SG makes and sells ascon (asphalt concrete) used to pave roads. Its roots are in domestic ascon sales, with environmental equipment for asphalt plants and the supply of an eco-friendly "eco-steel ascon" — made by recycling steel slag — to Ukraine's road-reconstruction effort layered on as growth axes. This April and May a cluster of ascon supply-contract disclosures appeared, but most were in the form of amended filings, so the terms were refined several times over, while the core business saw revenue decline and the first-quarter loss deepen again. What stands out lately is that when overseas reconstruction supply is confirmed in actual revenue and earnings, the more than 56% drop from the high and a clear growth story become strengths; but when those expectations fail to translate into results and overlap with a financial burden — a debt ratio of 212.7% and interest coverage below 1x — and convertible-bond dilution, the stock weakens.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 212.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 14.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 37.3% lower than a year earlier.
- ROE is -2.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Park Chang-ho 14.74% (individual)
Controlling bloc incl. related parties 18.49%
With the controlling bloc holding 18%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- SG makes and sells the ascon (asphalt concrete) laid down when paving roads.
- Its core product is a paving material made by mixing aggregate and asphalt, alongside the installation and sale of environmental equipment (reduction devices) that cut the air pollutants coming out of asphalt plants.
- Recently it has been trying to grow an overseas business, leading with an eco-friendly product called "eco-steel ascon" — made by recycling steel slag from the steelmaking process — supplied to Ukraine's road-reconstruction effort.
- In short, the root that earns its money is domestic ascon sales, with the environmental equipment and Ukraine supply layered on top as growth axes.
- The latest close is ₩1,491 and market cap is ₩163.4 billion.
- The price sits below the 20-day line (₩1,644) and below the 60-day line (₩2,117).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the last 14 days on a 0-100 scale) is 37.8, a neutral level.
- The one-month change is -20.8%, the three-month change is -45.8%, and the position versus the 52-week high is -55.5%.
- Relative strength against the KOSDAQ is 50 (on a 1-99 scale that weights recent index-relative returns more heavily over the past year, with higher meaning stronger than the market).
- That places it in roughly the top 51% of all stocks by strength.
- Over the past three months it lagged the index by 28.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/B (how many times the company's net assets the price represents) is 1.55x.
- Because it posted a net loss last year, the P/E ratio (how many times one year's earnings the price represents) is not calculable, and EPS is -₩19.6.
- Profitability is in the red, with ROE (how much is earned on equity in a year) at -2.0% and a net margin of -2.1%, while the operating margin barely clears breakeven at 0.7%.
- On the balance sheet, the debt ratio (debt relative to equity) is 212.7%, so debt exceeds equity, and the interest coverage ratio (how many times operating profit covers interest) is below 1x, leaving operating profit alone hard-pressed to cover interest.
- A P/B of 1.52x is not in itself a very high figure, but read alongside the fact that comparable building-materials names — which are profitable and even pay dividends — sit at lower multiples of net assets, the current price is leaning on expectations of a future earnings recovery rather than on asset value.
- Revenue was ₩102.2 billion in 2025, down 14.0% from the prior year (₩118.9 billion), and the five-year path (₩70.1 billion → ₩89.9 billion → ₩80.9 billion → ₩118.9 billion → ₩102.2 billion) is a choppy mix with wide swings.
- Earnings swung even more, with net profit going +₩3.0 billion in 2022, -₩29.7 billion in 2023, -₩35.7 billion in 2024, and -₩2.1 billion in 2025 — alternating between loss and profit.
- The loss had narrowed sharply from a 2024 peak to -₩2.1 billion in 2025, but the trend worsened again in the most recent quarter.
- In the first quarter of 2026, revenue was ₩8.9 billion, down 37.3% from the same period last year, and the net loss of -₩10.0 billion exceeded last year's full-year loss (-₩2.1 billion) in a single quarter.
- With losses already piling up heavily in the first quarter this year, there is not yet enough basis for net profit to swing positive.
- As a result, valuing the stock on earnings is difficult not only on trailing figures based on last year's confirmed results but also on a forward basis using this year's estimates, and the direction of results hinges on how quickly the Ukraine supply is recognized as actual revenue.
- This year, single-supply-contract (ascon supply) disclosures were concentrated in April and May, and most were in the form of amended filings, indicating the contract terms were refined several times over.
- This is a signal that the supply business, including Ukraine reconstruction, is actually progressing, but it also shows this is a business with many variables, enough for terms to change often.
- In April there was a disclosure adjusting the conversion price of a convertible bond (CB); the conversion price was lowered in step with the falling share price, which means a potential burden (dilution) as the share count could rise going forward.
- Multiple major-holding change disclosures also appeared, so the ownership structure is in motion.
- Whether the supply contracts lead to revenue and payment, and how the convertible-bond impact is resolved, are the points to check going forward.
- The strengths are clear.
- There is a distinct growth story in eco-friendly ascon for Ukraine's road reconstruction, and it is leading not just to words but to actual supply-contract disclosures.
- The price has also fallen more than 56% from its high, a spot where expectations have already cooled considerably.
- On the other side, points to note are the core business's revenue decline and the first-quarter loss that deepened again, the financial burden of a debt ratio of 212.7% and interest coverage below 1x, and the possibility of dilution from the convertible bond.
- Taken together, SG is strong in a phase where overseas reconstruction supply is confirmed in actual revenue and earnings, and weak in a phase where those expectations fail to translate into results while the core business's losses continue.
- In the end, what separates the growth story's truth from hype is how fast the supply contracts turn into numbers on the income statement.
🔎 Valuation vs peers Overvalued
The business is road-paving ascon, so it differs from cement makers, but its position is gauged against comparable non-metallic-mineral-product building-materials names available within the site. In business terms the closest listed company is Bokwang Industrial, an ascon specialist.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanil Holdings | 16.40x | 0.31x | 1.88% |
| Asia Cement | 19.93x | 0.31x | 1.55% |
| 보광산업 | 0.00x | 0.00x | 0.00% |
SG sits at a P/B of 2.26x, far higher relative to net assets than the site's building-materials peer set (Hanil Holdings 0.32x, Asia Cement 0.33x). The peers are profitable and even pay dividends, whereas SG is loss-making with an ROE of -2.0%, so on current results alone this premium leans on the future expectation of Ukraine reconstruction supply. Trailing figures based on last year's results do not capture the trend of a deeper loss in the first quarter of this year, so on a forward basis using this year's estimates the burden grows further. That said, its position versus a core ascon specialist like Bokwang Industrial is not asserted, since figures outside the site are unverified. On balance, we view this as an overvalued zone where expectations are pre-reflected, while noting that room for a re-valuation is also open if the supply is confirmed in actual results.
Price history Close · MA20 · MA60
The latest close is ₩1,491 and the market capitalization is ₩163.4 billion. The price sits below its 20-day moving average (₩1,644) and below its 60-day moving average (₩2,117). 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 37.8, a neutral level. The one-month change is -20.8%, the three-month change is -45.8%, and the position relative to the 52-week high is -55.5%. Relative strength versus the KOSDAQ is 50 (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 49% of all stocks. Over the past three months it lagged the index by 28.6%. 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 -28.57% / 6M -27.47% / 12M -30.06%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.55x is above the sector median (0.45x).
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 -2.0%, below the sector average (2.0%). The operating margin is 0.7%. The debt ratio is 212.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $53.6M | $78.8M | $67.8M | -14.04% ↓ slower |
| Operating profit | -$8.9M | -$4.0M | $498,578 | — |
| Net profit | -$19.7M | -$23.6M | -$1.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $46.5M | $59.6M | $53.6M | $78.8M | $67.8M |
| Operating profit | -$1.5M | $375,245 | -$8.9M | -$4.0M | $498,578 |
| Net profit | -$8.0M | $2.0M | -$19.7M | -$23.6M | -$1.4M |
| Revenue CAGR | 4-yr avg 9.90% | ||||
Revenue fell 14.0% year over year (2023 ₩80.9 billion → 2024 ₩118.9 billion → 2025 ₩102.2 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.9%. The two-year revenue CAGR is 12.4%. In the most recent quarter (Q1 2026), revenue was 37.3% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 212.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 14.0% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-22UpdateSingle-supply-contract signing (amended filing) — the ascon supply contract terms were amended and re-disclosed.A signal the supply business is under way, but frequent amendments also suggest uncertainty in the contract terms. Over the medium term, the timing and scale of revenue recognition are variables. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩8.9 billion (-37.3% year over year), net loss of about -₩10.0 billion, with the loss widening.The biggest burden factor, confirming a near-term deterioration in results. Whether the core business recovers is the key point to check. Source
- 2026-04-30UpdateSingle-supply-contract signing (amended filing) — ascon supply-contract disclosure (amended and updated along with multiple filings during April).Shows the existence of a supply pipeline, but whether it actually converts to revenue and payment is collected are the medium-term points to watch. Source
- 2026-04-29UpdateConvertible-bond conversion-price adjustment disclosure — the conversion price was adjusted downward as the share price fell.A potential burden as the likelihood of an increase in the share count (dilution) on conversion grows. It affects per-share value over the medium term. Source
- 2026-03-24FilingDisclosure of the results of the 17th regular shareholders' meeting — routine agenda items handled.Confirms governance and routine procedures. The near-term price impact is limited. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-22Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Single supply/sales contract (amended)
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-29Disclosure
- 2026-04-24Single supply/sales contract (amended)
- 2026-04-16Single supply/sales contract (amended)
- 2026-04-08Single supply/sales contract (amended)
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-24Disclosure
- 2026-03-24Shareholders' 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.