IS Dongseo (010780) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
IS Dongseo is a diversified company that earns money across four pillars: construction, which builds and sells apartments and logistics facilities; concrete products such as sewer pipes and precast; the environment business (incineration, landfill, recycling) centered on its listed subsidiary Insun ENT; and recycling that extracts lithium, nickel, and cobalt from spent batteries. Though classified as a cement company, in reality construction and the environment make up most of its revenue. On May 13 it disclosed its Q1 quarterly report and investor presentations, on May 11 a single sales and supply contract, and the several large-holding reports filed from April to June appear tied to subsidiary restructuring such as unwinding its stake in Koentec. The notable point of late is that its strengths lie in a low valuation trading at half of net asset value, a 2.1% dividend, a diversified business structure, and a core business that has swung back to profit, while a debt ratio of 177.9% is a heavy financial burden, construction profit swings sharply with project delivery timing, and a large part of Q1 net profit was the one-off factor of unwinding a subsidiary stake.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Building Materials” (Construction & Building Materials), a type typically read first through P/E.
Building-materials makers see results rise and fall with construction activity and new project starts, but the underlying make-and-sell profit structure is fairly clear. That makes price-to-earnings (P/E) — the share price against the profits earned — the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 18.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 46.1% higher than a year earlier.
- ROE is 7.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.2%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder IS Jiju 45.53% (corporate)
Controlling bloc incl. related parties 55.9%
With the controlling bloc holding 56%, control is very secure but the free float is thin.
Net asset value (NAV) assessment
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Insun ENT | 44.97% |
🔎 In-depth analysis Reading
IS Dongseo earns money not from a single business but across four pillars. First is construction. It builds and sells apartments, officetels, and logistics facilities directly to generate revenue. Second is concrete. It makes and sells sewer pipes, precast (pre-manufactured) concrete, and non-metallic building materials. Third is the environment. It collects construction and end-of-life-vehicle waste for incineration, landfill, and recycling, with listed subsidiary Insun ENT at the core of this business. Fourth is spent-battery recycling. This new business extracts metals such as lithium, nickel, and cobalt from used batteries from scrapyards and sells them back as raw materials. In other words, although it is classified as a cement company, in reality it is a diversified firm where construction and the environment account for most of its revenue.
The latest close is ₩19,470 and the market capitalization is ₩587.7 billion. The price sits above its 20-day moving average (₩18,690) and below its 60-day moving average (₩23,328). 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 48.1, a neutral level. The one-month change is -11.1%, the three-month change is -22.1%, and the position relative to the 52-week high is -41.8%. Relative strength versus the KOSPI is 24 (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 24% of all stocks. Over the past three months it lagged the index by 8.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a net asset basis the valuation is clearly low. The P/B (price relative to net assets per share) is 0.42x, trading at about half of book net assets. Book value per share (BPS) is ₩41,216 while the price is ₩24,000. That said, this company often carries subsidiary stakes at low acquisition cost, so its actual asset value may be larger than the books show. In other words, even a P/B of 0.58x looks higher than the reality. Last year (2025) was a net loss, so the P/E ratio cannot be calculated. This is not because the company is doing badly but because it was an inflection point where profit bottomed and turned. The financial burden is a point to watch. The debt ratio (debt to equity) is 277.9%, on the high side, and last year's operating profit was barely enough to cover interest (an interest coverage ratio below 1x). Much of this is borrowing tied up in real estate development. Net debt (total borrowings minus cash, the effective debt) is about ₩1,138.1 billion. Still, actual cash generation is not bad. The FCF yield (the ratio of cash actually earned to market cap; higher means greater cash appeal) is 13.4%, quite high. The dividend yield is 2.1% (₩500 per share), on the high side within the construction peer group.
On the surface, the three-year revenue trend is a decline. Revenue fell from over ₩2 trillion in 2023 to ₩1,234.4 billion in 2025, and 2025 was a net loss. This was due to delayed construction sales and deliveries amid the real estate downturn. Yet the direction of profit shifted sharply in 2026. Q1 2026 revenue was ₩437.0 billion, up 46.1% versus the same period last year. Operating profit surged 265% to ₩118.1 billion. As delivery-based revenue from the Goyang Deokeun project was booked, the construction segment alone generated ₩93.2 billion of operating profit. Concrete swung from loss to profit on improved cost and product mix, and the spent-battery segment also earned ₩8.0 billion of operating profit on higher metal prices. Net profit of ₩154.5 billion includes a one-off gain (about ₩93.9 billion) from unwinding the stake in subsidiary Koentec, which does not recur each quarter. Even stripping out that one-off, the core business's swing to profit is clear. This year appears to be a phase where construction and the environment lift results together, with remaining projects such as the Gyeongsan sale in the second half a variable that will shape the profit flow.
First-half 2026 disclosures were a flow in which earnings improvement and governance/capital policy were confirmed together. On May 13, along with the Q1 quarterly report, it disclosed two investor presentations (IR) and explained the results directly. On May 11 it disclosed a single sales and supply contract, signaling that orders in its core construction and environment businesses continue. In early June it disclosed the corporate governance report and the status of the large business group. The several large-holding reports filed from April to June signal changes in the ownership structure, and appear tied to subsidiary restructuring such as unwinding the Koentec stake.
The strengths are clear: a low valuation trading at half of net asset value, a 2.1% dividend, and a business structure diversified across construction, concrete, the environment, and spent batteries. In 2026 the core business swung back to profit, and profit is rising off a bottom. This company is better assessed by the value of its holdings and subsidiary stakes than by an earnings P/E. The cautions must be weighed in balance too. A debt ratio of 177.9% is a heavy financial burden, and its capacity to service interest is tight. Construction profit swings sharply quarter to quarter with project delivery timing, so a good Q1 number does not carry through every quarter. A large part of Q1 net profit was the one-off factor of unwinding a subsidiary stake. In sum, if real estate and construction recover and sales go smoothly, the deep undervaluation relative to asset value stands out. Conversely, if sales delays and interest burdens combine, the high borrowing works as a weakness.
🔎 Valuation vs peers Undervalued
Because its business substance splits into construction, concrete, and the environment, it is contrasted with listed peers for each pillar: construction (GS E&C, DL E&C), concrete (Hanil Cement), and the environment (Insun ENT, its subsidiary and a listed firm).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DL E&C | 7.54x | 0.52x | 9.35% |
| GS E&C | 29.83x | 0.58x | 1.87% |
| Hanil Cement | 14.60x | 0.60x | 4.04% |
| Insun ENT | 0.00x | 0.44x | -3.54% |
Set side by side with construction peers (GS E&C at a P/B of 0.53, DL E&C at 0.47) and concrete (Hanil Cement at 0.55), IS Dongseo's P/B of 0.58x looks similar or slightly higher. But this company is not a pure builder; it is a diversified firm holding growth pillars in the environment and spent batteries plus stakes in a listed subsidiary. That last year's P/E could not be calculated was because it was an inflection point where profit bottomed, and given that the core business swung back to profit in 2026, it is not a heavily burdened spot even on an earnings basis. Above all, its subsidiary stakes are carried low on the books, so the actual net asset value is larger than the P/B implies. On balance, it is judged undervalued relative to asset value. That said, the high borrowing and the quarterly volatility of construction profit are weighed together as grounds for a discount.
Price history Close · MA20 · MA60
The latest close is ₩19,470 and the market capitalization is ₩587.7 billion. The price sits above its 20-day moving average (₩18,690) and below its 60-day moving average (₩23,328). 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 48.1, a neutral level. The one-month change is -11.1%, the three-month change is -22.1%, and the position relative to the 52-week high is -41.8%. Relative strength versus the KOSPI is 24 (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 24% of all stocks. Over the past three months it lagged the index by 8.8%. 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 -8.81% / 6M -31.97% / 12M -51.85%
Key metrics Computed vs sector median
Valuation
The P/B is 0.42x.
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 7.2%, above the sector average (2.0%). The operating margin is 11.2%. The debt ratio is 136.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.1B | $867.1M | -18.50% ↑ faster |
| Operating profit | $239.2M | $119.2M | $47.9M | -59.85% ↓ slower |
| Net profit | $113.2M | -$104.4M | -$37.8M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.6B | $1.4B | $1.1B | $867.1M |
| Operating profit | $218.3M | $242.4M | $239.2M | $119.2M | $47.9M |
| Net profit | $73.7M | $137.5M | $113.2M | -$104.4M | -$37.8M |
| Revenue CAGR | 4-yr avg -6.40% | ||||
Revenue fell 18.5% year over year (2023 ₩2.0 trillion → 2024 ₩1.5 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 59.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.4%. The two-year revenue CAGR is -22.0%. In the most recent quarter (Q1 2026), revenue was 46.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 18.5% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-13EarningsQ1 2026 quarterly report disclosed. Consolidated revenue of ₩437.0 billion (+46.1%), operating profit of ₩118.1 billion (+265%), net profit of ₩154.5 billion. Reflects construction delivery revenue, the concrete swing to profit, and improved spent-battery profit.Confirms the core business's swing to profit. That said, net profit includes a one-off gain from unwinding a subsidiary stake, so its recurrence needs judgment. Source
- 2026-05-13IRNotice of investor presentation (IR). Explained Q1 results and the progress of each segment (construction, concrete, environment, spent batteries) directly to investors.An event that reduces information asymmetry by disclosing the backdrop to the earnings improvement and the business structure through official channels. Source
- 2026-05-11UpdateSingle sales and supply contract disclosed. Confirms that orders in the core construction and environment businesses continue.A mid-term positive that contributes to sustaining and expanding the revenue base. Source
- 2026-06-01FilingCorporate governance report disclosed. Routinely discloses the state of governance such as board and shareholder policy.Routine information on governance transparency. Limited direct impact on results. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-02OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-13Disclosure
- 2026-05-13Disclosure
- 2026-05-13PeriodicQuarterly report
- 2026-05-11Single supply/sales contract
- 2026-05-08OwnershipOwnership-change filing
- 2026-04-17OwnershipOwnership-change filing
- 2026-04-07OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
📖 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.