Hanshin Engineering & Construction is a general construction company that combines private-sector work such as apartment sales and urban redevelopment with public-sector work such as public housing, roads, and railways ordered by the government and public agencies; its 2025 revenue of ₩1,149.2 billion is a well-balanced mix of building, civil engineering, and own-account projects, so that when one segment wavers another supports it. Entering 2026, supply contracts of ₩127.5 billion in June, ₩66.3 billion in May, and ₩78.9 billion in April were disclosed in succession. What stands out recently is that the share price is low relative to assets and earnings, giving a clear undervalued profile, but top-line growth has stalled and the interest coverage ratio is near 1x, so the financial burden only eases if margin improvement and new orders keep the earnings recovery going.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 22.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 17.1% lower than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Coam C&C Development 36.76% (corporate)
Controlling bloc incl. related parties 36.76%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- Hanshin Engineering & Construction is a company whose core business is general construction at home and abroad.
- It earns money along two broad lines.
- One is private-sector work, handling apartment and mixed-use sales and urban maintenance such as redevelopment and reconstruction; the other is public-sector work ordered by the government and public agencies, such as public housing, roads and railways, wide-area water and sewerage, and land development.
- Its 2025 revenue of ₩1,149.2 billion breaks down into ₩502.3 billion in building, ₩307.5 billion in civil engineering, ₩310.2 billion in own-account projects, and ₩29.2 billion in other.
- With own-account projects (buying land directly to build and sell) and civil and building contracting mixed in a balanced way, the structure is such that when one segment wavers another supports it.
- Because its market cap is on the smaller side, it is worth noting that a single large contract or sales result works on results and the share price more than usual.
- The latest close is ₩11,180 and market capitalization is ₩129.4 billion.
- The price sits above its 20-day moving average (₩10,758) and below its 60-day line (₩12,678).
- With the short-term and medium-term trends diverging, the direction is best read separately for each.
- The RSI (a supplementary indicator that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 50.4, a neutral level.
- The one-month change is +11.0%, the three-month change is -24.5%, and the position versus the 52-week high is -36.9%.
- Relative strength versus the KOSPI is 47 (on a 1-99 scale, converting the past year's return against the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 53% of all stocks by strength.
- Over the past three months it lagged the index by 47.1%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Recent annual revenue is ₩1.1 trillion, with operating profit of ₩64.5 billion and net profit of ₩59.9 billion.
- The operating margin is 5.6% and ROE (how much a company earns in a year on its equity) is 7.1%, above the peer average.
- The debt ratio (debt relative to equity) is 163.9%, an ordinary level given the nature of construction, and that the interest coverage ratio (how many times operating profit can cover interest) is slightly under 1x is an item to watch that eases if the earnings recovery continues.
- What stands out is the valuation.
- The P/E (how many times a year's earnings the share price is) is 2.16x and the P/B (how many times book value the share price is) is 0.15x.
- These low figures are not a burden but a sign that, at a company whose earnings are just turning, the share price is set far below its earnings and assets.
- For a stock at an earnings inflection, the forward P/E reflecting this year is the true picture rather than a P/E calculated on past results, and Hanshin's forward P/E is markedly below the peer median, which reads as an undervalued signal.
- The core of this company is that the top line and earnings point in different directions.
- Revenue fell from ₩1.3 trillion in 2023 and ₩1.5 trillion in 2024 to ₩1.1 trillion in 2025, and Q1 2026 was also 17.1% smaller than the same period a year earlier.
- Earnings, by contrast, improved quickly.
- Operating profit rose sharply for two straight years, from ₩14.8 billion in 2023 to ₩37.3 billion in 2024 to ₩64.5 billion in 2025, and net profit jumped to ₩59.9 billion in 2025, nearly eight times the prior year.
- In Q1, too, revenue fell but operating profit rose +17.5% and net profit +205.9%.
- The reason earnings grew this way is simple: by clearing out low-margin sites and raising the share of high-margin own-account and maintenance projects, the profit left per unit of revenue thickened.
- That is how a picture of rising earnings emerges even as revenue falls.
- This year's flow continues at roughly ₩68.9 billion in operating profit and ₩144.3 billion in net profit, a figure based on the confirmed Q1 results and the quarterly earnings weightings of the past three years.
- That margin improvement is lifting earnings even in a phase of further top-line contraction is the basis for this year's outlook.
- Entering 2026, single sale/supply contract disclosures came out in succession.
- Contracts of ₩127.5 billion on June 12, ₩66.3 billion on May 8, and ₩78.9 billion on April 28 were disclosed.
- For construction companies, such contracts are recognized over several years as work progresses rather than booked as revenue immediately, so the contract amount and construction period serve as clues for gauging the future revenue trend.
- Watching together whether a deal is a one-off or a continuing order makes the medium-term picture clearer.
- Hanshin's strength is clear.
- It has a distinct undervalued profile in that the share price is low relative to assets and earnings.
- Points to watch alongside are that top-line growth has stalled and that, with the interest coverage ratio near 1x, the financial burden only lightens if the earnings recovery keeps going.
- In sum, this is a stock in which low valuation works as a strength during phases where margin improvement and new orders sustain the earnings recovery, and, conversely, the top-line slowdown stands out as a weakness during phases where cooling sales and orders let the revenue decline spread into earnings.
🔎 Valuation vs peers Undervalued
A peer set of construction companies with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jinheung Enterprise | — | 0.50x | -11.78% |
| Dongbu Construction | 3.11x | 0.29x | 9.31% |
| Kumho E&C | 10.09x | 2.60x | 25.79% |
The primary reference was a public-data peer set within construction with close market capitalization. The current P/E (how many times a year's earnings the share price is) is 2.16x, and the P/B (how many times book value the share price is) is 0.15x. That said, for smaller-cap stocks, earnings volatility and financing disclosures carry heavy weight, so the conclusion was not drawn from last year's confirmed-results metrics 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 | ₩1.1 trillion | ₩68.9 billion | ₩144.3 billion |
| Next quarter | Q2 2026 | ₩275.0 billion | ₩20.2 billion | ₩5.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩11,180 and the market capitalization is ₩129.4 billion. The price sits above its 20-day moving average (₩10,758) and below its 60-day moving average (₩12,678). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is +11.0%, the three-month change is -24.5%, and the position relative to the 52-week high is -36.9%. Relative strength versus the KOSPI is 47 (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 47% of all stocks. Over the past three months it lagged the index by 47.1%. 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 -47.10% / 6M -32.96% / 12M -44.76%
Key metrics vs sector median
Valuation
The P/E of 2.16x is below the sector median (8.02x). The P/B of 0.15x is below the sector median (0.50x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.1%, in line with the sector average (7.0%). The operating margin is 5.6%. The debt ratio is 163.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $867.6M | $987.8M | $761.7M | -22.90% ↓ slower |
| Operating profit | $9.8M | $24.7M | $42.8M | +73.19% ↓ slower |
| Net profit | $21.1M | $4.5M | $39.7M | +772.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $869.0M | $809.6M | $867.6M | $987.8M | $761.7M |
| Operating profit | $29.6M | $26.1M | $9.8M | $24.7M | $42.8M |
| Net profit | $32.1M | $30.1M | $21.1M | $4.5M | $39.7M |
| Revenue CAGR | 4-yr avg -3.24% | ||||
Revenue fell 22.9% year over year (2023 ₩1.3 trillion → 2024 ₩1.5 trillion → 2025 ₩1.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 73.2% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.2%. The two-year revenue CAGR is -6.3%. In the most recent quarter (Q1 2026), revenue was 17.1% 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.
Points to watch
- Revenue fell 22.9% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-12Contract[Amended] Single sale/supply contract signed: contract amount ₩127.5 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable deal separates the medium-term reading. Source
- 2026-05-08Contract[Amended] Single sale/supply contract signed: contract amount ₩66.3 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable deal separates the medium-term reading. Source
- 2026-04-28Contract[Amended] Single sale/supply contract signed: contract amount ₩78.9 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable deal separates the medium-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩11,180 | ₩11,180 | Confirmed | link |
| Latest quarterly results | revenue ₩252.4 billion, operating profit ₩19.3 billion | revenue ₩252.4 billion, operating profit ₩19.3 billion | Confirmed | link |
| Annual results | revenue ₩1.1 trillion, operating profit ₩64.5 billion | revenue ₩1.1 trillion, operating profit ₩64.5 billion | Confirmed | link |
| Contract disclosure original text | []ㆍapprox. : approx. ₩127.5 billion | []ㆍapprox. : approx. ₩127.5 billion | Confirmed | link |
| Contract disclosure original text | []ㆍapprox. : approx. ₩66.3 billion | []ㆍapprox. : approx. ₩66.3 billion | Confirmed | link |
| Contract disclosure original text | []ㆍapprox. : approx. ₩78.9 billion | []ㆍapprox. : approx. ₩78.9 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-10OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Single supply/sales contract (amended)
- 2026-04-28Single supply/sales contract (amended)
- 2026-04-28Single supply/sales contract
- 2026-04-23Single supply/sales contract (amended)
- 2026-04-23Single supply/sales contract (amended)
- 2026-04-09Single supply/sales contract
- 2026-04-09Single supply/sales contract (amended)
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-30Single supply/sales contract (amended)
📖 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.