Sungwon T&D earns money by operating its own real estate directly, with most of its revenue coming from 'Dragon City,' the country's largest hotel complex, with about 1,700 rooms next to Yongsan Station in Seoul (tourist hotels were about 74% of revenue in Q1 2025), rounded out by leasing at the 'Square One' mixed-use shopping mall in Songdo, Incheon (about 19%) and a real-estate development business. In June 2026 it decided to cancel treasury shares and maintained its dividend (₩100 per share), while amended disclosures on a share-pledge agreement that could entail a change in the largest shareholder, and reports of changes in major-shareholder holdings, followed. What stands out now is that Dragon City's irreplaceable location steadily generates cash, operating profit has improved for five straight years, and the benefit of an inbound-tourism recovery, an asset undervaluation at a P/B of 0.62x, and a commitment to canceling treasury shares are strengths; on the other hand, a 306.8% debt ratio and a 1.18x interest coverage ratio make net profit sensitive to interest rates, net profit is swayed by investment-property revaluation gains, and the pledge on the major shareholder's stake bears watching.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 306.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 46.6%).
- Revenue rose 37.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 48.3% higher than a year earlier.
- ROE is 7.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 28.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2022-12-31
Largest shareholder MYH 18.92% (corporate)
Controlling bloc incl. related parties 52.67%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Sungwon T&D earns money by operating its own real estate directly.
- Most of its revenue comes from 'Dragon City' next to Yongsan Station in Seoul.
- Dragon City is the country's largest hotel complex, with about 1,700 rooms, and as of Q1 2025 tourist hotels accounted for about 74% of total revenue.
- The second axis is the leasing business at the 'Square One' mixed-use shopping mall in Songdo, Incheon, which contributes about 19% of revenue.
- On top of that, it adds a developer (real-estate development) business developing sites such as a large commercial plot in Sinjeong-dong, Seoul, and the Najin arcade site, forming a structure that pursues both operating income and development gains.
- The latest close is ₩10,300 and market capitalization is ₩662.1 billion.
- The price sits below the 20-day line (₩10,328) and below the 60-day line (₩11,999).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the last 14 days on a 0-100 scale) is 46.5, a neutral level.
- The one-month change is -9.7%, the three-month change is -20.7%, and the position versus the 52-week high is -44.6%.
- Relative strength versus the KOSDAQ is 73 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 26% of all stocks by strength.
- Over the last three months it led the index by 7.0%.
- Chart readings are best viewed alongside trading volume and the dates on which disclosures occur.
- On the valuation metrics alone, the undervaluation signal is strong.
- The P/E ratio (how many times one year's earnings the price represents) is 8.45x, and the P/B (how many times book equity the price represents) is 0.63x, so the shares trade below book equity.
- The low P/B is especially important.
- Prime real estate such as the Dragon City site and the Sinjeong-dong commercial plot is carried on the books at low acquisition cost, so actual asset value may be larger than book.
- Profitability is solid.
- The operating margin is 28.3%, high as is characteristic of the leasing and hotel business.
- That said, the financial burden is clear.
- The debt ratio (debt relative to equity) is high at 306.8%, and the interest coverage ratio (how many times operating profit covers interest cost) is only 1.18x, so a large share of operating profit goes out as interest.
- On a cash-flow basis the picture shifts a little.
- The FCF yield (the ratio of cash actually generated to market cap) is high at 15.9%, so apart from swings in accounting profit, cash is being generated steadily.
- On the other hand, EV/EBIT (debt-inclusive enterprise value divided by operating profit) is 27.5x, so adding roughly ₩1.2726 trillion of net borrowings makes the burden look heavier than the P/E alone suggests.
- This is an asset stock with a lot of debt, and both sides have to be viewed together.
- Top line and operating profit are on a clear growth trend.
- Revenue grew from ₩96.7 billion in 2021 to ₩248.3 billion in 2025, rising 37.2% in 2025 from the prior year.
- Operating profit climbed a step each year, from a loss (-₩5.3 billion) in 2021 to ₩19.2 billion in 2022, ₩37.2 billion in 2023, ₩48.1 billion in 2024, and ₩70.3 billion in 2025.
- This is an operating-leverage effect as the hotels matured, room occupancy and average rates rose, and leasing revenue accumulated.
- In Q1 2026 the trend continued, with revenue up 48.3% and operating profit up 37.3% year on year.
- The inbound (foreign) tourism recovery is underpinning hotel occupancy.
- That said, the net-profit trend has a different texture.
- Net profit spiked to ₩138.3 billion in 2023, then swung around to ₩34.4 billion in 2024 and ₩79.1 billion in 2025.
- This is because year-end investment-property revaluation gains (an accounting revaluation item with no cash changing hands) and high interest costs heavily sway net profit.
- So it is hard to pin this year's net profit to a single number.
- Instead, the operating-profit trajectory and cash-generating power more accurately show this company's underlying growth.
- Two threads stand out among recent disclosures.
- One is shareholder returns.
- In June 2026 it decided to cancel treasury shares, a measure to raise per-share value by eliminating treasury stock it holds.
- On top of that it is maintaining a dividend (₩100 per share), small though it is.
- The other is a governance matter.
- Amended disclosures related to a share-pledge agreement that could entail a change in the largest shareholder, and reports of changes in major-shareholder holdings, followed.
- This is a financial event at the level of the major shareholder, separate from the company's own operations, and a point to watch from the standpoint of governance stability.
- Beyond this, the filing of the quarterly report carrying regular results and the holding of an investor briefing (IR) followed.
- Strengths and cautions divide clearly.
- There are three strengths.
- First, the hotel at Yongsan's Dragon City, an irreplaceable location, steadily generates cash.
- Second, operating profit has improved for five straight years, benefiting from the inbound-tourism recovery.
- Third, its owned real estate is carried on the books at cost, giving it an undervaluation appeal versus asset value at a P/B of 0.62x, and the treasury-share cancellation confirmed a commitment to shareholder returns.
- The cautions are just as clear.
- With a 306.8% debt ratio and a 1.18x interest coverage ratio, financial leverage is high, making net profit sensitive to the direction of interest rates.
- Because net profit is swayed by investment-property revaluation gains, the P/E in a given year can look better or worse than actual earnings power, so rather than concluding from the P/E alone, viewing the operating-profit trend, FCF yield, and asset value (P/B) together is the perspective that fits this company.
- The progress of the pledge on the major shareholder's stake also needs to be confirmed alongside.
🔎 Valuation vs peers Undervalued
Listed comparison names were referenced from the perspective of viewing hotel, tourism, and leisure operations together. That said, Sungwon T&D has a strong asset-stock character, owning and operating its own real estate and even developing it, so the axis on which its value is viewed differs from that of pure operators.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hotel Shilla | 0.00x | 1.74x | -15.63% |
| Hana Tour | 15.08x | 3.26x | 21.62% |
Several metrics point to undervaluation. A P/B of 0.62x is below the comparison names (Hotel Shilla 1.78x, Hana Tour 3.36x) and below book equity itself. Given the reality that this is a company laying out a lot of assets and generating leasing and hotel cash flow, the P/B and FCF yield (15.9%) explain this company better than the P/E. The trailing P/E of 8.4x is hard to apply directly to the future because investment-property revaluation gains are mixed into 2025 net profit. Since this is a stock with large earnings swings, it is more appropriate to view it by asset value and the operating-profit trend than by any single year's P/E. High financial leverage means interest-rate and borrowing pressure act as a discount factor, but taking together the price relative to book equity and the cash-generating power, the judgment is that it sits in undervalued territory on an asset-value basis.
Price history Close · MA20 · MA60
The latest close is ₩10,300 and the market capitalization is ₩662.1 billion. The price sits below its 20-day moving average (₩10,328) and below its 60-day moving average (₩11,999). 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 46.5, a neutral level. The one-month change is -9.7%, the three-month change is -20.7%, and the position relative to the 52-week high is -44.6%. Relative strength versus the KOSDAQ is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 7.0%. 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 +7.02% / 6M +0.25% / 12M +7.99%
Key metrics vs whole-market median
Valuation
The P/E of 8.45x is below the whole-market median (13.81x). The P/B of 0.63x is below the whole-market median (1.15x). 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, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.5%, above the whole-market average (5.0%). The operating margin is 28.3%. The debt ratio is 306.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $107.3M | $119.9M | $164.6M | +37.24% ↑ faster |
| Operating profit | $24.6M | $31.8M | $46.6M | +46.38% ↑ faster |
| Net profit | $91.7M | $22.8M | $52.4M | +130.32% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $64.1M | $89.7M | $107.3M | $119.9M | $164.6M |
| Operating profit | -$3.5M | $12.7M | $24.6M | $31.8M | $46.6M |
| Net profit | $26.7M | $11.1M | $91.7M | $22.8M | $52.4M |
| Revenue CAGR | 4-yr avg 26.58% | ||||
Revenue rose 37.2% year over year (2023 ₩161.9 billion → 2024 ₩180.9 billion → 2025 ₩248.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 46.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 26.6%. The two-year revenue CAGR is 23.8%. In the most recent quarter (Q1 2026), revenue was 48.3% 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.
- Revenue grew 37.2% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 306.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 46.6%).
Recent news & events searched · sourced
- 2026-06-10FilingDecided to cancel treasury shares. A shareholder-return measure that reduces shares outstanding by canceling treasury stock held.In the direction of raising per-share net assets and earnings interest, read as a shareholder-return signal for an undervalued asset stock. Source
- 2026-06-08UpdateAn amended disclosure emerged related to a share-pledge agreement that could entail a change in the largest shareholder. A financial event in which the major shareholder pledged part of its holdings as collateral.A governance matter separate from the company's operations, a matter to watch for progress from the standpoint of largest-shareholder stability. Source
- 2026-05-15EarningsFiled the Q1 2026 quarterly report. Revenue rose 48.3% and operating profit rose 37.3% year on year.Confirms that the top-line and operating-profit growth trend in the core hotel and leasing business is continuing. Source
- 2026-05-19IRHeld an investor briefing (IR). A venue to explain business conditions and results directly to the market.A communication channel to inform investors of hotel growth and development-business progress, positive from the standpoint of information access. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue (consolidated) | ₩248.3 billion | ₩248.3 billion | Confirmed | link |
| Q1 2026 revenue and operating-profit growth rates | revenue +48.3%, operating profit +37.3% | revenue +48.3%, operating profit +37.3% | Confirmed | link |
| Whether treasury-share cancellation was decided | 2026-06-10 | — | Confirmed | link |
| 2026 net-profit outlook | — | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-08OwnershipLargest-shareholder ownership change report (amended)
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-11OwnershipLargest-shareholder ownership change report (amended)
- 2026-04-23Disclosure
- 2026-03-27OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
📖 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.