Donga Hwasung Changes Name to 'SY Donga'... Signals New Leap After Joining Samyoung M-Tech

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KOSDAQ-listed company Donga Hwasung officially announced on April 28 that it has changed its name to SY Donga, marking a new beginning. This move is the company’s first major step since joining the Samyoung M-Tech Group, a steel materials and equipment conglomerate. The new name reflects both the group identity and a commitment to continue its existing business foundation. ‘SY’ represents the parent company, Samyoung M-Tech, while ‘Donga’ stands for the manufacturing expertise built since its founding in 1969.

The company stated that, with its new name, it aims to further strengthen the competitiveness of its existing automotive specialty rubber and materials business, while also planning to enter new markets and improve profitability through collaboration within the group. A company representative commented, “This change signifies our intention to solidify our growth foundation together with our new shareholders,” adding, “We will take a leap forward as a manufacturing company with strong technological and execution capabilities.”

Positive trends were also evident in last year’s results. On a consolidated basis, revenue for the previous year reached 403.4 billion won, a 5.3% increase year-on-year and the highest in the company’s history. Net profit for the same period surged to 27.5 billion won, up approximately 88% from 14.6 billion won the previous year. Although operating profit slightly declined to 17.2 billion won due to the impact of new investment costs, net profit improved significantly, driven by more efficient asset management and foreign currency translation gains.

The market is also paying attention to the gap between the current share price and the historical acquisition price. In October last year, Samyoung M-Tech acquired approximately 42.18% of the largest shareholder’s stake for 20,000 won per share, totaling 133.3 billion won. This transaction included a management premium of about 165%, effectively valuing the company at more than twice its market price at the time. However, as of April 28, shares of SY Donga were trading at around 6,750 won, showing a significant disparity compared to the acquisition price.

From a valuation perspective, analysts say the company is in an undervalued range. Based on 2025 estimates, the PER is about 4 times and the PBR is about 0.5 times, both significantly lower than the KOSDAQ average and industry peers. Considering its record-breaking core business performance, overseas production bases in eight countries including India, the United States, and Vietnam, its eco-friendly mobility business such as hydrogen fuel cells and EV battery gaskets, and the potential for collaboration with Samyoung M-Tech in shipbuilding, nuclear power, and wind power equipment, many believe the current corporate value is heavily discounted compared to fundamentals.

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