[Market Focus] DI Dongil Rises on Expectations of Improved Aluminum Foil Earnings

DI Dongil is showing strong performance. This appears to be influenced by a securities firm's analysis that anticipates improved earnings for its aluminum foil business.

As of 10:00 a.m. on June 27, DI Dongil was trading at 40,450 won, up 1,200 won (3.06%) from the previous trading day.

In the first quarter of this year, DI Dongil recorded aluminum foil sales of 53.2 billion won. Byunghwa Han, a researcher at Eugene Investment & Securities, stated, "Second-quarter sales are expected to reach a similar level of 53.5 billion won. The reason DI Dongil's aluminum foil business is improving earlier than its competitors is because it is the top company preferred by clients. All three domestic cell manufacturers are clients of DI Dongil, and their market shares and the company's sales proportions are believed to be almost identical," he explained.

Eugene Investment & Securities also assessed that DI Dongil continues its efforts to protect shareholder value. Han said, "Since 2023, the company has retired 7.14 million treasury shares and invested an additional 30 billion won to repurchase and retire more treasury shares. The merger process with Dongil Aluminum, its aluminum foil subsidiary, will be completed in August. Three new aluminum foil production lines will be completed in the second half of this year, and sales are expected to begin next year," he emphasized.