Dongkuk Steel Mill Co Ltd

Dongkuk Steel Mill maintains a capital structure with a debt-to-equity ratio of 0.59, indicating moderate leverage relative to its equity base. The company's liquidity position is characterized by a current ratio of 0.96, suggesting limited short-term liquidity cushion, and a negative net cash position after subtracting total debt. The price-to-book ratio of 0.35 implies that the company's market value is significantly below its book value, potentially signaling undervaluation or asset impairment concerns.

Profitability metrics show a return on equity (ROE) of 1.7% and a return on assets (ROA) of 0.86%, both of which are below the industry median for steel producers, indicating weaker capital efficiency and asset utilization. The company's operating margin of 5.7% (calculated from operating income of 52.5 billion KRW on revenue of 927.3 billion KRW) is also below the cohort median, suggesting cost pressures or pricing challenges.

Geographically, Dongkuk Steel Mill's revenue is concentrated in South Korea, with no disclosed international segments, exposing the company to domestic economic and regulatory risks. The company operates a single business segment focused on steel production, with no diversification into downstream or alternative materials.

Outlook for the current fiscal year shows a projected revenue growth of 3.2% year-over-year, driven by increased demand in the automotive sector and stable steel prices. However, the next fiscal year is expected to see a contraction of 1.8% due to anticipated supply-side disruptions and potential regulatory changes in the steel industry.

The company faces moderate liquidity risk due to its current ratio and negative net cash position, and low dilution risk as indicated by the risk assessment. No significant dilution events were identified in the past 12 months, and the company has not issued new shares or announced capital raises.

Recent filings and transcripts indicate that Dongkuk Steel Mill is preparing for potential regulatory changes in the steel industry, including stricter emissions standards and import tariffs. The company has also announced plans to invest in energy-efficient production technologies to mitigate long-term cost pressures.

Revenue KRW 815.01B, −0,8% YoY; Operating income +103,8% YoY.

• ▍Revenue KRW 815.01B, −0,8% YoY
• ▍Operating income +103,8% YoY
• ▍Net income +50,1% YoY
• ▍Free cash flow +192,4% YoY
• ▍Net margin -1.7%

Revenue KRW 769.22B, −8,3% YoY; Operating income +14,0% YoY.

• ▍Revenue KRW 769.22B, −8,3% YoY
• ▍Operating income +14,0% YoY
• ▍Net income +5,8% YoY
• ▍Free cash flow −5 205,7% YoY
• ▍Net margin 1.3%

Revenue KRW 893.66B, −5,0% YoY; Operating income −26,1% YoY.

• ▍Revenue KRW 893.66B, −5,0% YoY
• ▍Operating income −26,1% YoY
• ▍Net income −60,3% YoY
• ▍Free cash flow −18,3% YoY
• ▍Net margin 1.0%

Revenue KRW 725.55B, −21,8% YoY; Operating income −91,9% YoY.

• ▍Revenue KRW 725.55B, −21,8% YoY
• ▍Operating income −91,9% YoY
• ▍Net income −91,6% YoY
• ▍Free cash flow −58,1% YoY
• ▍Net margin 0.3%

Revenue KRW 821.55B; Operating income -KRW 15.56B.

• ▍Revenue KRW 821.55B
• ▍Operating income -KRW 15.56B
• ▍Net margin -3.3%

Revenue KRW 838.56B; Operating income KRW 21.49B.

• ▍Revenue KRW 838.56B
• ▍Operating income KRW 21.49B
• ▍Net margin 1.1%

Revenue KRW 940.17B; Operating income KRW 40.47B.

• ▍Revenue KRW 940.17B
• ▍Operating income KRW 40.47B
• ▍Net margin 2.5%

Revenue KRW 927.26B; Operating income KRW 52.54B.

• ▍Revenue KRW 927.26B
• ▍Operating income KRW 52.54B
• ▍Net margin 3.1%

Revenue KRW 3.20T, −9,2% YoY; Operating income −40,1% YoY.

• ▍Revenue KRW 3.20T, −9,2% YoY
• ▍Operating income −40,1% YoY
• ▍Net income −76,4% YoY
• ▍Free cash flow −2 401,9% YoY
• ▍Net margin 0.3%

Revenue KRW 3.53T, +34,0% YoY; Operating income −56,4% YoY.

• ▍Revenue KRW 3.53T, +34,0% YoY
• ▍Operating income −56,4% YoY
• ▍Net income −75,5% YoY
• ▍Free cash flow −83,0% YoY
• ▍Net margin 1.0%