PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Yihwa Engineering & Construction swung to operating and net profit in 2025, but a change of controlling shareholder and an ongoing delisting review in 2026 have kept structural uncertainty elevated.
2025 consolidated revenue was KRW 115.19 billion with operating profit of KRW 3.29 billion and net profit of KRW 2.13 billion, a turnaround from the large 2024 loss.
In February 2026 private equity firm Han&Brothers acquired a 42.05% stake from the former management to become the largest shareholder, and a KRW 6 billion third-party share issuance followed in March, expanding total shares outstanding.
After an audit opinion disclaimer on FY2024 triggered a delisting cause, the company filed for and then withdrew court rehabilitation, and in May 2026 the KRX Listing Review Committee again resolved to delist the stock, with an appeal process now underway.
The debt ratio eased from 774.7% in 2024 to 464.2% in 2025, but remains very high.
Revenue plunged into the KRW 10 billion range in the first two quarters of 2026 as operating and net losses returned, raising questions about the durability of the 2025 profit turnaround.
Yihwa Engineering & Construction is a general contractor founded in 1956, ranked around 134th by construction capability evaluation in recent industry rankings. Its core business is building construction, and it is described as having a relatively higher share of private-sector orders versus public-sector work.
Recent order wins include a KRW 22.91 billion new-building contract with Yeonsung University in Anyang, along with contracts for an expansion at Samyang's Incheon No.2 plant and a building extension for Sijimed Tech in Uijeongbu.
The company has also secured work on an injectable-drug and API production building expansion at Samjin Pharm's Osong plant.
Han&Brothers, which took control of the company in February 2026, has stated it intends to focus on Yihwa's specialized GMP (pharmaceutical Good Manufacturing Practice) construction segment and pursue overseas market entry as part of a turnaround strategy.
This aligns with the company's track record in pharmaceutical and bio-manufacturing facility construction and signals a possible portfolio realignment ahead.
That said, the company's scale is small relative to major contractors, and revenue has been on a multi-year contraction trend, suggesting weakening competitive standing. Repeated listing-eligibility issues since April 2025 are also likely to have constrained new order activity.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩33.9B | ₩2.6B | 7.7% |
| 2025Q3 | ₩29.4B | ₩200M | 0.7% |
| 2025Q4 | ₩31.3B | ₩1.3B | 4.2% |
| 2026Q1 | ₩13.2B | -₩900M | −6.5% |
| 2026Q2 | ₩10.4B | -₩1.1B | −10.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩194.6B | ₩100M | ₩600M | 0.1% | 1.2% | 101.8% |
| 2023 | ₩151.2B | -₩1.1B | -₩1.4B | −0.7% | −2.9% | 126.1% |
| 2024 | ₩128.3B | -₩19.8B | -₩23.1B | −15.4% | −374.4% | 774.7% |
| 2025 | ₩115.2B | ₩3.3B | ₩2.1B | 2.9% | 23.8% | 464.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual revenue contracted for four straight years, from KRW 194.6 billion in 2022 to KRW 151.2 billion in 2023, KRW 128.3 billion in 2024, and KRW 115.2 billion in 2025.
On profitability, the company hovered near breakeven in 2022 with a KRW 0.14 billion operating profit and posted a KRW 1.09 billion operating loss in 2023, before a severe deterioration in 2024 that produced a KRW 19.8 billion operating loss and a KRW 23.1 billion net loss, which contributed to an audit opinion disclaimer and a delisting cause.
In 2025, despite continued revenue contraction, the company returned to profit with operating income of KRW 3.29 billion and owner net income of KRW 2.13 billion, lifting the operating margin to 2.9%.
By quarter, 2025 Q2 revenue reached KRW 33.95 billion with operating profit of KRW 2.63 billion and owner net income of KRW 2.67 billion, a strong quarter, while Q3 revenue fell to KRW 29.43 billion with operating profit shrinking to KRW 0.21 billion and a small net loss of KRW 0.33 billion.
Q4 improved again to KRW 31.26 billion in revenue, KRW 1.30 billion in operating profit, and KRW 0.89 billion in net profit.
However, revenue collapsed to KRW 13.24 billion in Q1 2026, producing an operating loss of KRW 0.86 billion and a net loss of KRW 0.13 billion, and losses persisted in Q2 2026 with revenue of KRW 10.37 billion, an operating loss of KRW 1.13 billion, and a net loss of KRW 1.28 billion.
This period overlapped with a concentrated wave of capital restructuring, including a capital reduction, a change of controlling shareholder, and a third-party share issuance, so whether the revenue drop is a temporary disruption from restructuring or a continuation of business contraction requires confirmation in coming quarters.
Operating cash flow stayed negative for four consecutive years at KRW -14.51 billion, KRW -12.93 billion, KRW -13.02 billion, and KRW -8.76 billion from 2022 through 2025, indicating that despite the accounting profit turnaround, actual cash generation capacity remains weak.
Korea's mid-tier construction sector has seen a growing number of firms face liquidity strain amid real estate project-finance distress and rising construction costs, and the number of KOSDAQ-listed firms undergoing delisting reviews has been expanding.
The Korea Capital Market Institute has noted that, factoring in regulatory changes, the number of KOSDAQ delisting candidates in 2026 could rise to around 150 companies, well above an earlier estimate of 50.
Against this backdrop, companies facing delisting risk increasingly attempt to preserve their listings through capital raises and changes of controlling shareholder, and Yihwa can be viewed as one example of this pattern.
A prior case of a large contractor that resumed trading ahead of schedule after fulfilling its self-rescue plan has been cited in the market as a recovery scenario.
Yihwa, ranked around 134th by construction capability evaluation, is a small-to-mid-sized contractor that is at a relative disadvantage to larger builders in terms of capital strength and creditworthiness, which can weigh on order-winning capacity and the issuance of performance guarantee bonds.
Its track record in specialized segments such as GMP pharmaceutical manufacturing facilities, however, offers some differentiation relative to generic building construction.
Since the delisting cause arose in April 2025 following an audit opinion disclaimer, Yihwa has gone through a sequence of restructuring steps including a court rehabilitation filing and withdrawal, a capital reduction, a change of controlling shareholder, and a third-party share issuance.
However, on May 21, 2026, the KRX Listing Review Committee again resolved to delist the company's shares, and the company is understood to be pursuing an appeal process.
If the appeal proceeds, the KOSDAQ Market Committee will re-review whether to delist (including the option of granting an improvement period), and this final outcome remains the key overhang.
New controlling shareholder Han&Brothers has stated a plan to focus on the company's specialized GMP construction segment while pursuing overseas expansion to drive normalization, though detailed execution plans and results are not yet confirmable from public disclosures.
A substantial portion of the KRW 6 billion raised in the March share issuance was reportedly allocated to debt repayment and operating funds, which likely helped cushion short-term liquidity, though whether it leads to a fundamental improvement in the balance sheet requires further confirmation.
Given the sharp swings in revenue and profit in the first two quarters of 2026, confirming genuine progress toward operational normalization in the second-half quarterly results remains an important task ahead.
Yihwa has posted a net loss over the trailing four quarters, putting it in a range where conventional profit-based valuation metrics are difficult to apply.
The share price trades at a premium to the company's net asset value, suggesting that capital-structure restructuring and listing-eligibility events, rather than earnings-based metrics, have a greater influence on price formation at this stage.
No recent dividend payment has been confirmed, making a dividend-based approach difficult to apply.
The stock has a history of being repeatedly caught up in political theme trading, which produced extremely wide trading ranges in the past, meaning ordinary earnings-based valuation yardsticks alone may not fully explain its price behavior.
Given the alternation between the 2025 profit turnaround and the return to losses in early 2026, valuation metrics should be interpreted with caution until earnings stability is confirmed.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-05
After a large 2024 loss, the company returned to profit in 2025 with operating income of KRW 3.29 billion and net income of KRW 2.13 billion. The debt ratio also fell from 774.7% to 464.2%, an early sign of balance-sheet repair.
That profitability recovered even as revenue contracted can be read as an effect of cost discipline or the wind-down of loss-making projects.
After private equity firm Han&Brothers became the largest shareholder in February 2026, it injected capital through a KRW 6 billion share issuance in March. New management has proposed a strategy centered on the specialized GMP construction segment and overseas expansion as a path to normalization.
The inflow of outside capital could provide a short-term liquidity buffer and a catalyst for governance realignment.
Order wins tied to pharmaceutical and bio-manufacturing facilities, such as the Samjin Pharm Osong plant and the Sijimed Tech extension, are confirmed. This aligns with new management's emphasis on a GMP specialization strategy and could serve as a portfolio differentiator.
A track record in a segment with higher barriers to entry than general building construction could translate into a competitive edge.
On May 21, 2026, the KRX Listing Review Committee again resolved to delist Yihwa. The KOSDAQ Market Committee's final ruling on the company's appeal has not yet been confirmed, leaving the continuation of the listing itself uncertain. This overshadows any other business-related risk factor.
Revenue fell to KRW 13.24 billion in Q1 2026 and KRW 10.37 billion in Q2 2026, sharply down from the roughly KRW 30 billion levels of prior quarters. Operating and net losses returned in the same period, so the possibility that the 2025 profit turnaround was temporary cannot be ruled out. Business activity may also have been curtailed amid the capital restructuring process.
Operating cash flow was negative for four consecutive years from 2022 through 2025. Although the debt ratio improved to 464.2%, it remains elevated, underscoring that cash generation capacity stays weak even as accounting profit turned positive. Securing liquidity remains a core challenge for the company.
An audit opinion disclaimer on the FY2024 financial statements triggered a delisting cause, and the FY2025 first-half statements also received a qualified opinion due to insufficient review evidence on contract assets and liabilities. This has heightened market concern over the reliability of the company's financial information.
Former controlling shareholder Choi Sam-gyu and related parties sold their entire stake, and private equity firm Han&Brothers acquired control at a token price.
The third-party share issuance diluted existing minority shareholders, and the new controlling shareholder's long-term commitment and financial capacity have not yet been fully validated.
Litigation over construction costs related to an officetel project in Hapjeong-dong, Seoul and the DS Tower in Seocho-dong is reportedly ongoing. Depending on the outcome, additional financial burden or cash outflow could occur, which could further strain the company's already fragile liquidity position.
Watch for a disclosure on the KOSDAQ Market Committee's final decision on Yihwa's listing eligibility (either lifting the trading halt or confirming delisting). The outcome of the appeal against the May 2026 Listing Review Committee's delisting resolution has not yet been confirmed.
The Q3 2026 earnings disclosure should be checked to determine whether the sharp revenue decline and losses seen in Q1-Q2 2026 were temporary or an extension of structural deterioration.
Watch for concrete execution of the GMP specialization and overseas expansion strategy proposed by new controlling shareholder Han&Brothers, such as new order announcements or additional capital-raising disclosures.
The progress and any rulings in the construction cost litigation involving the Hapjeong-dong officetel and the DS Tower in Seocho-dong should be monitored.
Yihwa showed signs of balance-sheet improvement by returning to both operating and net profit for full-year 2025, but revenue collapsed and losses returned in the first half of 2026, leaving a question mark over the durability of that turnaround.
The delisting issue triggered by the FY2024 audit opinion disclaimer remains unresolved as of May 2026, when the Listing Review Committee again resolved to delist the company, despite a series of restructuring steps including a court rehabilitation filing and withdrawal, a capital reduction, a change of controlling shareholder, and a share issuance.
New controlling shareholder Han&Brothers has proposed normalization through GMP specialization and overseas expansion, but concrete execution results are not yet visible in public disclosures.
Chronically negative operating cash flow and a still-high debt ratio show that liquidity pressure has not been resolved despite the accounting profit turnaround. Ongoing construction-cost litigation adds further financial variables.
Overall, this stock is subject to both underlying business fundamentals and a separate, structural listing-eligibility variable operating in parallel, warranting continued multi-angle monitoring through future disclosures and earnings.
Report written 2026-09-05 · Data as of 2026-09-04
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