1. What Happened? Dongkuk Steel’s Interim Dividend and Q1 Earnings

Dongkuk Steel announced an interim dividend of KRW 200 per share. However, the company reported weak Q1 2025 earnings, with sales down 21.75% year-on-year to KRW 725.5 billion and operating profit plummeting 91.4% to KRW 4.255 billion. The decline in H-beam market share is cited as a key factor in the earnings decline.

2. Why Did This Happen? Analyzing the Reasons Behind the Weak Performance

Increased competition in the H-beam market, falling sales prices, and a general slowdown in steel demand are the main reasons for Dongkuk Steel’s weak Q1 performance. The global economic slowdown and the downturn in the construction sector also contributed negatively.

3. What’s Next? Stock Outlook and Investment Strategies

While the interim dividend announcement could positively impact the stock price in the short term, significant gains are unlikely given the weak Q1 results and market conditions. The future stock price is expected to depend on the recovery of competitiveness in the H-beam sector and the recovery of the construction market.

4. What Should Investors Do? Key Investment Points

  • Focus on fundamental changes in the company rather than short-term stock price fluctuations.
  • Continuously monitor the recovery of H-beam market share and profitability.
  • It is important to evaluate management’s business strategies and risk management capabilities.