Dongkuk Steel Mill is a steel manufacturer that melts scrap in electric-arc furnaces to form rebar and structural steel, and buys hot-rolled coil to coat and paint into color steel sheet (its Luxteel brand); it was spun off from the group holding company in June 2023, and its results hinge on construction start volumes and scrap and power prices. After the April 24 preliminary Q1 figures flagged a sharp rebound in profit, the May 15 quarterly report confirmed revenue of ₩857.2 billion and operating profit of ₩21.4 billion, and in March a voluntary value-up disclosure formalized the direction of shareholder returns. What stands out lately is that Q1 operating profit jumped more than fourfold year over year, and a P/B of 0.23x, a dividend yield in the 4% range, and the value-up plan all point toward undervaluation, while a debt ratio of 219%, a current ratio of 83%, and an interest coverage ratio below 1x mean that sustaining the Q1 profit trend to ease interest and working-capital burdens is the precondition for recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 219.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 83.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 9.2% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 18.1% higher than a year earlier.
- ROE is 0.4% (total-net basis). It is below the sector average.
- Operating margin is 1.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Dongkuk Holdings 33.6% (corporate)
Controlling bloc incl. related parties 33.7%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- Dongkuk Steel Mill is not an integrated mill that makes steel from molten iron; instead it melts scrap in electric-arc furnaces to form rebar and structural steel (the bar and shape products used in building frames), and buys hot-rolled coil to plate and paint into color steel sheet (used for appliances and building exteriors, sold under the Luxteel brand).
- Its revenue rests on two pillars: bar and shape products, which are tied directly to the construction cycle, and cold-rolled and coated sheet, which carries relatively steadier margins.
- It was spun off in June 2023 from the holding company Dongkuk Holdings as an operating entity, so it is not a holding company that lives off subsidiary stakes but a company that actually makes and sells steel.
- That is why construction start volumes and scrap and power prices drive its results.
- The latest close is ₩8,080 and the market cap is ₩400.8 billion.
- The price sits below its 20-day line (₩8,994) and its 60-day line (₩10,939).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 30.8, a neutral level.
- The one-month change is -11.5%, the three-month change is -14.0%, and it stands -50.5% below its 52-week high.
- Its relative strength against the KOSPI is 20 (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).
- That places it in roughly the top 80% of all stocks by strength.
- Over the past three months it lagged the index by 34.9%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- Based on confirmed FY2025 results, the P/E ratio (how many times one year's earnings the price represents) is 48.70x, the P/B (how many times net assets the price represents) is 0.21x, ROE (how much is earned in a year on equity) is 0.4%, and the operating margin is 1.8%.
- The P/E prints high not because the stock is expensive but because last year's net profit shrank to a trough of ₩8.2 billion — when earnings are small, the multiple grows even at the same price.
- At an earnings inflection like this, the forward P/E based on normalized earnings for this year comes closer to the real picture than the trailing 12-month P/E.
- This stock's forward P/E sits almost level with POSCO Steeleon (around 18x), which has a similar plating and color-sheet mix, and well below POSCO Holdings (around 39x).
- A P/B of 0.23x means it trades at a quarter of net assets, an industry-low undervaluation signal on an asset-value basis.
- That said, a debt ratio (debt relative to equity) of 219.4%, a current ratio (assets readily convertible to cash versus debt due within a year) of 83.2%, and an interest coverage ratio below 1x mean the cushion for covering interest out of operating profit is tight — something that eases only if results strengthen further.
- The dividend is attractive, with a yield of about 4.6% and ₩400 per share, and with a payout ratio of 240.8% that exceeds last year's net profit, the burden naturally shrinks as earnings recover.
- Annual revenue moved from ₩2.6 trillion in 2023 to ₩3.5 trillion in 2024 to ₩3.2 trillion in 2025, a 9.2% decline last year, while operating profit fell sharply for two straight years — ₩235.5 billion (2023), ₩102.5 billion (2024), ₩59.4 billion (2025) — a deep slowdown.
- The turn came most recently in Q1 2026.
- Revenue was ₩857.2 billion (+18.1% year over year), operating profit ₩21.4 billion (+403.9%), and net profit ₩6.2 billion (+153%), a clear rebound in earnings.
- Because last year's operating profit was such a low base, margins recover quickly even at the same volumes and prices, and the recovery has strong torque — bar and shape products as construction starts build up, and color steel sheet as its margins are thick.
- The forward P/E coming down for this year also reflects the picture of last year's trough earnings returning to a normal level.
- In short, last year's seemingly high P/E is a trailing figure using trough earnings as the denominator, and as earnings normalize the multiple falls naturally.
- Still, the pace of annual recovery can vary quarter to quarter with bar-and-shape demand (construction starts) and scrap and power prices, so whether the strong Q1 rebound continues is best confirmed through the quarterly results.
- The public record alone paints a clear picture.
- The April 24, 2026 fair disclosure of preliminary Q1 operating results flagged the sharp profit rebound first, and the May 15 quarterly report confirmed revenue of ₩857.2 billion and operating profit of ₩21.4 billion.
- Ahead of that, a voluntary value-up disclosure on March 24 formalized the company's direction on shareholder returns and capital efficiency.
- In April a series of ownership-change and major-holding reports on the largest-shareholder side appeared; these are governance matters separate from results and are best viewed apart from operating cash flow.
- The June 1 large-business-group status disclosure is a routine periodic filing conveying the group's standing.
- The strengths are clear.
- Q1 operating profit jumped more than fourfold year over year, escaping last year's trough, and with normalized earnings this year's forward P/E is level with a peer (POSCO Steeleon at around 18x) and below POSCO Holdings (around 39x).
- Add an industry-low asset value at a P/B of 0.23x, a dividend yield in the 4% range, and the company's formalized value-up plan, and asset value, dividend, and earnings recovery all point the same way.
- The point to watch is the balance sheet.
- With a debt ratio of 219%, a current ratio of 83%, and interest coverage below 1x, sustaining the Q1 profit trend to ease interest and working-capital burdens is the precondition for recovery.
- In sum, this stock is strongest when bar-and-shape demand and color-sheet margins hold and the Q1 profit rebound carries into Q2 and Q3, and weakens if that recovery proves one-off or the construction cycle cools.
🔎 Valuation vs peers Inconclusive
Within steel and primary metals, the comparison set was chosen for genuinely similar business substance — Hyundai Steel, which also makes bar-shape and plate products; Poongsan, weighted toward copper and specialty alloys; POSCO Steeleon, centered on plating and color steel sheet; and the industry bellwether POSCO Holdings — while accounting for differences in business mix.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Steel | — | 0.19x | -0.04% |
| POSCO Steeleon | 16.50x | 0.73x | 4.44% |
| Poongsan | 11.71x | 0.75x | 6.40% |
| POSCO Holdings | 35.79x | 0.42x | 1.18% |
(a) Position versus peers: a P/B of 0.24x sits, alongside Hyundai Steel (0.22x), in the industry's deepest asset discount, while an ROE of 0.4% is far below POSCO Steeleon and Poongsan, which carry heavier plating and specialty-alloy mixes. (b) Premium/discount: on assets (P/B) it is at a discount, while on earnings (ROE, operating margin) it lags peers — both hold at once. (c) Limits of trailing and the case for forward: last year's P/E of 55x is a trailing figure using trough earnings as the denominator, so at an earnings inflection it looks overpriced. Taking together that Q1 operating profit jumped more than fourfold year over year and that a DART seasonality approximation puts this year's annual operating profit at roughly ₩299.2 billion (about five times last year's ₩59.4 billion), the multiple falls quickly if earnings normalize. But that approximation is not the company's official outlook and the annual durability of the quarterly recovery is unconfirmed, so rather than declaring it cheap or expensive we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩955.5 billion | ₩150.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩8,080 and the market capitalization is ₩400.8 billion. The price sits below its 20-day moving average (₩8,994) and below its 60-day moving average (₩10,939). 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 30.8, a neutral level. The one-month change is -11.5%, the three-month change is -14.0%, and the position relative to the 52-week high is -50.5%. Relative strength versus the KOSPI is 20 (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 20% of all stocks. Over the past three months it lagged the index by 34.9%. 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 -34.86% / 6M -37.94% / 12M -66.96%
Key metrics vs sector median
Valuation
The P/E of 48.70x is above the sector median (16.39x). The P/B of 0.21x is below the sector median (0.50x). 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 0.4%, below the sector average (2.0%). The operating margin is 1.8%. The debt ratio is 219.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.7B | $2.3B | $2.1B | -9.19% ↓ slower |
| Operating profit | $156.1M | $67.9M | $39.4M | -42.05% ↑ faster |
| Net profit | $94.2M | $23.1M | $5.5M | -76.37% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.7B | $2.3B | $2.1B |
| Operating profit | — | — | $156.1M | $67.9M | $39.4M |
| Net profit | — | — | $94.2M | $23.1M | $5.5M |
| Revenue CAGR | 2-yr avg 10.32% | ||||
Revenue fell 9.2% year over year (2023 ₩2.6 trillion → 2024 ₩3.5 trillion → 2025 ₩3.2 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 42.0% year over year. That said, the decline narrowed. Over the 3 years on record, revenue compound annual growth (CAGR) is 10.3%. The two-year revenue CAGR is 10.3%. In the most recent quarter (Q1 2026), revenue was 18.1% 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 5.0%, is on the high side.
Points to watch
- Debt is somewhat higher than equity (debt ratio 219.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 83.2%).
- Revenue fell 9.2% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-24EarningsFair disclosure of preliminary Q1 operating results — operating profit rose sharply year over year, signaling recovery from last year's troughShort term: confirmation of the profit rebound eases the high-P/E burden measured on last year's basis. Medium term: whether the quarterly recovery holds through the year is the key variable. Source
- 2026-05-15FilingQuarterly report (2026.03) — Q1 revenue of ₩857.2 billion and operating profit of ₩21.4 billion confirmedShort term: officially confirms the preliminary results. Medium term: the primary source for tracking cumulative results and financial ratios (leverage, liquidity). Source
- 2026-03-24FilingVoluntary value-up disclosure — the company formalizes its direction on capital efficiency and shareholder returnsShort term: builds expectations for shareholder returns. Medium term: needs verification through follow-up disclosures on whether it is carried out in actual ROE and dividend policy. Source
- 2026-06-01FilingLarge-business-group status disclosure (annual, Q1 filing) — routine disclosure of the group's standingLimited short- and medium-term impact. A routine source for confirming governance and affiliate standing. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest close | ₩8,080 | ₩8,080 | Confirmed | link |
| Q1 2026 operating profit | ₩21.4 billion | approx. ₩21.4 billion | Confirmed | link |
| Annual revenue trend (three years) | 2023 ₩2.6 trillion → 2024 ₩3.5 trillion → 2025 ₩3.2 trillion | DART | Confirmed | link |
| This year's annual operating profit (seasonality approximation) | approx. ₩299.2 billion | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-07OwnershipOwnership-change filing
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOwnership-change filing
- 2026-04-09OwnershipLargest-shareholder ownership change report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-30OwnershipLargest-shareholder ownership change report
- 2026-03-24Disclosure
- 2026-03-23Disclosure
📖 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.