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 Industries posted consecutive operating and net profits in the first and second quarters of 2026, as improved profitability in auto parts, ferroalloy, and casting offset continued softness in bar steel sales.
Both Q1 2026 (operating profit +101.5%, net profit +975.7% year-on-year) and Q2 2026 posted profits, showing sequential improvement.
The auto parts division, operated through subsidiary D-Automotive, supplies constant velocity joint parts to Hyundai Wia and others, contributing stable earnings.
For full-year 2025, the company posted revenue of KRW 347.9 billion, an operating loss of KRW 2.7 billion, and a net loss of KRW 12.9 billion, worsening from 2024.
The bar steel division continues to see declining sales due to cyclical weakness in steel-consuming industries.
The debt ratio has remained low at 12-20%, and operating cash flow has stayed positive every year in the disclosed period.
Dongil Industries was established in 1966 for cast steel manufacturing, changed its name after merging with Dongil Jeongong in 1987, merged with Dongil Steel in 1997, and listed on the KOSPI market in 2005.
The company is headquartered and operates production facilities in Pohang, Gyeongsangbuk-do, with a business structure comprising four divisions: bar steel, auto parts, ferroalloy, and casting.
The bar steel division, the core business, produces bar steel used as raw material for auto parts, forging, and bearing-related machine parts, and its performance is tied to cycles in steel-consuming industries.
The auto parts division is operated through subsidiary D-Automotive, formed after acquiring the former Hanwha/Machinery auto parts center, and supplies constant velocity joint (drive shaft) parts to major customers including Hyundai Wia.
The ferroalloy division manufactures and sells ferroalloys such as ferromanganese (Fe-Mn) and silicomanganese (Si-Mn), used to enhance steel strength, with domestic blast furnace and electric furnace steelmakers as key customers.
The casting division produces parts for construction machinery, linking its performance to demand in overseas construction equipment markets including China. The company cites competitive raw material sourcing, quality and delivery management, and specialized product technology as its strategic pillars.
Unlike major steelmakers, it is classified as a small-to-mid-cap specialty steel and bar steel producer, which comes with relatively higher earnings volatility.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩88.3B | -₩1B | −1.1% |
| 2025Q3 | ₩90.4B | -₩2.5B | −2.8% |
| 2025Q4 | ₩78.4B | -₩700M | −0.9% |
| 2026Q1 | ₩82.9B | ₩2.9B | 3.5% |
| 2026Q2 | ₩103.1B | ₩8B | 7.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩498.1B | ₩22.6B | ₩21.8B | 4.5% | 5.2% | 19.7% |
| 2023 | ₩441.2B | -₩4.2B | -₩1.1B | −1.0% | −0.3% | 16.1% |
| 2024 | ₩415.8B | -₩4.2B | ₩14.6B | −1.0% | 3.4% | 14.0% |
| 2025 | ₩347.9B | -₩2.7B | -₩12.9B | −0.8% | −3.2% | 12.0% |
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
On an annual basis, the company posted solid results in 2022 with revenue of KRW 498.0 billion, operating profit of KRW 22.6 billion (operating margin 4.5%), and net profit of KRW 21.8 billion, but in 2023 revenue fell to KRW 441.2 billion, operating profit turned negative at KRW -4.2 billion, and net profit posted a small loss of KRW -1.1 billion.
In 2024, revenue declined further to KRW 415.8 billion and the operating loss continued at around KRW -4.2 billion, yet net profit turned positive at KRW 14.6 billion, likely reflecting non-operating factors.
In 2025, revenue fell again to KRW 347.9 billion, with an operating loss of KRW -2.7 billion and a net loss of KRW -12.9 billion, marking a renewed deterioration.
By quarter, Q3 2025 (revenue KRW 90.4 billion, operating loss KRW -2.5 billion, net loss KRW -1.3 billion) and Q4 2025 (revenue KRW 78.4 billion, operating loss KRW -0.7 billion, net loss of KRW -14.9 billion including a notably large net loss) were weak, whereas Q1 2026 saw revenue decline to KRW 82.9 billion but operating profit turn positive at KRW 2.9 billion and net profit at KRW 8.8 billion, and Q2 2026 continued the improvement with revenue of KRW 103.1 billion, operating profit of KRW 8.0 billion, and net profit of KRW 11.0 billion.
This pattern suggests that while bar steel sales declined, stabilized constant velocity joint supply in the auto parts division combined with a turnaround to profit in ferroalloy and casting drove the recovery.
The unusually large net loss in Q4 2025 stands out compared to other quarters and cannot be ruled out as reflecting one-off costs or asset-related adjustments.
Over the trailing four quarters (Q3 2025 through Q2 2026), both cumulative operating profit and net profit turned positive, indicating a gradual recovery in quarterly earnings.
In Q2 2026, Korea's three major steelmakers—POSCO Holdings, Hyundai Steel, and Dongkuk Steel—all reported improved results, signaling a rebound in industry conditions.
POSCO Holdings posted revenue of KRW 19.259 trillion and operating profit of KRW 819.0 billion, up 9.7% and 34.9% year-on-year respectively, while Dongkuk Steel posted revenue of KRW 995.5 billion and operating profit of KRW 45.6 billion, up 11.4% and 52.3% year-on-year.
Hyundai Steel also swung to a profit with a sharp sequential increase in operating profit. The industry attributed the improvement mainly to increased bar-and-rod steel sales volumes and rising sales prices amid expanded large-scale infrastructure investment in semiconductors and AI data centers.
However, some observers note that this recovery depends significantly on infrastructure investment demand and trade-policy variables rather than a structural rebound in the industry itself.
Unlike these large steelmakers, Dongil Industries is classified as a small-to-mid-cap specialty steel and bar steel producer, which brings relatively greater earnings volatility.
Its ferroalloy segment is sensitive to crude steel production volumes and raw material (manganese ore, etc.) price swings, while its casting segment is tied to construction machinery investment cycles in China and other emerging markets, meaning a recovery in Chinese industrial investment could lift demand.
The company has continued its earnings recovery, posting operating and net profits in both Q1 and Q2 2026.
While the bar steel division continues to see declining sales due to cyclical weakness in steel-consuming industries, the auto parts division has contributed to profitability improvement through stable supply of constant velocity joint parts to major customers including Hyundai Wia.
The ferroalloy and casting divisions also appear to have turned to operating profit as of Q1 2026, suggesting a more balanced profit contribution across segments.
The company has stated that a recovery in Chinese industrial investment could lift demand for construction heavy equipment and support growth in emerging markets, and it is pursuing cost reduction and productivity gains through mass production of a limited product range.
However, with the bar steel division's sales still declining, overall revenue recovery hinges on the pace of recovery in steel-consuming industries broadly.
As major domestic steelmakers anticipate improved second-half demand driven by expanded semiconductor and AI infrastructure investment, it remains to be seen whether Dongil Industries' bar steel segment will benefit from this trend.
The price-to-earnings ratio calculated on trailing four-quarter net profit is being shaped by a period in which earnings have not yet fully recovered, so it should be read in light of a still-low profit base.
In contrast, the price-to-book ratio remains well below 1x, placing the stock among names trading at a discount to book net asset value. This reflects the market's relatively conservative valuation of the company's equity following repeated operating and net losses between 2023 and 2025.
Based on the most recent disclosures, no dividend payment has been confirmed, suggesting limited shareholder return appeal through dividends at this time. That said, with profits recovering in both Q1 and Q2 2026, how future quarterly results feed through into these valuation multiples warrants further observation.
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 auto parts division, which supplies constant velocity joint parts to major customers including Hyundai Wia through subsidiary D-Automotive, showed improved profitability as of Q1 2026 based on stable volume supply. It plays a meaningful role in offsetting declining bar steel sales.
As long as the supply relationship with specific automakers and parts affiliates continues, this segment's earnings contribution may persist.
Both the ferroalloy and casting divisions appear to have turned to operating profit as of Q1 2026, confirming earnings improvement beyond the bar steel segment. This reduces reliance on any single segment's performance.
If crude steel production recovers or construction machinery demand improves further, there is room for additional improvement in these segments.
The debt ratio remained at 12-20% between 2022 and 2025, and operating cash flow stayed positive every year during that period. This shows that the financial structure was not significantly impaired even in years with weak operating results. Low leverage provides room to respond to future investment needs or cost fluctuations.
The bar steel division's sales have continued to decline due to cyclical weakness in steel-consuming industries, and this was the main factor behind the 8.7% year-on-year drop in total company revenue in Q1 2026.
This suggests that earnings improvement is coming from cost and structural efficiency rather than revenue growth. If the recovery in steel demand is delayed, the shrinking revenue base could persist.
Full-year 2025 revenue fell sharply to KRW 347.9 billion from KRW 498.0 billion in 2022, with an operating loss of KRW 2.7 billion and a net loss of KRW 12.9 billion, worsening from 2024. Two of the three years from 2023 to 2025 (2023 and 2025) ended in net losses, showing an unstable earnings trajectory. Whether the H1 2026 profit turnaround will be sustained on a full-year basis remains to be confirmed.
The Q4 2025 net loss of KRW 14.9 billion was unusually large compared to other quarters. Given that revenue of KRW 78.4 billion was actually smaller than in other quarters, the scale of the net loss suggests possible one-off costs or asset-related adjustments. This volatility makes quarterly earnings harder to forecast.
The ferroalloy division's performance is highly sensitive to changes in raw material prices such as manganese ore and crude steel production volumes. The bar steel division is also affected by fluctuations in steel raw material prices such as billet.
If raw material costs rise faster than sales price increases can be passed through, margins could come under pressure.
The auto parts division relies heavily on a small number of key customers such as Hyundai Wia, exposing it to shifts in their production and sourcing policies.
The casting division is linked to overseas construction machinery demand, including in China, so a delayed recovery in Chinese industrial investment could limit earnings improvement. The bar steel division likewise depends on broader conditions in domestic steel-consuming industries.
Between 2022 and 2025, annual operating and net profit/loss figures reversed sign multiple times, showing substantial volatility. There have also been instances, such as Q4 2025, where the magnitude of profit or loss expanded sharply in a single quarter, which can reduce the reliability of future earnings forecasts.
As a small-cap specialty steel and bar steel producer, the company may have relatively weaker earnings resilience compared to major steelmakers.
The Q3 preliminary earnings disclosure will show whether the profit turnaround seen in auto parts, ferroalloy, and casting during Q1-Q2 2026 continued into Q3, and whether the decline in bar steel sales has eased.
It is worth monitoring whether the H2 demand recovery expectations stated by major steelmakers such as POSCO Holdings, Hyundai Steel, and Dongkuk Steel—driven by semiconductor and AI infrastructure demand for bar-and-rod steel—spread across domestic steel-consuming industries broadly, and how this affects Dongil Industries' bar steel segment revenue.
Whether an actual recovery in Chinese industrial and construction machinery investment materializes is a key variable for the casting division's revenue recovery, warranting continued tracking of related indicators such as China construction machinery sales volumes.
Any changes in the volume or terms of constant velocity joint supply contracts with major customers such as Hyundai Wia, or new order wins, are important items to confirm the stability of the auto parts division's revenue.
Dongil Industries experienced declining bar steel sales and repeated operating losses since 2022, but showed signs of recovery with consecutive operating and net profits in Q1 and Q2 2026.
This appears to reflect the combination of stable supply from the auto parts division, operated through subsidiary D-Automotive, and a turnaround to profit in the ferroalloy and casting segments.
However, it is worth noting that bar steel sales continue to decline, the company posted a net loss on a full-year 2025 basis, and Q4 2025 saw an unusually large loss, indicating that earnings volatility remains significant.
On the financial structure side, a low debt ratio and consistently positive operating cash flow are positive attributes.
Amid an industry environment where major domestic steelmakers anticipate a second-half demand recovery, Dongil Industries' upcoming quarterly results will be a key indicator of whether bar steel sales recover and whether the improvement in auto parts, ferroalloy, and casting segments continues.
Report written 2026-09-05 · Data as of 2026-09-04
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