[Featured Stock] DK&D Severely Undervalued in Industry... 'Rising'

DK&D is showing strong performance. It is interpreted that the analysis by securities firms, which stated that the company has been undervalued despite steady growth, has had an impact.

As of 9:27 AM on the 30th, DK&D was trading at 3,885 KRW, up 75 KRW (1.97%) compared to the previous trading day.

DK&D, primarily engaged in the manufacturing of synthetic leather and nonwoven fabric, a key raw material for synthetic leather products, was listed on the KOSDAQ market in November 2018. Its main business segments include synthetic leather (24.3%), nonwoven fabric (19.6%), hat OEM subsidiary Dada C&C (32.2%), and merchandise and others (22.8%).

Lee Jun-seok, a researcher at Hanyang Securities, stated, "DK&D’s synthetic leather is supplied to luxury brands such as Louis Vuitton and Yves Saint Laurent, and its nonwoven fabric is ultimately delivered to global sports brands like Nike, Adidas, and New Balance through Taiwan’s San Fang Chemical." He added, "This year, sales are expected to reach 105.08 billion KRW and operating profit 10.47 billion KRW, representing increases of 17.0% and 28.4% respectively compared to the same period last year."

He explained, "Despite the low market capitalization, the company pays dividends annually, and the dividend amount is expected to gradually increase. Next year, the company aims for sales of 120 billion KRW and an operating profit margin of 10%. An operating profit of 12 billion KRW is considered sufficiently undervalued even when taking into account the valuation within the industry."