KOSPIApparel & Living001530

Di Dong Il

₩25,050▼ 2.53%2026-10-02 close

Market Cap

₩517.9B

Turnover

₩300M

Volume

10,000 shares

Shares out.

20.7M

PER

91.4×

PBR

1.1×

EPS

₩302

Dividend Yield

0.36%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close

Report overview

Aluminum Foil Turnaround Meets Governance Overhang

DI Dongil posted consecutive operating and net profits in the first half of 2026, but governance overhang from the 2025 stock manipulation case and a rising debt ratio persist alongside the recovery.

1
Operating profit and net income attributable to owners both turned positive in 1Q and 2Q 2026, improving the trailing four-quarter trend.
2
The lithium battery aluminum foil business supplies all three domestic battery makers, with a Cheongju plant expansion from five to eight production lines targeted for completion by end-2026.
3
The stock hit its daily limit down in September 2025 after being implicated in a roughly 100 billion-won stock manipulation case, with governance and liquidity concerns persisting since.
4
The debt-to-equity ratio rose sharply from 61.5% in 2022 to 96.9% in 2025, expanding financial leverage.
5
The company has a governance structure in which the largest shareholder and affiliated parties hold a relatively low stake, with a foundation maintaining the top shareholder position.

Business structure

DI Dongil traces its roots to Dongil Textile, founded in 1955, and now operates as a conglomerate spanning four business lines: textile materials, aluminum, environmental plant equipment, and other businesses including furniture and cosmetics.

According to one research report, revenue is split roughly 52% textile materials, 35% aluminum, 7% environmental plant, and 6% other. The textile segment produces cotton yarn, blended yarn, processed yarn, knit fabric, and woven fabric, alongside fashion and accessory retail and e-commerce operations.

The aluminum segment absorbed subsidiary Dongil Aluminum into the parent at the end of 2024 and centers on lithium battery aluminum foil supplied to all three domestic battery makers, LG Energy Solution, SK On, and Samsung SDI.

While competitor Samah Aluminium holds an edge in lithium-ion battery cathode foil quality, DI Dongil is pursuing differentiation in carbon-coated foil for ESS and LFP applications.

The environmental plant segment is anchored by Plasmatech, which supplies soot-reduction equipment for semiconductor fabs, and Dongil C&E, which handles display environmental equipment.

Other businesses include furniture retail (DIBIZ), cosmetics (DMP), and Dongil Lacoste, an equity-method affiliate that distributes the French Lacoste brand domestically.

The company has stated a strategy of moving beyond apparel-material focus toward expanding sales of higher value-added specialty materials and diversifying markets.

Earnings trend

Quarterly revenue · Operating profit

₩155.3B₩300M25Q2₩145.8B-₩300M25Q3₩137.7B-₩3.2B25Q4₩169.8B₩700M26Q1₩180.2B₩3.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩913.7B₩44.8B2022₩682.9B₩6.3B2023₩651.7B₩7.8B2024₩601.4B-₩1.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩155.3B	₩300M	0.2%
2025Q3	₩145.8B	-₩300M	−0.2%
2025Q4	₩137.7B	-₩3.2B	−2.3%
2026Q1	₩169.8B	₩700M	0.4%
2026Q2	₩180.2B	₩3.3B	1.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩913.7B	₩44.8B	₩53.8B	4.9%	9.0%	61.5%
2023	₩682.9B	₩6.3B	₩3.2B	0.9%	0.6%	61.1%
2024	₩651.7B	₩7.8B	₩1.6B	1.2%	0.3%	79.6%
2025	₩601.4B	-₩1.5B	-₩9.7B	−0.3%	−1.9%	96.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Confirmed annual results show revenue declining for four consecutive years, from 913.7 billion won in 2022 to 682.9 billion in 2023, 651.7 billion in 2024, and 601.4 billion in 2025.

The operating margin stayed in low-single-digit territory at 4.9% in 2022, 0.9% in 2023, and 1.2% in 2024 before turning negative at -0.3% in 2025, an operating loss of about 1.5 billion won.

Net income attributable to owners fell sharply from 53.8 billion won in 2022 to 3.2 billion in 2023 and 1.6 billion in 2024, before swinging to a loss of 9.7 billion won in 2025.

On a quarterly basis, 2Q 2025 posted a modest operating profit of 0.33 billion won but a large net loss attributable to owners of 5.8 billion won, and weakness continued into 3Q (operating loss of 0.28 billion won, net profit of 0.4 billion won) and 4Q (operating loss of 3.15 billion won, net loss of 2.97 billion won).

However, 1Q 2026 delivered operating profit of 0.67 billion won and owner net profit of 2.78 billion won, followed by 2Q 2026 operating profit of 3.35 billion won and owner net profit of 6.16 billion won, showing two consecutive quarters of widening profitability.

Operating cash flow held around 38.6-39.0 billion won from 2022 to 2024 but plunged to 3.9 billion won in 2025, reflecting the earnings weakness feeding through to cash generation.

The debt ratio jumped from 61.5% in 2022 to 96.9% in 2025, driven by a combination of shrinking equity (from 619.2 billion won to 520.5 billion won) and rising liabilities (from 381.1 billion won to 504.3 billion won).

The 2025 earnings weakness has been attributed mainly to one-off costs from the Dongil Aluminum merger and operating losses at environmental plant subsidiaries.

Industry analysis

The lithium battery aluminum foil market is undergoing structural demand shifts driven by capacity expansions at Korea's three battery makers (LG Energy Solution, SK On, Samsung SDI) and rising adoption of LFP and ESS chemistries.

US energy research firm BloombergNEF has forecast that LFP adoption in the global ESS market could reach 94% by 2027, and since LFP batteries require carbon-coated aluminum foil, this is cited as a driver of related material demand.

The domestic aluminum foil market features competition among Samah Aluminium, DI Dongil (via Dongil Aluminum), Lotte Aluminium, Dongwon Systems, and Korea Aluminium; while Samah Aluminium concentrates on supplying high-quality cathode foil to SK On, DI Dongil takes a more diversified position supplying general battery foil and BESS-oriented carbon-coated foil to all three domestic battery makers.

From a global perspective, China's Nanshan Aluminium and Henan Mingtai, along with Japan's UACJ, hold scale advantages, meaning domestic players must rely on supply-chain realignment benefits and quality or technology differentiation to remain competitive.

Meanwhile, the textile materials segment has reportedly faced pressure from US tariff policy, low-cost Chinese imports, and consumption weakness tied to high interest rates.

The aluminum segment has also experienced weakness from the electric vehicle chasm and tariff issues, though it is assessed as strengthening competitiveness through R&D and new market development as a core battery materials supplier.

The environmental plant segment is tied to the semiconductor and display capital-expenditure cycle, with the resumption of expansion at Samsung's semiconductor fabs cited as key to a revenue recovery.

Outlook

The company has disclosed a phased 110 billion won investment from February 2026 through 2030 at its Cheongju aluminum plant to build carbon-coated aluminum foil production facilities for LFP batteries, with roughly 20 billion won reportedly to be executed this year.

The plan calls for expanding production lines from five to eight, targeted for completion by the end of 2026, with the company stating it expects to reach 20,500 metric tons of carbon-coated aluminum foil capacity and about 250 billion won in new annual revenue by 2030.

Eugene Investment & Securities estimated in a February 2026 report that 2026 consolidated revenue would reach 688.8 billion won (up 15% year over year) with operating profit of 12.3 billion won (a swing to profit); these are analyst estimates and not yet confirmed financial results.

The same report projected aluminum foil segment revenue rising to 278 billion won (up 24% year over year) and forecast a significant recovery in environmental plant subsidiary revenue, aided by the resumption of Samsung's semiconductor expansion at its Pyeongtaek facility.

A company representative said the textile segment plans to expand industrial yarn processing and distribution and pursue new demand for functional and uniform materials, while the aluminum segment plans to bring the new Cheongju plant online in the second half of 2026.

However, these expansion investments are largely front-loaded ahead of confirmed order commitments, meaning the actual revenue contribution is expected from 2027 onward.

Valuation

PER

91.4×

PBR

1.1×

ROE

1.2%

EPS

₩302

BPS

₩25,431

Dividend per share

₩100

With two consecutive quarters of profit now confirmed but a full-year loss in 2025, earnings recovery still appears to be at an early stage, which is a useful starting point for interpreting valuation.

The price-to-earnings ratio appears to sit above typical historical trading ranges, partly a mechanical result of the still-small earnings base in the denominator following the recent loss period.

The price-to-book ratio appears to trade near net asset value, which may differ from research views that separately factor in the aluminum foil business's asset value or the gap between book value and market value of the company's real estate holdings.

Dividends, based on the most recently disclosed per-share cash dividend, appear to run below the sector average.

Taken together, this is a phase in which the direction of earnings recovery has been confirmed, but its pace, durability, and the overlay of governance and liquidity issues remain factors embedded in how the valuation is read.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Aluminum Foil Competitiveness and Widening Quarterly Profit

Both 1Q and 2Q 2026 posted operating profit and net income attributable to owners, with 2Q profit widening to 3.35 billion won operating profit and 6.16 billion won net income versus 1Q.

The aluminum foil segment has secured all three domestic battery makers, LG Energy Solution, SK On, and Samsung SDI, as customers, and has been assessed as maintaining competitiveness relative to peers even amid industry weakness.

Expanding demand for carbon-coated foil geared toward LFP and BESS applications is cited as a structural growth driver.

Medium-Term Capacity Expansion Through Investment

A phased 110 billion won investment at the Cheongju plant is underway to expand production lines from five to eight, targeted for completion by the end of 2026. The company has stated it expects to reach 20,500 metric tons of carbon-coated aluminum foil capacity and about 250 billion won in new annual revenue by 2030.

Analysts note that next-generation batteries such as sodium-ion and solid-state batteries also require more aluminum foil, broadening the medium-term demand base.

Continued Shareholder Return Policy

The company canceled an existing 7.14 million shares of treasury stock, then invested an additional 30 billion won to buy back and fully cancel more shares. It simplified its business structure through the Dongil Aluminum merger and formalized a shareholder return stance through a 2025 value-up disclosure. Such measures can work to lower dilution concerns.

Bear factors

Persistent Governance and Liquidity Risk

The stock hit its daily limit down in September 2025 after being implicated in a roughly 100 billion-won stock manipulation case, and governance issues and liquidity concerns have reportedly continued since.

The largest shareholder and affiliated parties hold a stake in the mid-20% range, not particularly high, and the structure in which a foundation holds the top shareholder position has repeatedly drawn commentary about management stability. Conflict with a minority shareholder coalition and past breach-of-duty allegations remain lingering variables.

Structurally Low Margins in Textile Materials

The textile materials segment is assessed as facing pressure from US tariff policy, low-cost Chinese imports, and consumption weakness driven by high interest rates.

Since this segment is understood to account for more than half of total revenue, its low-margin structure could continue to weigh on overall profitability. Weak industrial textile demand and price-cut pressure from overseas retailers are also cited factors.

Deteriorating Financial Structure and Weaker Cash Generation

The debt ratio rose sharply from 61.5% in 2022 to 96.9% in 2025, while equity fell from 619.2 billion won to 520.5 billion won over the same period.

Operating cash flow held around 38.6-38.9 billion won from 2022 to 2024 before plunging to 3.9 billion won in 2025, directly reflecting the earnings weakness in cash generation.

Since the aluminum foil expansion involves large-scale investment, the possibility of further pressure on the financial structure cannot be ruled out.

Risk factors

Governance and Legal Risk

Investigations and follow-up legal proceedings related to the September 2025 stock manipulation case are understood to be ongoing. The governance structure, in which a foundation holds the top shareholder position, and friction with a minority shareholder coalition are also flagged as potential sources of instability. Past breach-of-duty allegations and accounting-related issues may not be fully resolved.

Business and Demand Risk

Since the aluminum foil expansion is largely a front-loaded investment ahead of confirmed order commitments, some analysis suggests that if electric vehicle and ESS demand recovers more slowly than expected, lower utilization at new lines combined with depreciation burden could pressure profitability.

The textile segment is exposed to a combination of tariff pressure, low-cost competition, and softer consumption. Recovery in environmental plant segment revenue depends heavily on the timing of renewed capital spending by semiconductor and display customers.

Financial Risk

The debt ratio has risen continuously in recent years, and operating cash flow also declined sharply in 2025. Since large-scale expansion investment is set to continue in phases through 2030, changes in financing methods and interest burden warrant monitoring.

If profitability recovery in the textile and environmental plant segments is delayed, improvement in overall cash generation could be pushed back further.

What to watch next

Mid-November 2026
The 3Q 2026 quarterly report disclosure should be checked to see whether the profit turnaround extends to a third consecutive quarter, and to gauge the pace of revenue recovery in the aluminum foil and environmental plant segments.
Fourth quarter to year-end 2026
Completion and actual startup of the Cheongju aluminum plant's production line expansion, from five to eight lines, should be confirmed, as this is a precondition for revenue contribution from 2027 onward.
By early 2027
Whether battery makers such as LG Energy Solution and SK On secure major BESS- or LFP-related project orders, and whether corresponding carbon-coated aluminum foil supply contracts are signed, should be monitored.
From the second half of 2026 onward
Progress in prosecutorial or court proceedings related to the 2025 stock manipulation case, along with any developments in governance-related discussions with the minority shareholder coalition, should be watched.
From the second half of 2026 onward
Disclosures related to potential asset revaluation or partial disposal of the company's real estate holdings should be checked for any reflection of underlying asset value.

Overall view

DI Dongil has confirmed, through actual results, a shift from a company-wide loss in 2025 to two consecutive quarters of profit in the first half of 2026, with the Cheongju plant expansion for the aluminum foil business proceeding as a medium-term growth axis.

At the same time, structurally low margins in the textile materials segment and financial burdens from a rising debt ratio and sharply reduced operating cash flow also exist.

It is also worth weighing, in balance, the governance and liquidity uncertainty that has persisted since the September 2025 stock manipulation case.

The aluminum foil expansion is largely front-loaded investment expected to be reflected in revenue mainly from 2027 onward, making earnings stability in the interim a key observation point. The pace of resolving governance issues and whether the financial structure improves are additional variables to watch. This report presents no investment opinion or target price and is intended for informational purposes only.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.