Kolon Global is a comprehensive construction company within the Kolon Group. Its core is a construction division spanning apartment (Hi-ense brand) housing sales, public and private civil engineering, and wind-power construction, joined by a trading arm that deals in steel and chemical raw materials and by sports-center operations, making for a complex structure (its imported-car distribution business was spun off into Kolon Mobility Group in 2023), so its results are effectively driven by the domestic housing market and its order backlog. In May 2026 disclosures clustered: Q1 operating profit improved sharply and net profit turned positive, a run of order disclosures on May 8, 15, and 22 shored up the backlog while some contract cancellations came out alongside, and a May 27 clarification of a rumor/press report was left as 'undetermined.' The strength worth noting is that this is a deeply undervalued construction stock standing at an inflection point where the core business is turning profitable after a large loss has passed; on the other hand, a debt ratio of 425.7% and a current ratio of 71.3% make it sensitive to interest rates and the housing market, an undetermined rumor remains, and its structure is one where the undervaluation is worked off as the Q1 recovery carries through quarter after quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 425.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 71.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 7.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.0% lower than a year earlier.
- ROE is -27.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2019-12-31
Largest shareholder Kolon 75.23% (corporate)
Controlling bloc incl. related parties 82.76%
With the controlling bloc holding 83%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kolon Global is a comprehensive construction company within the Kolon Group.
- Its largest pillar is the construction division spanning civil engineering, building, and housing, with apartment (Hi-ense brand) housing sales, public and private civil engineering, and renewable construction such as wind power at the center of revenue.
- To this is added a trading (commerce and distribution) division that deals in raw materials such as steel and chemicals, along with sports-center (Kolon Sporex) operations, making for a complex structure.
- For reference, the imported-car distribution business for BMW, Audi, Volvo and others was split off into Kolon Mobility Group via a spin-off in 2023, so today's Kolon Global is best seen as a 'construction plus trading' company.
- In other words, the direction of its results is effectively driven by the domestic housing market and its order backlog.
- The latest close is ₩9,150 and the market cap is ₩232.6 billion.
- The price sits below the 20-day line (₩9,517) and the 60-day line (₩10,182).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 43.6, a neutral reading.
- The one-month change is +5.7%, the three-month change is -16.1%, and the position versus the 52-week high is -26.5%.
- Relative strength against the KOSPI is 28 (1-99, a weighting of the past year's return versus the index that gives more weight to recent performance; higher means stronger than the market), placing it in roughly the top 72% of all stocks by strength.
- Over the past three months it lagged the index by 39.7%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Starting with the valuation metrics, the picture is clear.
- The P/B (how many times net assets the price represents) is 0.33x, so it trades at about one-third of book net assets (roughly ₩27,000 per share).
- Because last year's (2025) net profit was a loss of -₩191.2 billion, a confirmed P/E (based on the completed one-year results) cannot be calculated; but this 'not calculable' does not mean the company is expensive, only that a single large loss year has passed and last year's figure makes value hard to measure.
- In this kind of inflection zone where earnings shift from loss to profit, the forward P/E based on this year's expected earnings (5.03x) shows the company's real worth far better than last year's number.
- The forward P/E is on the low side versus peer construction firms, which reads as an undervaluation signal that the share price sits cheap relative to earnings once profit normalizes.
- On the other hand, the weakness clearly worth watching is financial stability.
- The debt ratio (debt to equity) is very high at 425.7%, the current ratio (assets that can be turned into cash against debt due within a year) is 71.3%, and the interest coverage ratio (how many times operating profit can cover interest) was below 1x last year.
- That said, the fact that it kept a dividend yield in the 4% range even in a loss year can be seen as a signal of a certain confidence in cash flow.
- Looking at the five-year trend, a company that earned net profit of ₩130-145 billion in 2021-2022 saw profit shrink to ₩0.3 billion in 2023 and ₩25.1 billion in 2024, then collapse to -₩191.2 billion in 2025.
- Revenue held roughly steady between ₩2.6 and ₩2.9 trillion with little change, so it is natural to read the profit collapse not as shrinking scale but as cost-type losses such as valuation write-downs and bad-debt provisions from a housing slowdown, all booked at once in a single year.
- The key change came in Q1 2026.
- Cumulative revenue of ₩631.2 billion was similar to the prior year at -2.0%, but operating profit rose to ₩22.0 billion, up +129% year on year, and net profit turned positive at ₩10.9 billion.
- This showed in real numbers that last year's loss was closer to a one-off cost and that the core business's profitability had entered a recovery phase.
- The forward P/E being calculable also reflects this recovery: once a single loss year is cleared and the construction and trading core returns to normal margins, a multiple below the market average follows naturally.
- On top of this, the run of order (single sales and supply contract) disclosures in May underpins future revenue visibility.
- That said, whether this recovery continues quarter after quarter is something to confirm with the next quarter's results.
- May 2026 was a month of clustered disclosures.
- On May 13 the company announced Q1 preliminary results via fair disclosure, reporting that operating profit improved sharply and net profit turned positive, and it flagged an IR (investor briefing) the same day.
- On May 8, 15, and 22 single sales and supply contract (order) disclosures came in succession to shore up the order backlog, and on that same May 8 a disclosure of some existing contract cancellations also appeared, showing that some projects are being adjusted even as ordering is active.
- On May 27 a clarification disclosure regarding a rumor/press report came out as 'undetermined,' signaling that the company could not yet give a definitive answer on a matter circulating in the market.
- On June 1 it disclosed a corporate governance report and large-scale enterprise-group status.
- To sum this company up in a phrase, it is a deeply undervalued construction stock standing at an inflection point where the core business is turning profitable after a large loss year has passed.
- The strengths are clear.
- At the same time the weaknesses are also clear.
- A debt ratio of 425.7% and a current ratio of 71.3% leave financial resilience weak and make it sensitive to interest rates and the housing market, its equity was reduced once by last year's loss, and the late-May rumor/report clarification being left as 'undetermined' is a variable not yet resolved.
- So if the housing market finds a bottom and the Q1 profit recovery carries through quarter after quarter, there is ample room for the deep undervaluation to work back toward fair value; conversely, if the recovery lasts only one quarter or the financial burden flares up again, the weak link is exposed as is.
- It is a stock with relatively clear conditions for when it is strong and when it is weak.
🔎 Valuation vs peers Inconclusive
The peer set was built from mid-sized domestic comprehensive builders (housing- and civil-engineering-focused) with similar market cap and business mix; same-tier firms comparable in scale and housing-market sensitivity are more appropriate than far larger builders.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Keryong Construction | 1.74x | 0.18x | 10.57% |
| Kumho E&C | 10.09x | 2.60x | 25.79% |
Because of last year's -₩191.2 billion loss, a confirmed (trailing) P/E cannot be calculated, so last year's numbers alone cannot settle whether it is expensive or cheap. Peers Keryong Construction and Kumho Construction are already profitable and trade at low multiples of 1-3x P/E, and Kolon Global too could enter the same undervalued zone once profit normalizes (see the forecast for this year's forward P/E basis). On P/B it is 0.37x, sitting between the two peers, so relative to net assets it is neither excessively expensive nor cheap. That said, the two peers have positive ROE whereas Kolon Global's ROE was -27.5% last year, meaning capital returns have not yet recovered and its financial leverage is higher; so before confirming that the Q1 recovery carries through for the full year, it is hard to conclude either fairly valued or undervalued.
Price history Close · MA20 · MA60
The latest close is ₩9,150 and the market capitalization is ₩232.6 billion. The price sits below its 20-day moving average (₩9,517) and below its 60-day moving average (₩10,182). 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 43.6, a neutral level. The one-month change is +5.7%, the three-month change is -16.1%, and the position relative to the 52-week high is -26.5%. Relative strength versus the KOSPI is 28 (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 28% of all stocks. Over the past three months it lagged the index by 39.7%. 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 -39.70% / 6M -36.27% / 12M -62.94%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.33x is below the sector median (0.50x).
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.
Profitability & financials
Return on equity (ROE) is -27.5%, below the sector average (7.0%). The operating margin is 0.1%. The debt ratio is 425.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.8B | $1.9B | $1.8B | -7.81% ↓ slower |
| Operating profit | $5.0M | -$37.6M | $2.4M | — |
| Net profit | $188,020 | $16.7M | -$126.7M | -860.42% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $1.7B | $1.8B | $1.9B | $1.8B |
| Operating profit | $123.8M | $110.5M | $5.0M | -$37.6M | $2.4M |
| Net profit | $92.0M | $96.5M | $188,020 | $16.7M | -$126.7M |
| Revenue CAGR | 4-yr avg -0.42% | ||||
Revenue fell 7.8% year over year (2023 ₩2.6 trillion → 2024 ₩2.9 trillion → 2025 ₩2.7 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.4%. The two-year revenue CAGR is 0.7%. In the most recent quarter (Q1 2026), revenue was 2.0% 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 4.4%, is on the high side.
Points to watch
- Debt far exceeds equity (debt ratio 425.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 71.3%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 7.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-13EarningsQ1 2026 consolidated preliminary results, fair disclosure - operating profit of ₩22.0 billion, a sharp improvement year on year, with net profit turning positiveShort term: reinforces the view that last year's large loss was a one-off. Medium term: the persistence of quarterly results is the premise for a re-valuation of the low P/B. Source
- 2026-05-22UpdateSingle sales and supply contract signed - a run of construction and trading order disclosures during May (5/8, 5/15, 5/22)Short term: shores up the order backlog. Medium term: a foundation for securing future revenue visibility. Source
- 2026-05-08UpdateSingle sales and supply contract canceled - some existing contracts adjusted (alongside a new-contract disclosure the same day)Short term: possible delay or reduction in revenue recognition for that project. Medium term: a signal of order-portfolio reshaping. Source
- 2026-05-27UpdateClarification disclosure regarding a rumor/press report - company answer 'undetermined'Short term: unresolved uncertainty as a source of volatility. Medium term: a wait-and-see stance is needed until a definitive disclosure. Source
- 2026-06-01FilingCorporate governance report disclosure and large-scale enterprise-group status disclosure (Kolon Group affiliate)Medium term: material for checking transparency of governance and affiliate status. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-27Disclosure
- 2026-05-22Single supply/sales contract
- 2026-05-19Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Single supply/sales contract
- 2026-05-13Disclosure
- 2026-05-13Disclosure
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-08Single supply/sales contract (amended)
- 2026-05-08Single supply/sales contract
📖 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.