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.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 219.6%).
- 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 10.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.8%.
- 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
- 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 ₩7,810 and market capitalization is ₩118.8 billion.
- The price sits below its 20-day line (₩9,272) and its 60-day line (₩10,466).
- Being under both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 38.9, a neutral level.
- It is down 9.2% over one month and 17.1% over three months, and sits 43.9% below its 52-week high.
- Relative strength versus the KOSPI is 85 (on a 1-99 scale, converted from the past year's return against the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 14% of all stocks by strength.
- Over the past three months it outpaced the index by 4.4%.
- Charts are best read alongside trading volume and disclosure dates.
- 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 4.22x and the P/B (how many times book value) is 0.43x.
- 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 219.6%, 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 | — | 1.99x | -3.88% |
| Dohwa Engineering | 22.80x | 0.66x | 2.89% |
| JIO | — | 0.79x | -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 4.22x and the P/B (how many times book value) is 0.43x. 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 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 ₩7,810 and the market capitalization is ₩118.8 billion. The price sits below its 20-day moving average (₩9,272) and below its 60-day moving average (₩10,466). 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 38.9, a neutral level. The one-month change is -9.2%, the three-month change is -17.1%, and the position relative to the 52-week high is -43.9%. Relative strength versus the KOSDAQ is 85 (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 86% of all stocks. Over the past three months it outpaced the index by 4.4%. 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 +4.38% / 6M +35.69% / 12M +62.57%
Key metrics vs sector median
Valuation
The P/E of 4.22x is below the sector median (32.87x). The P/B of 0.43x is below the sector median (1.99x). 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 10.3%, above the sector average (4.0%). The operating margin is 7.8%. The debt ratio is 219.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $449.8M | $662.5M | $492.7M | -25.63% ↓ slower |
| Operating profit | $8.2M | $18.1M | $38.2M | +111.38% ↓ slower |
| Net profit | $306,365 | $10.1M | $18.7M | +83.91% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $368.2M | $467.8M | $449.8M | $662.5M | $492.7M |
| Operating profit | $11.2M | -$3.3M | $8.2M | $18.1M | $38.2M |
| Net profit | $14.2M | $737,825 | $306,365 | $10.1M | $18.7M |
| 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 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 3.2%, is on the high side.
- ROE of 10.3% 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 | ₩7,810 | ₩7,810 | 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) | []ㆍapprox. : approx. ₩98.2 billion · revenue 9.8% | []ㆍapprox. : approx. ₩98.2 billion · revenue 9.8% | Confirmed | link |
| Contract disclosure (source text) | []ㆍapprox. : approx. ₩55.8 billion · revenue 8.0% | []ㆍapprox. : approx. ₩55.8 billion · revenue 8.0% | Confirmed | link |
| Contract disclosure (source text) | []ㆍapprox. : approx. ₩58.6 billion · revenue 8.3% | []ㆍapprox. : approx. ₩58.6 billion · revenue 8.3% | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 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.