Sungdo E&C (037350) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Sungdo E&C is an EPC (engineering-procurement-construction) contractor that builds out high-tech plants for industries such as semiconductors, displays and secondary batteries, installing the cleanrooms, piping, electrical and HVAC systems inside them; a gas & chemical division, a plant division and a general-construction division round out the business, so its results track the capital-spending cycle of these downstream customers. Over the past year it has secured a string of supply contracts, including ₩98.2 billion in January 2026, ₩55.8 billion in November 2025 and ₩58.6 billion in September 2025, while operating profit has grown more than fourfold in two years, meaning the quality of its earnings improved even in a year when revenue shrank. What stands out most recently is that a P/E of 4.8x, a P/B of 0.49x and an ROE in the 10% range give the stock a clear undervalued-and-profitable footing as long as semiconductor and battery capex and steady order flow continue, but because of the nature of EPC work a prolonged gap between large projects, or attention on its somewhat elevated debt, can make quarterly and annual revenue swing widely.
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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 “Construction & Real Estate” (Construction & Building Materials), a type typically read first through P/B.
Construction and real estate swing sharply with the timing of pre-sales and completions, and downturns bring write-downs and unsold units that jolt the bottom line. Because earnings can be so lumpy, price-to-book (P/B) — the share price against the company's asset value — is the first lens rather than volatile current profit.
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
- Revenue fell 25.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 27.8% lower than a year earlier.
- ROE is 11.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.4%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Seo In-soo 21.98% (individual)
Controlling bloc incl. related parties 35.4%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis Reading
Sungdo E&C is an EPC contractor (handling engineering, procurement and construction in a single package) that builds the facilities for high-tech plants making semiconductors, displays and secondary batteries. Its largest pillar is the high-tech industrial-facilities division, which installs core infrastructure inside plants such as cleanrooms, piping, electrical and HVAC systems. Added to that are a gas & chemical division handling the specialty gases and chemicals used in semiconductor processes, a plant division for power and environmental facilities, a general-construction division doing conventional building work, plus real-estate development and intermediary trade. In short, its core business is 'building the plants when IT manufacturers expand capacity,' so its results are driven by the capital-spending trends of its downstream industries.
The latest close is ₩7,560 and the market capitalization is ₩115.0 billion. The price sits below its 20-day moving average (₩7,726) and below its 60-day moving average (₩8,942). 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 46.3, a neutral level. The one-month change is -12.6%, the three-month change is -42.2%, and the position relative to the 52-week high is -45.6%. Relative strength versus the KOSDAQ is 82 (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 83% of all stocks. Over the past three months it lagged the index by 8.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For the most recent full year (2025), the company posted revenue of ₩743.4 billion, operating profit of ₩57.7 billion and net profit of ₩28.2 billion. An operating margin of 7.8% and an ROE (how much it earns in a year on its own equity) of 10.3% put profitability above the peer average. The P/E (how many times one year's earnings the share price represents) is 4.08x and the P/B (how many times book value) is 0.40x. These P/E and P/B figures reflect last year's confirmed results as they stand, and against peers whose P/E ratios sit in the low 20s they are far lower, with the P/B well under 1x as well. In other words, this is not a stock that is expensive and burdensome, but rather one priced cheaply relative to its earnings and net assets. The debt ratio is 119.6%, somewhat high, but EPC and construction firms structurally carry high debt ratios because receivables (unbilled work and trade receivables) and payables are booked together; with an interest-coverage ratio of 3.9x, operating profit comfortably covers interest costs.
For this company, the direction of profit matters more than the revenue figure. Operating profit rose from ₩12.3 billion in 2023 to ₩27.3 billion in 2024 and ₩57.7 billion in 2025, more than fourfold in two years, while net profit recovered sharply from ₩0.5 billion in 2023 to ₩15.3 billion in 2024 and ₩28.2 billion in 2025. Revenue fell from ₩999.6 billion in 2024 to ₩743.4 billion in 2025, but this reflects the base effect of unusually large projects all being recognized in 2024, not a downturn in the business. Indeed, operating profit doubled in a year when revenue shrank, showing that the order book is being filled with higher-margin work rather than sheer volume. In the first quarter of 2026 as well, revenue fell year on year but operating profit was almost flat (-2.7%) and net profit grew 73.9%. This year's outlook (revenue of about ₩609.2 billion and operating profit of about ₩56.1 billion) is built on the actual first-quarter result plus past quarterly patterns, and implies that profitability has settled at a level where operating profit can hold near last year's mark. There is no evidence that results after 2027 will fall below this year's, so there is no reason to treat the current level as a cyclical peak.
Supply-contract disclosures have continued over the past year. The company voluntarily disclosed a run of single-sale and supply contracts: ₩98.2 billion in January 2026 (9.8% of recent revenue), ₩55.8 billion in November 2025 (8.0%) and ₩58.6 billion in September 2025 (8.3%). For an EPC firm, such contracts form the basis of revenue to be recognized ahead, so the construction period and whether they are one-off or recurring matter as much as the contract value for reading medium-term results. The steady stream of orders is a positive signal on the order-backlog front.
The strengths are clear. At a P/E of 4.8x and a P/B of 0.49x the stock is cheap relative to earnings and assets, and an ROE in the 10% range keeps profitability above the peer average. Above all, operating profit has grown more than fourfold in two years and the quality of earnings is improving, so the company made more money even in a year when its top line shrank. As long as semiconductor and battery capex continues, the foundation of its order flow is also supported. On the other side, the points to watch are that, given the nature of EPC work, quarterly and annual revenue swing widely depending on the timing of large-project recognition, and that the debt ratio is somewhat high. So it is best understood as a stock that is strong when downstream capex is active and orders keep coming, but whose revenue can become volatile if the gap between large projects grows long.
🔎 Valuation vs peers Undervalued
Peers of comparable market capitalization within scientific and technical services.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jigu Holdings | — | 1.22x | -3.88% |
| Dohwa Engineering | 23.33x | 0.70x | 2.89% |
| JIO | — | 0.82x | -4.37% |
We looked first at public-data peers of comparable market capitalization within scientific and technical services. The current P/E (how many times one year's earnings the share price represents) is 4.08x and the P/B (how many times book value) is 0.40x. That said, smaller-cap stocks are heavily affected by earnings swings and financing disclosures, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩609.2 billion | ₩56.1 billion | — |
| Next quarter | Q2 2026 | ₩158.2 billion | ₩24.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩7,560 and the market capitalization is ₩115.0 billion. The price sits below its 20-day moving average (₩7,726) and below its 60-day moving average (₩8,942). 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 46.3, a neutral level. The one-month change is -12.6%, the three-month change is -42.2%, and the position relative to the 52-week high is -45.6%. Relative strength versus the KOSDAQ is 82 (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 83% of all stocks. Over the past three months it lagged the index by 8.6%. 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 -8.65% / 6M +46.71% / 12M +61.42%
Key metrics Computed vs sector median
Valuation
The P/E of 4.08x is below the sector median (11.98x). The P/B of 0.40x is below the sector median (0.85x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 11.1%, above the sector average (5.0%). The operating margin is 8.4%. The debt ratio is 130.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $476.7M | $702.2M | $522.2M | -25.63% ↓ slower |
| Operating profit | $8.7M | $19.2M | $40.5M | +111.38% ↓ slower |
| Net profit | $324,730 | $10.8M | $19.8M | +83.91% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $390.3M | $495.8M | $476.7M | $702.2M | $522.2M |
| Operating profit | $11.9M | -$3.5M | $8.7M | $19.2M | $40.5M |
| Net profit | $15.0M | $782,053 | $324,730 | $10.8M | $19.8M |
| Revenue CAGR | 4-yr avg 7.55% | ||||
Revenue fell 25.6% year over year (2023 ₩678.6 billion → 2024 ₩999.6 billion → 2025 ₩743.4 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 111.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.5%. The two-year revenue CAGR is 4.7%. In the most recent quarter (Q1 2026), revenue was 27.8% lower 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 3.3%, is on the high side.
- ROE of 11.1% points to solid profitability.
Points to watch
- Revenue fell 25.6% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-01-30Contract[Amended] Single-sale and supply contract (voluntary disclosure): contract value ₩98.2 billion, 9.8% of recent revenueThe contract value and period are central to how revenue will be recognized going forward. Whether it is one-off or a recurring transaction shapes the medium-term reading. Source
- 2025-11-24Contract[Amended] Single-sale and supply contract (voluntary disclosure): contract value ₩55.8 billion, 8.0% of recent revenueThe contract value and period are central to how revenue will be recognized going forward. Whether it is one-off or a recurring transaction shapes the medium-term reading. Source
- 2025-09-30Contract[Amended] Single-sale and supply contract (voluntary disclosure): contract value ₩58.6 billion, 8.3% of recent revenueThe contract value and period are central to how revenue will be recognized going forward. Whether it is one-off or a recurring transaction shapes the medium-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,560 | ₩7,560 | Confirmed | link |
| Latest quarterly results | revenue ₩144.6 billion, operating profit ₩7.8 billion | revenue ₩144.6 billion, operating profit ₩7.8 billion | Confirmed | link |
| Annual results | revenue ₩743.4 billion, operating profit ₩57.7 billion | revenue ₩743.4 billion, operating profit ₩57.7 billion | Confirmed | link |
| Contract disclosure (source text) | [amended] single supply contract signed (voluntary disclosure): contract value ₩98.2 billion · vs recent revenue 9.8% | [amended] single supply contract signed (voluntary disclosure): contract value ₩98.2 billion · vs recent revenue 9.8% | Confirmed | link |
| Contract disclosure (source text) | [amended] single supply contract signed (voluntary disclosure): contract value ₩55.8 billion · vs recent revenue 8.0% | [amended] single supply contract signed (voluntary disclosure): contract value ₩55.8 billion · vs recent revenue 8.0% | Confirmed | link |
| Contract disclosure (source text) | [amended] single supply contract signed (voluntary disclosure): contract value ₩58.6 billion · vs recent revenue 8.3% | [amended] single supply contract signed (voluntary disclosure): contract value ₩58.6 billion · vs recent revenue 8.3% | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-04-03Litigation disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-18Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11EarningsAmended filing
- 2026-03-11PeriodicAnnual business report (amended)
- 2026-03-11Audit report (amended)
- 2026-02-23Shareholders' meeting notice
📖 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.