Keryong Construction (013580) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Keryong Construction earns money from civil engineering such as roads and bridges, from building public offices and commercial facilities, and from a housing business that sells apartments. With a share of public-sector civil works ordered by the central and local governments, it is not swayed by private housing conditions alone, and the order backlog in hand shapes future results. Over the past month, single sale and supply contracts of ₩150.7 billion on June 5, ₩94.9 billion on June 10 and ₩81.4 billion on June 1 were confirmed one after another, and a construction company's contracts are recognized in installments over several years as work progresses. The notable point is that 2025 profit revived sharply, lifting profitability to an ROE of 10.6%, that its P/E and P/B are low versus peers, and that it steadily pays a dividend in the 3% range, all strengths. On the other hand, revenue itself is close to flat and the debt ratio is somewhat high, so it needs confirming how much the new orders actually translate into revenue and profit.
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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 “General Construction” (Construction & Building Materials · Construction & Real Estate), a type typically read first through P/B.
General construction recognizes profits unevenly depending on order intake and project timing, and it rides project cycles hard, so a single year's earnings is a shaky basis for value. Price-to-book (P/B) — the share price against net assets such as land and construction holdings — is steadier and less whipsawed by that swing.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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
- Debt is somewhat higher than equity (debt ratio 229.6%).
- Revenue fell 7.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.3% higher than a year earlier.
- ROE is 11.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2023-12-31
Largest shareholder Lee Seung-chan 22.86% (individual)
Controlling bloc incl. related parties 38.63%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis Reading
Keryong Construction earns money from civil-engineering works such as roads, bridges and site development, from building public offices and commercial facilities, and from a housing business that sells apartments directly. With a share of public-sector civil works ordered by the central and local governments, it has a structure that is not swayed by private housing conditions alone, and as an order-based industry in which revenue is recognized in installments as work progresses, the work in hand (order backlog) shapes future results. The market cap is not particularly large, so beyond the business itself, each new-order disclosure carries significant weight for future revenue.
The latest close is ₩20,150 and the market capitalization is ₩180.0 billion. The price sits above its 20-day moving average (₩18,860) and below its 60-day moving average (₩20,635). 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 53.5, a neutral level. The one-month change is -6.9%, the three-month change is -29.7%, and the position relative to the 52-week high is -33.2%. Relative strength versus the KOSPI is 28 (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 28% of all stocks. Over the past three months it lagged the index by 17.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Recent annual revenue is ₩2.9 trillion, with operating profit of ₩166.9 billion and net profit of ₩100.0 billion. The operating margin is 5.8% and ROE (a profitability metric showing how much is earned in a year on equity) is 10.6%, above the peer average. The debt ratio (debt relative to equity) is 236.2%, but this is not an unusual level given the nature of construction, where advance payments and accounts payable on projects are booked as liabilities, and an interest-coverage ratio of 5.8x means it has the capacity to bear the interest burden. A P/E (how many times a year's earnings the share price is worth) of 1.80x and a P/B (how many times book value the share price is worth) of 0.19x are very low on their face. That said, coming right after a large one-time jump in profit in 2025, the trailing P/E on past results comes out even lower, and the forward P/E reflecting this year's expected earnings is also below the peer median, so the picture of a share price that is cheap relative to earnings holds up.
Revenue has continued at a similar scale with little variation at ₩2.98 trillion in 2023, ₩3.13 trillion in 2024 and ₩2.89 trillion in 2025. Profit, by contrast, improved clearly. Operating profit rose about 91% from ₩87.1 billion in 2024 to ₩166.9 billion in 2025, and net profit more than doubled from ₩46.3 billion to ₩100.0 billion. As material-cost and cost burdens eased and the share of higher-margin sites rose, it is a textbook profitability-recovery phase in which profit revives even with revenue in place. This trend continued into 2026, with cumulative first-quarter revenue of ₩670.7 billion (up 0.3% from the same period a year earlier) showing little change while operating profit rose 31.1% to ₩40.8 billion and net profit rose 35.3% to ₩22.4 billion. This year's operating profit is estimated at around ₩155.1 billion, a figure derived by reflecting both the already-confirmed first-quarter results and the company's quarterly earnings pattern. With margin improvement continuing while revenue holds at a similar scale, there is a clear basis for this year's profit reaching this level.
Over the past month there was a string of single sale and supply contract disclosures. Contracts of ₩150.7 billion on June 5, ₩94.9 billion on June 10 (with a correction) and ₩81.4 billion on June 1 are confirmed. A construction company's supply contracts are not recognized as revenue immediately but in installments over several years as work progresses, so the contract amount and duration are key to gauging the future revenue trend. Whether these contracts are one-off or lead to repeat orders will shape the medium-term reading of results.
The strengths are clear. Profit revived sharply in 2025, lifting profitability to an ROE of 10.6%; its P/E and P/B are low versus peers and it remains cheap even on a forward P/E reflecting this year's profit; and it steadily pays a dividend in the 3% range. While profit improved, the share price was pushed down to a spot 37% below its 52-week high, so the gap between results and the share price has widened. What to consider is that revenue itself is close to flat, the debt ratio is somewhat high, and it needs confirming how much the new-order disclosures actually translate into revenue and profit. In sum, it is in a phase where the undervaluation appeal comes to the fore when the profit recovery continues and orders connect to results, and conversely, if margin improvement stalls or new work shrinks, the revenue stagnation could stand out more.
🔎 Valuation vs peers Undervalued
A market-cap-adjacent comparison group within construction.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kumho E&C | 5.63x | 1.51x | 30.99% |
| Dongwon Development | 7.55x | 0.19x | 2.51% |
| Dongbu Construction | 3.04x | 0.28x | 8.97% |
We prioritized a public-data comparison group with a close market cap within construction. The current P/E (how many times a year's earnings the share price is worth) is 1.80x and the P/B (how many times book value the share price is worth) is 0.19x. That said, lower-market-cap stocks are heavily influenced by earnings swings and financing disclosures, so we did not draw conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩2.8 trillion | ₩155.1 billion | ₩79.9 billion |
| Next quarter | Q2 2026 | ₩738.6 billion | ₩38.8 billion | ₩19.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩20,150 and the market capitalization is ₩180.0 billion. The price sits above its 20-day moving average (₩18,860) and below its 60-day moving average (₩20,635). 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 53.5, a neutral level. The one-month change is -6.9%, the three-month change is -29.7%, and the position relative to the 52-week high is -33.2%. Relative strength versus the KOSPI is 28 (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 28% of all stocks. Over the past three months it lagged the index by 17.3%. 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 -17.34% / 6M -26.84% / 12M -46.64%
Key metrics Computed vs sector median
Valuation
The P/E of 1.80x is below the sector median (6.86x). The P/B of 0.19x is below the sector median (0.47x). 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 11.0%, above the sector average (5.0%). The operating margin is 6.1%. The debt ratio is 229.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.1B | $2.2B | $2.0B | -7.66% ↓ slower |
| Operating profit | $70.7M | $61.2M | $117.2M | +91.49% ↑ faster |
| Net profit | $33.2M | $32.6M | $70.2M | +115.71% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2.1B | $2.1B | $2.2B | $2.0B |
| Operating profit | $163.5M | $93.3M | $70.7M | $61.2M | $117.2M |
| Net profit | $109.5M | $42.5M | $33.2M | $32.6M | $70.2M |
| Revenue CAGR | 4-yr avg 3.04% | ||||
Revenue fell 7.7% year over year (2023 ₩3.0 trillion → 2024 ₩3.1 trillion → 2025 ₩2.9 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 91.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.0%. The two-year revenue CAGR is -1.5%. In the most recent quarter (Q1 2026), revenue was 0.3% 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.
- The dividend yield, at 3.5%, is on the high side.
- ROE of 11.0% points to solid profitability.
Points to watch
- Revenue fell 7.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-10Contract[Correction] Single sale/supply contract signed: contract amount of ₩94.9 billion.The contract amount and duration are key to future revenue recognition. Whether it is one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-06-05ContractSingle sale/supply contract signed: contract amount of ₩150.7 billion.The contract amount and duration are key to future revenue recognition. Whether it is one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-06-01Contract[Correction] Single sale/supply contract signed: contract amount of ₩81.4 billion.The contract amount and duration are key to future revenue recognition. Whether it is one-off or a repeatable transaction shapes the medium-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩20,150 | ₩20,150 | Confirmed | link |
| Latest quarterly results | revenue ₩670.7 billion, operating profit ₩40.8 billion | revenue ₩670.7 billion, operating profit ₩40.8 billion | Confirmed | link |
| Annual results | revenue ₩2.9 trillion, operating profit ₩166.9 billion | revenue ₩2.9 trillion, operating profit ₩166.9 billion | Confirmed | link |
| Contract disclosure source text | [amended] single supply contract signed: contract value ₩94.9 billion | [amended] single supply contract signed: contract value ₩94.9 billion | Confirmed | link |
| Contract disclosure source text | single supply contract signed: contract value ₩150.7 billion | single supply contract signed: contract value ₩150.7 billion | Confirmed | link |
| Contract disclosure source text | [amended] single supply contract signed: contract value ₩81.4 billion | [amended] single supply contract signed: contract value ₩81.4 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-10Single supply/sales contract (amended)
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05Single supply/sales contract
- 2026-06-01Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-05-29Corporate governance report
- 2026-05-29Disclosure
- 2026-05-26Single supply/sales contract
- 2026-05-22Disclosure
- 2026-05-18Disclosure
📖 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.