Seohee Construction is less a developer that buys land and sells apartments itself than a builder whose mainstay is constructing apartments on behalf of regional housing cooperatives that have already assembled the land. Under its own brand, 'Seohee Star Hills,' it handles many cooperative projects in the outer Seoul metropolitan area and small and mid-sized provincial cities, with civil engineering, environmental, and plant work layered on top. In 2025 it had revenue of about ₩1.1 trillion and operating profit of about ₩144.4 billion; after a trading halt in August 2025, a decision to maintain the listing on April 30, 2026 lifted the suspension, and Q1 operating profit was -79.5%. What stands out lately is that a forward P/E of 7.82x (against 20-30x for large peers), a double-digit ROE, and a 4-5% dividend yield, now with delisting risk cleared, make the low multiple and dividend a strength; but net-profit growth leaned in part on non-operating factors, and the scale of contingent liabilities from debt guarantees and the volatility right after trading resumed warrant attention.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 25.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 33.2% lower than a year earlier.
- ROE is 11.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.1%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Bong-kwan 4.14% (individual)
Controlling bloc incl. related parties 59.83%
With the controlling bloc holding 60%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Seohee Construction is less a typical developer that buys land and sells apartments itself than a builder whose mainstay is constructing apartments on behalf of 'regional housing cooperatives' that have already assembled the land.
- Its own apartment brand is 'Seohee Star Hills,' and it has handled many cooperative projects in the outer Seoul metropolitan area and small and mid-sized provincial cities.
- On top of this sit civil-engineering work such as roads and bridges and environmental and plant construction.
- Cooperative construction has a trait whereby revenue is booked steadily when sales go well, and revenue recognition is pushed back when cooperative formation and the sales stage are delayed.
- With 2025 revenue of about ₩1.1 trillion and operating profit of about ₩144.4 billion, the top line is in the trillion-won range, yet the market cap (about ₩454.3 billion) is priced small relative to that scale.
- The recent close is ₩2,005 and market cap is ₩460.8 billion.
- The price sits below the 20-day line (₩2,161) and the 60-day line (₩2,111).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges the balance of up- and down-moves over the last 14 days on a 0-100 scale) is 44.1, around neutral.
- The one-month change is -9.7%, the three-month change is +23.5%, and it sits -40.2% from its 52-week high.
- Relative strength versus the KOSDAQ is 89 (on a 1-99 scale, weighting recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 10% of all stocks by strength.
- Over the last three months it outpaced the index by 69.6%.
- Chart reading is best done alongside trading volume and the dates disclosures were filed.
- On confirmed full-year results (2025), the P/E (how many times one year's earnings the price is) is 3.78x and the P/B (how many times net assets the price is) is 0.43x.
- Both are low, so the price is set without strain relative to the earnings it generates and the net assets it holds.
- Profitability is firm too: ROE (how much is earned per year on shareholders' equity) is 11.2% and the operating margin is 13.1%, both above the construction-industry average.
- The balance sheet is stable for a builder, with a debt-to-equity ratio of 149.9%, a current ratio of 270%, and an interest coverage ratio of 6.0x, and the dividend yield is steady in the 4-5% range.
- The forward P/E reflecting this year's earnings is 7.82x — higher than last year's since Q1 earnings fell, but still in the single digits.
- In other words, it is neither forced-cheap because the trailing figure is low nor made expensive by converting to this year's basis, and given that large peers sit at 20-30x, it remains on the low side even on this year's basis.
- Five-year revenue ran ₩1.3 trillion (2021) → ₩1.44 trillion (2022) → ₩1.44 trillion (2023) → ₩1.47 trillion (2024) → ₩1.1 trillion (2025), rising gently through 2024 before bending down -25.3% in 2025.
- Operating profit also fell -38.8% that year to ₩144.4 billion.
- In Q1 2026 the core-business slowdown was more pronounced, with revenue of ₩191.7 billion (-33.2%) and operating profit of ₩10.5 billion (-79.5%), largely because cooperative sales and groundbreaking schedules were pushed back during the trading halt.
- Net profit went the other way at +16.6% in the same quarter, but this was a result of non-operating items propping things up while core earnings shrank, so the quality of earnings should be viewed separately.
- The forward P/E reflecting this year's earnings is 7.82x, incorporating a one-time adjustment down from last year's boom results.
- The key to recovery is the normalization of cooperative sales and groundbreaking, and it is a structure in which core earnings reattach as new orders won after trading resumed get booked as future revenue.
- This stock's past year can be summed up as 'trading halt → review → listing maintained.' After trading was halted in August 2025, the company submitted an implementation report on its improvement plan in April 2026, and the exchange's corporate review committee decided on April 30, 2026 to maintain the listing and lifted the trading suspension the same day (accompanied by a change of listing tier).
- This is an event that cleared the worst-case tail risk of delisting.
- Separately, there was a single supply-contract (order) disclosure in March 2026, and disclosures of decisions to provide debt guarantees to third parties followed in May and June.
- Debt guarantees are a common means of supporting cooperative and affiliate projects, but because they remain as contingent liabilities, their scale should be viewed alongside.
- On the routine track, the 2025 annual report (March) and the Q1 2026 report (May) contain the confirmed results.
- The strengths are clear: a low P/E and P/B versus peers, a double-digit ROE, a 4-5% dividend, debt and liquidity that are stable for a builder, and the clearing of delisting risk through the decision to maintain the listing.
- The forward P/E of 7.82x reflecting this year's earnings is also on the low side compared with large peers at 20-30x, so the cheap price is not a mere optical illusion.
- That said, the core business is at a stage of confirming recovery.
- Q1 operating profit fell steeply at -79.5%, net-profit growth leaned in part on non-operating factors, and the scale of contingent liabilities from debt guarantees is also a point to examine.
- In sum, when cooperative sales and groundbreaking recover their normal pace and new orders begin to be booked as revenue, the low multiple and dividend work as clear strengths; if the volatility right after trading resumed and the core-business slowdown persist, the recovery timing is pushed back.
- Either way, financial stability and the dividend form a base that supports the wait.
🔎 Valuation vs peers Inconclusive
Mid-tier builders with a large share of regional-cooperative and residential construction and comparable market cap and business character were chosen first; on-site figures are from tools/peers.py (base, current-price basis).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Keryong Construction | 1.74x | 0.18x | 10.57% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| GS E&C | 26.77x | 0.52x | 1.95% |
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
Within the peer group, Seohee Construction's confirmed trailing P/E of 4.4x is far below Hyundai E&C (36.6x) and GS E&C (24x) and groups with similarly low names such as Keryong E&C (1.75x) and the low-P/B cohort. Its profitability (ROE 11.2%) is at the top of the peer group, so the surface discount looks excessive. However, (a) a separate non-financial credibility risk from the trading halt and listing-maintenance review is weighing on the price, and (b) since the figure is on last year's trailing earnings, reflecting the -79.5% collapse in Q1 operating profit pushes the forward P/E — even on a seasonality approximation — up into the 8x range. In other words, 'cheap-looking last-year numbers' and 'a slowing this-year trend' collide, and with post-resumption volatility layered on top, it is hard to declare it cheap or expensive in one direction. Hence it is left as inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩209.6 billion | ₩9.6 billion | ₩15.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩2,005 and the market capitalization is ₩460.8 billion. The price sits below its 20-day moving average (₩2,161) and below its 60-day moving average (₩2,111). 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 44.1, a neutral level. The one-month change is -9.7%, the three-month change is +23.5%, and the position relative to the 52-week high is -40.2%. Relative strength versus the KOSDAQ is 89 (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 90% of all stocks. Over the past three months it outpaced the index by 69.6%. 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 +69.57% / 6M +48.74% / 12M +6.67%
Key metrics vs sector median
Valuation
The P/E of 3.78x is below the sector median (8.02x). The P/B of 0.43x is in line with 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 2.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.2%, above the sector average (7.0%). The operating margin is 13.1%. The debt ratio is 149.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $955.7M | $976.7M | $729.1M | -25.34% ↓ slower |
| Operating profit | $151.3M | $156.2M | $95.7M | -38.75% ↓ slower |
| Net profit | $93.7M | $106.3M | $80.8M | -24.00% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $881.5M | $952.8M | $955.7M | $976.7M | $729.1M |
| Operating profit | $137.1M | $136.6M | $151.3M | $156.2M | $95.7M |
| Net profit | $96.1M | $65.0M | $93.7M | $106.3M | $80.8M |
| Revenue CAGR | 4-yr avg -4.63% | ||||
Revenue fell 25.3% year over year (2023 ₩1.4 trillion → 2024 ₩1.5 trillion → 2025 ₩1.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 38.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.6%. The two-year revenue CAGR is -12.7%. In the most recent quarter (Q1 2026), revenue was 33.2% 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 5.0%, is on the high side.
- ROE of 11.2% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 25.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-30UpdateThe exchange's corporate review committee decided to maintain the listing and lifted the trading suspension the same day (accompanied by a change of listing tier)Short term: with delisting tail risk cleared, trading resumed, but volatility is severe during price discovery. Medium term: whether the halt cause recurs and whether the improvement plan is carried out are the keys to restoring trust. Source
- 2026-04-10FilingSubmission of an implementation report on the improvement plan to the exchange (a follow-up procedure related to listing eligibility)Short term: procedural progress underlying the decision to maintain the listing. Medium term: actual adherence to the pledged commitments is the foundation of trust going forward. Source
- 2026-05-15EarningsQ1 2026 quarterly report disclosure (revenue ₩191.7 billion, operating profit ₩10.5 billion, operating profit -79.5% year over year)Short term: confirms the core-business earnings slowdown in figures. Medium term: whether the drop in operating profit is a temporary delay in revenue recognition or a structural slowdown needs verification next quarter. Source
- 2026-03-27UpdateSingle supply-contract disclosure (correction)Short term: a signal of securing new work. Medium term: whether the timing of the contract size being recognized as revenue shows up in a top-line recovery in coming quarters needs checking. Source
- 2026-05-21UpdateDisclosure of a decision to provide a debt guarantee to a third party (following the June 1 correction)Short term: it aids cash flow by supporting affiliate and cooperative projects. Medium term: it remains as a contingent liability, so if the guaranteed party's business falters it can transfer as a burden; its scale and maturity should be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Trading halt and listing-maintenance status | 2025-08 → 2026-04-30 | DART 2026-04-30 | Confirmed | link |
| Q1 2026 operating profit | ₩10.5 billion | DART 2026 1 | Confirmed | link |
| Latest closing price | ₩2,005 | — | Unverified | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩40.5 billion | — | Unverified | link |
Recent filings
- 2026-06-01Amended filing
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30Disclosure
- 2026-04-30Disclosure
- 2026-04-13Amended filing
- 2026-04-10Disclosure
- 2026-04-01Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-27Single supply/sales contract (amended)
- 2026-03-24PeriodicAnnual business report
📖 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.