Dongbu Construction is a mid-tier builder that constructs residential projects such as apartments and officetels, civil works including roads and bridges, and industrial plants. Because it wins projects from clients and recognizes revenue as construction progresses, its results are driven by the size and duration of its order backlog and new contracts. With a market capitalization of ₩141.1 billion, it is a small-cap in which individual contract disclosures move revenue and profit relatively meaningfully. Through June 2026, single-supply contracts worth ₩248.9 billion, ₩169.1 billion, and ₩106.6 billion were disclosed in succession, and the resulting build-up in backlog has been aligned with a recovery in the top line. What stands out lately is that as long as orders keep filling and profitability holds in the black, the appeal of an undervalued, high-yield profile stands out — a P/E of 2.7x, P/B of 0.25x, ROE of 9.3%, and a 4.9% dividend. At the same time, a debt-to-equity ratio of 300.8% leaves limited financial headroom, and operating profit varies from quarter to quarter, so if the work proves one-off or quarterly earnings wobble again, that appeal may take time to be reflected.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 300.8%).
- Revenue rose 4.2% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 4.4% higher than a year earlier.
- ROE is 9.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.4%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Keystone Ecoprime 56.22% (corporate)
Controlling bloc incl. related parties 56.22%
With the controlling bloc holding 56%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dongbu Construction is a mid-tier builder that constructs residential projects such as apartments and officetels, civil works including roads and bridges, and industrial plants.
- Because it wins projects from clients and recognizes revenue in step with construction progress, its future results hinge on the order backlog it holds and the size and duration of the contracts it newly wins.
- As a small-cap with a market capitalization of ₩141.1 billion, it is worth watching not only the flow of the business itself but also how each contract disclosure feeds through to revenue and profit, which can be relatively large.
- The most recent close is ₩7,090, with a market capitalization of ₩162.7 billion.
- The price sits above its 20-day line (₩6,630) and below its 60-day line (₩7,643).
- The short- and medium-term trends diverge, so direction should be read separately.
- The RSI (a supplementary indicator that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 53.6, a neutral level.
- The one-month change is +16.0%, the three-month change is -11.3%, and the position versus the 52-week high is -31.0%.
- Relative strength versus the KOSPI is 47 (1-99, converted from returns against the index over the past year with more weight on recent performance; 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 36.9%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Recent annual revenue is ₩1.8 trillion, with operating profit of ₩42.6 billion and net profit of ₩52.2 billion.
- The operating margin of 2.4% is not thick, as is typical of construction, but ROE (how much is earned in a year on shareholders' equity) of 9.3% is above the peer average.
- A P/E (how many times a year's earnings the price represents) of 3.11x and a P/B (how many times book value the price represents) of 0.29x look low on the surface, but this is better read not as a burden but as the price not yet catching up to earnings at an inflection point where profit has just turned from loss to gain.
- Trading at a quarter of asset value and at only 2-3 times earnings, the signal of undervaluation is clear on both the earnings and the asset side.
- The debt-to-equity ratio (debt relative to shareholders' equity) of 300.8% is on the high side, but construction inherently carries high leverage from items such as advances received and construction receivables, and a current ratio of 131% shows short-term payment ability is being maintained.
- Revenue moved from ₩1.9 trillion in 2023 through ₩1.69 trillion in 2024 to ₩1.76 trillion in 2025, entering a recovery, and the most important change is the turn in the bottom line.
- Net profit swung from a ₩106.5 billion loss in 2024 to a ₩52.2 billion profit in 2025 (a turnaround), and operating profit normalized from a loss to ₩42.6 billion.
- First-quarter 2026 revenue of ₩434.6 billion rose 4.4% year over year, extending the top-line recovery.
- Operating profit of around ₩44.9 billion looks achievable this year, and this figure is not a vague extrapolation but is backed by a run of large orders won in 2026.
- In June alone, supply and construction contracts worth ₩248.9 billion, ₩169.1 billion, and ₩106.6 billion were confirmed, and this is work that will be recognized as revenue as construction progresses.
- The fact that first-quarter operating profit was -32.6% year over year stems from quarter-to-quarter variation in progress recognition and is hard to read as a signal that the profitable trend itself has wavered.
- The multi-year trend reads as a phase in which escaping losses and recovering the top line are proceeding at the same time.
- Through June 2026, large-contract disclosures came out one after another.
- Single-supply contracts of ₩248.9 billion on June 2, ₩169.1 billion on June 9, and ₩106.6 billion on June 17 (including corrected filings) were disclosed.
- The contract amount and performance period are key clues that connect directly to future revenue recognition, and whether this work stays one-off or leads to repeat orders will shape the medium-term earnings picture.
- This build-up in backlog is aligned with the top-line recovery phase.
- Dongbu Construction's strengths are clear.
- Having just turned from loss to profit, sitting at a cheap spot versus peers on both earnings and assets with a P/E of 2.7x and P/B of 0.25x, an ROE of 9.3% above the peer average signaling capital efficiency, and on top of that a dividend reaching 4.9% — the undervaluation appeal is distinct.
- June's string of large orders adds weight to this year's earnings picture.
- Points to watch alongside this are that a debt-to-equity ratio of 300.8% leaves limited financial headroom, that operating profit varies by quarter, and whether new contracts lead to repeat orders.
- In short, as long as orders keep filling and profitability holds in the black, the undervalued, high-yield strengths come alive; conversely, if the work stays one-off or quarterly earnings wobble again, that appeal may be reflected only slowly.
🔎 Valuation vs peers Undervalued
A comparison set of construction names with nearby market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumho E&C | 10.09x | 2.60x | 25.79% |
| Hanshin Engineering & Construction | 2.16x | 0.15x | 7.15% |
| Jinheung Enterprise | — | 0.50x | -11.78% |
We looked first at a public-data comparison set of construction names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 3.11x, and the P/B (how many times book value the price represents) is 0.29x. That said, lower-market-cap names are heavily 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 | ₩1.9 trillion | ₩44.9 billion | — |
| Next quarter | Q2 2026 | ₩469.3 billion | ₩6.2 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩7,090 and the market capitalization is ₩162.7 billion. The price sits above its 20-day moving average (₩6,630) and below its 60-day moving average (₩7,643). 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 53.6, a neutral level. The one-month change is +16.0%, the three-month change is -11.3%, and the position relative to the 52-week high is -31.0%. 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 36.9%. 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 -36.91% / 6M -20.29% / 12M -44.10%
Key metrics vs sector median
Valuation
The P/E of 3.11x is below the sector median (8.02x). The P/B of 0.29x is below the sector median (0.50x). 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.
Profitability & financials
Return on equity (ROE) is 9.3%, above the sector average (7.0%). The operating margin is 2.4%. The debt ratio is 300.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.1B | $1.2B | +4.16% ↑ faster |
| Operating profit | $20.0M | -$64.2M | $28.3M | — |
| Net profit | -$2.9M | -$70.6M | $34.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $758.8M | $968.5M | $1.3B | $1.1B | $1.2B |
| Operating profit | $40.6M | $27.3M | $20.0M | -$64.2M | $28.3M |
| Net profit | $77.6M | $26.6M | -$2.9M | -$70.6M | $34.6M |
| Revenue CAGR | 4-yr avg 11.33% | ||||
Revenue rose 4.2% year over year (2023 ₩1.9 trillion → 2024 ₩1.7 trillion → 2025 ₩1.8 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.3%. The two-year revenue CAGR is -3.8%. In the most recent quarter (Q1 2026), revenue was 4.4% higher 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 4.2%, is on the high side.
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
- 2026-06-17Contract[Corrected] Single supply contract signed: contract amount ₩106.6 billionThe contract amount and period are key to future revenue recognition. Whether this is a one-off or a repeatable transaction shapes the medium-term read. Source
- 2026-06-09Contract[Corrected] Single supply contract signed: contract amount ₩169.1 billionThe contract amount and period are key to future revenue recognition. Whether this is a one-off or a repeatable transaction shapes the medium-term read. Source
- 2026-06-02Contract[Corrected] Single supply contract signed: contract amount ₩248.9 billionThe contract amount and period are key to future revenue recognition. Whether this is a one-off or a repeatable transaction shapes the medium-term read. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,090 | ₩7,090 | Confirmed | link |
| Latest quarterly results | revenue ₩434.6 billion, operating profit ₩10.1 billion | revenue ₩434.6 billion, operating profit ₩10.1 billion | Confirmed | link |
| Annual results | revenue ₩1.8 trillion, operating profit ₩42.6 billion | revenue ₩1.8 trillion, operating profit ₩42.6 billion | Confirmed | link |
| Original contract disclosure text | []ㆍapprox. : approx. ₩106.6 billion | []ㆍapprox. : approx. ₩106.6 billion | Confirmed | link |
| Original contract disclosure text | []ㆍapprox. : approx. ₩169.1 billion | []ㆍapprox. : approx. ₩169.1 billion | Confirmed | link |
| Original contract disclosure text | []ㆍapprox. : approx. ₩248.9 billion | []ㆍapprox. : approx. ₩248.9 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-09Single supply/sales contract (amended)
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-02Single supply/sales contract (amended)
- 2026-06-01Corporate governance report
- 2026-05-29Single supply/sales contract
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-19Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Litigation disclosure
- 2026-04-30Single supply/sales contract
- 2026-04-28Single supply/sales contract
- 2026-04-24Paid-in capital increase
📖 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.