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Daol Investment & Securities · 030210 · Financials

Daol Investment & Securities: Returned to Profit in 2025, but Margins Thin and Leverage High

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Daol Investment & Securities closed at ₩3,475 on 2026-10-22, giving a market value of ₩211.7B, after a 9.7% fall over one month. Filings show a return to profit in 2025 after two loss-making years, with trailing operating margin of 1.3% and liabilities at 1,159.9% of equity.

Written Oct 23, 2026 · Data as of Oct 22, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a recovery story: net income was ₩40.5B in 2025 versus losses of ₩48.6B in 2024 and ₩10.9B in 2023, and trailing net income to H1 2026 is ₩37.5B. The shares trade at 0.3x book and 5.6x earnings, below the listed peers shown, which have price-to-book ratios of 0.5x to 0.8x.

The data does not support a conclusion that the earnings are stable. Margins are thin (1.3% operating, 1.4% net), return on equity is 6.0%, and borrowings of ₩3.44T are large relative to the company's size. Several lawsuit filings since April 2026 and a response to a rumour or news report on 2026-09-18 add uncertainty, and the details of these are not in the data.

Business overview

Daol Investment & Securities is a KOSPI-listed financial company, a securities firm founded in 1981 and listed since 1996, with 60,911,106 shares outstanding. It is led by two co-CEOs, 이병철 and 황준호. Market capitalisation is ₩211.7B, far smaller than peers such as Mirae Asset Securities (₩13.5T) and NH Investment & Securities (₩8.7T). Revenue was ₩1.51T in 2023, ₩1.44T in 2024 and ₩1.71T in 2025 (up 18.8%). Segment detail is not available in the data.

Financial analysis

These figures come from filed financial statements. Revenue rose 18.8% in 2025 to ₩1.71T. Operating income was ₩33.7B (2.0% margin) after an operating loss of ₩74.9B in 2024 and ₩62.0B in 2023. Net income was ₩40.5B in 2025. Return on equity was 6.6% in 2025, against -7.8% in 2024 and -1.7% in 2023.

Trailing twelve months to H1 2026: revenue ₩2.60T, operating income ₩34.4B, net income ₩37.5B, operating margin 1.3%, net margin 1.4%, ROE 6.0%. Cash is ₩365.3B against borrowings of ₩3.44T, and liabilities to equity is 1,159.9%. Free cash flow is ₩407.2B, though for a securities firm this figure can swing with trading and funding balances.

Valuation

The shares trade at 5.6x earnings, 0.3x book and 0.1x sales, with a dividend yield of 6.9%. EV/EBITDA is 72.7x, reflecting very small operating profit relative to enterprise value of ₩3.29T. Year-end price-to-book was 0.3x in 2024 and 2025 and 0.4x in 2023, so the current discount to book is in line with recent history. Year-end P/E was 5.3x in 2025.

Peers show P/E of 3.3x to 7.5x (Mirae 3.6x, NH 5.7x, Samsung Securities 4.7x, KIWOOM 3.3x, Samsung Card 7.5x) and P/B of 0.5x to 0.8x. A valuation model estimate per share is not available for this company, so no comparison with the share price can be made.

Catalysts

  • The half-year report for June 2026, filed on 2026-08-13, is the latest full set of results and sets the baseline for the next reporting period.
  • Lawsuit filings on 2026-08-21, 2026-09-01 and 2026-09-10 may be resolved or updated, and the outcomes could matter for results.
  • A filing on 2026-05-19 reported a change in the largest shareholder's holdings, which could matter for ownership structure.
  • News on 2026-10-19 said it became the first Korean brokerage to trade US stocks via TradingView, a possible new service line.
  • Over the last 20 days institutions were net buyers of about ₩1.5B while foreign investors and retail were net sellers.

Risks

  • Liabilities are 1,159.9% of equity and borrowings are ₩3.44T, leaving little cushion if funding conditions or markets turn.
  • Operating margin of 1.3% means small changes in revenue or costs could push the company back to a loss, as in 2023 and 2024.
  • Repeated lawsuit filings, including amended ones, carry unquantified legal exposure that the data does not detail.
  • The share price is down 9.7% in one month and 4.5% over one year, and sits well below the 52-week high of ₩5,740.
  • Foreign ownership is low at 4.5% and slipped from 4.7% sixty days ago, with foreign investors net sellers recently.

Closing view

The filings show a clear improvement from losses to modest profits, and the shares trade at a low multiple of book value and earnings compared with the peers listed. Against that, profitability is thin, leverage is high, legal matters are unresolved in the data, and no valuation model estimate is available. The evidence points to a heavily discounted but financially stretched company, and it does not settle whether the recovery will last.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 23, 2026InitiationStart of coverage (reader request)Daol Investment & Securities: Returned to Profit in 2025, but Margins Thin and Leverage High

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information