Daehan Shipbuilding (439260) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daehan Shipbuilding is a shipbuilder that builds and sells vessels centered on mid-size (Aframax) and semi-large (Suezmax) crude-oil tankers, and it also builds product carriers, container ships and high-margin shuttle tankers, recognizing revenue and profit in step with each project's stage of completion. In April and June 2026 it signed single sales-and-supply contracts back to back, filling its order backlog, and its late-April preliminary results confirmed strong first-quarter earnings; it also decided to cancel about 437,000 treasury shares (worth roughly ₩40 billion). The appeal is that it has the highest profitability among domestic shipbuilders yet trades at low multiples, has secured build volume through 2029, and enjoys a net cash position and treasury-share cancellations; the caution is that shipbuilding is a cyclical industry and revenue is concentrated in the tanker family, so whether tanker ordering momentum persists is the key variable for the next phase.
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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 “Shipbuilding” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/B.
Shipbuilding rides a heavy vessel-ordering cycle, with profits bunching in upturns and slipping into losses in downturns, so current-year earnings alone give an unstable read. That makes price-to-book (P/B) — the share price against the value of docks and facilities the company owns — the first lens.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 14.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.2% higher than a year earlier.
- ROE is 23.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 25.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KHI 46.1% (corporate)
Controlling bloc incl. related parties 47.7%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis Reading
Daehan Shipbuilding is a shipbuilder that builds and sells vessels centered on oil tankers. Its main products are mid-size (Aframax) and semi-large (Suezmax) crude-oil tankers. To these it adds product carriers, container ships and high-margin shuttle tankers. The way it earns money is simple: it signs contracts with shipowners at tens of millions of dollars per vessel and, as it builds each ship over several years, recognizes revenue and profit in step with the stage of completion. That is, today's results come from orders won years ago now being built, and the high prices it is winning today will flow into future results.
The latest close is ₩50,700 and the market capitalization is ₩1.9 trillion. The price sits above its 20-day moving average (₩47,282) and below its 60-day moving average (₩56,532). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.3, a neutral level. The one-month change is -0.2%, the three-month change is -41.4%, and the position relative to the 52-week high is -53.4%. Relative strength versus the KOSPI is 9 (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 8% of all stocks. Over the past three months it lagged the index by 29.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Start with the valuation metrics. The P/E ratio (how many times one year's profit the share price represents) is 7.76x and the P/B (how many times book net assets the share price represents) is 1.70x. Profitability is very good. ROE (how much is earned in a year on equity) is a high 22.8%, the operating margin is 23.9% and the net margin is 20.3%. The balance sheet is also solid. The debt ratio (borrowings against equity) is 140.8%, but in shipbuilding advances are booked as liabilities, which makes the figure look high; in reality the company is in a net cash position. Net debt (total borrowings minus cash) is -₩215.0 billion, so cash exceeds debt. On an enterprise value that reflects debt it looks even cheaper: EV/EBIT (enterprise value divided by operating profit, a debt-adjusted counterpart to the P/E) is just 5.9x. The FCF yield (actual cash earned relative to market cap) is also good at 7.8%.
The direction of growth is clear. Revenue rose from ₩816.4 billion in 2023 to ₩1.0753 trillion in 2024 and ₩1.2281 trillion in 2025 (a three-year CAGR of about 22.7%). The improvement in earnings is even larger. Operating profit jumped from ₩35.9 billion in 2023 to ₩294.1 billion in 2025, and net profit from ₩38.3 billion to ₩248.8 billion (2025 net profit +44% year on year). This is the result of clearing out low-priced orders and having high-priced orders flow into results, lifting margins step by step. That trend continued into the first quarter of 2026, with net profit of ₩77.4 billion, up 27.8% year on year. This single quarter's net profit already equals about 31% of last year's full-year net profit. Over the rest of the year, Suezmax volumes won at higher prices will be recognized in results. This year's profit therefore stands to step up another notch from last year.
The disclosures reveal what the company is doing now. First, it keeps selling ships: it signed single sales-and-supply contracts back to back in April and June 2026, meaning new orders keep filling the backlog. Second, results actually improved: late-April preliminary results confirmed strong first-quarter earnings. Third, it is returning cash to shareholders: in April it decided to cancel about 437,000 treasury shares (worth roughly ₩40 billion). Treasury-share cancellation is a textbook form of shareholder return that raises per-share value by reducing share count. Rising earnings, continued orders and shareholder returns are overlapping in the same period.
The strengths are clear. It has the highest profitability among domestic shipbuilders yet trades at the lowest multiples. With build volume secured through 2029, revenue is highly predictable. Ship prices remain in a high band, and a rising mix of high-margin shuttle tankers supports the margin. Adding a net cash position and treasury-share cancellations, both the balance sheet and shareholder returns are favorable. The cautions are viewed in a balanced way. Shipbuilding is a cyclical industry, so if new ordering cools it will affect results a few years later. Revenue is concentrated in the tanker family, so it is heavily influenced by the tanker ordering cycle. Whether new-order prices roll over and whether the ordering flow holds are the key variables for the next phase. In short, current results and valuation are strong, and the variable ahead hinges on whether the tanker ordering cycle persists.
🔎 Valuation vs peers Undervalued
Directly compared with domestic listed shipbuilders, whose business substance of building and selling ships is identical.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Ocean | 22.31x | 4.07x | 22.43% |
| HD Korea Shipbuilding & Offshore Engineering | 13.06x | 2.09x | 19.91% |
| Samsung Heavy Industries | 35.65x | 4.31x | 12.31% |
Compared with peer shipbuilders, its position stands out. Daehan Shipbuilding's ROE of 22.8% is higher than Hanwha Ocean (20.2%), HD Korea Shipbuilding & Offshore Engineering (16.3%) and Samsung Heavy Industries (13.2%). Yet its P/E of 7.85x is far below theirs (11.8-37x) and its P/B of 1.79x is the lowest. In other words, it has the best profitability but is assigned the cheapest multiple. Its P/E of 7.85x on last year's confirmed earnings is already low, but this year the Suezmax volumes won at higher prices flow into results and profit steps up a level. On a forward basis reflecting this year's profit, the multiple falls further to the low-6x range. Viewed together with actual cash earned relative to market cap (FCF yield 7.8%) and an EV/EBIT of 5.9x, it reads as undervalued even against its cash generation. That said, given the cyclical nature of shipbuilding, cooling new orders would flow into results a few years later, so this low multiple presupposes the cycle continuing.
Price history Close · MA20 · MA60
The latest close is ₩50,700 and the market capitalization is ₩1.9 trillion. The price sits above its 20-day moving average (₩47,282) and below its 60-day moving average (₩56,532). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.3, a neutral level. The one-month change is -0.2%, the three-month change is -41.4%, and the position relative to the 52-week high is -53.4%. Relative strength versus the KOSPI is 9 (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 8% of all stocks. Over the past three months it lagged the index by 29.0%. 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 -28.96% / 6M -42.15% / 12M -72.82%
Key metrics Computed vs sector median
Valuation
The P/E of 7.76x is below the sector median (12.80x). The P/B of 1.70x is in line with the sector median (1.61x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.3%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.287x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 23.4%, above the sector average (13.0%). The operating margin is 25.0%. The debt ratio is 44.9%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $573.5M | $755.4M | $862.8M | +14.21% ↓ slower |
| Operating profit | $25.2M | $111.0M | $206.6M | +86.07% ↓ slower |
| Net profit | $26.9M | $121.3M | $174.8M | +44.09% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $573.5M | $755.4M | $862.8M |
| Operating profit | — | — | $25.2M | $111.0M | $206.6M |
| Net profit | — | — | $26.9M | $121.3M | $174.8M |
| Revenue CAGR | 2-yr avg 22.65% | ||||
Revenue rose 14.2% year over year (2023 ₩816.4 billion → 2024 ₩1.1 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 86.1% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 22.7%. The two-year revenue CAGR is 22.7%. In the most recent quarter (Q1 2026), revenue was 0.2% higher 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.
- ROE of 23.4% points to solid profitability.
- Revenue grew 14.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-01UpdateSigning of a single sales-and-supply contract. New vessel orders secure additional order backlog.Strengthens medium-term revenue visibility. New orders add to build volume already filled through 2029. Source
- 2026-04-29EarningsFair disclosure of consolidated preliminary results. First-quarter 2026 revenue ₩308.3 billion, operating profit ₩82.6 billion, net profit ₩77.4 billion.Net profit +27.8% year on year. Confirms that the margin uptrend continues as high-priced orders are recognized. Source
- 2026-04-28DividendDecision to cancel treasury shares. Cancellation of about 437,000 common shares (worth roughly ₩40 billion).A shareholder return that raises per-share value by reducing share count. Backed by net cash financial capacity. Source
- 2026-04-16UpdateSigning of a single sales-and-supply contract. New vessel orders continue into early in the second quarter.Order momentum continues. Consistent with a strategy of selectively securing high-priced volume. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-06-01Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-05-06Disclosure
- 2026-04-29Disclosure
- 2026-04-29Disclosure
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-28Disclosure
- 2026-04-28TreasuryMaterial-fact report
- 2026-04-28Disclosure
- 2026-04-23Disclosure
- 2026-04-16Single supply/sales contract
📖 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.