KOSDAQ · 033500 · Chemicals · ₩033500

Dongsung Finetec동성화인텍

033500 · KOSDAQ · ₩033500 · 동성화인텍

₩12,640▼ ₩270 (2.09%)End-of-day · Oct 29, 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

₩43,311

vs the current price (₩12,640)

Enterprise value: ₩1.3T
Equity value: ₩1.3T
WACC: 7.3%

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 243% 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 ₩12,640, the model needs an operating margin of 2.8% every year (it uses 8.5%).
Today's P/E is 4.8× against a typical 16.7× 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: ₩24,433; +93.3%
Base: ₩43,311; +242.6%
Bull: ₩75,418; +496.7%

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 (8.5%).

Revenue growth

Revenue growth, year 119.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (19.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 215.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (19.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 311.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (19.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 47.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (19.6% 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 (19.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.5%
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 & amortisation1.3%
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 spending2%
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 capital7%
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.
Beta0.6
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 0.24, 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): ₩770B
Net debt (borrowings and leases − cash and deposits): −₩40B
+ Stakes and investments: ₩213M; Associates, long-term financial assets and deposits (book value)
Shares: 29,989,494
Share price: ₩12,640
Market cap: ₩379B

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	₩531B	₩597B	₩742B	₩921B	₩1.1T	₩1.2T	₩1.3T	₩1.3T
Growth	22.4%	12.4%	24.2%	19.6%	15.4%	11.3%	7.1%	3.0%
EBIT	₩37B	₩54B	₩73B	₩78B	₩90B	₩101B	₩108B	₩111B
EBIT margin	7.0%	9.0%	9.8%	8.5%	8.5%	8.5%	8.5%	8.5%
After-tax EBIT	₩27B	₩39B	₩53B	₩57B	₩66B	₩73B	₩78B	₩80B
+ Depreciation	—	—	₩9.7B	₩12B	₩14B	₩15B	₩16B	₩17B
− Capital spending	₩130M	₩24B	₩16B	₩18B	₩21B	₩24B	₩25B	₩26B
− Working capital	−₩28B	−₩16B	₩5.9B	₩11B	₩9.9B	₩8.4B	₩5.9B	₩2.7B
Free cash flow	—	—	₩40B	₩40B	₩48B	₩56B	₩63B	₩69B
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	₩37B	₩42B	₩45B	₩48B	₩48B

Terminal value ₩1.5T, worth ₩1T today: 82% 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 ₩9,690 a share)Now 1.30×	₩19,1301.97×	₩23,4242.42×	₩35,7123.69×
Price / earnings (last 12 months: ₩2,652 a share)Now 4.77×	₩25,4809.61×	₩44,36816.7×	₩79,55830.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,544 a share)Now 3.57×	₩34,0559.61×	₩59,30016.7×	₩106,33230.0×

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%
6.3%	₩45,261	₩49,004	₩53,614	₩59,431	₩67,004
6.8%	₩41,249	₩44,273	₩47,924	₩52,420	₩58,093
7.3%	₩37,878	₩40,361	₩43,311	₩46,872	₩51,256
7.8%	₩35,006	₩37,074	₩39,496	₩42,373	₩45,846
8.3%	₩32,531	₩34,273	₩36,290	₩38,653	₩41,459

Now (TTM)

Market cap: ₩379B
Enterprise value: ₩329B
P/E: 4.8×
P/B: 1.3×
P/S: 0.5×
EV/EBITDA: 3.0×
Dividend yield: 3.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩25,350	₩14,920	₩12,220	₩10,850	₩11,500
Market cap	₩760B	₩447B	₩366B	₩325B	₩345B
P/E	13.6×	11.4×	12.7×	38.6×	13.0×
P/B	2.9×	2.2×	2.2×	2.2×	2.4×
P/S	1.0×	0.7×	0.7×	0.7×	0.9×
EV/EBITDA	8.3×	—	—	—	—
Dividend yield	1.6%	2.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dongsung Finetec	4.8×	1.3×	0.5×	3.0×	3.2%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	6.1×	0.4×	0.1×	—	1.4%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	9.0×	0.0%
Kumho Petro Chemical	5.2×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.2×	0.4×	0.4×	9.0×	0.4%

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

Also known as: Dongsung Finetec / 동성화인텍 / 033500 / KRX:033500

Source: KRX statistical information