades at one-third the value of the company's net assets (about ₩13,000-something per share).
- On asset value alone, it is clearly on the cheap side.
- No P/E (how many years of earnings the price represents) can be computed for full-year 2025 because it was a net loss (-₩60.9 billion).
- But because both operating and net profit turned positive in Q1 2026, a forward P/E (based on this year's expected earnings) reflecting the recovered current-year profit is closer to the real picture than a trailing P/E (based on the trailing 12 months) built from last year's loss-making figures.
- That forward P/E is on the low side versus the same energy-distribution sector, so on an earnings basis too it reads as an undervaluation signal.
- Meanwhile, the operating margin is thin at 0.7%, and a 174.7% debt ratio and a 0.34x interest coverage ratio (how many times operating profit can cover interest) mean the financial burden is a part to watch alongside.
- In sum, it looks cheap on assets and cheap on recovering earnings, while financial stability is a separate matter to verify.
- The top line held the ₩1.5 trillion range without large swings, at ₩1.61 trillion in 2023, ₩1.48 trillion in 2024, and ₩1.57 trillion in 2025, with 2025 revenue up 6.0% from the prior year to recover.
- Earnings swung more.
- Operating profit fell from ₩29.4 billion in 2023 to ₩21.8 billion in 2024 and ₩10.8 billion in 2025, and net profit was a loss of -₩60.9 billion in 2025.
- Then in 2026 the trend clearly shifted.
- Q1 revenue of ₩412.5 billion (-0.9% year on year) was similar, but operating profit of ₩21.8 billion rose 53.5% from the same quarter a year earlier, surpassing full-year 2025 operating profit (₩10.8 billion) in a single quarter, while net profit turned positive at ₩12.7 billion.
- In other words, with the top line providing support, margins normalized and profit is recovering.
- This Q1 swing to profit is precisely the basis for this year's forward earnings being set this high, and the forward P/E is computed against the recovered current-year profit rather than last year's loss-making trailing figures.
- That said, whether this recovery lasts through the full year is a part to confirm with the remaining quarters' results.
- Recent disclosures center on earnings and shareholdings.
- In the Q1 quarterly report on May 15, revenue of ₩412.5 billion, operating profit of ₩21.8 billion (up 53.5% year on year), and net profit of ₩12.7 billion confirmed a swing to profit.
- This is an earnings-inflection signal from a 2025 annual loss to a quarterly profit, and whether this trend carries through the year is the medium-term key.
- On June 1 the corporate governance report was filed on schedule.
- In addition, from early to mid-May a number of disclosures on holdings of specific securities by executives and major shareholders and large-holding reports were filed, suggesting that shareholdings of the controlling shareholder and insiders are in flux.
- Depending on the direction of the changes, interpretations of supply-demand and governance could diverge, so it is worth watching.
- The strengths are clear.
- There is a deep asset-value discount, with the stock trading at one-third the value of its net assets (a P/B of 0.32x), and in Q1 2026 both operating and net profit turned positive together, so the forward P/E based on the recovered current-year profit reads low versus peers.
- The crux is that it is a spot that looks cheap on assets and cheap on recovering earnings alike.
- The parts to weigh alongside are the business structure and finances.
- Most of its revenue is petroleum distribution with an operating margin of around 1%, so margins are thin, and a 174.7% debt ratio with a 0.34x interest coverage ratio means there is financial sensitivity to swings in rates and results.
- Ultimately, if the earnings recovery that began in Q1 continues in the remaining quarters, it is a spot where the asset-value discount and the low forward multiple come to the fore together; conversely, if the recovery proves to be a temporary factor, the thin margin and financial burden could stand out again.
🔎 Valuation vs peers Inconclusive
Although its name says 'industrial,' its substance is an energy and distribution group centered on petroleum and gas distribution and LNG district energy, so we use energy distributors as the peer set rather than the KSIC 'retail and distribution' classification.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| E1 | 5.44x | 0.28x | 5.18% |
| Heungkuk Petroleum | 1016.98x | 2.06x | 0.20% |
Against an energy-distribution peer set, E1 trades on a profitable base at a P/B of 0.29x and an ROE of 5.2%, whereas Daesung Industrial is at a P/B of 0.36x but an ROE of -9.7%, with earnings still weak. Heunggu Oil's net profit is minimal, so its P/E spikes to 989x, making a multiple comparison meaningless. (a) Its position versus the peer set is 'similarly cheap on assets but weaker on profitability,' and (b) so there is a two-sidedness: a discount on asset value (P/B) but inferior on earnings (ROE). (c) Above all, this is an inflection phase where the 2025 loss-based trailing P/E cannot even be computed, so it must be viewed on a forward basis assuming this year's earnings that turned positive; but with it still uncertain whether the Q1 profit carries through the year, at this stage we leave it inconclusive rather than concluding undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩4,130 and the market capitalization is ₩186.8 billion. The price sits below its 20-day moving average (₩4,568) and below its 60-day moving average (₩5,887). 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 28.8, near oversold territory. The one-month change is -19.8%, the three-month change is -36.1%, and the position relative to the 52-week high is -65.0%. Relative strength versus the KOSPI is 19 (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 18% of all stocks. Over the past three months it lagged the index by 52.4%. 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 -52.42% / 6M -62.96% / 12M -61.12%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.30x is below the sector median (0.56x).
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 -9.7%, below the sector average (3.0%). The operating margin is 0.7%. The debt ratio is 174.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $978.8M | $1.0B | +6.04% ↑ faster |
| Operating profit | $19.5M | $14.4M | $7.2M | -50.27% ↓ slower |
| Net profit | -$4.2M | $4.3M | -$40.4M | -1042.96% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $748.4M | $1.2B | $1.1B | $978.8M | $1.0B |
| Operating profit | $12.3M | $32.0M | $19.5M | $14.4M | $7.2M |
| Net profit | -$6.8M | -$7.9M | -$4.2M | $4.3M | -$40.4M |
| Revenue CAGR | 4-yr avg 8.52% | ||||
Revenue rose 6.0% year over year (2023 ₩1.6 trillion → 2024 ₩1.5 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 50.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.5%. The two-year revenue CAGR is -1.3%. In the most recent quarter (Q1 2026), revenue was 0.9% 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.
Points to watch
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report disclosed. Consolidated revenue ₩412.5 billion, operating profit ₩21.8 billion (up 53.5% year on year), net profit ₩12.7 billion, a swing to profit.An earnings-inflection signal from a 2025 annual loss to a quarterly profit. Whether it carries through the year is the key (medium-term core). Source
- 2026-06-01FilingCorporate governance report disclosed. A scheduled filing of governance- and shareholder-rights-related disclosure items.A scheduled disclosure on governance transparency with limited direct impact on results (short-term neutral). Source
- 2026-05-04UpdateLarge-holding report (general) and change-in-holdings report by the largest shareholder disclosed. Accompanied from early to mid-May by numerous filings on holdings of specific securities by executives and major shareholders.Shareholdings of the controlling shareholder and insiders are in flux. Depending on the direction of the changes, interpretations of supply-demand and governance diverge (a short- and medium-term item to monitor). Source
- 2026-05-13UpdateMultiple filings of reports on holdings of specific securities by executives and major shareholders. Reflects detailed changes in insider holdings.As a continued reporting of insider trading and holding changes, this is material for confirming the trend of ownership shifts (medium-term reference). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-04OwnershipLargest-shareholder ownership change report
- 2026-05-04OwnershipOwnership-change filing
- 2026-05-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-04OwnershipOfficers'/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.