[Click eStock] "DI Dongil, Value Reassessment Upon Value-Up Promotion"

NH Investment & Securities evaluated on the 27th that DI Dongil is expected to highlight high value when promoting a value-up program. However, the investment opinion was presented as 'Not Rated.'

Shim Eui-seop, a researcher at NH Investment & Securities, stated in the report on the same day, "The equity value of Dongil Aluminum, a leading company in bipolar copper foil, is judged to exceed the company's market capitalization, and when reflecting the market value of the held real estate, it is estimated to be over 1 trillion KRW." He added, "Since most of the real estate is idle land, we expect a practical improvement in financial structure and strengthening of cash utilization ability through asset revaluation and disposal of unused assets."

Currently, DI Dongil is proceeding with the sale of equipment at the Ansan plant following the sale of the Wonsi-dong building last year. The Incheon and Guro sites are also highly likely to be sold due to development and other reasons.

Researcher Shim forecasted that DI Dongil's abundant asset value will be re-evaluated through the value-up program and shareholder activism.

DI Dongil has operated its business for a long time, continuously diversifying its business centered on textile materials and aluminum into plants and environment sectors. It holds abundant assets such as its subsidiary Aluminum (90.4% stake), joint venture Dongil Lacoste, real estate, and treasury shares (23.2%).

He said, "Through the sale of unused assets, besides shareholder returns, it can be used as new growth engines such as M&A and new businesses. The treasury shares, which account for 23%, are also expected to increase shareholder value by about 30% if canceled." He added, "Shareholder activism is also ongoing, and the company is reviewing various corporate value enhancement measures such as asset revaluation, absorption merger of subsidiaries, and treasury share cancellation, so a policy announcement is anticipated."

He viewed the recently increased market volatility as a factor that rather enhances DI Dongil's attractiveness. Researcher Shim said, "The textile materials business experienced continuous restructuring within the industry due to the global economic downturn last year, and as it gradually enters the recovery phase, it is showing a trend of turning profitable and improving profitability." He continued, "Despite Dongil Aluminum's sluggish situation due to the slowdown in the secondary battery industry, it shows strong profit resilience, so its growth potential is expected to be highlighted when the industry recovers. The recently increased market volatility is also a factor that enhances the company's attractiveness."

This content was produced with the assistance of AI translation services.