PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩80 per share · Prices as of the 2026-10-02 close
DRB Dong-il is a holding company spanning industrial rubber belts, automotive rubber parts, and used-car auctions, whose revenue has grown for four straight years even as profit attributable to owners has swung between losses and gains on a quarterly basis.
2025 revenue reached KRW802.7 billion, rising for a fourth straight year since 2022, with operating margin edging up to 3.1%
Profit attributable to owners fell from KRW15.37 billion in 2023 to KRW4.47 billion in 2025, moving opposite to the rise in operating profit
In 2025Q2 and 2025Q4 the company posted operating profit yet still recorded a net loss to owners, pointing to recurring non-operating volatility
The debt ratio has declined every year from 97.0% in 2022 to 84.3% in 2025, indicating a gradual improvement in financial structure
The business portfolio rests on three pillars: industrial belts (power transmission, conveyor, crawler), automotive rubber parts via DRB Automotive, and the used-car auction unit
DRB Dong-il traces its roots to Dongil Chemical Industrial, founded in Busan in 1945 to make rubber shoes and related products, and today operates as a holding company spanning industrial rubber products, automotive parts, and a used-car auction business through several subsidiaries.
Its core subsidiary, Dongil Rubber Belt, is organized into a rubber belt segment producing power-transmission belts and conveyor belts for logistics and material-handling sites, and an other-rubber-products segment making crawlers and undercarriage systems for tracked equipment such as excavators.
The company has previously signed a supply contract worth roughly KRW150 billion with U.S. heavy-equipment maker Caterpillar, embedding it in the global construction-equipment value chain.
In 2022 the company spun off its eco-friendly automotive business into DRB Automotive, which supplies comprehensive rubber parts, including vehicle sealing used in doors, window frames, and trunks, to automakers.
One media analysis from 2014 noted that vehicle sealing accounted for roughly 30 to 40 percent of revenue at that time. In addition, the group operates Dongil Auction, described as the largest used-car auction platform in Korea, giving it a position in vehicle distribution as well.
This combination of industrial materials, automotive parts, and auction-based distribution under one holding structure reduces dependence on any single sector, though it also means consolidated results can be harder to read when segment performance diverges.
Overseas, the group maintains production sites in China, Vietnam, and Slovakia, supporting a supply chain geared toward global automakers and heavy-equipment customers. Competitively, the company draws on a long operating history as the first domestic manufacturer to localize rubber belt production in Korea.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩205.3B | ₩4.4B | 2.1% |
| 2025Q3 | ₩209.2B | ₩13.1B | 6.3% |
| 2025Q4 | ₩203.5B | ₩2.4B | 1.2% |
| 2026Q1 | ₩200B | ₩5.9B | 2.9% |
| 2026Q2 | ₩218.5B | ₩11.2B | 5.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩661.8B | ₩12.1B | ₩1.5B | 1.8% | 0.4% | 97.0% |
| 2023 | ₩737.8B | ₩35.8B | ₩15.4B | 4.9% | 4.1% | 93.5% |
| 2024 | ₩752.7B | ₩21.9B | ₩9.5B | 2.9% | 2.4% | 88.7% |
| 2025 | ₩802.7B | ₩24.9B | ₩4.5B | 3.1% | 1.1% | 84.3% |
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
Consolidated revenue rose for four consecutive years, from KRW661.8 billion in 2022 to KRW737.8 billion in 2023, KRW752.7 billion in 2024, and KRW802.7 billion in 2025.
Operating profit, however, moved unevenly: it jumped from KRW12.1 billion (1.8% margin) in 2022 to KRW35.8 billion (4.9%) in 2023, then eased to KRW21.9 billion (2.9%) in 2024 and KRW24.9 billion (3.1%) in 2025.
Profit attributable to owners surged from KRW1.5 billion in 2022 to KRW15.4 billion in 2023, but then fell for two straight years to KRW9.5 billion in 2024 and KRW4.5 billion in 2025, diverging from the operating-profit trend. The quarterly pattern makes this divergence even clearer.
In 2025Q2 the company posted an operating profit of KRW4.4 billion yet still recorded a net loss to owners of KRW3.8 billion, and 2025Q4 repeated the pattern with an operating profit of KRW2.4 billion alongside a net loss of KRW3.8 billion.
By contrast, 2025Q3 was the strongest quarter, with operating profit of KRW13.1 billion and net profit of KRW9.1 billion.
Into 2026, the company returned to two consecutive profitable quarters, with operating profit of KRW5.9 billion and net profit of KRW2.2 billion in the first quarter, followed by operating profit of KRW11.2 billion and net profit of KRW4.4 billion in the second quarter, bringing the trailing four-quarter (2025Q3-2026Q2) net profit to owners to roughly KRW11.9 billion.
The recurring gap between positive operating profit and negative net profit in certain quarters suggests that non-operating items such as foreign exchange, equity-method gains and losses, or one-off charges have materially affected reported results.
On the cash-flow side, operating cash flow swung from negative KRW11.6 billion in 2022 to a sharp rebound of KRW102.9 billion in 2023, before settling at KRW28.2 billion in 2024 and KRW43.2 billion in 2025, pointing to relatively stable cash generation relative to reported earnings.
The industrial rubber belt market is tied to material-handling and power-transmission demand across sectors such as electronics manufacturing, steelmaking, thermal power, cement, logistics centers, and mining, making it sensitive to global manufacturing and infrastructure investment cycles.
The crawler and undercarriage business for tracked vehicles is closely linked to construction- and agricultural-equipment orders, with supply relationships to global heavy-equipment makers such as Caterpillar affecting revenue stability.
The automotive rubber parts business, including vehicle sealing, tracks automaker production volumes and new-vehicle sales, with the shift toward electrification introducing medium-term changes in part specifications.
The used-car auction business is a consumer-facing distribution operation whose competitiveness hinges on online platform expansion and distribution efficiency, and which is influenced by used-car transaction volumes and interest-rate conditions.
Because these businesses tend to follow different cycles, weakness in one segment can be offset by strength in another at the consolidated level.
On the input-cost side, fluctuations in synthetic and natural rubber prices directly affect production costs, so global commodity price trends have a meaningful bearing on margins.
Relative to peers, the company's long history as an early localizer of rubber belt production and its diversified portfolio stand out as differentiators, though each business line competes against dedicated specialists, making it difficult to describe the company as holding dominant market power in any single segment.
No specific public guidance on revenue or profit targets from the company has been identified, but recent quarterly trends offer some directional signal.
First-half 2026 revenue improved sequentially, from KRW200.0 billion in the first quarter to KRW218.5 billion in the second quarter, and operating profit rose from KRW5.9 billion to KRW11.2 billion over the same period, pointing to signs of earnings recovery.
Profit attributable to owners also increased from KRW2.2 billion to KRW4.4 billion, marking two consecutive profitable quarters.
That said, given the recurring quarterly volatility seen in the second half of 2025 (a profitable third quarter followed by a loss in the fourth), whether this run of profitability continues into subsequent quarters remains to be confirmed.
The steady decline in the debt ratio from 97.0% in 2022 to 84.3% in 2025 can be read as a favorable signal for the balance sheet.
Going forward, the automotive parts segment is likely to track automaker production plans, the industrial belt segment to follow global construction-equipment and heavy-industry orders, and the auction segment to move with used-car transaction trends, with the degree to which these three business lines offset one another likely to be a key variable for the stability of consolidated results.
The current share price appears to trade at a meaningful discount to net asset value, a pattern that can be read against the backdrop of repeated swings in profit attributable to owners over recent years.
The price-to-earnings multiple sits on the lower side relative to the company's own historical earnings pattern, consistent with the decline in net profit from 2023 through 2025.
Dividends have continued to be paid at a broadly consistent level despite earnings volatility, though the resulting yield level is a figure that changes daily with the share price and should be checked separately.
Taken together, the company combines a positive backdrop of revenue growth and an improving balance sheet with the offsetting factor of large quarter-to-quarter swings in profit attributable to owners, all while trading at a discount to net asset value.
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
Consolidated revenue rose every year from KRW661.8 billion in 2022 to KRW802.7 billion in 2025. The structure allows the revenue base to hold up as long as the industrial belt, automotive parts, and auction businesses do not all weaken simultaneously. First-half 2026 also saw sequential growth from the first to the second quarter.
The debt ratio declined every year from 97.0% in 2022 to 84.3% in 2025. Operating cash flow also turned positive for three consecutive years from 2023 through 2025 after being negative in 2022, indicating gradual improvement in financial stability despite earnings volatility.
Both the first and second quarters of 2026 posted positive operating profit and net profit to owners, with second-quarter operating profit of KRW11.2 billion the second-highest among the trailing four quarters.
Unlike the loss-profit alternation seen in the second half of 2025, the consecutive profitable quarters in the first half of 2026 mark a notable change.
Profit attributable to owners fell for two straight years, from KRW15.4 billion in 2023 to KRW9.5 billion in 2024 and KRW4.5 billion in 2025, even as operating profit rose in some of those years, suggesting that non-operating factors or the share of profit allocated to minority interests have eroded the owners' portion. Unless this trend reverses, recovery in per-share earnings could remain limited.
Both 2025Q2 and 2025Q4 saw the company post positive operating profit yet still record a net loss attributable to owners. If this pattern recurs, the predictability of quarterly results is reduced, making it difficult for investors to infer the direction of net profit from operating profit alone.
Operating cash flow swung sharply from negative KRW11.6 billion in 2022 to KRW102.9 billion in 2023, before easing to KRW28.2 billion in 2024 and KRW43.2 billion in 2025.
Such large year-to-year swings suggest the influence of working-capital management or one-off items, and further observation is needed to confirm the stability of cash generation.
Key products such as rubber belts and vehicle sealing rely mainly on synthetic and natural rubber as raw materials, so global commodity price swings have a direct impact on production costs. If raw material costs rise without being promptly passed through in selling prices, margins can come under pressure. Cost factors likely played a role in the wide historical swing in operating margin from 1.8% to 4.9%.
The crawler and undercarriage business is tied to the construction and heavy-equipment order cycle, while the automotive parts business tracks automaker production volumes, creating a risk that a global slowdown could affect both simultaneously.
The used-car auction business is likewise influenced by consumer sentiment and interest-rate conditions affecting transaction volumes. While the three businesses tend to follow different cycles, they can still be jointly exposed to a common shock such as a global economic downturn.
Cases such as 2025Q2 and 2025Q4, where operating profit was positive but a net loss still occurred, suggest a significant impact from non-operating factors such as foreign exchange, equity-method results, or other one-off charges.
Given the operation of overseas production sites in China, Vietnam, and Slovakia, the effect of currency movements on consolidated results is a factor that warrants ongoing monitoring.
The scheduled disclosure window for third-quarter 2026 results, where it will be worth checking whether the two consecutive profitable quarters seen in the first half continue into the third quarter.
It will be useful to monitor global construction-equipment order trends and automaker production plans to gauge changes in the revenue base of the industrial belt and automotive parts segments.
DART annual business reports and year-end dividend disclosures will allow confirmation of updated segment revenue mix and the continuity of dividend policy.
It is worth tracking international price trends for key raw materials such as synthetic rubber to assess potential changes in future cost pressure.
DRB Dong-il houses three distinct businesses, industrial rubber belts, automotive rubber parts, and used-car auctions, under a single holding structure, and this diversification has helped revenue grow for four consecutive years while the debt ratio has declined each year.
However, profit attributable to owners has fallen for two straight years since 2023, and the recurring pattern of quarters where operating profit is positive but net profit turns negative remains a clear weakness that lowers the predictability of results.
The first half of 2026 showed signs of recovery, with both the first and second quarters posting profit, but given the loss-profit alternation seen in the second half of 2025, whether this trend holds steady will need to be confirmed through upcoming quarterly results.
The share price appears to trade at a substantial discount to net asset value, a pattern that can be read as reflecting the earnings volatility of recent years.
Investors following this name will want to watch raw material prices, the construction-equipment and automaker order cycles, and the recurring influence of non-operating items on reported results. This report is provided for informational purposes only and does not constitute a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
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