Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩2,075, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 9x in the Construction industry in South Korea. Total loss to shareholders of 70% over the past three years. New Risk • Apr 03
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.5x net interest cover). Minor Risk Large one-off items impacting financial results. Announcement • Feb 27
Taeyoung Engineering & Construction Co.,Ltd., Annual General Meeting, Mar 26, 2026 Taeyoung Engineering & Construction Co.,Ltd., Annual General Meeting, Mar 26, 2026, at 09:30 Tokyo Standard Time. Location: t-art hall, 111, yeouigongwon-ro, yeongdeungpo-gu, seoul South Korea New Risk • Aug 21
New major risk - Revenue and earnings growth Earnings have declined by 58% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩2,580, the stock trades at a trailing P/E ratio of 25.5x. Average trailing P/E is 8x in the Construction industry in South Korea. Total loss to shareholders of 83% over the past three years. New Risk • Apr 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 13% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Share price has been highly volatile over the past 3 months (13% average weekly change). Shareholders have been substantially diluted in the past year (over 14x increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₩3,030, the stock trades at a trailing P/E ratio of 29.9x. Average trailing P/E is 8x in the Construction industry in South Korea. Total loss to shareholders of 82% over the past three years. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,730, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 8x in the Construction industry in South Korea. Total loss to shareholders of 85% over the past three years. New Risk • Mar 20
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 11% 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 Earnings have declined by 80% per year over the past 5 years. Shareholders have been substantially diluted in the past year (over 14x increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Announcement • Feb 27
Taeyoung Engineering & Construction Co.,Ltd., Annual General Meeting, Mar 27, 2025 Taeyoung Engineering & Construction Co.,Ltd., Annual General Meeting, Mar 27, 2025, at 10:00 Tokyo Standard Time. Location: t-art hall, 111, yeouigongwon-ro, yeongdeungpo-gu, seoul South Korea Announcement • Dec 12
Taeyoung Engineering & Construction Co.,Ltd. announced that it expects to receive KRW 13.74515604 billion in funding from NHCAPITAL Co.,LTD., KB Securities Co.,Ltd, Kiwoom Savings Bank Taeyoung Engineering & Construction Co.,Ltd. announced a private placement to issue 5,950,284 common shares at an issue price of KRW 2,310 per share for the gross proceeds of KRW 13,745,156,040 on December 11, 2024. The transaction will include participation from new investors KB Securities Co., Ltd. 2,605,210 shares, NHCAPITAL Co.,LTD. 2,605,210 shares and Kiwoom Savings Bank 739,864 shares. The transaction has been approved by shareholders and is expected to close on December 19, 2024. Reported Earnings • Nov 24
Third quarter 2024 earnings released: EPS: ₩39.00 (vs ₩805 in 3Q 2023) Third quarter 2024 results: EPS: ₩39.00. Revenue: ₩633.0b (down 15% from 3Q 2023). Net income: ₩13.6b (up 47% from 3Q 2023). Profit margin: 2.2% (up from 1.2% in 3Q 2023). New Risk • Nov 01
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Over 13x increase in shares outstanding. This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Earnings have declined by 79% per year over the past 5 years. Shareholders have been substantially diluted in the past year (over 13x increase in shares outstanding). Board Change • Nov 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. Vice Chairman & CEO Suk-Mynn Yoon was the last director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Apr 28
Sinokor Merchant Marine Co., Ltd. acquired a 54.66% stake in Busan New Habor Ungdong Development Co., Ltd. from Taeyoung Engineering & Construction Co.,Ltd. (KOSE:A009410) for KRW 9.1 billion Sinokor Merchant Marine Co., Ltd. acquired a 54.66% stake in Busan New Habor Ungdong Development Co., Ltd. from Taeyoung Engineering & Construction Co.,Ltd. (KOSE:A009410) for KRW 9.1 billion on April 25, 2024.
Sinokor Merchant Marine Co., Ltd. completed the acquisition of a 54.66% stake in Busan New Habor Ungdong Development Co., Ltd. from Taeyoung Engineering & Construction Co.,Ltd. (KOSE:A009410) on April 25, 2024. New Risk • Mar 24
New minor risk - Negative shareholders equity The company has negative equity. Total equity: -₩562b This is considered a minor risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. It should be noted that some of the negative equity could be due to large buybacks of stock, which is not as much of a risk as a company with overwhelming debt, but likewise is not sustainable in the long-term. 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). Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings have declined by 58% per year over the past 5 years. Minor Risks Negative equity (-₩562b). Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩89.8b market cap, or US$66.8m). Buy Or Sell Opportunity • Feb 01
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to ₩2,615. The fair value is estimated to be ₩3,382, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 7.4%. Buying Opportunity • Jan 17
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be ₩3,376, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 7.4%. Buying Opportunity • Dec 27
Now 27% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be ₩3,296, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 7.4%. Upcoming Dividend • Dec 20
Upcoming dividend of ₩225 per share at 8.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. Payout ratio is a comfortable 7.9% but the company is not cash flow positive. Trailing yield: 8.1%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.9%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩128 (vs ₩403 in 3Q 2022) Third quarter 2023 results: EPS: ₩128 (down from ₩403 in 3Q 2022). Revenue: ₩746.1b (up 23% from 3Q 2022). Net income: ₩5.07b (down 68% from 3Q 2022). Profit margin: 0.7% (down from 2.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. New Risk • Oct 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩132.4b (US$98.2m) 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 Risks Interest payments are not well covered by earnings (1.9x net interest cover). Earnings have declined by 17% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Market cap is less than US$100m (₩132.4b market cap, or US$98.2m). Reported Earnings • May 21
First quarter 2023 earnings released: EPS: ₩1,076 (vs ₩649 in 1Q 2022) First quarter 2023 results: EPS: ₩1,076 (up from ₩649 in 1Q 2022). Revenue: ₩724.2b (up 24% from 1Q 2022). Net income: ₩41.9b (up 65% from 1Q 2022). Profit margin: 5.8% (up from 4.4% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 37% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩350 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 8.1%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (3.2%). Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 15% share price gain to ₩5,220, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 7x in the Construction industry in South Korea. Total returns to shareholders of 56% over the past three years. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. Vice Chairman & CEO Suk-Mynn Yoon was the last director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Buying Opportunity • Nov 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 40%. The fair value is estimated to be ₩5,211, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has grown by 5.0%. Buying Opportunity • Oct 13
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 31%. The fair value is estimated to be ₩5,718, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has grown by 5.0%. Buying Opportunity • Sep 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be ₩6,154, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has grown by 5.0%. Reported Earnings • Aug 21
Second quarter 2022 earnings released: ₩112 loss per share (vs ₩440 profit in 2Q 2021) Second quarter 2022 results: ₩112 loss per share (down from ₩440 profit in 2Q 2021). Revenue: ₩617.1b (up 3.2% from 2Q 2021). Net loss: ₩4.23b (down 125% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩6,260, the stock trades at a trailing P/E ratio of 3.3x. Average forward P/E is 5x in the Construction industry in South Korea. Total returns to shareholders of 35% over the past three years. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. Vice Chairman & CEO Suk-Mynn Yoon was the last director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Mar 13
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: ₩1,920 (down from ₩3,145 in FY 2020). Revenue: ₩2.75t (up 21% from FY 2020). Net income: ₩75.1b (down 59% from FY 2020). Profit margin: 2.7% (down from 8.1% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 15%. Over the next year, revenue is expected to shrink by 6.3% compared to a 9.2% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of ₩325 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 18 April 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 3.1%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 23
Second quarter 2021 earnings released: EPS ₩440 (vs ₩191 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ₩598.1b (up 1.7% from 2Q 2020). Net income: ₩17.2b (up 32% from 2Q 2020). Profit margin: 2.9% (up from 2.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 19
New 90-day high: ₩13,650 The company is up 38% from its price of ₩9,920 on 21 October 2020. The South Korean market is up 26% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 31% over the same period. Is New 90 Day High Low • Dec 30
New 90-day high: ₩11,800 The company is up 19% from its price of ₩9,890 on 29 September 2020. The South Korean market is up 20% 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. Is New 90 Day High Low • Oct 19
New 90-day low: ₩9,330 The company is down 43% from its price of ₩16,450 on 21 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 6.0% over the same period. Is New 90 Day High Low • Sep 22
New 90-day low: ₩9,520 The company is down 42% from its price of ₩16,350 on 24 June 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 6.0% over the same period. Price Target Changed • Sep 22
Price target raised to ₩20,000 Up from ₩16,000, the current price target is provided by 1 analyst. The new target price is 110% above the current share price of ₩9,520. As of last close, the stock is down 29% over the past year. 
