# Dongwon System (014820.KO)

Canonical: https://gigainvestors.com/s/014820.KO

Analysis as of: 2026-10-16T07:47:09.392Z. Financial observations: FY2009–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 21,950.00 per share; close as of 2026-10-15.

Estimated value: low KRW 29,484.01 per share, central KRW 33,088.04 per share, high KRW 37,885.77 per share. Buy at or below the central value KRW 33,088.04 per share. Valuation as of 2026-10-16T07:47:09.392Z; scenarios are not confidence intervals.

Expected annual return: 14.4% at the stated quote. About 14.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.08×

- FY2019: 0.07×

- FY2020: 0.09×

- FY2021: 0.07×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.07×

- FY2025: 0.05×

- LTM to Jun 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.4%

- ROIC, second-lowest year: 7.0%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 12.6%

- Recent gross margin (lower of latest and 3-year median): 10.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.5%

- ROIC including acquisitions, ten-year median: 4.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.4%

- FY2017: 16.2%

- FY2018: 11.2%

- FY2019: 8.6%

- FY2020: 10.1%

- FY2021: 7.0%

- FY2022: 8.1%

- FY2023: 7.1%

- FY2024: 7.6%

- FY2025: 5.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.89×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 269B

- Net income, five-year total: KRW 302B

- Return on incremental invested capital: -8.1%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: -0.6 pp

- Working capital / revenue, final three-year average: 22.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 0.99×

- FY2023: -0.01×

- FY2024: 1.17×

- FY2025: 1.40×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 16.2% vs 7.1%

- Per-share earnings: 2363.00 to 2194.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.9%

- Market cap gain: KRW -728B

- Cumulative retained earnings: KRW 370B

- Diluted shares, 5-year annual growth: 2.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.1%

- Per-share value change: KRW -169.00

- Per-share value, starting three-year median: KRW 2K

- Per-share value, ending three-year median: KRW 2K

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 0

- Cumulative net income, 10 years: KRW 572B

- ROIC, first three-year median: 16.2%

- ROIC, last three-year median: 7.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 2K

- FY2017: KRW 3K

- FY2018: KRW 2K

- FY2019: KRW 1K

- FY2020: KRW 2K

- FY2021: KRW 1K

- FY2022: KRW 2K

- FY2023: KRW 2K

- FY2024: KRW 2K

- FY2025: KRW 2K

### accounting: pass

- Sloan accruals: -5.6%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.58×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.0%

- FY2017: 2.2%

- FY2018: -1.9%

- FY2019: -7.3%

- FY2020: -6.5%

- FY2021: -3.0%

- FY2022: -9.8%

- FY2023: -9.8%

- FY2024: -5.4%

- FY2025: -5.6%

## Holders

## Price story

Down 63% since Apr 2022 · sales +2.7%

Story as of 2026-10-16T10:00:13.656Z; price observation 2026-10-15.

Price needs cash profits to shrink 5% a year for ten years

### Sales · FY2025–2026

sales +2.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.28T 

- FY2018: KRW 1.03T 

- FY2019: KRW 1.04T 

- FY2020: KRW 1.08T 

- FY2021: KRW 1.25T 

- FY2022: KRW 1.44T 

- FY2023: KRW 1.28T 

- FY2024: KRW 1.33T 

- FY2025: KRW 1.37T 

- FY2026: KRW 1.41T 

### Gross margin · FY2025

gross margin 10.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 15.2% 

- FY2017: 13.3% 

- FY2018: 13.2% 

- FY2019: 12.5% 

- FY2020: 14.2% 

- FY2021: 12.4% 

- FY2022: 11.3% 

- FY2023: 12.0% 

- FY2024: 12.6% 

- FY2025: 10.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaging & containers; annual sales are KRW 1.4 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2025: revenue 1372874325180; grossProfit 149116924200; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 014820.KO: Dongwon Systems Corporation, a packaging company, manufactures and markets packaging materials in South Korea. The company offers flexible packaging products for food, beverage, and non-food packaging applications; glass bottles; aluminum cans, such as two-piece steel can bodies and bottle cans; and PET bottles, including non-pressure, heat resistance, heat pressure resistance, and pressure resistance, as well as preforms. It also provides steel cans comprising two-piece steel can body and EOE/sanitary end products; and paper boxes that include bag-type and triangle cases, bottle neck sleeves, carton boxes, and one and one cases. In addition, the company offers display material protective and industrial films; hygienic films; aluminum packaging products, including electric and electronic materials, general packaging, air conditioner materials, automotive materials, and al-pastes; aseptic drink packaging for concoction and health functional beverages, formula, and soy milk; and secondary battery products, such as cathode foils and cylindrical cans. Further, it exports its products. The company was founded in 1977 and is headquartered in Seoul, South Korea. Dongwon Systems Corporation operates as a subsidiary of Dongwon Industries Co., Ltd.

### Why customers stay

Margins ranged from 10.9% to 12.6% during 2023–25; it earns 8.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2023: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2024: grossProfit / revenue = 12.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2025: grossProfit / revenue = 10.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); 10-year return on capital observations [[2016,0.20448502712984623],[2017,0.16242608465812833],[2018,0.11161295251651661],[2019,0.08644251939445004],[2020,0.10066327291993597],[2021,0.07032265875024704],[2022,0.08125201950835546],[2023,0.071395277901856],[2024,0.07558502520216692],[2025,0.05209550520918507]]; median 0.08384726945140275. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 11% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); Gross margin observations: [[2021,0.12438825371746587],[2022,0.11328951902749047],[2023,0.11971949164776831]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2016: growth capex 0; upkeep 43629340940; owner earnings 66376797650. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2017: growth capex 0; upkeep 36073308560; owner earnings 73443415880. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2018: growth capex 0; upkeep 86503830490; owner earnings 7851229910. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2020: growth capex 19338438318.060883; upkeep 101133469511.93912; owner earnings 5062710452.060883. Growth capex / owner earnings = 3.8197796419877745.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2021: growth capex 7228869250; upkeep 68921247890; owner earnings 38479071766. Growth capex / owner earnings = 0.18786495926825889.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2022: growth capex 20875268980; upkeep 78638869320; owner earnings 71315815298. Growth capex / owner earnings = 0.2927158428010769.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2024: growth capex 0; upkeep 76931359010; owner earnings 84528857032. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); FY2025: growth capex 0; upkeep 69225231520; owner earnings 75309555332. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); Dividend observations: [[2016,6109676560],[2017,6106739220],[2018,12856655900],[2019,12856655900],[2020,12864186470],[2021,15446660380],[2022,17588435240],[2023,17590634640],[2024,18126845790],[2025,26729867760]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 83.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 014820.KO SharesStats.PercentInsiders = 83.369 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:09.392Z); Ten-year compound average after fade. Initial solved rate -0.08307922034327114. Price 21950; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 55,899.97 per share

- 2016-11: KRW 64,099.96 per share

- 2016-12: KRW 59,699.96 per share

- 2017-01: KRW 66,399.96 per share

- 2017-02: KRW 63,699.96 per share

- 2017-03: KRW 61,499.96 per share

- 2017-04: KRW 57,499.97 per share

- 2017-05: KRW 56,299.97 per share

- 2017-06: KRW 54,899.97 per share

- 2017-07: KRW 53,199.97 per share

- 2017-08: KRW 53,299.97 per share

- 2017-09: KRW 52,299.97 per share

- 2017-10: KRW 48,399.97 per share

- 2017-11: KRW 48,799.97 per share

- 2017-12: KRW 46,999.97 per share

- 2018-01: KRW 52,199.97 per share

- 2018-02: KRW 48,599.97 per share

- 2018-03: KRW 46,199.97 per share

- 2018-04: KRW 45,049.97 per share

- 2018-05: KRW 36,649.98 per share

- 2018-06: KRW 33,749.98 per share

- 2018-07: KRW 33,549.98 per share

- 2018-08: KRW 32,349.98 per share

- 2018-09: KRW 31,149.98 per share

- 2018-10: KRW 26,599.98 per share

- 2018-11: KRW 29,899.98 per share

- 2018-12: KRW 27,349.98 per share

- 2019-01: KRW 29,649.98 per share

- 2019-02: KRW 29,899.98 per share

- 2019-03: KRW 35,499.98 per share

- 2019-04: KRW 35,599.98 per share

- 2019-05: KRW 36,799.98 per share

- 2019-06: KRW 43,049.97 per share

- 2019-07: KRW 37,799.98 per share

- 2019-08: KRW 38,549.98 per share

- 2019-09: KRW 39,399.98 per share

- 2019-10: KRW 34,449.98 per share

- 2019-11: KRW 29,299.98 per share

- 2019-12: KRW 29,399.98 per share

- 2020-01: KRW 25,299.98 per share

- 2020-02: KRW 22,099.99 per share

- 2020-03: KRW 19,349.99 per share

- 2020-04: KRW 22,099.99 per share

- 2020-05: KRW 23,999.99 per share

- 2020-06: KRW 21,049.99 per share

- 2020-07: KRW 21,149.99 per share

- 2020-08: KRW 21,999.99 per share

- 2020-09: KRW 23,399.99 per share

- 2020-10: KRW 22,699.99 per share

- 2020-11: KRW 30,299.98 per share

- 2020-12: KRW 35,699.98 per share

- 2021-01: KRW 44,999.97 per share

- 2021-02: KRW 50,099.97 per share

- 2021-03: KRW 48,449.97 per share

- 2021-04: KRW 43,349.97 per share

- 2021-05: KRW 44,549.97 per share

- 2021-06: KRW 44,799.97 per share

- 2021-07: KRW 43,149.97 per share

- 2021-08: KRW 56,699.97 per share

- 2021-09: KRW 63,199.96 per share

- 2021-10: KRW 52,099.97 per share

- 2021-11: KRW 51,799.97 per share

- 2021-12: KRW 51,199.97 per share

- 2022-01: KRW 51,999.97 per share

- 2022-02: KRW 52,999.97 per share

- 2022-03: KRW 58,899.96 per share

- 2022-04: KRW 59,399.96 per share

- 2022-05: KRW 54,999.97 per share

- 2022-06: KRW 53,999.97 per share

- 2022-07: KRW 54,399.97 per share

- 2022-08: KRW 54,100.00 per share

- 2022-09: KRW 45,800.00 per share

- 2022-10: KRW 45,950.00 per share

- 2022-11: KRW 50,700.00 per share

- 2022-12: KRW 40,600.00 per share

- 2023-01: KRW 43,750.00 per share

- 2023-02: KRW 39,600.00 per share

- 2023-03: KRW 42,750.00 per share

- 2023-04: KRW 42,900.00 per share

- 2023-05: KRW 40,400.00 per share

- 2023-06: KRW 37,100.00 per share

- 2023-07: KRW 42,100.00 per share

- 2023-08: KRW 34,850.00 per share

- 2023-09: KRW 30,000.00 per share

- 2023-10: KRW 28,300.00 per share

- 2023-11: KRW 34,000.00 per share

- 2023-12: KRW 34,500.00 per share

- 2024-01: KRW 30,800.00 per share

- 2024-02: KRW 34,550.00 per share

- 2024-03: KRW 43,000.00 per share

- 2024-04: KRW 43,000.00 per share

- 2024-05: KRW 44,000.00 per share

- 2024-06: KRW 46,950.00 per share

- 2024-07: KRW 43,100.00 per share

- 2024-08: KRW 41,900.00 per share

- 2024-09: KRW 44,050.00 per share

- 2024-10: KRW 51,000.00 per share

- 2024-11: KRW 45,500.00 per share

- 2024-12: KRW 40,300.00 per share

- 2025-01: KRW 37,950.00 per share

- 2025-02: KRW 36,950.00 per share

- 2025-03: KRW 32,650.00 per share

- 2025-04: KRW 32,700.00 per share

- 2025-05: KRW 31,050.00 per share

- 2025-06: KRW 31,850.00 per share

- 2025-07: KRW 30,950.00 per share

- 2025-08: KRW 28,650.00 per share

- 2025-09: KRW 27,000.00 per share

- 2025-10: KRW 28,000.00 per share

- 2025-11: KRW 27,850.00 per share

- 2025-12: KRW 25,050.00 per share

- 2026-01: KRW 27,850.00 per share

- 2026-02: KRW 26,450.00 per share

- 2026-03: KRW 24,950.00 per share

- 2026-04: KRW 28,100.00 per share

- 2026-05: KRW 21,950.00 per share

- 2026-06: KRW 18,810.00 per share

- 2026-07: KRW 20,600.00 per share

- 2026-08: KRW 23,200.00 per share

- 2026-09: KRW 20,900.00 per share

- 2026-10: KRW 21,700.00 per share

## Annual estimated value (KRW per share)

- FY2017: low KRW 32,640.74 per share, central KRW 36,892.85 per share, high KRW 42,553.30 per share

- FY2018: low KRW 24,998.17 per share, central KRW 28,070.85 per share, high KRW 32,161.24 per share

- FY2019: low KRW 24,390.30 per share, central KRW 27,510.99 per share, high KRW 31,665.28 per share

- FY2020: low KRW 6,507.35 per share, central KRW 6,996.47 per share, high KRW 7,647.60 per share

- FY2021: low KRW 8,795.21 per share, central KRW 9,292.64 per share, high KRW 9,954.82 per share

- FY2022: low KRW 6,685.95 per share, central KRW 8,874.51 per share, high KRW 10,148.91 per share

- FY2023: low KRW 6,189.34 per share, central KRW 7,382.42 per share, high KRW 8,077.15 per share

- FY2024: low KRW 23,659.65 per share, central KRW 31,832.16 per share, high KRW 36,591.04 per share

- FY2025: low KRW 30,334.06 per share, central KRW 33,842.61 per share, high KRW 38,513.24 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:52:58.767Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.