IBK Securities released an assessment on the 18th that Dongsung Finetec announced third-quarter (July–September) results that beat market expectations and that orders for liquefied natural gas carriers (LNGc), which will resume next year, are anticipated. It maintained a "Buy" investment opinion and a target price of 44,000 won. Dongsung Finetec's closing price the previous day was 31,750 won.
Dongsung Finetec announced on the 14th that, on a consolidation basis, it posted third-quarter revenue of 201.1 billion won and operating profit of 23.5 billion won. Each figure increased 47.3% and 105.9%, respectively, from the same period a year earlier.
Researcher Oh Ji-hoon at IBK Securities said, "An increase in delivery volume per the third-quarter schedule and a one-off additional settlement from the completion of deliveries of insulation materials for pipes and tanks were reflected in operating profit (2 billion won)," and added, "Excluding one-off factors, the normalized operating margin is around 10.7%, recovering a double-digit operating margin for the first time in three quarters."
He added, "In the fourth quarter (October–December), revenue is expected to decline slightly due to a decrease in scheduled delivery volumes, but as the share of volumes supplied to LNGc orders received since 2023 increases, the operating margin is projected to reach 10.9%."
Oh noted that concerns about the recent share price drop are excessive. Oh said, "The competitor's share price decline stems from an individual issue related to an expanded loss at its subsidiary and is unrelated to Dongsung Finetec's performance and structural growth potential," adding, "There is no reason for the company's share price to correct."
Earlier, on the 29th, Dongsung Finetec received dispositions under a resolution by the Securities and Futures Commission under the Financial Services Commission, including a penalty surcharge (to be decided later by the Financial Services Commission), a three-year designation of an auditor, a recommendation to dismiss the former responsible executive, a recommendation to dismiss the sales executive and a six-month suspension from duty, notification to prosecutors, and a recommendation for improvements. The suspension of trading in the company's shares was lifted on the day.