PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩600 per share · Prices as of the 2026-10-02 close
Operating margins pressured by aluminum costs and a strong won have shown signs of recovery in the first half of 2026, while cylindrical battery cans and high-value-added packaging exports are emerging as new growth pillars.
Q2 2026 revenue reached KRW 402.19 billion and operating profit KRW 31.38 billion, both up double digits year-on-year, lifting first-half performance.
Full-year 2025 operating margin fell to 4.8%, the lowest of the past four years, mainly attributed to rising aluminum input costs and a strong exchange rate.
The company supplies 2170 and 4680 cylindrical battery cans to LG Energy Solution and has signed an MOU with China's SLAC to explore a joint venture for battery-can production in the US and Europe.
Under a value-up plan disclosed in April 2025, the company is targeting a 30% dividend payout ratio, and the actual ratio rose from 24.3% in 2024 to 32.7% in 2025.
The materials segment's export ratio expanded to 45% in the first half of 2026, supported by solid demand for high-value products such as pet food and retort pouches in North America.
Founded in 1980, Dongwon Systems is a comprehensive packaging and advanced materials company under the Dongwon Group, producing flexible packaging, aluminum foil, molded containers, food and beverage cans, easy-open ends, PET bottles, and glass bottles, alongside a secondary battery materials and components business that includes cathode foil, cylindrical battery cans, and pouch-type cell exteriors.
The largest shareholder is Dongwon Industries, holding roughly 71% of shares, and captive sales supplying packaging to group affiliates such as Dongwon F&B and StarKist in the US account for roughly 20% of consolidated revenue.
In the battery segment, the company supplies 2170 and 4680 cylindrical battery cans to LG Energy Solution and built out its capabilities by acquiring MKC, which had previously supplied cylindrical cans to Samsung SDI and other manufacturers.
In the aluminum foil market, the company competes with DI Dongil (Dongil Aluminum), Lotte Aluminum, and Samah Aluminum as one of four major domestic players, though it is considered a relative latecomer in cathode foil for secondary batteries.
The materials segment focuses on expanding into the US, Canada, South America, and Southeast Asia, growing overseas customers with eco-friendly packaging such as its Uni-Material line.
In August 2025, the company signed an MOU with China's precision machinery firm SLAC to establish a battery-can joint venture in the US and Europe, targeting Korea's three major battery makers—LG Energy Solution, Samsung SDI, and SK On.
The aseptic filling business is also noted as a high-value-added segment that has consistently contributed to profitability.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩366.3B | ₩25.9B | 7.1% |
| 2025Q3 | ₩356.4B | ₩20.2B | 5.7% |
| 2025Q4 | ₩313.4B | ₩7.5B | 2.4% |
| 2026Q1 | ₩337.8B | ₩13B | 3.9% |
| 2026Q2 | ₩402.2B | ₩31.4B | 7.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩91.8B | ₩72.3B | 6.4% | 9.9% | 99.0% |
| 2023 | ₩1.3T | ₩80.9B | ₩64.2B | 6.3% | 8.3% | 98.4% |
| 2024 | ₩1.3T | ₩91.9B | ₩72.4B | 6.9% | 8.7% | 85.6% |
| 2025 | ₩1.4T | ₩66.2B | ₩53.7B | 4.8% | 6.2% | 77.4% |
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
Consolidated revenue declined from KRW 1.437 trillion in 2022 to KRW 1.2767 trillion in 2023, then recovered to KRW 1.3343 trillion in 2024 and KRW 1.3729 trillion in 2025.
Operating profit, however, moved from KRW 91.8 billion in 2022 and KRW 80.9 billion in 2023 to KRW 91.9 billion in 2024 before dropping sharply to KRW 66.2 billion in 2025, pushing the operating margin down from 6.9% in 2024 to 4.8% in 2025.
Net income attributable to owners fell from KRW 72.4 billion in 2024 to KRW 53.7 billion in 2025. The debt ratio steadily improved from 99.0% in 2022 to 77.4% in 2025, indicating a strengthening balance sheet.
On a quarterly basis, profit declined sharply from Q3 2025 (revenue KRW 356.4 billion, operating profit KRW 20.2 billion) to Q4 2025 (revenue KRW 313.4 billion, operating profit KRW 7.5 billion), before recovering through Q1 2026 (revenue KRW 337.8 billion, operating profit KRW 13.0 billion) and more clearly in Q2 2026, with revenue of KRW 402.2 billion, operating profit of KRW 31.4 billion, and owner net income of KRW 19.8 billion.
First-half 2026 cumulative figures showed revenue of KRW 740.0 billion, operating profit of KRW 44.4 billion, and owner net income of KRW 36.4 billion, up 5.2%, 15.5%, and 37.5% year-on-year, respectively.
Owner net income over the most recent four quarters (Q3 2025 to Q2 2026) totaled roughly KRW 63.3 billion, suggesting a sequential improvement since the Q4 2025 trough.
Operating cash flow declined from KRW 214.7 billion in 2022 to KRW 138.7 billion in 2025, reflecting the combined effect of rising raw material costs and lower operating profit.
The domestic aluminum foil market is contested among four players—DI Dongil (Dongil Aluminum), Dongwon Systems, Lotte Aluminum, and Samah Aluminum—reflecting a dual structure of demand from food and pharmaceutical packaging as well as secondary-battery cathode foil.
In cathode foil, Dongwon Systems is viewed as a relative latecomer, while in cylindrical battery cans, the company secured a supply relationship with domestic battery makers such as LG Energy Solution through its acquisition of MKC.
In 2025, weak domestic demand combined with rising raw material costs and currency pressure to reduce demand for some packaging products, including battery-grade aluminum, PET, and glass bottles, weighing on utilization rates.
In contrast, materials-segment exports expanded around high-value products such as pet food and retort pouches across the US, Canada, South America, and Southeast Asia, lifting the export ratio from around the low 40% range in 2025 to 45% in the first half of 2026.
In the EV battery market, adoption of the 4680 cylindrical format is spreading beyond Tesla to automakers such as BMW and Volvo, and LG Energy Solution's mass production of 4680 cells centered on its Ochang plant is directly linked to can volumes for supplier Dongwon Systems.
That said, the secondary-battery materials and components business remains in an early development and ramp-up stage with a still-limited revenue contribution, and stabilizing its profit contribution is expected to take time.
In its Q2 2026 earnings release, the company stated it would continue expanding overseas exports of Korean packaging in the second half while pursuing future growth drivers such as secondary-battery materials and advanced films.
Under the value-up plan disclosed in April 2025, the company proposed raising its dividend payout ratio to 30% and introducing a minimum-dividend system to expand shareholder returns; a follow-up disclosure in April 2026 showed the payout ratio had already risen from 24.3% in 2024 to 32.7% in 2025, close to the stated target.
In the market-valuation category, the company also set a goal of raising its price-to-book ratio from 1.4x in 2024 to 2.0x.
In the battery segment, the company signed an MOU with China's SLAC in August 2025 to establish a battery-can joint venture in the US and Europe, seeking to build overseas production bases targeting LG Energy Solution, Samsung SDI, and SK On as customers.
According to Q1 2026 disclosures and related reporting, materials-segment export value grew roughly 20% year-on-year, with the number of export destination countries expanding to about 30.
A company representative has stated plans to target North America and other overseas markets with its eco-friendly Uni-Material packaging, while using its Vietnamese affiliate TTP (Tan Tien Packaging) to secure a foothold locally and expand into North America.
How much these export and can-capacity expansion plans translate into results will require confirmation through upcoming quarterly earnings and follow-up disclosures.
With earnings having recently turned toward recovery, the shares still trade below the price-to-book target of 2.0x that the company itself set as part of its value-up plan.
The price-to-book ratio remains below 1x, implying a discount to net asset value, which can be read as a combined reflection of the 2025 profit decline and the falling debt ratio. On the dividend side, shareholder returns have been expanding in line with the policy of raising the payout ratio.
While revenue fluctuated over the past four years, the operating margin bottomed in 2025 and has been moving toward improvement since the first half of 2026, and how this earnings recovery feeds through into valuation metrics going forward remains something to monitor.
The timing at which new businesses such as the expanding battery-can operations begin to contribute more meaningfully to profit and loss also remains an important variable for future metric changes.
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
The company supplies 2170 and 4680 cylindrical battery cans to LG Energy Solution and, in August 2025, signed an MOU with China's SLAC to establish a battery-can joint venture in the US and Europe, seeking to expand overseas production capacity.
The planned joint venture targets LG Energy Solution, Samsung SDI, and SK On as key customers, leaving room for broader supply expansion across Korea's three major battery makers.
Demand remains solid in North America for high-value-added products such as pet food and retort pouches built on the eco-friendly Uni-Material, and the materials segment's export ratio rose to 45% in the first half of 2026. Regional diversification is also progressing, with export destinations expanding to about 30 countries.
Under the value-up plan disclosed in April 2025, the company is raising its dividend payout ratio target to 30% and pursuing a minimum-dividend system, and the actual payout ratio has already risen from 24.3% in 2024 to 32.7% in 2025. The debt ratio has also improved, falling from 99.0% in 2022 to 77.4% in 2025.
In 2025, rising prices for aluminum and other raw materials combined with a strong exchange rate to push the operating margin down to 4.8%.
Prices of key raw materials such as aluminum strip are linked to international commodity prices and exchange rates, and are likely to remain a major source of earnings volatility going forward.
In 2025, domestic demand for some packaging products, including battery-grade aluminum, PET, and glass bottles, declined, putting pressure on utilization rates. If domestic weakness persists, export growth alone may not be sufficient to fully offset overall performance.
The secondary-battery materials and components business remains in a development and early ramp-up stage, and the segment has reportedly continued to post operating losses. If fixed-cost burdens from new capital investment persist, the timing of a turn to profitability could be delayed longer than expected.
Prices of key raw materials such as aluminum strip are determined in line with international commodity prices and the won-dollar exchange rate, meaning sharp price increases can immediately affect profitability.
Trade policy issues, such as past US tariffs on aluminum strip products originating from China, also remain a potential variable.
Roughly 20% of consolidated revenue is estimated to come from captive sales to Dongwon Group affiliates, and the battery segment appears to carry some dependence on LG Energy Solution.
Concentration of sales with specific customers or group affiliates can heighten earnings sensitivity to changes in that customer's demand.
The battery-can joint venture with China's SLAC remains at the MOU stage without a finalized investment scale or equity structure, and its pace or direction could shift depending on geopolitical factors or regulatory changes. If execution does not proceed as planned, the timeline for overseas can-business expansion could be delayed.
Around the statutory filing deadline for the Q3 report, Q3 results will be disclosed, providing a chance to check whether the easing of raw material and FX pressure and the earnings recovery seen in Q2 continue.
It will be worth checking whether the MOU with China's SLAC for a US/Europe battery-can joint venture progresses to a concrete joint venture agreement or disclosed investment scale.
Along with full-year 2026 results, dividend-related disclosures are expected, allowing a check on progress toward the 30% payout ratio target and the planned minimum-dividend system.
Utilization and expansion progress of 4680 battery production at facilities such as LG Energy Solution's Ochang plant could affect can supply volumes, making related developments worth monitoring.
Dongwon Systems is pursuing growth along two axes: export expansion in its core packaging business and growth in its cylindrical battery-can operations.
In 2025, rising aluminum input costs, a strong exchange rate, and weak domestic demand combined to push the operating margin down to 4.8%, but revenue and profit have both shown a recovery trend in the first half of 2026, with sequential improvement continuing quarter to quarter.
In the battery segment, the company is seeking overseas expansion built on its supply relationship with LG Energy Solution and an MOU with China's SLAC for a US/Europe joint venture, though it will take time for these plans to translate into concrete results.
On the balance sheet, a steadily declining debt ratio and a rising dividend payout ratio point to positive changes in shareholder returns and financial stability.
That said, volatility in raw material prices and exchange rates, the possibility of continued domestic demand weakness, and uncertainty around the overseas joint venture remain factors that warrant balanced attention.
Monitoring upcoming quarterly results and follow-up disclosures related to the battery business will be important in confirming whether the recovery trend continues.
Report written 2026-09-05 · Data as of 2026-09-04
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