Major Estimate Revision • May 30
Consensus revenue estimates fall by 27% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ₩135.0m to ₩98.0m. Forecast losses increased from -₩33.00 to -₩42.00 per share. Construction industry in South Korea expected to see average net income growth of 83% next year. Consensus price target down from ₩2,300 to ₩2,000. Share price fell 13% to ₩1,735 over the past week. Reported Earnings • Mar 20
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: ₩30.00 loss per share (improved from ₩740 loss in FY 2024). Revenue: ₩119.7b (down 28% from FY 2024). Net loss: ₩1.67b (loss narrowed 96% from FY 2024). Revenue missed analyst estimates by 6.5%. Earnings per share (EPS) also missed analyst estimates. Revenue is forecast to grow 8.1% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Announcement • Mar 07
Dongkuk Structures & Construction Company Limited, Annual General Meeting, Mar 24, 2026 Dongkuk Structures & Construction Company Limited, Annual General Meeting, Mar 24, 2026, at 09:00 Tokyo Standard Time. Location: conference room, 362, cheolgang-ro, nam-gu, gyeongsangbuk-do, pohang South Korea Major Estimate Revision • Nov 29
Consensus EPS estimates fall from profit to ₩9.00 loss, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from ₩126.0m to ₩128.0m. Now expected to report loss of -₩9.00 instead of ₩85.00 per share profit. Construction industry in South Korea expected to see average net income growth of 28% next year. Consensus price target down from ₩2,600 to ₩2,300. Share price was steady at ₩2,045 over the past week. New Risk • Nov 28
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: ₩40b Forecast net loss in 2 years: ₩1.3b This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (₩1.3b net loss in 2 years). Market cap is less than US$100m (₩112.3b market cap, or US$76.5m). Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩19.00 (vs ₩12.05 in 3Q 2024) Third quarter 2025 results: EPS: ₩19.00 (up from ₩12.05 in 3Q 2024). Revenue: ₩32.6b (down 33% from 3Q 2024). Net income: ₩1.04b (up 55% from 3Q 2024). Profit margin: 3.2% (up from 1.4% in 3Q 2024). Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 29% per year, which means it has not declined as severely as earnings. New Risk • Aug 21
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩136.3b (US$97.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 20
Full year 2024 earnings released: ₩730 loss per share (vs ₩537 loss in FY 2023) Full year 2024 results: ₩730 loss per share (further deteriorated from ₩537 loss in FY 2023). Revenue: ₩165.8b (down 7.2% from FY 2023). Net loss: ₩41.2b (loss widened 37% from FY 2023). Revenue is forecast to grow 48% p.a. on average during the next 2 years, compared to a 2.1% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Announcement • Mar 07
Dongkuk Structures & Construction Company Limited, Annual General Meeting, Mar 25, 2025 Dongkuk Structures & Construction Company Limited, Annual General Meeting, Mar 25, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 362, cheolgang-ro, nam-gu, gyeongsangbuk-do, pohang South Korea New Risk • Oct 25
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩137.7b (US$99.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩137.7b market cap, or US$99.0m). New Risk • Aug 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (9.1% average weekly change). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ₩53.00 (vs ₩238 loss in 2Q 2023) Second quarter 2024 results: EPS: ₩53.00 (up from ₩238 loss in 2Q 2023). Revenue: ₩134.3b (up 47% from 2Q 2023). Net income: ₩2.95b (up ₩16.2b from 2Q 2023). Profit margin: 2.2% (up from net loss in 2Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. New Risk • Aug 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩122.1b (US$89.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₩122.1b market cap, or US$89.5m). Reported Earnings • Mar 21
Full year 2023 earnings released: ₩542 loss per share (vs ₩141 loss in FY 2022) Full year 2023 results: ₩542 loss per share (further deteriorated from ₩141 loss in FY 2022). Revenue: ₩398.3b (down 17% from FY 2022). Net loss: ₩30.2b (loss widened 285% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. New Risk • Nov 19
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 6.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (6.9% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 20% per year over the past 5 years. New Risk • Aug 20
New major risk - Revenue and earnings growth Earnings have declined by 1.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.7% per year over the past 5 years. Minor Risks High level of debt (51% net debt to equity). Paying a dividend despite being loss-making. Reported Earnings • Mar 18
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: ₩141 loss per share (down from ₩302 profit in FY 2021). Revenue: ₩477.1b (up 26% from FY 2021). Net loss: ₩7.84b (down 147% from profit in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 50% per year, which means it is well ahead of earnings. Buying Opportunity • Jan 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be ₩5,465, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings is also forecast to grow by 33% per annum over the same time period. Upcoming Dividend • Dec 21
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 14 April 2023. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (3.2%). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. No independent directors (9 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩5,430, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 4x in the Construction industry in South Korea. Total returns to shareholders of 189% over the past three years. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improved over the past week After last week's 19% share price gain to ₩6,950, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 5x in the Construction industry in South Korea. Total returns to shareholders of 283% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 25% share price gain to ₩6,620, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 5x in the Construction industry in South Korea. Total returns to shareholders of 185% over the past three years. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improved over the past week After last week's 17% share price gain to ₩5,960, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 6x in the Construction industry in South Korea. Total returns to shareholders of 171% over the past three years. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. No independent directors (9 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 17
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: ₩302 (up from ₩63.00 in FY 2020). Revenue: ₩378.8b (up 28% from FY 2020). Net income: ₩16.8b (up 382% from FY 2020). Profit margin: 4.4% (up from 1.2% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Over the next year, revenue is forecast to grow 12%, compared to a 8.9% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩5,640, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 4x in the Construction industry in South Korea. Total returns to shareholders of 92% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 21 April 2022. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (2.1%). Reported Earnings • Mar 19
Full year 2020 earnings released: EPS ₩63.00 (vs ₩171 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩294.7b (down 7.3% from FY 2019). Net income: ₩3.49b (down 63% from FY 2019). Profit margin: 1.2% (down from 3.0% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 24
New 90-day low: ₩6,030 The company is down 29% from its price of ₩8,520 on 26 November 2020. The South Korean market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩6,450, the stock is trading at a trailing P/E ratio of 43.2x, down from the previous P/E ratio of 51.5x. This compares to an average P/E of 11x in the Construction industry in South Korea. Total returns to shareholders over the past three years are 15%. Is New 90 Day High Low • Jan 28
New 90-day low: ₩6,900 The company is down 10.0% from its price of ₩7,650 on 30 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 24% over the same period. Valuation Update With 7 Day Price Move • Oct 22
Market pulls back on stock over the past week After last week's 17% share price decline to ₩7,580, the stock is trading at a trailing P/E ratio of 27.8x, down from the previous P/E ratio of 33.6x. This compares to an average P/E of 8x in the Construction industry in South Korea. Total returns to shareholders over the past three years are 50%. Valuation Update With 7 Day Price Move • Oct 19
Market pulls back on stock over the past week After last week's 16% share price decline to ₩7,930, the stock is trading at a trailing P/E ratio of 29.1x, down from the previous P/E ratio of 34.5x. This compares to an average P/E of 8x in the Construction industry in South Korea. Total returns to shareholders over the past three years are 67%.