1. Dongsuh H1 2025 Earnings Analysis: Key Highlights
Dongsuh reported revenue of KRW 136.8 billion, operating profit of KRW 11.7 billion, and net profit of KRW 41 billion in the first half of 2025. While revenue slightly increased compared to the previous quarter, both operating and net profits decreased. This is attributed to external factors such as the global economic slowdown and fluctuating raw material prices.
2. Segment Analysis: Stable Food Business vs. Struggling Manufacturing/Export
Dongsuh’s core food business, contributing 55.3% of total revenue, maintains stable competitiveness. However, the manufacturing/export segment is facing declining sales due to the global economic downturn. The company’s strategy to strengthen this segment’s competitiveness will be a key factor in its future growth.
3. Financial Stability and Risk Management: Strong Foundation, But External Factors Require Caution
Dongsuh boasts excellent financial stability with a very low debt-to-equity ratio of 4%. The company also actively manages risks through derivative transactions for currency fluctuations. However, continuous monitoring of external factors like raw material prices and interest rate volatility is necessary.
4. Investment Metrics and Conclusion: Attractive Investment, But Further Analysis Needed
With a P/E ratio of 29.13 and a P/B ratio of 2.85, further analysis is required. However, its stable business model and strong financial structure make Dongsuh an attractive investment. Investors should carefully monitor the company’s ability to strengthen its manufacturing/export segment and adapt to external changes when making investment decisions.
5. Investor Action Plan: Continuous Monitoring, Long-Term Perspective
Dongsuh is expected to achieve steady growth based on its stable food business and solid financial position. However, continuous monitoring of the performance improvement of its manufacturing/export segment and its ability to respond to external environmental changes is crucial. A long-term investment perspective is recommended.