Dongbu Corp

Dongbu Corp's capital structure is characterized by a debt-to-equity ratio of 1.05, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.28, suggesting it can cover its short-term obligations but with limited buffer. The price-to-book ratio of 0.31 indicates that the company's market value is significantly below its book value, potentially signaling undervaluation or financial distress.

Profitability metrics for Dongbu Corp are weak, with a return on equity (ROE) of -3.09% and a return on assets (ROA) of -0.91%, both well below the industry median for construction and engineering firms. The company reported a net loss of KRW 17,074,214,540 and an operating loss of KRW 16,190,908,230, reflecting poor operational performance. Gross profit of KRW 5,036,890,420 is minimal relative to revenue of KRW 419,720,749,440, indicating low margins and potential pricing or cost control issues.

Dongbu Corp's revenue is concentrated in the construction and engineering segment, with no disclosed geographic diversification. The company's exposure to a single business line increases vulnerability to sector-specific downturns. No material geographic diversification is reported, and the company's revenue is likely concentrated in South Korea, though this is not explicitly stated in the available data.

The company's growth trajectory is negative, with a net loss in the most recent fiscal year and no indication of improvement in the outlook. Analysts have assigned a mean price target of 5,500 KRW, which is below the current market price of 7,400 KRW, suggesting a bearish sentiment. No strong buy recommendations have been issued, with only one buy recommendation and no holds or sells.

Dongbu Corp faces significant financial risks, including a net cash position that is negative after subtracting total debt. The company's liquidity risk is moderate, but its credit risk is elevated due to the high debt-to-equity ratio and negative operating cash flow. The risk of dilution is assessed as low, with no recent signs of share issuance or at-the-market (ATM) programs. However, the company's free cash flow of -KRW 11,957,937,180 indicates a lack of internal funding for growth or debt reduction.

Recent events include a continued decline in profitability and a lack of analyst optimism. The company has not disclosed any major projects or strategic initiatives that could reverse its financial trajectory. The absence of positive developments in the near term suggests that the company may struggle to meet its financial obligations or improve its market position without external intervention.

Dongbu Corporation (005960.KS) has undergone a significant structural update in its corporate classification, now formally categorized within the Industrials economic sector and the Industrial & Commercial Services activity group. This reclassification represents a medium-severity change in the company's profile, establishing a clearer framework for understanding its operational focus and market positioning. Alongside this sectoral definition, the company's risk assessment profile has been initialized with specific metrics. Dilution risk is currently assessed as low, indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This assessment provides a baseline for evaluating the company's equity stability. Conversely, liquidity risk has been flagged as medium, suggesting that while the company maintains operational continuity, there may be moderate constraints or volatility in its short-term cash flow management. This distinction between low dilution and medium liquidity risk highlights a specific area of financial monitoring for stakeholders. The company currently operates with limited external coverage, evidenced by a single analyst following the stock and no reported index memberships or top institutional holders. This sparse coverage profile, combined with the newly established risk and sector classifications, underscores the importance of these foundational data points for investors seeking to build a comprehensive view of Dongbu Corporation's financial health.

Operating income surged 160.6% year-over-year to 61.7 billion KRW in fiscal 2026, signaling a strong operational turnaround.

Free cash flow improved dramatically by 189.2% to 52.8 billion KRW in fiscal 2026, reversing previous negative trends.

Gross profit expanded significantly to 184.9 billion KRW in fiscal 2026, indicating improved top-line efficiency and pricing power.

Long-term debt decreased to 480.8 billion KRW in fiscal 2025, suggesting active deleveraging efforts amidst financial restructuring.

Revenue maintained a robust 11.3% compound annual growth rate over the last four years, demonstrating consistent top-line expansion.

The company faces high credit risk, posing significant potential for financial distress or default in the near term.

Net margin of -4.1% places Dongbu Corp in the bottom quartile of the Construction & Engineering cohort.

Debt-to-equity ratio of 1.05 is significantly higher than the cohort median of 0.29, reflecting excessive leverage.

Revenue KRW 523.71B, +25,8% YoY; Operating income +207,9% YoY.

• ▍Revenue KRW 523.71B, +25,8% YoY
• ▍Operating income +207,9% YoY
• ▍Net income +230,5% YoY
• ▍Free cash flow +235,0% YoY
• ▍Net margin 5.5%

Revenue KRW 405.53B, −0,6% YoY; Operating income +100,0% YoY.

• ▍Revenue KRW 405.53B, −0,6% YoY
• ▍Operating income +100,0% YoY
• ▍Net income +351,3% YoY
• ▍Free cash flow +1 604,1% YoY
• ▍Net margin 2.9%

Revenue KRW 413.19B, −7,1% YoY; Operating income +97,4% YoY.

• ▍Revenue KRW 413.19B, −7,1% YoY
• ▍Operating income +97,4% YoY
• ▍Net income +91,2% YoY
• ▍Free cash flow +90,0% YoY
• ▍Net margin -1.3%

Revenue KRW 416.20B, −0,8% YoY; Operating income +335,4% YoY.

• ▍Revenue KRW 416.20B, −0,8% YoY
• ▍Operating income +335,4% YoY
• ▍Net income +200,4% YoY
• ▍Free cash flow +271,3% YoY
• ▍Net margin 4.1%

Revenue KRW 416.30B; Operating income -KRW 22.79B.

• ▍Revenue KRW 416.30B
• ▍Operating income -KRW 22.79B
• ▍Net margin -5.3%

Revenue KRW 407.78B; Operating income -KRW 22.45B.

• ▍Revenue KRW 407.78B
• ▍Operating income -KRW 22.45B
• ▍Net margin -1.2%

Revenue KRW 444.57B; Operating income -KRW 40.25B.

• ▍Revenue KRW 444.57B
• ▍Operating income -KRW 40.25B
• ▍Net margin -14.1%

Revenue KRW 419.72B; Operating income -KRW 16.19B.

• ▍Revenue KRW 419.72B
• ▍Operating income -KRW 16.19B
• ▍Net margin -4.1%

Revenue KRW 1.76T, +4,2% YoY; Operating income +160,6% YoY.

• ▍Revenue KRW 1.76T, +4,2% YoY
• ▍Operating income +160,6% YoY
• ▍Net income +149,1% YoY
• ▍Free cash flow +189,2% YoY
• ▍Net margin 3.0%

Revenue KRW 1.69T, −11,1% YoY; Operating income −559,1% YoY.

• ▍Revenue KRW 1.69T, −11,1% YoY
• ▍Operating income −559,1% YoY
• ▍Net income −2 315,1% YoY
• ▍Free cash flow −3 452,0% YoY
• ▍Net margin -6.3%

Revenue KRW 1.90T, +30,0% YoY; Operating income −51,2% YoY.

• ▍Revenue KRW 1.90T, +30,0% YoY
• ▍Operating income −51,2% YoY
• ▍Net income −111,0% YoY
• ▍Free cash flow −201,4% YoY
• ▍Net margin -0.2%

Revenue KRW 1.46T, +27,6% YoY; Operating income −22,8% YoY.

• ▍Revenue KRW 1.46T, +27,6% YoY
• ▍Operating income −22,8% YoY
• ▍Net income −65,7% YoY
• ▍Free cash flow −97,5% YoY
• ▍Net margin 2.7%