PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩300 per share · Prices as of the 2026-10-02 close
Dongkuk CM acquired Aju Steel to pursue global No.1 scale in colored steel, posted a 2025 loss amid early integration costs, and has returned to operating profit for three straight quarters into 2026.
2025 consolidated revenue rose to KRW 2.77 trillion, but the company swung to an operating loss of KRW 38.8 billion and a controlling-interest net loss of KRW 52.9 billion
Operating profit turned positive in both Q1 2026 (KRW 8.0 billion) and Q2 2026 (KRW 22.0 billion), signaling a recovery trend
Aju Steel's operating loss narrowed from KRW 42.4 billion in 2024 to KRW 25.6 billion in 2025 and to KRW 850 million in Q1 2026
Under 'DK Color Vision 2030,' the company aims to expand its global colored-steel market share from 29.7% to 34.4%, targeting the world's largest production scale
A U.S. tariff cut on steel derivative products (from 25% to 15% for agreement countries) and data-center-driven steel demand are shaping the export environment
Dongkuk CM was established in 2023 through a spin-off from the Dongkuk Steel group, specializing in cold-rolled and surface-treated steel products.
Its core lineup includes cold-rolled steel, galvanized steel, and colored steel sheets used in building interior/exterior materials and home appliances such as refrigerators, washing machines and TVs, sold under the Luxteel and Appsteel brands.
Colored steel has historically made up more than half of revenue; for the January-September 2024 period, colored steel sales reached KRW 904.7 billion, or 54.5% of total revenue, including KRW 663.3 billion in exports.
In August 2024, Dongkuk CM acquired a 56.6% stake in Aju Steel, the domestic industry's No.4 colored-steel maker, for KRW 128.5 billion, bringing it under consolidation and aiming to raise global colored-steel market share from 29.7% to 34.4%, targeting the world's largest production scale by volume.
Aju Steel has strength in premium appliance-grade colored steel and operates overseas production bases in Poland and Mexico, supporting export channel expansion. Production sites include domestic plants in Busan, Gimcheon and Gumi, plus coil centers in Mexico, India and Thailand.
The domestic colored-steel market is competitive, with KG Steel, POSCO Steeleon and SeAH CM as rivals, and the Aju Steel integration moved Dongkuk CM up this competitive hierarchy.
The company is also differentiating through eco-friendly products such as 'Re-born Green' colored steel, made using recycled plastic content.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩690.8B | -₩20.1B | −2.9% |
| 2025Q3 | ₩667.9B | ₩1.7B | 0.3% |
| 2025Q4 | ₩664B | -₩25.4B | −3.8% |
| 2026Q1 | ₩687B | ₩8B | 1.2% |
| 2026Q2 | ₩773.4B | ₩22B | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2023 | ₩1.3T | ₩26.7B | ₩10.1B | 2.1% | 1.1% | 77.9% |
| 2024 | ₩2.2T | ₩77.3B | ₩63.8B | 3.6% | 6.3% | 80.7% |
| 2025 | ₩2.8T | -₩38.8B | -₩52.9B | −1.4% | −5.4% | 159.1% |
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
On an annual basis, 2023 revenue was KRW 1.266 trillion with operating profit of KRW 26.7 billion (2.1% margin) and controlling-interest net income of KRW 10.1 billion, a modest profit in the early post-spinoff period.
In 2024, revenue jumped to KRW 2.164 trillion with operating profit improving to KRW 77.3 billion (3.6% margin) and controlling-interest net income of KRW 63.8 billion.
In 2025, however, despite revenue growing further to KRW 2.769 trillion, the company swung to an operating loss of KRW 38.8 billion (-1.4% margin) and a controlling-interest net loss of KRW 52.9 billion, reflecting both revenue expansion from the Aju Steel consolidation and a simultaneous decline in profitability.
Quarterly results fluctuated: an operating loss of KRW 20.1 billion in Q2 2025, a slight profit of KRW 1.7 billion in Q3, then a loss of KRW 25.4 billion again in Q4.
The trend then turned positive, with operating profit of KRW 8.0 billion in Q1 2026 and KRW 22.0 billion in Q2 2026, alongside controlling-interest net income of KRW 2.3 billion and KRW 9.3 billion respectively.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative controlling-interest net loss narrowed to KRW 7.8 billion, smaller than the full-year 2025 loss.
Behind this improvement, subsidiary Aju Steel's operating loss shrank from KRW 42.4 billion in 2024 to KRW 25.6 billion in 2025 and to KRW 850 million in Q1 2026, with industry sources suggesting a possible swing to profit in Q2.
A preliminary standalone disclosure dated July 24, 2026 (reported by Digital Today) also stated that Q2 operating profit and net income turned positive year-on-year, consistent in direction with the consolidated improvement trend.
According to the World Steel Association, global steel demand growth in 2026 is projected at just 0.3% year-on-year, seen as an early recovery stage following a prolonged decline.
In contrast, the Export-Import Bank of Korea's overseas economic research institute forecasts Korea's 2026 steel exports at USD 29.0 billion, down 3.3% year-on-year, citing protectionist trade policies in the U.S. and Europe and low-priced competition from Chinese exports.
The U.S. cut tariffs on steel, aluminum and copper derivative products from 25% to 15% in 2026, applicable to agreement countries including Korea, with the reduction set to run temporarily through the end of 2027.
At the same time, the U.S. data-center construction boom has been lifting demand for steel products such as rebar and colored steel, with U.S.-bound colored-steel export volume up 136.8% year-on-year as of April 2026.
However, much of that increase reflects a base effect right after tariffs took effect, so durability remains to be seen.
The domestic steel sector broadly trades at low multiples relative to net asset value, with one brokerage report noting an average price-to-book ratio of roughly 0.3x among major domestic steelmakers.
Amid this backdrop, Dongkuk CM has pursued a position shift versus rivals KG Steel and POSCO Steeleon by securing economies of scale in colored steel and overseas production bases in Poland and Mexico through the Aju Steel acquisition.
In July 2026, Dongkuk CM announced it had raised the recycled plastic content in its 'Re-born Green' colored steel from 10% to 25% while introducing new 'Matt' and 'Stone' designs, and stated plans to expand applications beyond building materials and appliances into industrial goods.
In May 2026, the company held a 'Best Partners Day' at its Busan plant, inviting around 60 domestic and international trading company and export customer representatives to view production lines, reinforcing its export sales foundation.
Over the medium to long term, the company aims to build a one-million-ton colored-steel sales system by 2030 under its 'DK Color Vision 2030' strategy.
For Aju Steel, since the 2024 acquisition, integration synergies have been pursued through cost reduction, integrated raw material procurement, financial stabilization, and overseas export expansion, with losses on a continuous narrowing trend.
However, Aju Steel's current liabilities and debt ratio remain elevated, meaning Dongkuk CM's financial support burden could persist for some time.
Because the U.S. tariff cut on derivative products runs only temporarily through the end of 2027, whether it is extended and the outcome of further tariff negotiations remain variables that could affect export profitability going forward.
Dongkuk CM's shares trade meaningfully below book value per share, and even accounting for the fact that major domestic steelmakers average a low price-to-book ratio of roughly 0.3x, the company sits in an even lower range.
This appears to reflect both the early-stage nature of the profit recovery following the 2025 swing to loss and the market's continued pricing-in of Aju Steel-related financial burdens.
Conversely, operating profit turned positive for two consecutive quarters in the first half of 2026, a change compared with the loss recorded following the 2025 swing to loss.
On dividends, the company has maintained elements of its prior payout policy from profitable years, but the precise current yield changes daily with the share price, so the value displayed on-screen should be referenced directly.
Because valuation judgments here hinge on the pace of Aju Steel's normalization and whether the colored-steel market recovers, a simple conclusion based solely on the discount to book value would be premature.
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
Operating profit posted back-to-back gains in Q1 and Q2 2026, moving away from the 2025 loss pattern. Controlling-interest net income also improved for two consecutive quarters.
Aju Steel's operating loss has continuously narrowed from KRW 42.4 billion in 2024 to KRW 850 million in Q1 2026, signaling easing integration burden.
The Aju Steel acquisition expanded global colored-steel market share from 29.7% to 34.4%, securing the world's largest production scale by volume.
Overseas production bases in Poland and Mexico have diversified export channels, while eco-friendly new products such as 'Re-born Green' aim to differentiate the product lineup.
The U.S. data center construction boom has lifted steel demand, with colored-steel exports to the U.S. up 136.8% year-on-year as of April 2026. The U.S. cutting derivative-product tariffs from 25% to 15% for agreement countries like Korea could also support export profitability.
Aju Steel's current liabilities and debt ratio remain elevated, and Dongkuk CM has continuously provided financial support through capital injections, loans and debt guarantees.
The outstanding debt guarantee balance represents a substantial portion of equity, with observers noting ongoing pressure for credit rating downgrades.
Prolonged weakness in domestic construction has softened demand for building-grade steel products. Chinese overproduction and low-priced export competition continue to pressure global market prices.
The 2025 full-year operating loss is seen as reflecting a combination of this industry slowdown and the Aju Steel integration burden.
The U.S. tariff cut on derivative products is only temporary through the end of 2027, with extension uncertain. Structural changes such as the elimination of the Korea-U.S. steel tariff-free quota system also remain in place, so the possibility of the tariff environment worsening again cannot be ruled out.
Aju Steel's debt ratio remains elevated, and Dongkuk CM's debt guarantee and lending burden persists. If Aju Steel's normalization is delayed, additional strain could accumulate on Dongkuk CM's own financial capacity.
U.S. tariff policy on steel-related products changes frequently by item and country, and the current derivative-tariff cut is only temporary. Any change in agreement-country status or detailed product classification could directly affect export profitability.
Continued weakness in domestic construction and low-priced Chinese steel competition could keep pressuring colored-steel prices and margins. Market share competition with rivals such as KG Steel and POSCO Steeleon also continues, and a delayed industry recovery could slow the pace of earnings improvement.
Expected disclosure of Q3 2026 consolidated results — check whether operating profit remains positive for a fourth straight quarter and whether Aju Steel's swing to profit continues.
Regular credit rating review results — check whether the Aju Steel-related debt guarantee burden is reflected in the rating.
Whether the U.S. 15% tariff rate on steel derivative products is extended or allowed to expire — will affect the profitability of colored-steel exports to the U.S.
Whether new orders and revenue from eco-friendly colored steel such as 'Re-born Green' materialize — check progress on expanding into new applications such as industrial goods.
Interim progress check on 'DK Color Vision 2030' — whether integration synergy metrics (cost reduction, purchasing power) toward the one-million-ton sales target are updated.
Dongkuk CM pursued a strategic expansion aiming for the world's largest colored-steel production scale through the Aju Steel acquisition, but 2025 consolidated results showed revenue growth alongside a swing to operating and net losses, highlighting early integration costs.
In the first half of 2026, operating profit turned positive in both Q1 and Q2, showing signs of recovery, while subsidiary Aju Steel's losses have continued to narrow. However, Aju Steel's high debt ratio and Dongkuk CM's debt guarantee burden remain a financial structure concern.
On the industry side, while low-priced Chinese competition and weak domestic construction persist, the U.S. tariff cut on derivative products and data-center-driven steel demand are acting as relatively favorable variables for exports.
Valuation currently sits at a substantial discount to net asset value, though this appears to reflect both sector-wide low multiples and integration risk.
The durability of the earnings recovery, the pace of Aju Steel's normalization, and how tariff and industry variables unfold remain the key points to watch going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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