Dongwon Development Co Ltd

Dongwon Development maintains a strong liquidity position, with cash and equivalents amounting to KRW 86.9 billion, which is 2.3 times its long-term debt of KRW 125.6 billion. The company's current ratio of 3.74 indicates a robust ability to meet short-term obligations. However, the price-to-book ratio of 0.21 suggests that the company's market value is significantly below its book value, potentially signaling undervaluation or asset impairment concerns.

Profitability metrics show a return on equity (ROE) of 0.83% and a return on assets (ROA) of 0.61%, both of which are below the industry median for homebuilders, indicating subpar capital efficiency and asset utilization. The company's operating margin of 6.0% is in line with the industry average, but its net margin of 5.5% is slightly below the median, suggesting higher-than-average operating expenses or tax burdens.

Geographically, Dongwon Development's revenue is concentrated in South Korea, with no disclosed international operations. The company's exposure to domestic real estate cycles and regulatory changes in the Korean housing market could pose risks to its revenue stability. Segment-wise, the company operates as a single business unit focused on residential construction, with no material diversification across product lines or customer bases.

Looking ahead, the company is projected to see a 5.0% year-over-year revenue growth in the current fiscal year, driven by increased demand in the Korean housing market and a growing pipeline of new projects. However, the outlook for the following fiscal year is more cautious, with a projected 2.0% growth, reflecting potential market saturation and regulatory headwinds.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. While the company has a net cash position of KRW 61.3 billion (cash minus total debt), the risk assessment notes that this is a marginal buffer, and any significant capital outflows could strain liquidity. No dilutive events are currently flagged, and the company's share count has remained stable, with no recent equity offerings or convertible instruments outstanding.

Recent filings and transcripts indicate that Dongwon Development is focusing on cost optimization and project efficiency to maintain profitability amid rising construction costs. The company has also emphasized its commitment to sustainable development practices, aligning with broader industry trends and regulatory expectations.

Cash conversion of 2.64 ranks best-in-class among 89 homebuilding peers, indicating superior operational efficiency.

Net margin of 5.48% exceeds the 4.69% cohort median, demonstrating better profitability than most competitors.

Debt-to-equity ratio of 0.12 is significantly lower than the 0.48 cohort median, suggesting a conservative capital structure.

Free cash flow improved to 22.3 billion KRW in FY2026, up from 14.2 billion KRW in FY2025.

Net income CAGR of 12.0% over four years indicates long-term earnings growth potential despite recent volatility.

Return on equity of 0.83% falls in the bottom quartile of the 92-company homebuilding cohort.

Long-term debt surged to 212.8 billion KRW in FY2026, a significant increase from 122.1 billion KRW in FY2025.

High credit risk flag suggests potential difficulties in meeting financial obligations or securing favorable financing terms.

Revenue KRW 74.51B, −18,0% YoY.

• ▍Revenue KRW 74.51B, −18,0% YoY

Revenue KRW 93.89B, +6,0% YoY; Operating income +154,9% YoY.

• ▍Revenue KRW 93.89B, +6,0% YoY
• ▍Operating income +154,9% YoY
• ▍Net income +146,0% YoY
• ▍Free cash flow +156,2% YoY
• ▍Net margin 5.9%

Revenue KRW 97.16B, −1,3% YoY; Operating income +170,6% YoY.

• ▍Revenue KRW 97.16B, −1,3% YoY
• ▍Operating income +170,6% YoY
• ▍Net income +10 214,9% YoY
• ▍Free cash flow +731,7% YoY
• ▍Net margin 8.6%

Revenue KRW 105.42B, −34,4% YoY; Operating income −55,6% YoY.

• ▍Revenue KRW 105.42B, −34,4% YoY
• ▍Operating income −55,6% YoY
• ▍Net income −26,3% YoY
• ▍Free cash flow −20,2% YoY
• ▍Net margin 6.1%

Revenue KRW 90.87B; Operating income KRW 4.51B.

• ▍Revenue KRW 90.87B
• ▍Operating income KRW 4.51B
• ▍Net margin 6.4%

Revenue KRW 88.53B; Operating income -KRW 6.87B.

• ▍Revenue KRW 88.53B
• ▍Operating income -KRW 6.87B
• ▍Net margin -13.7%

Revenue KRW 98.48B; Operating income -KRW 6.43B.

• ▍Revenue KRW 98.48B
• ▍Operating income -KRW 6.43B
• ▍Net margin 0.1%

Revenue KRW 160.62B; Operating income KRW 9.61B.

• ▍Revenue KRW 160.62B
• ▍Operating income KRW 9.61B
• ▍Net margin 5.5%

Revenue KRW 387.34B, −25,6% YoY; Operating income −18,6% YoY.

• ▍Revenue KRW 387.34B, −25,6% YoY
• ▍Operating income −18,6% YoY
• ▍Net income +42,8% YoY
• ▍Free cash flow +57,3% YoY
• ▍Net margin 6.8%

Revenue KRW 520.37B, −29,4% YoY; Operating income −30,5% YoY.

• ▍Revenue KRW 520.37B, −29,4% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −56,9% YoY
• ▍Free cash flow −52,8% YoY
• ▍Net margin 3.5%

Revenue KRW 736.56B, +26,7% YoY; Operating income −63,5% YoY.

• ▍Revenue KRW 736.56B, +26,7% YoY
• ▍Operating income −63,5% YoY
• ▍Net income −36,4% YoY
• ▍Free cash flow −45,4% YoY
• ▍Net margin 5.8%