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
Dongil Metal, a maker of hydraulic cylinders for construction equipment, has posted four consecutive quarters of improving revenue and operating profit since an operating loss in the third quarter of 2025.
Second-quarter 2026 revenue reached KRW 30.3 billion with operating profit of KRW 2.4 billion, the highest levels in the most recent five-quarter window provided.
Annual operating margin fell from double digits in 2022–2023 to 0.7% in 2024 before recovering modestly to 1.6% in 2025.
Net income attributable to owners swung sharply, dropping to roughly KRW 0.3 billion in 2023 before recovering to about KRW 5.0 billion in 2025.
Signals of a potential industry inflection have emerged in the North American construction equipment market, including a rise in Caterpillar retail sales and a rebound in Doosan Bobcat's North American revenue.
The stock trades at a low multiple relative to book value per share, and the company has maintained cash dividends despite earnings volatility.
Dongil Metal, headquartered in Yeongcheon, North Gyeongsang Province, is a specialized manufacturer of construction equipment components, with hydraulic cylinders used in excavators, forklifts, and aerial work platforms forming the core of its revenue.
According to past regulatory filings, hydraulic cylinder products for excavators, forklifts, and aerial work platforms have historically accounted for the large majority of sales.
Hydraulic cylinders are a core actuation component in construction machinery, meaning the company's results are directly tied to OEM production schedules and end-market equipment demand.
Although classified under the KOSDAQ metals sector, the company's actual business character is closer to construction equipment parts manufacturing.
Domestically, several other suppliers such as Heungkuk, Freems, and Seoyeon Top Metal compete in the construction equipment parts space, each specializing in different component categories such as rollers, wire harnesses, or cabins.
Revenue volatility for parts suppliers tends to be amplified by OEM production volumes and inventory adjustment policies. Steel-based specialty tubing and forged materials are key raw material inputs, so price swings in these materials directly affect cost structure.
Domestic-versus-export sales mix is largely determined by the end-customer's overseas sales strategy, meaning shifts in OEM regional revenue structures indirectly affect parts suppliers as well.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩24.1B | ₩1.2B | 5.0% |
| 2025Q3 | ₩22.6B | -₩200M | −1.0% |
| 2025Q4 | ₩23.2B | ₩300M | 1.2% |
| 2026Q1 | ₩28.6B | ₩1.5B | 5.4% |
| 2026Q2 | ₩30.3B | ₩2.4B | 7.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩111.4B | ₩13.9B | ₩14B | 12.5% | 9.2% | 15.4% |
| 2023 | ₩110.4B | ₩12.4B | ₩300M | 11.2% | 0.2% | 7.6% |
| 2024 | ₩86B | ₩600M | ₩7.2B | 0.7% | 4.7% | 13.8% |
| 2025 | ₩91.7B | ₩1.4B | ₩5B | 1.6% | 3.2% | 15.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
On an annual basis, revenue peaked at KRW 111.4 billion in 2022 with operating profit of KRW 13.9 billion (12.5% margin), and in 2023 revenue and margin remained solid at KRW 110.4 billion and KRW 12.4 billion (11.2%), yet net income attributable to owners collapsed to just KRW 0.32 billion, showing a large gap between operating results and bottom-line profit.
In 2024, revenue fell to KRW 86.0 billion and operating profit dropped sharply to KRW 0.62 billion (0.7% margin), materially impairing core profitability, while net income attributable to owners rebounded to KRW 7.25 billion, suggesting non-operating factors had a substantial impact on results.
In 2025, revenue recovered to KRW 91.7 billion and operating profit improved to KRW 1.43 billion (1.6% margin), but net income attributable to owners declined year-over-year to KRW 5.05 billion, indicating diverging quality and direction of earnings across years.
The recent quarterly trend shows a clearer recovery trajectory. After posting revenue of KRW 24.1 billion, operating profit of KRW 1.2 billion, and net income of KRW 2.7 billion in the second quarter of 2025, the company swung to an operating loss of KRW 0.23 billion on revenue of KRW 22.6 billion in the third quarter.
It returned to profitability in the fourth quarter with revenue of KRW 23.2 billion and operating profit of KRW 0.27 billion, then continued improving with first-quarter 2026 revenue of KRW 28.6 billion and operating profit of KRW 1.55 billion, followed by second-quarter 2026 revenue of KRW 30.3 billion and operating profit of KRW 2.36 billion—four consecutive quarters of sequential improvement in both revenue and operating profit.
The debt ratio fell to 7.6% in 2023 before rising back to 15.8% in 2025, indicating a modest increase in financial leverage. Operating cash flow declined from KRW 15.2 billion in 2022 to KRW 6.1 billion in 2025, showing that cash generation from operations has narrowed compared to prior years.
The global hydraulic cylinder market is estimated at roughly USD 17 billion in 2026 and is projected to grow at around a 5% compound annual rate through 2035, with the construction segment expected to account for about 32% of the market by 2035.
Recent signals point to a possible inflection in the North American construction equipment market. Caterpillar's North American retail sales for construction equipment rose by roughly 50% in the second quarter, and Doosan Bobcat's North American revenue showed a rebound of about 3%.
However, in the global 'Yellow Table 2026' rankings, Doosan Bobcat fell to 13th place with a 2.5% share, and HD Construction Machinery slipped one spot to 15th with a 2.3% share, reflecting lingering effects of a slump in their core markets.
HD Construction Machinery has been reducing its reliance on North America and diversifying sales toward the Middle East and Africa, with first-quarter revenue from Europe, the Middle East, and Africa growing 18% year-over-year.
The Korean industrials sector overall experienced considerable volatility, rising early in the year before falling roughly 23% by early May. OEM regional revenue structures and inventory adjustment policies can have a lagged effect on order and revenue cycles for parts suppliers such as Dongil Metal.
No separately disclosed revenue or order guidance, nor capacity expansion plans specific to Dongil Metal, were identified in public sources.
However, the sequential improvement in revenue and operating profit over the past four quarters coincides with signals of a North American demand recovery in the upstream construction equipment market.
If the rebound in North American retail sales at major OEMs such as Caterpillar and Doosan Bobcat continues, there is a potential path toward increased parts order volumes.
Conversely, the fact that OEMs remain exposed to inventory adjustments and tariff uncertainty suggests the pace of order recovery could be gradual or uneven across regions.
Continued diversification by major customer groups such as HD Construction Machinery toward emerging markets like the Middle East and Africa could, with a lag, affect the regional composition of orders for parts suppliers.
The company's upcoming quarterly disclosures and regional sales data from major OEMs are likely to serve as key reference points for gauging future direction.
The current share price trades at a multiple below one times book value per share, placing it at a discount to net asset value. However, given the wide year-to-year swings in net income attributable to owners, earnings-based multiples should be interpreted with caution.
The company has a track record of maintaining cash dividends even through periods of earnings volatility, which is a relevant consideration for the consistency of shareholder return policy.
Whether the improvement in revenue and operating profit seen over the past four quarters continues will be a key variable affecting how multiples are interpreted going forward. A reasoned valuation assessment would benefit from confirmation via upcoming quarterly results and upstream industry indicators.
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 2026-08-24
Following an operating loss in the third quarter of 2025, revenue and operating profit rose sequentially through the fourth quarter, first quarter of 2026, and second quarter of 2026. Second-quarter 2026 revenue of KRW 30.3 billion and operating profit of KRW 2.4 billion mark the highest levels in the period shown. If this pace of improvement continues, it could positively affect full-year results.
Caterpillar's North American retail sales rose about 50% in the second quarter, and Doosan Bobcat's North American revenue also showed a rebound. This has been interpreted as a signal of potential end-demand recovery rather than mere inventory buildup. If upstream demand improves, there is a potential path toward increased parts orders.
The debt ratio stood at 7.6% in 2023 and 15.8% in 2025, remaining relatively low within the industry. Total equity has stayed stable at around KRW 150 billion across the four years disclosed. This financial stability could serve as a buffer during periods of earnings volatility.
In 2023, despite operating profit of KRW 12.4 billion, net income attributable to owners was only around KRW 0.3 billion, reflecting significant non-operating impacts.
In 2024, operating profit fell sharply to around KRW 0.6 billion while net income rebounded to around KRW 7.2 billion, showing diverging earnings directions across years. Such discrepancies can reduce the reliability of forward earnings projections.
Both Doosan Bobcat and HD Construction Machinery fell in rankings compared to the previous year under the Yellow Table 2026. The North American market slump and tariff uncertainty are cited as burdens on major customers' results. If OEM weakness persists, the pace of recovery in parts orders could be delayed.
Operating cash flow declined from KRW 15.2 billion in 2022 to KRW 6.1 billion in 2025. This shows that cash-generating capacity has narrowed compared to prior years despite the revenue recovery. Continued cash flow contraction could constrain resources for investment or dividends.
With sales concentrated in hydraulic cylinders for construction equipment, results are directly exposed to changes in OEM production and inventory policies. Construction activity and interest rate conditions in major markets such as North America and Europe affect parts orders. If the upstream cycle turns downward again, revenue volatility could increase.
Fluctuations in the prices of steel specialty tubing and forged materials used in hydraulic cylinder manufacturing directly affect cost structure. If raw material prices rise and cannot be fully passed through to selling prices, margins could be squeezed.
The historical decline in operating margin from around 12% to around 1% illustrates the impact cost pressures can have on actual margins.
The fact that OEMs remain exposed to tariff uncertainty could indirectly affect order flows for parts suppliers as well. Should changes in the trade environment cause OEMs to restructure production locations, this could also alter supply volumes for domestic parts makers. The pace of industry recovery could vary depending on the outcome of tariff-related negotiations.
The third-quarter 2026 report should be checked to confirm whether the four-quarter streak of improving revenue and operating profit continues.
Sales indicators from major OEMs such as Caterpillar, Doosan Bobcat, and HD Construction Machinery in North America and emerging markets can be monitored to assess whether the construction equipment industry rebound continues.
Raw material price trends for steel specialty tubing and forged products should be checked to gauge their impact on margins.
The 2026 annual business report and the regular shareholders' meeting can be reviewed to check the annual dividend decision and changes in export sales mix.
Dongil Metal is a parts maker centered on hydraulic cylinders for construction equipment, and after bottoming with an operating loss in the third quarter of 2025, it posted four consecutive quarters of sequential improvement in revenue and operating profit.
However, in certain years, net income attributable to owners has diverged in direction from operating profit, so non-operating factors should be examined alongside operating results when assessing earnings quality.
In the upstream North American construction equipment market, signals of a sales rebound at Caterpillar and Doosan Bobcat have emerged, while global ranking tables also show declines for major customer groups, reflecting mixed signals.
The company's financial structure remains relatively stable with a low debt ratio, though operating cash flow has narrowed compared to prior years. The stock trades at a discount to net asset value, and the company has a history of maintaining cash dividends through periods of earnings volatility.
A reasonable approach going forward would be to further confirm the earnings trajectory through upcoming quarterly disclosures and regional sales indicators from major OEMs.
Report written 2026-09-05 · Data as of 2026-09-04
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