Dongbang Agro Q1 2026 Strong Results, Targets 40% Payout Ratio

Consolidated Q1 2026 sales KRW 104.4bn, operating profit KRW 17.2bn, net profit (controlling) KRW 12.7bn (operating profit up YoY)
2026.03.23 Value-up plan: target dividend payout ratio of 40%+ of consolidated net income (controlling)
2025 year-end dividend: common KRW 320, preferred KRW 325, total KRW 4.04bn payable 2026.04.03
Equity KRW 182.9bn, debt-to-equity 46%, net debt -KRW 8.8bn (cash KRW 14.5bn > borrowings KRW 5.7bn) – sound financials
Inventories KRW 80.5bn (down from KRW 119.2bn at year-end), trade receivables KRW 105.2bn (seasonal)
Allowance for doubtful accounts ratio 1.9% (improved from 4.4%), inventory valuation allowance KRW 2.77bn
Exchangeable bonds KRW 6.9bn (zero coupon, due 2030, exchange price KRW 6,906, for 1mn treasury shares)
Change in largest shareholder: Yeom Byung-man → Yeom Byung-jin (2026.04.08, share donation)
FX risk: foreign currency liabilities USD 13.94mn, JPY 243mn; 3 currency option contracts
Increase in tangible assets: construction in progress KRW 4.8bn etc. (facility investment)
~80% of annual sales concentrated in H1 (seasonality)
R&D expenses KRW 1.15bn (1.1% of sales); 6 new pesticide products to launch