DY: Low Multiples and a Wide Model Range Amid Thin Margins

Thesis

The data supports a picture of a low-valued company: price-to-book of 0.2 and a dividend yield of 4.5% sit alongside a trailing return on equity of 5.6%. Profits have been positive for three straight years after losses in 2021 and 2022, which is a point in its favor.

The data does not show strong profitability. Operating margin has stayed between 3.0% and 4.7%, and net margin is 1.7%. Trailing free cash flow is slightly negative at about -₩1.4B. The share price is down 11.5% over one year and sits closer to its 52-week low (₩3,615) than its high (₩5,640).

Filings in June and July show repeated changes in the largest shareholder's holdings, a merger completion, a subsidiary withdrawing from holding-company status and a change of representative director. The data does not explain what these mean for the business.

Business overview

DY is listed on the KOSPI under the holding companies sector. It was founded on 1978-10-05, listed on 1989-05-30 and has 26,319,633 listed shares. Co-CEOs are listed as 김진호 and 한상철. The data does not describe its products or business lines.

Revenue rose from ₩998.3B in 2021 to ₩1,244.8B in 2025, with one down year (-1.9% in 2024). Trailing revenue to H1 2026 is ₩1,316.3B. Foreign ownership is 4.0%, down from 4.3% sixty days ago, and the short balance is 0.4%.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩1,316.3B, operating income ₩49.3B (3.7% margin) and net income ₩22.5B (1.7% margin). ROE is 5.6%.

For 2025, revenue was ₩1,244.8B (up 6.6%), operating income ₩48.1B (3.9% margin) and net income ₩14.1B, with ROE of 3.6%. In 2024, net income was ₩22.0B and ROE 6.0%. In 2023, net income was ₩18.2B. Net losses were recorded in 2022 (-₩4.3B) and 2021 (-₩7.0B).

The balance sheet shows liabilities to equity of 76.4%, cash of ₩135.7B and borrowings of ₩203.0B. Trailing free cash flow is about -₩1.4B.

Valuation

At the current price the P/E is 4.5, P/B 0.2, P/S 0.1 and dividend yield 4.5%. Year-end P/B was 0.3 in 2024 and 2025 and 0.4 to 0.5 in 2021 to 2023, so the current P/B is below its own history. Year-end P/E was 4.6 in 2024, 8.7 in 2025 and 8.5 in 2023. Enterprise value is ₩167.7B; EV/EBITDA is not available.

The peers listed are much larger companies, with P/E from 3.1 to 9.1 and P/B from 0.7 to 1.9. DY's P/B is below all of them, though the size difference limits comparability.

The valuation model uses a 5-year discounted cash flow at a 6.1% rate on trailing figures to H1 2026. It gives a model estimate based on the assumptions shown of ₩10,124 per share in the base case, ₩0 in the bear case and ₩50,678 in the bull case, against the ₩3,815 price. The very wide range shows how sensitive the estimate is to assumptions given thin and uneven cash flow. It is not a target or a reason to buy or sell.

Catalysts

• The half-year report filed on 2026-08-13 gave the latest results, with trailing net income of ₩22.5B.
• The merger completion and subsidiary withdrawal filings of 2026-07-03 may change the group structure, though the data gives no detail.
• The change of representative director filed on 2026-07-02 may affect management direction.
• Repeated largest-shareholder holding changes (June and July) and an insider shareholding report on 2026-10-07 point to ownership activity.
• Over 20 days foreigners were net buyers (about ₩58.7M) while institutions were net sellers (about ₩52.8M).

Risks

• Operating margins of 3.0% to 4.7% leave little room if costs or demand shift.
• Trailing free cash flow is slightly negative while borrowings of ₩203.0B exceed cash of ₩135.7B.
• Earnings have been uneven, with net losses in 2021 and 2022 and ROE falling to 3.6% in 2025.
• The model's range from ₩0 to ₩50,678 shows high uncertainty in any cash-flow-based estimate.
• The shares fell 7.4% over one month and 11.5% over one year, and foreign ownership slipped from 4.3% to 4.0%; no news headlines are available to explain this.

Closing view

The data shows a company valued far below its book value with a 4.5% dividend yield, steady revenue growth and three consecutive profitable years. Against that, margins are thin, returns are modest, free cash flow is about zero and the model's estimate is very wide. Ownership and structural filings in mid-2026 add uncertainty that the data cannot resolve. The evidence is mixed and does not by itself settle whether the low multiples reflect a mispricing or real weaknesses.

Model estimate of fair value

Bear

₩0

-100%

Base

₩10,124

+174%

Bull

₩50,678

+1270%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.1%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Insider shareholding reportOct 7, 2026
• Half-year report (Jun 2026)Aug 13, 2026
• Change in largest shareholder's holdingsJul 10, 2026
• Insider shareholding reportJul 10, 2026
• 5%+ holding reportJul 10, 2026
• Change in Affiliated Companies (Voluntary Disclosure)Jul 3, 2026
• Withdrawal of Subsidiary from Holding CompanyJul 3, 2026
• Merger Completion Report (Merger)Jul 3, 2026
• Change of Representative Director (Representative Executive Officer) (Informational Disclosure)Jul 2, 2026
• Change in largest shareholder's holdingsJun 17, 2026
• Change in largest shareholder's holdingsJun 5, 2026
• Insider shareholding reportJun 5, 2026
• Daily prices up to 2026-10-21
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 22, 2026InitiationStart of coverage (reader request)DY: Low Multiples and a Wide Model Range Amid Thin Margins