Dongwon Development is a Busan-based builder founded in 1978, with two revenue pillars: its own projects, in which it builds and sells 'Dongwon Royal Duke' apartments directly, and public and government contract construction. A large share of revenue comes from the Busan and South Gyeongsang housing market, tying results directly to the regional housing cycle. In June it won successive public-housing contracts from Busan Metropolitan Corporation totaling about ₩231.5 billion (about 60% of 2025 revenue), refilling a shrinking order book, and in March it disclosed high-dividend-company status (2025 payout ratio 30.34%) while buying back its own shares from early in the year, pursuing shareholder returns in parallel. What stands out lately is a deep discount at 0.18x net assets, roughly 4% dividend plus buybacks, thick financial stability with a current ratio of 357% and interest coverage of 86.7x, and large orders that have refilled its workload to support the downside; against that, the core top line has shrunk for three straight years so ROE is a low 2.5%, and results are heavily swayed by the Busan and South Gyeongsang housing cycle.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 25.6% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 18.0% lower than a year earlier.
- ROE is 2.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.4%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Jang Ho-ik 16.64% (individual)
Controlling bloc incl. related parties 65.78%
With the controlling bloc holding 66%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dongwon Development is a Busan-based builder founded in 1978, with two revenue pillars: housing construction (its own projects), in which it builds and sells apartments such as 'Dongwon Royal Duke' directly, and public and government contract construction.
- Own-project revenue comes from buying land, putting up apartments and selling them to the general public, while contract revenue is recognized in step with construction progress (billing) on projects won from clients such as Busan Metropolitan Corporation.
- By the nature of the business it is exposed to the housing cycle and unsold inventory, but the company runs conservative finances with about ₩1.5 trillion of assets and a large cash cushion (current ratio 357%), keeping borrowing dependence low.
- A large share of revenue comes from the Busan and South Gyeongsang housing market, so it is more directly tied to a specific region's cycle than nationwide major builders.
- The latest close is ₩2,460 and the market cap is ₩223.4 billion.
- The price sits above its 20-day line (₩2,395) and below its 60-day line (₩2,568).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 49.6, a neutral level.
- The price is up 7.9% over one month and down 11.2% over three months, and stands 30.4% below its 52-week high.
- Relative strength versus the KOSDAQ is 70 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 30% of all stocks by strength.
- Over the past three months it has outpaced the index by 11.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The P/E (how many times one year's profit the share price is) is 8.54x and the P/B (how many times the company's net assets) is 0.21x.
- A P/B of 0.18x means the share price is set below one-fifth of the company's net assets, a very deep discount on an asset basis.
- The dividend yield is about 3.9%, above the industry average, and with a debt ratio of 140% (low for construction), interest coverage of 86.7x and a current ratio of 357%, near-term liquidity is very ample.
- The ROE (how much is earned on equity in a year) is a still-low 2.5%, meaning that with thick assets, the profit those assets generate has not yet fully revived — early in a recovery.
- The key point here is that the P/E of 7.46x is on a 'last year's confirmed profit' (trailing) basis.
- In a phase where profit is turning up, the forward P/E on this year's expected profit is more accurate than last year's number, and Dongwon Development's forward P/E is lower than the trailing figure.
- That amounts to expecting this year's profit to exceed last year's, so there is no basis to call it expensive on the trailing number alone.
- Revenue fell for three straight years, ₩736.6 billion (2023) → ₩520.4 billion (2024) → ₩387.3 billion (2025), but the decline is easing, narrowing from -29.4% to -25.6%.
- While the top line contracted through a cycle of subdued sales and starts, profit turned direction first.
- Net profit in 2025 was ₩26.2 billion, up 42.8% year over year, and in Q1 2026, even with revenue down 18%, operating profit rose 20.6% and net profit 5.1%, clearly improving margins.
- This pattern of an easing revenue decline and rising margins is why this year's forward P/E is lower than last year's trailing (i.e., profit rising).
- In other words, the forward number reflects the margin improvement and revenue slowdown actually confirmed in Q1, not a mechanical extension of the top-line weakness or an inflated single quarter.
- On top of that, three new Busan public-housing contracts in June (totaling about ₩231.5 billion, or 60% of last year's revenue) refilled a shrinking workload, reinforcing a revenue base to be recognized as billing over the coming years.
- Recent filings have three key points.
- First, in June 2026 the company won, in succession, the West Busan Administrative Complex Town (₩72.4 billion) and Eco Delta City 1BL (₩94.7 billion) and 3BL (₩64.4 billion) public-housing projects from Busan Metropolitan Corporation, securing about ₩231.5 billion (about 60% of 2025 revenue) of new work.
- All are consortium-stake amounts, forming a medium-term revenue base that refills a shrinking order backlog.
- Second, in its March 'corporate value-up plan' the company disclosed that it qualifies as a high-dividend company under the Restriction of Special Taxation Act, and stated it would maintain a stable and sustainable dividend within distributable profit (2025 payout ratio 30.34%, dividend of ₩8.03 billion, up 10.57% year over year).
- Third, from early in the year it has been buying back its own shares through a trust (at around ₩2,900-3,000 per share in January-February), pursuing shareholder returns in parallel.
- The strengths are clear: a deep discount at 0.18x net assets, shareholder returns combining a roughly 4% dividend with buybacks, thick cash and financial stability with a current ratio of 357% and interest coverage of 86.7x, and a refilled workload from large June Busan public-housing orders.
- On top of this, even as revenue fell, Q1 operating profit rose and margins turned up, and the valuation on this year's expected profit (forward) has become cheaper than last year's.
- The cautions to watch are that the core top line has shrunk for three straight years so ROE is a still-low 2.5%, and that revenue and profit are heavily swayed by the Busan and South Gyeongsang housing cycle.
- In short, this is a structure where thick assets, cash and a high dividend support the downside while margins recover first; it is strong if the regional housing cycle revives and new orders convert into billing profit, and if the Busan-area sales slump drags on, the top-line recovery is delayed accordingly.
🔎 Valuation vs peers Fairly valued
Centered on mid-sized builders smaller than nationwide majors with a high weight of housing construction and public contracts; Keryong Construction and Kumho Construction, with similar low-P/B, high-dividend profiles, are the primary peer set, and large housing builder DL E&C is a reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Keryong Construction | 1.74x | 0.18x | 10.57% |
| Kumho E&C | 10.09x | 2.60x | 25.79% |
| DL E&C | 6.47x | 0.46x | 7.06% |
A P/B of 0.20x is the lowest on an asset basis even against the peer set (similar to Keryong's 0.19x, below Kumho and DL), so on asset value it is undervalued. The P/E of 7.96x, however, is higher than the peers (Keryong 1.78x, Kumho 2.57x), not because Dongwon Development is expensive but because the denominator, 2025 profit, is depressed by falling revenue and ROE is a low 2.5%. That is, assets are cheap but the profit those assets generate is still thin, a discount factor on an earnings basis. If the Q1 margin recovery and new orders convert into core profit (with the forward P/E moving lower than trailing), the earnings-side discount has room to narrow, so overall we view it as a fairly valued zone of 'assets undervalued, earnings power needs confirmation of recovery.'
Price history Close · MA20 · MA60
The latest close is ₩2,460 and the market capitalization is ₩223.4 billion. The price sits above its 20-day moving average (₩2,395) and below its 60-day moving average (₩2,568). 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 49.6, a neutral level. The one-month change is +7.9%, the three-month change is -11.2%, and the position relative to the 52-week high is -30.4%. Relative strength versus the KOSDAQ is 70 (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 70% of all stocks. Over the past three months it outpaced the index by 11.6%. 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 +11.62% / 6M +8.10% / 12M -15.68%
Key metrics vs sector median
Valuation
The P/E of 8.54x is in line with the sector median (8.02x). The P/B of 0.21x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.5%, below the sector average (7.0%). The operating margin is 4.4%. The debt ratio is 140.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $488.2M | $344.9M | $256.7M | -25.56% ↑ faster |
| Operating profit | $19.9M | $13.9M | $11.3M | -18.63% ↑ faster |
| Net profit | $28.2M | $12.1M | $17.3M | +42.77% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $278.9M | $385.4M | $488.2M | $344.9M | $256.7M |
| Operating profit | $66.7M | $55.6M | $19.9M | $13.9M | $11.3M |
| Net profit | $49.9M | $44.3M | $28.2M | $12.1M | $17.3M |
| Revenue CAGR | 4-yr avg -2.05% | ||||
Revenue fell 25.6% year over year (2023 ₩736.6 billion → 2024 ₩520.4 billion → 2025 ₩387.3 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 18.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.1%. The two-year revenue CAGR is -27.5%. In the most recent quarter (Q1 2026), revenue was 18.0% 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 3.7%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 25.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-08UpdateWon the Eco Delta City 1BL private-participation public-sale housing project ordered by Busan Metropolitan Corporation; contract value ₩94.7 billion (24.45% of 2025 revenue, reflecting a 25% stake); construction period 2026-06-05 to 2031-10-31Expands the medium-term order backlog. It reinforces a shrinking contract-revenue base, forming a foundation for billing recognition over the coming years. Source
- 2026-06-08UpdateWon the West Busan Administrative Complex Town construction, contract value ₩72.4 billion (18.68% of 2025 revenue, reflecting a 25% stake); construction period 2026-06-19 to 2030-03-02 / simultaneously won Eco Delta City 3BL public housing ₩64.4 billion (16.64%, 45% stake)Three contracts from the same client (Busan Metropolitan Corporation) totaling about ₩231.5 billion secure new work equal to 60% of annual revenue. Source
- 2026-03-27DividendCorporate value-up plan (voluntary disclosure): qualifies as a high-dividend company under the Restriction of Special Taxation Act; 2025 payout ratio 30.34%, dividend ₩8.03 billion (up 10.57% year over year); intent to maintain a stable and sustainable dividend within distributable profitCodifies the shareholder-return policy. It is the company's official stance to keep the dividend footing steady even through earnings swings. Source
- 2026-04-23FilingReport on treasury-share acquisition via trust: through a Daishin Securities trust (signed 2026-01-19), treasury common shares were bought back in January-February (at around ₩2,900-3,000 per share)Executes shareholder returns through buybacks. A factor in managing free float and supporting the share price on the downside. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08Single supply/sales contract
- 2026-06-08Single supply/sales contract
- 2026-06-08Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOwnership-change filing
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-06OwnershipOwnership-change filing
- 2026-04-23Disclosure
- 2026-03-31Disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
📖 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.