PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Dongil Steel posted two consecutive quarters of operating profit and revenue recovery in early 2026, while still facing a multi-year revenue decline and recurring annual operating losses since 2022.
The company posted operating profit in both 1Q26 (KRW 1.4 million) and 2Q26 (KRW 0.39 billion), breaking from the operating losses seen through 2025.
2Q26 revenue reached KRW 41.94 billion, the highest quarterly figure within the trailing four-quarter window (3Q25-2Q26).
Annual revenue declined for three straight years, from KRW 196.8 billion in 2022 to KRW 147.3 billion in 2025.
Core products are PC steel strand, machined bar, hard-drawn wire, and galvanized wire, with domestic sales at roughly 98%, making earnings highly sensitive to Korea's construction and auto cycles.
The company has not recently paid a dividend, and the direction of shareholder returns will depend on further earnings normalization.
Founded in 1959, Dongil Steel is a secondary wire-rod processor that purchases wire rod from suppliers such as POSCO and converts it through drawing processes into PC steel strand, machined bar, hard-drawn wire, and galvanized wire.
PC steel strand is used in bridges, buildings, and railway sleepers as part of social overhead capital (SOC) projects, while hard-drawn wire serves the automotive and industrial machinery sectors, and galvanized wire is used for power-line support and agricultural materials.
Machined bar products serve automotive, machinery, electronics, and OA shaft components, with the company holding notable technical capability in stainless machined bar and special-shape products. The company is understood to hold roughly a 26-40% market share in the stainless machined bar segment.
It operates two plants, in Anseong and Pohang, supporting nationwide, rapid delivery capability. Domestic sales account for about 98% of the business, underscoring a market structure centered on Korea rather than diversified exports.
More recently, the company has also engaged in small-diameter aluminum rod production for lightweight automotive parts, having expanded capacity in 2022 through a gas-pressurized vertical continuous casting facility.
Because end demand spans construction, automobiles, and shipbuilding, cyclicality in these traditional manufacturing sectors and intensifying competition from low-priced Chinese imports remain key risk factors for the overall business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩38.5B | -₩100M | −0.4% |
| 2025Q3 | ₩36.9B | -₩400M | −1.2% |
| 2025Q4 | ₩31.2B | -₩2.8B | −8.9% |
| 2026Q1 | ₩38.6B | ₩1,440,517 | 0.0% |
| 2026Q2 | ₩41.9B | ₩400M | 0.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩196.8B | ₩2.5B | ₩3.3B | 1.2% | 2.1% | 14.0% |
| 2023 | ₩180.8B | -₩2.9B | -₩3.2B | −1.6% | −2.1% | 17.0% |
| 2024 | ₩151.1B | -₩5.8B | -₩500M | −3.8% | −0.3% | 11.8% |
| 2025 | ₩147.3B | -₩3.5B | ₩1.4B | −2.4% | 0.9% | 11.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue contracted for three consecutive years, from KRW 196.8 billion in 2022 to KRW 180.8 billion in 2023, KRW 151.1 billion in 2024, and KRW 147.3 billion in 2025, a roughly 25% decline over four years.
Operating profit was positive in 2022 at KRW 2.46 billion (1.2% margin) but turned negative in 2023 (-KRW 2.91 billion, -1.6%) and widened further in 2024 (-KRW 5.80 billion, -3.8%) before narrowing somewhat to -KRW 3.51 billion (-2.4%) in 2025, meaning the company remained in operating loss for three straight years.
Net income attributable to owners, however, followed a different pattern: the 2023 net loss (-KRW 3.16 billion) exceeded the operating loss (-KRW 2.91 billion), while in 2024 the net loss (-KRW 0.48 billion) was far smaller than the operating loss (-KRW 5.80 billion), and in 2025 the company posted net income of KRW 1.35 billion despite an operating loss of -KRW 3.51 billion, indicating that non-operating items materially influenced results each year.
On a quarterly basis, 3Q25 posted an operating loss of -KRW 0.44 billion yet net income of KRW 5.20 billion, while 4Q25 saw the operating loss widen to -KRW 2.77 billion and the net loss expand to -KRW 5.76 billion, reflecting significant quarter-to-quarter volatility.
Entering 2026, 1Q26 operating profit was near breakeven at KRW 1.4 million, and 2Q26 delivered operating profit of KRW 0.39 billion on revenue of KRW 41.94 billion, the highest revenue and operating profit within the trailing four-quarter window (3Q25-2Q26).
Net income in 1Q26 and 2Q26 was relatively stable at KRW 0.66 billion and KRW 0.69 billion, respectively.
The trailing four-quarter (3Q25-2Q26) sum of net income attributable to owners is approximately KRW 0.79 billion, still a small absolute figure that warrants continued monitoring of whether the earnings normalization can be sustained.
South Korea's steel sector showed signs of a cyclical rebound in 2Q26, with POSCO Holdings, Hyundai Steel, and Dongkuk Steel all reporting improved earnings, driven by rising bar and rod steel demand tied to semiconductor and AI data center infrastructure investment along with higher selling prices.
That improvement, however, was concentrated in the bar/rod and plate product lines of large integrated and electric-arc furnace producers, a different demand channel than the one most relevant to a smaller secondary wire-rod processor like Dongil Steel.
The Korea Institute of Civil Engineering and Building Technology projected that 2026 domestic construction orders would recover to roughly KRW 231.2 trillion, up 4.0% year-on-year, with public-sector orders growing 8.4% on the back of an SOC budget increase of about 7.9%.
A projected 26.3% increase in the railway budget is a favorable factor for PC steel strand demand used in bridges and railway sleepers.
The same report noted, however, that private housing market recovery remains delayed, building construction starts have fallen sharply, and post-completion unsold housing inventory has reached a 13-year high, pointing to ongoing structural weakness.
With domestic sales at about 98% of revenue, Dongil Steel's results are directly linked to these domestic construction and SOC ordering trends, while rising imports of low-priced Chinese steel products remain a persistent competitive pressure.
Following a sizable operating and net loss in 4Q25, the company's quarterly results appear to have entered a recovery phase, with consecutive operating profits reported in 1Q26 and 2Q26. Revenue also rose from KRW 38.57 billion in 1Q26 to KRW 41.94 billion in 2Q26, confirming a quarter-on-quarter improvement.
From an industry standpoint, the planned expansion of the 2026 government SOC budget and a projected double-digit increase in the railway budget are favorable backdrops for demand for the company's core PC steel strand products.
However, the timing and pace at which this policy-driven demand translates into actual orders and construction starts remains a variable to watch.
Structural weakness in private housing, including delayed construction starts and accumulating unsold inventory, continues, making it important to see how much public-sector order growth can offset private-sector softness.
Demand for hard-drawn wire and machined bar used in automotive and industrial machinery applications is tied to domestic automaker and machinery production trends, while the small-diameter aluminum rod business carries potential for incremental demand tied to automotive lightweighting trends.
No specific company-level capacity expansion or new order announcements have been confirmed to date, so the sustainability of the recent earnings improvement will need to be verified through subsequent quarterly disclosures.
Dongil Steel's shares trade at a level below the company's net asset value, which can be interpreted as reflecting the market's cautious view of earnings power following several years of recurring operating losses.
At the same time, because absolute earnings have been quite small, the multiple of price to earnings tends to expand mechanically in such periods, making it difficult to draw firm conclusions purely from the level of that multiple.
The company has not recently paid a dividend, so dividend-based shareholder return appeal remains limited relative to sector averages, consistent with a business that has not yet reached a stage of stable earnings normalization.
With operating profit turning positive and revenue recovering in the first half of 2026, whether this improvement proves durable will be a key factor shaping how the stock's valuation relative to net assets evolves going forward.
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 2026-08-23
The company achieved operating profit in both 1Q26 and 2Q26, breaking from the loss pattern seen throughout 2025. Notably, 2Q26 revenue of KRW 41.94 billion and operating profit of KRW 0.39 billion were the highest levels within the trailing four quarters (3Q25-2Q26).
A continuation of this simultaneous revenue and operating profit improvement could signal earnings normalization.
With the 2026 government SOC budget expected to grow and the railway budget projected to rise sharply, the policy environment is turning more supportive for PC steel strand demand used in bridges and railway sleepers. Increased public-sector orders may partially offset weakness in private housing. The typical lag between order placement and revenue recognition should be kept in mind, however.
The company is understood to hold roughly a 26-40% market share in the stainless machined bar segment and has competitive capability in technically demanding special-shape products.
It has also diversified its portfolio by expanding small-diameter aluminum rod production capacity for automotive lightweighting applications through a 2022 facility expansion.
Annual revenue fell about 25% over four years, from KRW 196.8 billion in 2022 to KRW 147.3 billion in 2025. Given this shrinking revenue base, additional quarterly confirmation is needed to determine whether the recent return to profit reflects a structural recovery or a temporary improvement.
The company posted annual operating losses for three straight years from 2023 to 2025, with the loss widening to -KRW 5.80 billion in 2024. Whether the 1H26 return to operating profit will be sustained on a full-year basis has not yet been confirmed.
With domestic sales at about 98%, earnings are highly exposed to fluctuations in Korea's construction and automotive cycles. The absence of a recent dividend means shareholder returns continue to lag sector averages.
Because the company purchases wire rod as an input from suppliers such as POSCO, a faster rise in raw material costs relative to selling prices could compress spreads and hurt profitability. The recurring operating losses of recent years appear related to such spread pressure.
Growing inflows of low-priced Chinese steel products could exert pricing pressure across the secondary wire-rod processing market in which Dongil Steel operates. This is a structural factor that may not be fully offset by the company's focus on special-shape and specialty steel products alone.
If the timing and pace at which planned SOC budget increases translate into actual orders and construction starts are delayed, the anticipated recovery in PC steel strand demand may not materialize as quickly as expected.
A prolonged decline in private housing starts and accumulation of unsold inventory could also constrain the overall recovery in construction demand.
Check the 3Q26 preliminary earnings disclosure to verify whether the revenue recovery and operating profit trend continues.
Monitor the actual pace of government SOC budget execution, particularly in rail and road projects, to assess the impact on PC steel strand demand.
Review the 2026 annual business report and annual general meeting for confirmed full-year results and whether dividend policy is resumed.
Continue to track wire rod purchase prices from suppliers such as POSCO along with stainless and aluminum raw material price trends to assess spread changes.
Dongil Steel returned to operating profit in both 1Q26 and 2Q26, breaking from the loss pattern of 2025, with 2Q26 revenue and operating profit reaching the highest levels within the trailing four quarters.
However, this improvement should be viewed against the structural backdrop of revenue contraction since 2022 and three consecutive years of annual operating losses from 2023 through 2025.
Net income has followed a pattern distinct from operating profit, suggesting that non-operating items have materially affected results in nearly every year and quarter examined.
With domestic sales at about 98%, the company's results are directly tied to Korea's construction and SOC ordering trends as well as automotive production activity; the planned 2026 expansion of the government SOC budget is a favorable factor, while structural weakness in private housing remains a persistent variable.
The absence of a recent dividend limits the shareholder-return appeal, and the shares trade at a discount to net asset value. Whether the recent improvement proves durable will require further confirmation through the 3Q26 preliminary results and the pace of SOC budget execution.
Report written 2026-09-05 · Data as of 2026-09-04
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