Dong Ah Geological Engineering is a specialty contractor that, rather than building ordinary structures, takes on the difficult ground-related portions of other builders' large projects. It is effectively the domestic number one in TBM tunneling, which bores through the earth with a giant excavator, and it also does boring-grouting and ground improvement to firm up soft ground; it has recently been localizing TBM equipment as well. Its flagship job, Section 2 of the Gimpo-Paju expressway (contract value ₩116.2 billion, 30.5% of recent revenue), is under way, and in a March 26 corporate-value-enhancement plan it committed to keeping its payout ratio at 30% or above. It executed buyback trusts one after another, so that as of June 10 it held treasury stock equal to 12.79% of shares outstanding. What stands out lately is that its leading position in a high-barrier field, revenue and profit accelerating for a third year, and a P/B of 0.95x and forward P/E of 10.13x keep the price burden modest. On the other hand, the workload is concentrated in a single large project, so the ability to fill the gap with new orders after 2027 is the key variable.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 18.9% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 19.2% higher than a year earlier.
- ROE is 8.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Dover Holdings 34.23% (corporate)
Controlling bloc incl. related parties 52.9%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Dong Ah Geological Engineering is not a company that builds ordinary structures but a specialty contractor that takes on the 'difficult ground-related portions' when other builders undertake large projects.
- There are two cores.
- One is TBM tunneling (a method that bores through the earth with a giant cylindrical excavator to build tunnels), where the company has carried out a substantial share of the country's rail and road TBM work and is effectively the number one operator.
- The other is boring-grouting and ground improvement (injecting chemical grout into soft ground or firming up soil so it does not collapse).
- Its flagship job, the boring-grouting and TBM tunneling for Section 2 of the Gimpo-Paju expressway, accounts for about 30% of recent revenue on a single contract alone (ordered by Hyundai E&C, scheduled to end 2027-12-31).
- It has recently localized the TBM equipment itself, completing the second unit and moving to reduce reliance on foreign-made machinery.
- The latest close is ₩15,820 and market capitalization is ₩211.8 billion.
- The price sits below its 20-day moving average (₩16,569) and below its 60-day line (₩16,472).
- Trading below 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 force over the past 14 days on a 0-100 scale) is 44.2, at a neutral level.
- The one-month change is +11.2%, the three-month change is -11.0%, and the price stands -14.8% below its 52-week high.
- Relative strength versus KOSPI is 26 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 75% of all stocks by strength.
- Over the past three months it lagged the index by 30.9%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On valuation, the P/E ratio (how many times one year of profit the share price represents) is 11.31x and P/B (how many times the company's net assets the price represents) is 0.93x, so it trades below the net assets it holds.
- On profitability, ROE (how much it earns in a year on shareholders' equity) is 8.2%, operating margin is 3.9%, and net margin is 4.0%; margins are not thick, as is typical of construction, but the profit base is steady.
- The debt ratio (debt to equity) of 199% looks high at face value, but in construction, advance payments and payables on projects are booked as liabilities, which inflates the figure beyond reality, so it is hard to call this number a risk outright.
- In fact, an interest coverage ratio (how many times operating profit can cover interest) of 11.7x and a current ratio of 150% give it ample capacity to service debt.
- Above all, Dong Ah Geological Engineering is a company whose profit is rising fast, so the forward P/E on this year's expected profit (10.13x) comes out lower than the P/E on last year's confirmed profit (11.61x).
- In other words, the P/E and P/B seen now are not at a burdensome level; reflecting the profit flow, it actually becomes cheaper.
- The growth is clear.
- Revenue rose from ₩345.0 billion in 2023 to ₩393.5 billion in 2024 to ₩467.7 billion in 2025, and the growth rate quickened each year, from 14.1% to 18.9%.
- In 2025 operating profit jumped +88.0% and net profit +64.4%, both faster than revenue.
- In the most recent first quarter of 2026 the same pattern continued, with revenue +19.2%, operating profit +43.6%, and net profit +47.9%.
- The reason profit comes through this well is clear: large jobs such as Gimpo-Paju are now in full swing, so revenue itself grew, and the share of high-difficulty processes such as TBM and ground improvement, which not everyone can do, rose, improving margins along with it.
- With infrastructure going underground and tunnel orders continuing, the base of work is supported as well.
- The forward P/E reflecting this flow on this year's expected profit is 10.13x, lower than last year's basis (11.61x).
- That is a natural feature of a company whose profit is rising, not an inflated estimate.
- For reference, the further future (from 2027 on) depends on how much new orders fill in after the Gimpo-Paju job ends, and at this stage there is no basis for concluding it will fall below this year.
- The two axes of disclosure are 'orders' and 'shareholder returns.' On the order side, large jobs are under way, including an upward amendment of the contract value for the Section 2 Gimpo-Paju expressway boring-grouting and TBM tunneling to ₩116.2 billion (30.5% of recent revenue).
- The shareholder-return side is especially prominent.
- In its 2026-03-26 corporate-value-enhancement plan the company committed to 'keeping its payout ratio at 30% or above' (2025 payout ratio 38.8%, qualifying as a high-dividend company), and it executed buyback trusts one after another so that as of 2026-06-10 it held treasury stock equal to 12.79% of shares outstanding (1,711,915 shares).
- The ₩7.5-billion trust was so actively bought that it was terminated early after fully using up its limit.
- The strengths are clear.
- It holds a leading domestic position in the high-barrier field of TBM and ground improvement, its revenue and profit have accelerated for a third year, and substantive shareholder returns follow along, with treasury stock of 12.79% and a payout ratio of 30% or above.
- On top of that, at a P/B of 0.95x it is cheaper than net assets, and the forward P/E reflecting rising profit is 10.13x, lower than last year's basis, so it is not at a burdensome price.
- Even against construction-management reference names of similar footing, it trades at a similar level without an excessive premium.
- Points to watch come from the business structure.
- The workload is concentrated in a single large project such as Gimpo-Paju, so the ability to fill the gap with new orders after this job ends in 2027 is the key variable, and quarterly profit can swing with construction and order conditions.
- The fact that margins themselves are not thick is also something to keep in mind.
- In short, the stock is especially strong under conditions in which infrastructure goes underground, tunnel orders continue, and new orders fill in without a gap, and relatively weak in phases where ordering slows or the workload gap after a large project ends drags on.
🔎 Valuation vs peers Fairly valued
Pure listed comparables for specialty contractors that dig underground and handle ground are rare, so construction and construction-management listed companies are used as reference names while accounting for differences in business character.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanmi Global | 9.64x | 0.78x | 8.14% |
| Dongbu Construction | 3.11x | 0.29x | 9.31% |
| Kumho E&C | 10.09x | 2.60x | 25.79% |
(a) General construction and contractor reference names carry P/Es in the low single digits, but that reflects cyclicality and margin volatility priced in, and Dong Ah Geological Engineering's P/E of 11.8x is higher than these. Still, the business character differs. General construction is directly exposed to the pre-sale and contracting cycle, whereas Dong Ah Geological Engineering holds an oligopoly in the specialized areas (TBM, grouting) that clients must go through for large civil works, so beyond a simple multiple comparison a 'scarcity and oligopoly' premium should be considered too. (b) It trades at almost the same level as a construction-management reference name (Hanmi Global) with similar P/E, P/B, and ROE, so neither an excessive premium nor a discount is large. (c) The trailing P/E has a limitation in that last year was a profit-recovery phase, and because profit is rising, the forward basis computes lower. Taken together, this is a fair area, neither overheated nor a bargain, with growth and shareholder returns accompanying a price below net assets (P/B 0.97x).
Price history Close · MA20 · MA60
The latest close is ₩15,820 and the market capitalization is ₩211.8 billion. The price sits below its 20-day moving average (₩16,569) and below its 60-day moving average (₩16,472). 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 44.2, a neutral level. The one-month change is +11.2%, the three-month change is -11.0%, and the position relative to the 52-week high is -14.8%. Relative strength versus the KOSPI is 26 (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 25% of all stocks. Over the past three months it lagged the index by 30.9%. 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 -30.95% / 6M -43.70% / 12M -60.16%
Key metrics vs sector median
Valuation
The P/E of 11.31x is above the sector median (7.73x). The P/B of 0.93x is above the sector median (0.79x).
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 8.2%, in line with the sector average (9.0%). The operating margin is 3.9%. The debt ratio is 199.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $228.6M | $260.8M | $310.0M | +18.86% ↑ faster |
| Operating profit | $5.1M | $6.4M | $12.0M | +87.99% ↑ faster |
| Net profit | $6.8M | $7.5M | $12.4M | +64.39% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $191.9M | $176.5M | $228.6M | $260.8M | $310.0M |
| Operating profit | $2.7M | -$20.3M | $5.1M | $6.4M | $12.0M |
| Net profit | $3.1M | -$15.1M | $6.8M | $7.5M | $12.4M |
| Revenue CAGR | 4-yr avg 12.74% | ||||
Revenue rose 18.9% year over year (2023 ₩345.0 billion → 2024 ₩393.5 billion → 2025 ₩467.7 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 88.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.7%. The two-year revenue CAGR is 16.4%. In the most recent quarter (Q1 2026), revenue was 19.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.8%, is on the high side.
- Revenue grew 18.9% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26FilingCorporate-value-enhancement plan (voluntary disclosure): a profitability-focused mid-to-long-term management strategy, with a commitment to keep the payout ratio at 30% or above. Qualifies as a high-dividend company, 2025 payout ratio 38.8%, dividend up 11.0% year on year.A medium-term positive that raises the predictability of shareholder returns such as dividends and buybacks. However, no revenue or profit target figures were presented. Source
- 2026-05-29UpdateSingle supply contract (amended): Section 2 Gimpo-Paju expressway boring-grouting/TBM tunneling, contract value raised to ₩116.2 billion (30.5% of recent revenue). Ordered by Hyundai E&C, contract period 2020-07-30 to 2027-12-31.A positive for short-term revenue visibility. At the same time, high reliance on a single large project carries the risk of an order gap after its end (2027). Source
- 2026-06-10FilingEarly termination of a treasury-share-acquisition trust contract (₩7.5 billion): a mid-term termination as the contract amount was used up (acquisition complete). After termination, treasury stock held is 1,711,915 shares (12.79% of shares outstanding).Suggests the buyback was active enough to fully use up the limit. The intensity of shareholder returns is high in terms of reduced float and per-share value. Source
- 2026-05-15EarningsQuarterly report (2026.03): Q1 cumulative revenue ₩123.8 billion (+19.2%), operating profit ₩5.1 billion (+43.6%), net profit ₩4.2 billion (+47.9%).Confirms the accelerating growth on a quarterly basis. Operating margin improved slightly versus the prior full year. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Treasury-stock holding ratio | PBR 0.97x | 12.79% | Confirmed | link |
| Payout ratio | 3.63%, DPS ₩600,x 38.85% | 2025 38.8%, 30% | Confirmed | link |
| Core order size | revenue ₩467.7 billion(2025) | - 2 approx. ₩116.2 billion | Confirmed | link |
| This year's estimated net profit | forward self-estimate | — | Unverified | link |
Recent filings
- 2026-06-10TreasuryMaterial-fact report
- 2026-06-10Disclosure
- 2026-06-10TreasuryMaterial-fact report
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-29Corporate governance report
- 2026-05-18Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Single supply/sales contract (amended)
- 2026-04-29Single supply/sales contract (amended)
- 2026-04-27Single supply/sales contract (amended)
- 2026-04-09Single supply/sales contract
- 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.