[Click eStock] "Dongyang ENP Undervalued Compared to Asset Value"

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On September 16, LS Securities analyzed that Dongyang ENP is currently undervalued compared to its asset value.

Jung Hongsik, a researcher at LS Securities, stated, "Dongyang ENP's net cash amounts to 125.6 billion won, and when combined with 83.4 billion won in long-term investment securities (overseas bonds and equity products), the total reaches 209 billion won, which exceeds its market capitalization." He explained, "These funds are being used for dividends and other purposes, and the dividend per share (DPS) has increased from 300 won in 2022 to 400 won in 2023, and is expected to reach 600 won in 2024."

Dongyang ENP supplies mobile phone chargers and Switching Mode Power Supplies (SMPS), with its main client being a major domestic company, Samsung. Peer companies include SoluM, Elentec, and RFTech. In the first half of this year, the company reported sales of 304.6 billion won, up 14.1% year-on-year, and operating profit of 29.4 billion won, an increase of 19.9%.

Researcher Jung added, "The operating margin has steadily increased from 5.0% in 2022 to 8.0% in 2023, and 9.4% in 2024. In the first half of this year, it further improved to 9.7%. Operating profit has also continued to grow, from 27.8 billion won in 2022, to 43 billion won in 2023, 51.6 billion won in 2024, and 29.4 billion won in the first half of 2025."

He also noted, "The effects of plant automation, resulting from facility investments in the Ho Chi Minh subsidiary (100% ownership), are being realized." He added, "The assets of the Ho Chi Minh subsidiary increased from 76.8 billion won in 2023 to 96.3 billion won in 2024, and reached 117.5 billion won in the second quarter of this year."

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