Dongkuk CM is a steel surface-treatment specialist that traces its roots to the Dongkuk Steel Group. It makes coated steel sheet, applying zinc and other metals to cold-rolled steel, and color-coated steel sheet, and supplies these to building interior and exterior materials, appliance panels and furniture, adding margin through its plating and coating know-how. Full-year 2025 results were revenue of ₩2.77 trillion, an operating loss of -₩38.8 billion and a net loss of -₩52.9 billion, but Q1 2026 swung back to profit with revenue of ₩687.0 billion and operating profit of ₩8.0 billion (+64% YoY), marking the start of a recovery inflection. The key point to watch: if steel-processing spreads stabilize and quarterly profits continue, its low valuation (P/B 0.14x) and 6.7% dividend yield stand out alongside the earnings recovery, but with a debt ratio of 276% and a current ratio of 79.5%, financial headroom is tight, so a renewed deterioration in prices and spreads could shake the pace of recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 276.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 79.5%).
- The most recent full-year net result was a loss.
- Revenue rose 28.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 7.9% lower than a year earlier.
- ROE is -5.4% (controlling-interest basis). It is below the sector average.
- Operating margin is -1.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Dongkuk Holdings 33.6% (corporate)
Controlling bloc incl. related parties 33.64%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- Dongkuk CM is a steel surface-treatment specialist launched out of the Dongkuk Steel Group, which was founded in 1954.
- Its core business is taking cold-rolled steel and processing it one step further to add value, making coated steel sheet with zinc and other metals applied to the surface, and color-coated steel sheet (print and paint-coated sheet).
- These products are used close to daily life, in building roofs, exterior walls and interior materials, appliance panels for refrigerators and washing machines, and furniture.
- In other words, it is not a company that sells ordinary hot-rolled or cold-rolled steel as is, but one whose business is weighted toward processing and surface treatment that adds margin through plating and coating know-how.
- With a market cap of ₩134.8 billion this is not a large name, so quarterly results and a single disclosure can have an outsized effect on the balance sheet and share price, and are best watched together.
- The latest close is ₩4,585 and the market cap is ₩137.1 billion.
- The price sits below the 20-day line (₩4,915) and below the 60-day line (₩5,584).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 34.0, a neutral level.
- It is down 11.5% over one month, down 12.0% over three months, and sits 36.1% below its 52-week high.
- Relative strength versus the KOSPI is 12 (on a 1-99 scale, converting the past year's return against the index with more recent weight; higher means stronger than the market), placing it in roughly the top 88% of all stocks by strength.
- Over the past three months it lagged the index by 31.4%.
- Chart reading is best done alongside volume and disclosure dates.
- Latest annual (2025) revenue was ₩2.77 trillion, with an operating loss of -₩38.8 billion and a net loss of -₩52.9 billion, so it was a loss year.
- Because of this the P/E (how many times one year's profit the price is) is not produced, and instead the P/B (how many times book value the price is) is 0.14x.
- A P/B of 0.14x means the price is set at about one-seventh of the company's net assets, a very cheap zone relative to asset value.
- Against the P/B of comparable steel processors, generally 0.4-0.9x, it is strikingly low.
- That said, the tight financial headroom clearly has to be factored in, with a debt ratio (debt against shareholders' equity) of 276% and a current ratio (assets that can be turned into cash within a year against debt due within a year) of 79.5%.
- It is hard to nail down 'expensive' or 'cheap' from last year's loss-year figures alone; the key is whether profit turns, and the clue shows up in the most recent quarter.
- Revenue scale grew from ₩1.27 trillion (2023) to ₩2.16 trillion (2024) to ₩2.77 trillion (2025), expanding the top line for two straight years.
- On the other hand, the bottom line turned for a year, from a 2024 operating profit of ₩77.3 billion and net profit of ₩63.8 billion into a 2025 loss; in steel processing, when the gap between raw-material prices and product prices (the spread) narrows, profit can be squeezed even as the top line grows.
- The important change comes in the most recent quarter.
- Q1 2026 revenue was ₩687.0 billion, down 7.9% year on year, but operating profit was ₩8.0 billion, up 64% year on year, back in the black.
- Operating profit rising while revenue fell is a signal that the price and cost structure is improving and profitability is starting to turn.
- For the full year, operating profit of ₩25.9 billion is projected, a picture of turning from last year's -₩38.8 billion loss to profit, with the Q1 swing marking the starting point.
- That said, the turn all the way to net profit still has financial costs and other items to work through, so there are things to confirm quarter by quarter.
- Recent disclosures are mostly about results.
- The April 24, 2026 preliminary-results fair disclosure reported Q1 revenue of ₩687.0 billion, operating profit of ₩8.0 billion and net loss of -₩2.1 billion, and this quarterly swing to operating profit is the most recent evidence of this year's recovery.
- Before that, the March 9, 2026 correction and the February 4, 2026 profit-structure change disclosure settled the confirmed full-year 2025 results (revenue ₩2.77 trillion, operating loss -₩38.8 billion, net loss -₩52.9 billion).
- Since this is a flow connecting an annual loss to a quarterly swing to profit, it is worth watching future disclosures for whether the recovery continues and whether any one-off factors are mixed in.
- Dongkuk CM has two clear strengths.
- First, at a P/B of 0.14x the share price is very cheap relative to asset value and lower even than peers, a clear undervaluation signal.
- Second, from last year's loss came a Q1 2026 swing to operating profit (+64% YoY), so it sits at the start of an inflection where profitability is turning, and full-year operating profit is also forecast to be positive.
- On top of this, a dividend yield of 6.7% is on the high side, offering some reward for the wait.
- On the other hand, the point to be careful about is the balance sheet.
- With a debt ratio of 276% and a current ratio of 79.5%, financial headroom is tight, so a renewed deterioration in steel prices and raw-material spreads, or a capital-raising disclosure, could shake the pace of recovery.
- In sum, in a phase where steel-processing prices stabilize and quarterly profits continue, the low P/B and the earnings recovery stand out together and the name is strong; conversely, in a phase where spreads narrow again or the financial burden grows, it weakens.
🔎 Valuation vs peers Undervalued
Comparables with adjacent market cap within steel and primary metals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Igu Industrial | 11.67x | 0.87x | 7.50% |
| Namsun Aluminum | 36.67x | 0.47x | 1.28% |
| Korea Cast Iron Pipe Ind. | 8.63x | 0.40x | 4.69% |
Within steel and primary metals, public-data comparables closest in market cap were considered first. The current P/E (how many times one year's profit the price is) cannot be confirmed, and the P/B (how many times book value the price is) is 0.14x. That said, for lower-market-cap names, profit swings and capital-raising disclosures carry a large effect, so this was not judged on last year's confirmed-results metrics alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩2.6 trillion | ₩25.9 billion | — |
| Next quarter | Q2 2026 | ₩664.8 billion | ₩9.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩4,585 and the market capitalization is ₩137.1 billion. The price sits below its 20-day moving average (₩4,915) and below its 60-day moving average (₩5,584). 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 34.0, a neutral level. The one-month change is -11.5%, the three-month change is -12.0%, and the position relative to the 52-week high is -36.1%. Relative strength versus the KOSPI is 12 (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 12% of all stocks. Over the past three months it lagged the index by 31.4%. 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 -31.37% / 6M -45.28% / 12M -70.88%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.14x is below the sector median (0.50x).
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 -5.4%, below the sector average (2.0%). The operating margin is -1.4%. The debt ratio is 276.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $839.2M | $1.4B | $1.8B | +27.96% ↓ slower |
| Operating profit | $17.7M | $51.3M | -$25.7M | -150.21% ↓ slower |
| Net profit | $6.7M | $42.3M | -$35.1M | -182.98% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $839.2M | $1.4B | $1.8B |
| Operating profit | — | — | $17.7M | $51.3M | -$25.7M |
| Net profit | — | — | $6.7M | $42.3M | -$35.1M |
| Revenue CAGR | 2-yr avg 47.88% | ||||
Revenue rose 28.0% year over year (2023 ₩1.3 trillion → 2024 ₩2.2 trillion → 2025 ₩2.8 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 150.2% year over year. The decline widened. Over the 3 years on record, revenue compound annual growth (CAGR) is 47.9%. The two-year revenue CAGR is 47.9%. In the most recent quarter (Q1 2026), revenue was 7.9% 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.
- The dividend yield, at 6.5%, is on the high side.
- Revenue grew 28.0% year over year, a sign of growth.
Points to watch
- Debt is somewhat higher than equity (debt ratio 276.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 79.5%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-04-24EarningsPreliminary results (fair disclosure): Q1 2026 revenue ₩687.0 billion, operating profit ₩8.0 billion, net loss -₩2.1 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether any one-off factors are present. Source
- 2026-03-09Earnings[Correction] Change of 30% or more in revenue or profit structure (15% for large corporations): annual revenue ₩2.8 trillion, operating loss -₩38.8 billion, net loss -₩52.9 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether any one-off factors are present. Source
- 2026-02-04EarningsChange of 30% or more in revenue or profit structure (15% for large corporations): annual revenue ₩2.8 trillion, operating loss -₩38.8 billion, net loss -₩52.9 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,585 | ₩4,585 | Confirmed | link |
| Latest quarterly results | revenue ₩687.0 billion, operating profit ₩8.0 billion | revenue ₩687.0 billion, operating profit ₩8.0 billion | Confirmed | link |
| Annual results | revenue ₩2.8 trillion, operating profit -₩38.8 billion | revenue ₩2.8 trillion, operating profit -₩38.8 billion | Confirmed | link |
| Results disclosure (original text) | : 2026 1 revenue ₩687.0 billion · operating profit ₩8.0 billion · net profit -₩2.1 billion | : 2026 1 revenue ₩687.0 billion · operating profit ₩8.0 billion · net profit -₩2.1 billion | Confirmed | link |
| Results disclosure (original text) | []revenue30%: revenue ₩2.8 trillion · operating profit -₩38.8 billion · net profit -₩52.9 billion | []revenue30%: revenue ₩2.8 trillion · operating profit -₩38.8 billion · net profit -₩52.9 billion | Confirmed | link |
| Results disclosure (original text) | revenue30%: revenue ₩2.8 trillion · operating profit -₩38.8 billion · net profit -₩52.9 billion | revenue30%: revenue ₩2.8 trillion · operating profit -₩38.8 billion · net profit -₩52.9 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-13Disclosure
- 2026-05-07OwnershipOwnership-change filing
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-09Amended filing
- 2026-04-09Disclosure
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOwnership-change filing
- 2026-04-09OwnershipLargest-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.