KOSDAQ · 005290 · Chemicals · ₩005290

Dongjin Semichem동진쎄미켐

005290 · KOSDAQ · ₩005290 · 동진쎄미켐

₩38,800▼ ₩2,500 (6.05%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩16,787

vs the current price (₩38,800)

Enterprise value: ₩1T
Equity value: ₩856B
WACC: 8.8%

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

Why the model and the price differ

The model is 57% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩38,800, the model needs an operating margin of 25.4% every year (it uses 14.4%).
Or revenue growth +19.7 points a year higher than assumed in each of the 5 years.
36% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
Today's P/E is 9.5× against a typical 12.9× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩8,938; −77.0%
Base: ₩16,787; −56.7%
Bull: ₩29,420; −24.2%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (14.4%).

Revenue growth

Revenue growth, year 1-6.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin14.4%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation4.7%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending13.7%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital28.5%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.95
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.92, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.51%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩1.1T
Net debt (borrowings and leases − cash and deposits): ₩164B
+ Stakes and investments: ₩8.4B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩17B
Shares: 50,970,126
Share price: ₩38,800
Market cap: ₩2T

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.3T	₩1.4T	₩1.2T	₩1.1T	₩1T	₩992B	₩998B	₩1T
Growth	−10.1%	7.5%	−15.2%	−6.4%	−4.1%	−1.7%	0.6%	3.0%
EBIT	₩176B	₩208B	₩172B	₩152B	₩145B	₩143B	₩144B	₩148B
EBIT margin	13.4%	14.8%	14.4%	14.4%	14.4%	14.4%	14.4%	14.4%
After-tax EBIT	₩128B	₩151B	₩125B	₩110B	₩105B	₩104B	₩104B	₩107B
+ Depreciation	₩53B	₩63B	₩66B	₩49B	₩47B	₩47B	₩47B	₩48B
− Capital spending	₩284B	₩175B	₩81B	₩144B	₩138B	₩136B	₩137B	₩141B
− Working capital	−₩42B	₩13B	₩141B	−₩21B	−₩12B	−₩4.9B	₩1.7B	₩8.5B
Free cash flow	−₩61B	₩25B	−₩32B	₩36B	₩27B	₩19B	₩13B	₩6.3B
Discount factor	—	—	—	0.919	0.844	0.776	0.713	0.655
Present value	—	—	—	₩33B	₩23B	₩15B	₩9B	₩4.1B

Terminal value ₩1.4T, worth ₩945B today: 92% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩24,040 a share)Now 1.61×	₩35,8091.49×	₩56,9892.37×	₩82,7413.44×
Price / earnings (last 12 months: ₩4,103 a share)Now 9.46×	₩38,6329.42×	₩52,73512.9×	₩79,58119.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩6,760 a share)Now 5.74×	₩63,6589.42×	₩86,89612.9×	₩131,13419.4×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
7.8%	₩18,088	₩19,441	₩21,023	₩22,899	₩25,158
8.3%	₩16,299	₩17,428	₩18,733	₩20,257	₩22,064
8.8%	₩14,748	₩15,699	₩16,787	₩18,044	₩19,513
9.3%	₩13,390	₩14,199	₩15,116	₩16,164	₩17,375
9.8%	₩12,194	₩12,887	₩13,666	₩14,549	₩15,558

Now (TTM)

Market cap: ₩2T
Enterprise value: ₩2.1T
P/E: 9.5×
P/B: 1.6×
P/S: 1.8×
EV/EBITDA: 8.4×
Dividend yield: 1.7%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩36,650	₩20,900	₩38,700	₩29,950	₩51,000
Market cap	₩1.9T	₩1.1T	₩2T	₩1.5T	₩2.6T
P/E	18.9×	6.9×	15.5×	9.6×	25.2×
P/B	1.7×	1.1×	2.5×	2.2×	4.7×
P/S	1.6×	0.8×	1.5×	1.0×	2.2×
EV/EBITDA	8.8×	4.7×	9.6×	6.4×	15.6×
Dividend yield	1.8%	1.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dongjin Semichem	9.5×	1.6×	1.8×	8.4×	1.7%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	5.9×	0.4×	0.1×	—	1.5%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.9×	0.0%
Kumho Petro Chemical	5.3×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.3×	0.4×	0.4×	8.9×	0.4%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Dongjin Semichem / 동진쎄미켐 / 005290 / KRX:005290

Source: KRX statistical information