PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩320 per share · Prices as of the 2026-10-02 close
Dongbang Agro's earnings rebounded sharply in the seasonal peak first quarter of 2026, even as structural cost pressure from raw materials and logistics, coupled with capped contract price increases, continues in parallel.
Q1 2026 revenue reached KRW 104.4 billion with operating profit of KRW 17.2 billion, by far the strongest quarter of the last five.
The company posted consecutive operating losses in Q3 and Q4 2025, underscoring pronounced off-season seasonality.
Revenue rose every year from 2022 to 2025, but the operating margin slipped from 8.6% in 2024 to 7.1% in 2025.
Middle East tensions have driven up crude oil, raw materials, and packaging costs sharply, while NongHyup's contract price increases for crop protection products remained limited.
The debt-to-equity ratio has stayed stable in the low-40% range for four consecutive years.
Dongbang Agro, founded in 1971 and listed on the KOSPI market in 1977, is a leading Korean manufacturer specializing in crop protection products.
Its Buyeo plant in South Chungcheong Province produces fungicides, insecticides, herbicides, adjuvants, and eco-friendly fertilizers across various formulations including emulsifiable concentrates, wettable powders, and granules.
Its major customers are the NongHyup (National Agricultural Cooperative Federation) distribution channel and general retail dealers, and the NongHyup system-purchase channel carries significant weight in the company's results given Korea's crop protection distribution structure.
The domestic crop protection market operates under a seven-major-manufacturer structure alongside Farm Hannong, Kyung Nong, NongHyup Chemical, Syngenta Korea, SB Seongbo, and Korea Sagong, with Dongbang Agro positioned as one of these players.
The company is focusing on developing climate-adapted agrochemicals, convenience formulations suited to an aging farm population, and expanding its eco-friendly fertilizer lineup.
Given the nature of the products, the peak season runs from spring planting through summer pest control, while autumn and winter are relatively off-season, producing large seasonal swings in revenue.
Because a substantial portion of active ingredients are imported, cost of goods sold is sensitive to exchange rates and international crude oil price movements. This structure is a common industry condition shared by Korea's top crop protection manufacturers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩40.9B | ₩1.5B | 3.6% |
| 2025Q3 | ₩18.9B | -₩5.6B | −29.5% |
| 2025Q4 | ₩15.1B | -₩2.4B | −15.9% |
| 2026Q1 | ₩104.4B | ₩17.2B | 16.4% |
| 2026Q2 | ₩48.9B | ₩2.1B | 4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩146.7B | ₩9.3B | ₩6.8B | 6.4% | 4.5% | 43.6% |
| 2023 | ₩164.3B | ₩13.6B | ₩12.1B | 8.3% | 7.6% | 40.3% |
| 2024 | ₩170.2B | ₩14.6B | ₩9.8B | 8.6% | 5.9% | 43.7% |
| 2025 | ₩179B | ₩12.7B | ₩9.7B | 7.1% | 5.6% | 43.8% |
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
Dongbang Agro's annual revenue rose for four consecutive years, from KRW 146.7 billion in 2022 to KRW 164.3 billion in 2023, KRW 170.2 billion in 2024, and KRW 179.0 billion in 2025.
The operating margin, however, improved from 6.4% in 2022 to 8.3% in 2023 and 8.6% in 2024 before slipping back to 7.1% in 2025, suggesting cost burdens grew alongside revenue expansion.
Net income attributable to owners jumped from KRW 6.8 billion in 2022 to KRW 12.1 billion in 2023, then eased to KRW 9.8 billion in 2024 and KRW 9.7 billion in 2025, moderating for two straight years.
The quarterly pattern shows pronounced seasonality: after Q2 2025 revenue of KRW 40.9 billion and operating profit of KRW 1.5 billion, the company posted an operating loss of KRW 5.6 billion on revenue of KRW 18.9 billion in Q3, followed by another operating loss of KRW 2.4 billion on revenue of KRW 15.1 billion in Q4, marking two consecutive loss-making quarters.
Results then rebounded sharply in Q1 2026, with revenue of KRW 104.4 billion, operating profit of KRW 17.2 billion, and owners' net income of KRW 12.7 billion, reflecting concentrated spring planting-season demand.
Q2 2026 revenue of KRW 48.9 billion and operating profit of KRW 2.1 billion, with owners' net income of KRW 1.8 billion, improved from the same quarter a year earlier (revenue KRW 40.9 billion, operating profit KRW 1.5 billion, net loss of KRW 0.1 billion), turning from a loss into a profit.
Owners' net income summed over the trailing four quarters (Q3 2025 through Q2 2026) came to KRW 9.1 billion, reflecting how the consecutive losses in Q3-Q4 2025 weighed on the rolling total.
On the cash flow side, operating cash flow surged to KRW 8.7 billion in 2025 from KRW 0.3 billion in 2024, indicating improved cash conversion quality of reported earnings.
Korea's domestic crop protection industry remains in an overall stagnant phase, weighed down by declining consumption of Korean-grown produce, natural disasters, and rising exchange rates and oil prices.
Since early 2026, prolonged Middle East instability has pushed up international oil prices and logistics costs, driving broad-based increases in chemical adjuvant costs such as surfactants and solvents as well as packaging material costs including EVOH, coating liquids, ink, and aluminum.
As of May 2026, the average diesel retail price stood 33.2% higher than a year earlier, adding to logistics cost burdens.
In contrast, the 2026 NongHyup contract price for crop protection products rose only about 2% on average even though cost-increase factors exceeded 7%, leaving manufacturers to absorb a large share of the cost burden themselves.
Against this backdrop, combined revenue for the seven major manufacturers—Farm Hannong, NongHyup Chemical, Kyung Nong, Dongbang Agro, Syngenta Korea, SB Seongbo, and Korea Sagong—rose 2.78% year-on-year as of the end of April 2026, though industry observers note that revenue growth has visibly slowed.
Separately, China approved 456 new agrochemical product registrations in a single month in December 2025, expanding mass production of generic active ingredients and export-oriented products, raising the possibility of intensifying price and product competition across Asian agrochemical markets.
For 2026, the crop protection industry overall has fewer new active-ingredient-based product launches than in a typical year, making marketing intensity around existing products and agile weather-driven pest-control timing the key competitive battlegrounds.
Because the company's results are heavily weighted toward the first half—particularly the first quarter—the trend through Q2 2026 serves as a key reference point for gauging the direction of full-year results.
According to an early-2026 industry survey, NongHyup's advance-purchase order volumes for crop protection products rose slightly from the prior year, which some in the industry interpreted as a positive signal, although the lack of clarity on government price-subsidy program direction remained a persistent variable.
On the cost side, active-ingredient suppliers have reportedly already notified manufacturers of price increases for the following year, and industry-wide concerns persist that packaging materials, logistics costs, and exchange-rate burdens will continue to rise.
As a result, calls have grown within the industry for the 2027 NongHyup contract price to realistically reflect cost increases, and the outcome of that negotiation could affect the company's margins in 2027.
On the weather front, industry sources have pointed out that changing pest and disease patterns driven by abnormal heat and dry conditions could affect the timing of pest-control demand and sales.
The company has continued to position climate-adapted agrochemical development, labor-saving formulations suited to an aging farm population, and expanded eco-friendly fertilizer distribution as its ongoing strategic priorities.
However, no clear official guidance has been confirmed to date regarding specific new growth drivers such as new product launches or expanded overseas exports.
The company's net income peaked in 2023, moderated slightly through 2024-2025, and then rebounded sharply in the seasonally strong first quarter of 2026. Amid this earnings-recovery phase, the shares trade below net asset value per share, indicating the market is applying a discount relative to book value.
On the dividend front, the company has consistently paid cash dividends in recent years, reflecting continuity in a stable shareholder-return policy.
That said, given the highly seasonal earnings structure, valuation metrics based on the trailing four-quarter profit figure warrant caution during periods when that window understates full-year performance.
On the balance sheet, the debt-to-equity ratio has remained in a stable low-40% range for four straight years, so financial soundness itself has not been a major swing factor in the valuation discussion.
Ultimately, how the current price level is interpreted may hinge on views about the durability of peak-season earnings leverage and whether cost pressures ease 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
Q1 2026 operating profit of KRW 17.2 billion was close to the entire 2025 full-year operating profit of KRW 12.7 billion, demonstrating clear single-quarter peak-season earnings leverage. Q2 2026 also improved, turning from a loss in the same quarter a year earlier into a profit, extending the improving trend.
This shows the seasonal structure tied to concentrated spring planting and pest-control demand functioned normally.
Revenue grew for four consecutive years, from KRW 146.7 billion in 2022 to KRW 179.0 billion in 2025. Over the same period, the debt-to-equity ratio held stable in the low-40% range, indicating limited financial leverage burden.
Continuing to grow revenue despite a stagnant domestic market environment supports the company's standing within the NongHyup system-sales network.
The company has continued cash dividends over recent years despite earnings fluctuations. Operating cash flow also rose sharply to KRW 8.7 billion in 2025 from the prior year, strengthening the stability of dividend funding sources. This supports continuity of shareholder returns even amid earnings volatility.
The 2025 operating margin fell to 7.1% from 8.6% in 2024. While Middle East instability drove sharp increases in oil prices, logistics costs, and raw materials, the 2026 NongHyup contract price rose only about 2% on average, suggesting the company may need to keep absorbing cost increases itself.
Q3 and Q4 2025 posted operating losses of KRW 5.6 billion and KRW 2.4 billion respectively, marking two consecutive loss-making quarters. The trailing four-quarter owners' net income of KRW 9.1 billion coming in below the full-year 2025 figure of KRW 9.7 billion is largely attributable to these off-season losses.
Korea's domestic crop protection market is seen as having limited growth potential given declining consumption of Korean-grown produce and an aging farming population.
At the same time, China's expansion of mass registrations of generic active ingredients and export-oriented products raises the potential for intensifying price and product competition across Asian markets.
High reliance on imported active ingredients and adjuvants makes costs sensitive to international oil prices and exchange rates. Since 2026, Middle East instability has already driven sharp increases in raw material, packaging, and diesel logistics costs. A further geopolitical shock could re-expand cost burdens.
A significant portion of revenue flows through the NongHyup system-sales channel, making profitability sensitive to the outcome of annually determined contract price negotiations.
Contract price increases have repeatedly come in below cost-increase rates in recent periods, suggesting the negotiation structure itself could act as a structural constraint on margins.
Increasingly unpredictable timing and intensity of pest and disease outbreaks driven by abnormal weather can cause pest-control demand and sales timing to deviate from plans.
Given revenue is concentrated in the first half—particularly the first quarter—a weather anomaly or disaster in any single quarter could have an outsized effect on full-year results.
The Q3 2026 quarterly report filing will show off-season profit-and-loss trends and whether cost pressures have eased.
Once the 2027 NongHyup crop protection contract price negotiation is finalized, it will indicate how much of the cost increase is being passed through and the direction of 2027 margins.
The Q4 and full-year 2026 earnings release will be the point to reconfirm the full-year 2026 operating margin and the gap between peak- and off-season performance.
The finalized 2026 annual report and the regular shareholders' meeting will confirm dividend size and the continuity of shareholder-return policy.
Continued monitoring of Middle East developments and international oil price trends is needed to assess whether raw material and logistics cost burdens are easing and cost structures are improving.
Dongbang Agro is a Korean crop protection specialist with a distinctly seasonal business structure concentrated around the spring peak season, and it showed two contrasting faces in the recent data: a sharp earnings-leverage rebound in Q1 2026 alongside consecutive operating losses in Q3-Q4 2025.
Four straight years of revenue growth, a stable debt-to-equity ratio, and consistent cash dividend payments support the company's financial stability.
On the other hand, the operating margin decline from 2024 levels amid surging raw material and logistics costs paired with capped contract price increases, along with a structure where off-season losses meaningfully erode full-year results, warrant continued attention.
Domestic market stagnation and the potential for intensifying Asian market competition from expanding Chinese generic registrations are also factors to weigh.
Key items to watch going forward include the degree of off-season profit-and-loss improvement in Q3 2026, the outcome of the 2027 contract price negotiation, and whether international oil prices and exchange rates stabilize.
This report contains no investment opinion or buy/sell recommendation and is provided for informational purposes only.
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.