Buy Or Sell Opportunity • Jun 16
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 83% to ₩27,150. The fair value is estimated to be ₩21,458, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Price Target Changed • Jun 06
Price target increased by 13% to ₩21,400 Up from ₩19,008, the current price target is an average from 13 analysts. New target price is approximately in line with last closing price of ₩21,750. Stock is up 380% over the past year. The company is forecast to post earnings per share of ₩1,164 next year compared to a net loss per share of ₩2,220 last year. Buy Or Sell Opportunity • May 29
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 158% to ₩26,200. The fair value is estimated to be ₩21,746, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Announcement • Apr 25
Daewoo Engineering & Construction Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Daewoo Engineering & Construction Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Buy Or Sell Opportunity • Mar 19
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 328% to ₩16,110. The fair value is estimated to be ₩13,138, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 8.5% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Mar 18
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: ₩2,220 loss per share (down from ₩570 profit in FY 2024). Revenue: ₩8.05t (down 23% from FY 2024). Net loss: ₩912.3b (down 490% from profit in FY 2024). Revenue missed analyst estimates by 4.9%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.7% 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 134 percentage points per year, which is a significant difference in performance. Announcement • Mar 06
Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2026 Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2026, at 09:00 Tokyo Standard Time. Location: art hall, 170, eulji-ro, jung-gu, seoul South Korea Buy Or Sell Opportunity • Mar 03
Now 23% undervalued Over the last 90 days, the stock has risen 152% to ₩8,980. The fair value is estimated to be ₩11,660, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.5% over the last 3 years. Meanwhile, the company became loss making. Price Target Changed • Feb 28
Price target increased by 10% to ₩6,993 Up from ₩6,331, the current price target is an average from 14 analysts. New target price is 31% below last closing price of ₩10,140. Stock is up 199% over the past year. New Risk • Feb 10
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 10% 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 Risk Debt is not well covered by operating cash flow (0.6% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Announcement • Feb 05
Daewoo Engineering & Construction Co., Ltd. to Report Fiscal Year 2025 Results on Feb 09, 2026 Daewoo Engineering & Construction Co., Ltd. announced that they will report fiscal year 2025 results on Feb 09, 2026 Price Target Changed • Jan 28
Price target increased by 7.5% to ₩4,914 Up from ₩4,571, the current price target is an average from 14 analysts. New target price is approximately in line with last closing price of ₩5,150. Stock is up 53% over the past year. The company is forecast to post earnings per share of ₩126 for next year compared to ₩570 last year. Reported Earnings • Nov 04
Third quarter 2025 earnings released: ₩123 loss per share (vs ₩92.68 profit in 3Q 2024) Third quarter 2025 results: ₩123 loss per share (down from ₩92.68 profit in 3Q 2024). Revenue: ₩1.99t (down 22% from 3Q 2024). Net loss: ₩50.6b (down 233% from profit in 3Q 2024). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩4,365, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Construction industry in South Korea. Total loss to shareholders of 19% over the past three years. New Risk • Aug 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: 0.4% 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 Risk Debt is not well covered by operating cash flow (0.4% operating cash flow to total debt). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Major Estimate Revision • Aug 02
Consensus EPS estimates fall by 38% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩613 to ₩381 per share. Revenue forecast steady at ₩8.57b. Net income forecast to grow 0.2% next year vs 19% growth forecast for Construction industry in South Korea. Consensus price target of ₩4,627 unchanged from last update. Share price fell 6.5% to ₩3,665 over the past week. Reported Earnings • May 03
First quarter 2025 earnings released: EPS: ₩141 (vs ₩215 in 1Q 2024) First quarter 2025 results: EPS: ₩141 (down from ₩215 in 1Q 2024). Revenue: ₩2.08t (down 17% from 1Q 2024). Net income: ₩58.0b (down 34% from 1Q 2024). Profit margin: 2.8% (down from 3.6% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat 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, earnings per share has fallen by 19% per year and the company’s share price has also fallen by 19% per year. Major Estimate Revision • Apr 30
Consensus EPS estimates increase by 24% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ₩639 to ₩794. Revenue forecast unchanged at ₩9.18b. Net income forecast to grow 41% next year vs 14% growth forecast for Construction industry in South Korea. Consensus price target broadly unchanged at ₩4,181. Share price rose 7.6% to ₩3,530 over the past week. Board Change • Apr 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. 5 experienced directors. No highly experienced directors. Independent Outside Director Jae Joong Kim was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 24
Daewoo Engineering & Construction Co., Ltd.(KOSE:A047040) dropped from FTSE All-World Index (USD) Daewoo Engineering & Construction Co., Ltd.(KOSE:A047040) dropped from FTSE All-World Index (USD) Reported Earnings • Mar 21
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: ₩570 (down from ₩1,245 in FY 2023). Revenue: ₩11t (down 9.8% from FY 2023). Net income: ₩234.1b (down 54% from FY 2023). Profit margin: 2.2% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is expected to decline by 2.0% p.a. on average during the next 2 years, while revenues in the Construction industry in South Korea are expected to grow by 2.3%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Announcement • Mar 06
Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2025 Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 170, eulji-ro, jung-gu, seoul South Korea Reported Earnings • Feb 08
Full year 2024 earnings released: EPS: ₩591 (vs ₩1,245 in FY 2023) Full year 2024 results: EPS: ₩591 (down from ₩1,245 in FY 2023). Revenue: ₩11t (down 9.8% from FY 2023). Net income: ₩242.8b (down 53% from FY 2023). Profit margin: 2.3% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 1.1% p.a. on average during the next 2 years, while revenues in the Construction industry in South Korea are expected to grow by 1.6%. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 16% per year. New Risk • Feb 08
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.3% Last year net profit margin: 4.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.7x net interest cover). Minor Risk Profit margins are more than 30% lower than last year (2.3% net profit margin). Major Estimate Revision • Feb 07
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₩10.5b to ₩8.54b. EPS estimate fell from ₩787 to ₩715 per share. Net income forecast to shrink 9.1% next year vs 41% growth forecast for Construction industry in South Korea . Consensus price target down from ₩4,438 to ₩4,331. Share price was steady at ₩3,340 over the past week. Announcement • Feb 05
Daewoo Engineering & Construction Co., Ltd. to Report Fiscal Year 2024 Results on Feb 06, 2025 Daewoo Engineering & Construction Co., Ltd. announced that they will report fiscal year 2024 results on Feb 06, 2025 New Risk • Dec 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.2% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 5.2% per year for the foreseeable future. Minor Risk High level of debt (41% net debt to equity). New Risk • Nov 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 (currently running at an operating cash loss). High level of non-cash earnings (40% accrual ratio). Price Target Changed • Nov 09
Price target decreased by 7.4% to ₩4,569 Down from ₩4,933, the current price target is an average from 16 analysts. New target price is 23% above last closing price of ₩3,705. Stock is down 11% over the past year. The company is forecast to post earnings per share of ₩688 for next year compared to ₩1,245 last year. Announcement • Nov 05
Daewoo Engineering & Construction Announces CEO Changes On November 5, 2024, Daewoo Engineering & Construction announced that Kim Bo-hyun, the current executive vice president, is set to take on the role of CEO at the upcoming board meeting scheduled for December. Kim, born in 1966, is a retired South Korean Air Force brigadier general and former fighter pilot. He joined Daewoo in 2021 as the head of the acquisition team during Jungheung Group's takeover of the company. After a year as an adviser, he took on the role of executive vice president in 2023 to oversee Daewoo's local and overseas projects. Current CEO Baek Jung-wan will continue to serve his term which ends in February 2025. The company added that Baek has played a critical role in stabilizing the management during the ownership transition period. The company also noted that this leadership transition aims to solidify its organizational structure as it anticipates challenging conditions in the construction sector next year. Major Estimate Revision • Nov 02
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩821 to ₩705 per share. Revenue forecast steady at ₩10.5b. Net income forecast to shrink 17% next year vs 28% growth forecast for Construction industry in South Korea . Consensus price target down from ₩4,933 to ₩4,767. Share price fell 2.2% to ₩3,540 over the past week. Announcement • Oct 16
J&KS Co., Ltd agreed to acquire 41.35% stake in Korea Infrastructure Management Co.,Ltd. from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) for KRW 30 billion J&KS Co., Ltd agreed to acquire 41.35% stake in Korea Infrastructure Management Co.,Ltd. from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) for KRW 30 billion on October 10, 2024. A cash consideration of KRW 30 billion valued at KRW 172651 per share will be paid by J&KS Co., Ltd. As part of consideration, KRW 30 billion is paid towards common equity of Korea Infrastructure Management Co.,Ltd.
The expected completion of the transaction is December 1, 2024 to December 31, 2024. Announcement • Oct 08
Industrial Bank of Korea (KOSE:A024110) acquired remaining 70% stake in Cheonmasan Tunnel Corp. from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040), Korea Infrastructure Management Co.,Ltd. and others for KRW 18.9 million. Industrial Bank of Korea (KOSE:A024110) acquired remaining 70% stake in Cheonmasan Tunnel Corp. from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040), Korea Infrastructure Management Co.,Ltd. and others for KRW 18.9 million on October 8, 2024.
Industrial Bank of Korea (KOSE:A024110) completed the acquisition of remaining 70% stake in Cheonmasan Tunnel Corp. from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040), Korea Infrastructure Management Co.,Ltd. and others on October 8, 2024. Reported Earnings • May 02
First quarter 2024 earnings released: EPS: ₩223 (vs ₩236 in 1Q 2023) First quarter 2024 results: EPS: ₩223 (down from ₩236 in 1Q 2023). Revenue: ₩2.49t (down 4.6% from 1Q 2023). Net income: ₩91.5b (down 5.7% from 1Q 2023). Profit margin: 3.7% (in line with 1Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 2.8% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: ₩1,245 (vs ₩1,227 in FY 2022) Full year 2023 results: EPS: ₩1,245 (up from ₩1,227 in FY 2022). Revenue: ₩12t (up 12% from FY 2022). Net income: ₩511.7b (up 1.5% from FY 2022). Profit margin: 4.4% (down from 4.8% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 1.8% p.a. on average during the next 3 years, while revenues in the Construction industry in South Korea are expected to grow by 1.9%. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. New Risk • Jan 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risks Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. High level of non-cash earnings (38% accrual ratio). Major Estimate Revision • Jan 31
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ₩11.8b to ₩10.6b. EPS estimate also fell from ₩1,247 per share to ₩1,022 per share. Net income forecast to shrink 13% next year vs 26% growth forecast for Construction industry in South Korea . Consensus price target down from ₩5,529 to ₩5,414. Share price was steady at ₩3,945 over the past week. Buy Or Sell Opportunity • Jan 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.2% to ₩3,880. The fair value is estimated to be ₩4,888, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 19%. For the next 3 years, revenue is forecast to decline by 1.6% per annum. Earnings are forecast to grow by 1.9% per annum over the same time period. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: ₩282 (vs ₩417 in 3Q 2022) Third quarter 2023 results: EPS: ₩282 (down from ₩417 in 3Q 2022). Revenue: ₩2.99t (up 19% from 3Q 2022). Net income: ₩109.9b (down 36% from 3Q 2022). Profit margin: 3.7% (down from 6.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 1.7% p.a. on average during the next 3 years, while revenues in the Construction industry in South Korea are expected to grow by 3.4%. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. New Risk • Aug 04
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.2% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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. Major Estimate Revision • Jul 28
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from ₩11.0b to ₩11.9b. EPS estimate increased from ₩1,058 to ₩1,260 per share. Net income forecast to grow 23% next year vs 5.0% growth forecast for Construction industry in South Korea. Consensus price target of ₩5,617 unchanged from last update. Share price was steady at ₩4,330 over the past week. Reported Earnings • Mar 22
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: ₩1,227 (up from ₩1,180 in FY 2021). Revenue: ₩10t (up 20% from FY 2021). Net income: ₩504.0b (up 4.0% from FY 2021). Profit margin: 4.8% (down from 5.6% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.1%. Earnings per share (EPS) missed analyst estimates by 2.7%. Revenue is forecast to grow 2.1% 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 increased by 33% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jan 09
Price target decreased to ₩5,962 Down from ₩6,443, the current price target is an average from 13 analysts. New target price is 32% above last closing price of ₩4,505. Stock is down 28% over the past year. The company is forecast to post earnings per share of ₩1,255 for next year compared to ₩1,180 last year. Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: ₩417 (vs ₩217 in 3Q 2021) Third quarter 2022 results: EPS: ₩417 (up from ₩217 in 3Q 2021). Revenue: ₩2.52t (up 20% from 3Q 2021). Net income: ₩171.4b (up 92% from 3Q 2021). Profit margin: 6.8% (up from 4.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Independent Outside Director Gwang-Lim Youn is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Price Target Changed • Nov 01
Price target decreased to ₩6,686 Down from ₩7,243, the current price target is an average from 14 analysts. New target price is 59% above last closing price of ₩4,205. Stock is down 33% over the past year. The company is forecast to post earnings per share of ₩1,178 for next year compared to ₩1,180 last year. Major Estimate Revision • Oct 28
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from ₩1,039 to ₩1,181. Revenue forecast steady at ₩9.94b. Net income forecast to grow 20% next year vs 11% growth forecast for Construction industry in South Korea. Consensus price target of ₩7,243 unchanged from last update. Share price rose 6.7% to ₩4,240 over the past week. Price Target Changed • Aug 01
Price target decreased to ₩7,629 Down from ₩8,250, the current price target is an average from 13 analysts. New target price is 44% above last closing price of ₩5,300. Stock is down 27% over the past year. The company is forecast to post earnings per share of ₩1,006 for next year compared to ₩1,180 last year. Major Estimate Revision • Jul 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from ₩1,304 to ₩970. Revenue forecast unchanged from ₩9.87b at last update. Net income forecast to shrink 13% next year vs 16% growth forecast for Construction industry in South Korea . Consensus price target broadly unchanged at ₩8,107. Share price was steady at ₩5,250 over the past week. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩5,070, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 5x in the Construction industry in South Korea. Total returns to shareholders of 1.4% over the past three years. Buying Opportunity • Apr 29
Now 20% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be ₩8,478, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.4% over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 9.0% per annum. Earnings is also forecast to grow by 8.8% per annum over the same time period. Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Independent Outside Director Gwang-Lim Youn is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Buying Opportunity • Apr 20
Now 22% undervalued Over the last 90 days, the stock is up 9.1%. The fair value is estimated to be ₩8,214, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.4% over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 9.0% per annum. Earnings is also forecast to grow by 8.8% per annum over the same time period. Board Change • Apr 01
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. Independent Outside Director Rin-Gon Moon is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Jan 28
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from ₩10.5b to ₩9.59b. EPS estimate also fell from ₩1,380 per share to ₩1,067 per share. Net income forecast to shrink 6.4% next year vs 20% growth forecast for Construction industry in South Korea . Consensus price target broadly unchanged at ₩8,467. Share price fell 3.1% to ₩5,670 over the past week. Announcement • Jun 26
Two Participate in Preliminary Bidding for Daewoo E&C A mid-sized builder and a consortium led by a property developer submitted preliminary bids to buy a controlling stake in Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) from an investment fund under the state-run Korea Development Bank (KDB), people familiar with the matter said June 25, 2021. The bidders are Jungheung Construction and the consortium made of DS Networks Co., Ltd. and SkyLake, a leading technology private equity firm, they said. Lead manager Bank of America Merrill Lynch received the bids from the two prospective buyers for a 50.75% stake in Daewoo E&C held by KDB Investment Co., a private equity firm controlled by the state-run lender, they said. The stake up for sale in Daewoo Engineering is valued at around KRW 2 trillion (USD 1.7 billion). KDB Investment reportedly plans to pick a preferred bidder in July and complete the sale of Daewoo E&C by the end of the year. KDB Investment did not make any official comment on the bids. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improved over the past week After last week's 17% share price gain to ₩8,870, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Construction industry in South Korea. Total returns to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩7,499 per share. Price Target Changed • May 03
Price target increased to ₩7,856 Up from ₩7,328, the current price target is an average from 16 analysts. New target price is 6.3% above last closing price of ₩7,390. Stock is up 112% over the past year. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS ₩691 (vs ₩508 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: ₩8.14t (down 6.0% from FY 2019). Net income: ₩283.8b (up 36% from FY 2019). Profit margin: 3.5% (up from 2.4% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 16% share price gain to ₩6,300, the stock trades at a trailing P/E ratio of 13.4x, up from the previous P/E ratio of 11.5x. Average P/E is 11x in the Construction industry in South Korea. Total returns to shareholders over the past three years are 15%. Announcement • Mar 03
Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2021 Daewoo Engineering & Construction Co., Ltd., Annual General Meeting, Mar 26, 2021, at 09:00 Korea Standard Time. Price Target Changed • Jan 30
Price target raised to ₩6,656 Up from ₩5,768, the current price target is an average from 17 analysts. The new target price is 13% above the current share price of ₩5,900. As of last close, the stock is up 36% over the past year. Major Estimate Revision • Jan 30
Analysts increase EPS estimates to ₩998 The 2021 consensus revenue estimate increased from ₩9.49b to ₩9.77b. The earnings per share estimate also received an upgrade from ₩895 to ₩998 for the same period. Net income is expected to grow by 92% next year compared to 37% growth forecast for the Construction industry in South Korea. The consensus price target increased from ₩5,768 to ₩6,656. Share price is down by 5.9% to ₩5,900 over the past week. Announcement • Jan 26
Daewoo Engineering & Construction Co., Ltd. to Report Fiscal Year 2020 Results on Jan 28, 2021 Daewoo Engineering & Construction Co., Ltd. announced that they will report fiscal year 2020 results on Jan 28, 2021 Is New 90 Day High Low • Jan 14
New 90-day high: ₩6,050 The company is up 109% from its price of ₩2,900 on 16 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 35% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩6,862 per share. Price Target Changed • Jan 13
Price target raised to ₩4,872 Up from ₩4,444, the current price target is an average from 14 analysts. The new target price is 15% below the current share price of ₩5,710. As of last close, the stock is up 22% over the past year. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 24% share price gain to ₩5,790, the stock is trading at a trailing P/E ratio of 12.4x, up from the previous P/E ratio of 9.9x. This compares to an average P/E of 11x in the Construction industry in South Korea. Total return to shareholders over the past three years is a loss of 4.1%. Is New 90 Day High Low • Dec 30
New 90-day high: ₩4,985 The company is up 79% from its price of ₩2,785 on 29 September 2020. The South Korean market is up 20% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩7,463 per share. Is New 90 Day High Low • Dec 09
New 90-day high: ₩4,300 The company is up 50% from its price of ₩2,865 on 10 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩6,110 per share. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 21% share price gain to ₩4,300, the stock is trading at a trailing P/E ratio of 9.2x, up from the previous P/E ratio of 7.6x. This compares to an average P/E of 9x in the Construction industry in South Korea. Total return to shareholders over the past three years is a loss of 26%. Valuation Update With 7 Day Price Move • Dec 04
Market bids up stock over the past week After last week's 15% share price gain to ₩4,070, the stock is trading at a trailing P/E ratio of 8.7x, up from the previous P/E ratio of 7.5x. This compares to an average P/E of 9x in the Construction industry in South Korea. Total return to shareholders over the past three years is a loss of 26%. Is New 90 Day High Low • Nov 11
New 90-day high: ₩3,610 The company is up 3.0% from its price of ₩3,510 on 13 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩6,119 per share. Valuation Update With 7 Day Price Move • Nov 11
Market bids up stock over the past week After last week's 17% share price gain to ₩3,610, the stock is trading at a trailing P/E ratio of 8.1x, up from the previous P/E ratio of 6.9x. This compares to an average P/E of 8x in the Construction industry in South Korea. Total return to shareholders over the past three years is a loss of 41%. Announcement • Aug 31
Daewoo Engineering & Construction Co., Ltd. to Report Q2, 2020 Results on Jul 30, 2020 Daewoo Engineering & Construction Co., Ltd. announced that they will report Q2, 2020 results on Jul 30, 2020 Announcement • Aug 06
Strike Capital Management, LLC acquired Paganica Country Club from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040). Strike Capital Management, LLC acquired Paganica Country Club from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) in January 2020. Sang-Soo Yoo and Jin-Song Chung of Pwc Korea Ltd. acted as due diligence providers to Strike Capital Management, LLC.
Strike Capital Management, LLC completed the acquisition of Paganica Country Club from Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) on in January 2020.