1. What is DK&D?

DK&D operates in synthetic leather and non-woven fabrics, hats, and product distribution. The synthetic leather and non-woven fabrics business, in particular, is showing strong growth, driven by the recovery of the footwear market and increasing demand for eco-friendly materials. The expansion of distribution networks through overseas subsidiaries is another positive factor.

2. Key Highlights of H1 2025 Earnings

DK&D recorded sales of KRW 34 billion, operating profit of KRW 3.3 billion, and net income of KRW 2 billion in the first half of 2025, marking significant growth year-over-year. Improvements in Q2 performance were particularly notable.

  • Synthetic Leather & Non-Woven Fabrics: Strong growth driven by demand for eco-friendly materials.
  • Hats: Sales growth, but profitability management is necessary.
  • Product Distribution: High growth through overseas distribution network expansion.

3. Key Checklist for Investors

If you are considering investing in DK&D, be sure to check the following:

  • Financial Health: Stable financial structure maintained with a low debt ratio.
  • Shareholder Value Enhancement: Strengthening shareholder returns through treasury stock cancellation and dividend policy.
  • Future Growth Drivers: Pursuing sustainable growth through R&D investment in eco-friendly materials.
  • Risk Management: Pay attention to exchange rate volatility and raw material price fluctuations.

4. Investment Strategy

DK&D is an attractive investment from a medium- to long-term perspective. Considering the positive earnings trend and solid fundamentals, there is ample potential for future stock price appreciation. However, continuous monitoring of external factors such as exchange rate fluctuations is necessary.