Dohwa Engineering is an engineering firm that designs social-infrastructure such as roads, bridges, and railways, water and sewage and environmental facilities, and urban development, and supervises the construction process; because it wins service contracts from clients and provides design, technical advisory, and supervision services for a fee, its order backlog and new contracts are the base of revenue. Revenue has risen back into double digits and turned to a profit, and in March the company voluntarily disclosed a corporate-value-up plan and in May a supply contract worth ₩40.3 billion (about 6% of revenue), though a termination of one existing contract was disclosed at the same time, so new orders and terminations were mixed. What stands out lately is that, if ordering stays steady and orders continue so that the profit recovery takes hold, a low P/B of 0.64x below book value and a dividend yield of about 6.2% shine together, while ROE of 2.9% shows profitability is still low and a debt ratio of 285.6% and a payout ratio of 136% leave financial headroom tight, so the durability of the earnings recovery must be watched alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 285.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 94.1%).
- Revenue rose 19.9% year over year, and the pace is quickening (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 1.3% lower than a year earlier.
- ROE is 2.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2021-12-31
Largest shareholder Kwak Young-pil 19.5% (individual)
Controlling bloc incl. related parties 47.57%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- Dohwa Engineering is an engineering firm that designs social infrastructure such as transport facilities including roads, bridges, and railways, water and sewage and environmental facilities, and urban development and complex construction, and supervises the construction process.
- Rather than building structures itself, it wins service contracts from clients (government, local authorities, public agencies, and private developers) and provides design drawings, technical advisory, and supervision services for a fee, so the base of revenue is the order backlog it holds and the contracts it newly secures.
- Because the scale and pace of ordered projects govern results, disclosures of new supply contracts are a key clue to reading future revenue.
- The latest close is ₩4,955 and the market cap is ₩167.1 billion.
- The price sits below its 20-day line (₩5,134) and its 60-day line (₩5,952).
- Trading below both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 41.2, a neutral level.
- The one-month change is -2.3%, the three-month change is -23.6%, and the position versus the 52-week high is -32.9%.
- Relative strength against the KOSPI is 11 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 90% of all stocks by strength.
- Over the past three months it has lagged the index by 44.7%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The most recent annual (2025) revenue was ₩698.5 billion, operating profit ₩30.1 billion, and net profit ₩7.3 billion.
- The operating margin was 4.3% and ROE (how much it earns in a year on its equity) was 2.9%, still not high — but this should be viewed together with the fact that these are early-recovery figures, having only just turned from a prior-year loss to a profit.
- The P/E (how many times a year's net profit the price represents) is 22.80x, which looks high on the number alone, but this is not because the price is expensive; it is because, in the first year of turning to a profit, the net profit in the denominator is still small.
- In this structure, the P/E naturally falls once earnings climb onto a normal track, so the metric closer to the essence here is the P/B (how many times book value the price represents), which looks at price relative to assets.
- The P/B is 0.66x, meaning the market cap is actually lower than the company's net assets (about ₩253.9 billion), and on our diagnostic the valuation is classified as 'undervalued.' That said, with a debt ratio (debt relative to equity) of 285.6% and a current ratio (assets that can be turned into cash immediately versus debt due within a year) of 94.1%, financial headroom is on the tight side, so collection of contract proceeds and management of borrowings are points to keep watching.
- Revenue rose from ₩575.0 billion in 2023 and ₩582.8 billion in 2024 to ₩698.5 billion in 2025, up 19.9% year on year, with the pace of increase itself accelerating.
- The more important change is the reversal in profit direction.
- Operating profit swung from a -₩13.4 billion loss in 2024 to a ₩30.1 billion profit in 2025, and net profit turned from -₩5.3 billion to ₩7.3 billion, a clear turnaround.
- This year (2026), revenue looks set to continue to around ₩721.6 billion, reflecting the most recent quarter's results and the historical quarterly revenue distribution — a picture of growth not stalling but stepping up a notch.
- Meanwhile, Q1 2026 posted revenue of ₩155.5 billion and an operating loss of -₩2.4 billion, but this owes to the seasonality peculiar to engineering and construction services rather than to deteriorating results.
- Given the industry trait of orders and completions concentrating in the second half, in the first half — especially Q1 — costs go out first while revenue recognition follows, so the full year is hard to judge from early-year profit alone.
- The engine of revenue growth lies in the company's order-winning ability to secure new supply contracts amid steadily continuing social-infrastructure ordering.
- On March 24, 2026 the company voluntarily disclosed a corporate-value-up plan.
- This is material in which the company itself set out how it will raise shareholder value, and if it contains concrete figures it becomes a primary basis for gauging the direction ahead.
- On May 29 it disclosed the signing of a single-sale/supply contract worth ₩40.3 billion (a filing amendment); at about 6% of revenue, it is a foothold for future results recognition.
- However, on May 8 the termination of one existing supply contract was also disclosed, so with new orders and terminations mixed, checking each contract's amount and term in the source text — and whether it is a one-off or a repeatable transaction — helps with the medium-term reading.
- This stock's strengths are clear.
- Revenue has risen back into double digits and is accelerating, it turned from a loss to a profit, and yet the share price still sits at 0.64x book value, decidedly cheap relative to asset value.
- On top of this, a dividend yield of about 6.2% is high, so the dividend provides support while the price is depressed — an appeal in itself.
- In sum, if social-infrastructure ordering stays steady and the company keeps winning orders so that the profit recovery takes hold, low P/B and a high dividend shine together.
- On the other side, the points to note are that ROE, at 2.9%, is still low, so whether profitability rises in earnest needs confirming, and that with a debt ratio of 285.6% and a current ratio of 94.1%, financial headroom is tight, so collection of contract proceeds and borrowing burden must be watched.
- The payout ratio of 136% — paying out more in dividends than the profit earned in a year — is also a point to view alongside whether the earnings recovery continues.
- That is, if the return to profit and order wins continue, the undervalued, high-dividend appeal works strongly, and if profitability improvement is slow or the financial burden grows, it weakens.
🔎 Valuation vs peers Undervalued
A peer set within scientific and technical services that is close in market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JIO | — | 0.79x | -4.37% |
| Sungdo E&C | 4.22x | 0.43x | 10.27% |
| Hanmi Global | 9.64x | 0.78x | 8.14% |
We first looked at a public-data peer group close in market capitalization within scientific and technical services. The current P/E (how many times a year's earnings the price represents) is 22.80x and the P/B (how many times book value the price represents) is 0.66x. However, lower-market-cap stocks are strongly affected by earnings swings and financing disclosures, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩721.6 billion | — | — |
| Next quarter | Q2 2026 | ₩179.1 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩4,955 and the market capitalization is ₩167.1 billion. The price sits below its 20-day moving average (₩5,134) and below its 60-day moving average (₩5,952). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.2, a neutral level. The one-month change is -2.3%, the three-month change is -23.6%, and the position relative to the 52-week high is -32.9%. Relative strength versus the KOSPI is 11 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 10% of all stocks. Over the past three months it lagged the index by 44.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -44.73% / 6M -50.08% / 12M -68.58%
Key metrics vs sector median
Valuation
The P/E of 22.80x is below the sector median (32.87x). The P/B of 0.66x is below the sector median (1.99x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.9%, below the sector average (4.0%). The operating margin is 4.3%. The debt ratio is 285.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $381.1M | $386.3M | $462.9M | +19.85% ↑ faster |
| Operating profit | $14.5M | -$8.9M | $20.0M | — |
| Net profit | $13.7M | -$3.5M | $4.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $382.7M | $368.4M | $381.1M | $386.3M | $462.9M |
| Operating profit | $13.2M | $7.9M | $14.5M | -$8.9M | $20.0M |
| Net profit | $10.0M | $1.1M | $13.7M | -$3.5M | $4.9M |
| Revenue CAGR | 4-yr avg 4.87% | ||||
Revenue rose 19.9% year over year (2023 ₩575.0 billion → 2024 ₩582.8 billion → 2025 ₩698.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.9%. The two-year revenue CAGR is 10.2%. In the most recent quarter (Q1 2026), revenue was 1.3% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 6.0%, is on the high side.
- Revenue grew 19.9% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-24UpdateCorporate-value-up plan (voluntary disclosure): confirmation of the company's plan source textThis is planning material the company itself presented. If it has figures, treat it as a primary basis for the outlook box; if not, view it only as directional material. Source
- 2026-05-29Contract[Filing amendment] Signing of a single-sale/supply contract: contract amount of ₩40.3 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term reading. Source
- 2026-05-08ContractTermination of a single-sale/supply contract: confirmation of detailed terms in the source textThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,955 | ₩4,955 | Confirmed | link |
| Latest quarterly results | revenue ₩155.5 billion, operating profit -₩2.4 billion | revenue ₩155.5 billion, operating profit -₩2.4 billion | Confirmed | link |
| Full-year results | revenue ₩698.5 billion, operating profit ₩30.1 billion | revenue ₩698.5 billion, operating profit ₩30.1 billion | Confirmed | link |
| Outlook/plan disclosure source text | : | : | Confirmed | link |
| Contract disclosure source text | []ㆍapprox. : approx. ₩40.3 billion | []ㆍapprox. : approx. ₩40.3 billion | Confirmed | link |
| Contract disclosure source text | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08OwnershipLargest-shareholder ownership change report
- 2026-06-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Amended filing
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-28Corporate governance report
- 2026-05-26OwnershipLargest-shareholder ownership change report
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-05-08Amended filing
- 2026-05-08Single supply/sales contract
- 2026-05-08Single supply/sales contract (amended)
- 2026-03-27OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.