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
Chin Hung International posted a large net loss in 2025 due to one-off provisions for bad debt and litigation, then rebounded sharply in Q1 2026 with operating profit of KRW 11.1 billion, before profit shrank again in Q2, underscoring high quarter-to-quarter volatility.
2025 annual revenue fell 20.6% YoY to KRW 576.4 billion, with an operating loss of KRW 23.0 billion and a net loss of KRW 28.4 billion
The wider loss was driven largely by one-off charges tied to unsold-unit bad-debt provisions and litigation reserves
Q1 2026 operating profit recovered sharply to KRW 11.1 billion and net profit to KRW 9.5 billion, but Q2 operating profit narrowed again to KRW 0.5 billion
The company is emphasizing selective order intake centered on public-sector projects from LH and the Public Procurement Service, plus small-scale redevelopment work
The debt ratio rose to 133.7% in 2025 from 102.6% in 2024, indicating somewhat greater financial burden
Chin Hung International, founded in 1959 and listed in 1977, is a general contractor operating in three segments: civil engineering, building/housing construction, and plant construction. It was acquired by the Hyosung Group in 2008, entered a creditor-bank-led workout in 2011, and exited the workout process in 2019.
Its largest shareholder is Hyosung Heavy Industries, which held roughly 48.6% of common shares as of end-March 2025. Revenue is dominated by the private housing construction segment, with additional contributions from public building construction and civil engineering work.
The company shares the 'Harrington Place' housing brand with parent Hyosung Heavy Industries and secures business stability through joint order-taking and construction with its parent. Relative to major contractors it remains modest in scale, ranking around 41st in the 2024 construction capability evaluation.
More recently it has pursued a selective order strategy focused on public-sector projects from Korea Land and Housing Corporation (LH) and the Public Procurement Service, where payment collection is more secure, as well as small-scale urban redevelopment projects such as street-block housing renewal, a niche segment less contested by larger builders due to its faster project execution speed.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩136.8B | ₩200M | 0.2% |
| 2025Q3 | ₩157.3B | ₩2.3B | 1.4% |
| 2025Q4 | ₩187B | -₩26.7B | −14.3% |
| 2026Q1 | ₩183.6B | ₩11.1B | 6.0% |
| 2026Q2 | ₩220.3B | ₩500M | 0.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩628.9B | ₩50.7B | ₩49.6B | 8.1% | 22.1% | 101.0% |
| 2023 | ₩759.4B | ₩51.7B | ₩45.3B | 6.8% | 16.9% | 114.4% |
| 2024 | ₩726.2B | -₩4.7B | ₩2.2B | −0.7% | 0.8% | 102.6% |
| 2025 | ₩576.4B | -₩23B | -₩28.4B | −4.0% | −11.8% | 133.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue in 2025 fell 20.6% year-on-year to KRW 576.4 billion from KRW 726.2 billion in 2024, with an operating loss of KRW 23.0 billion and a net loss attributable to owners of KRW 28.4 billion, marking a swing to loss from the profitable trend seen in 2022-2023.
That contrasts with the solid profitability of 2023 (revenue KRW 759.4 billion, operating profit KRW 51.7 billion, operating margin 6.8%) and 2022 (revenue KRW 628.9 billion, operating profit KRW 50.7 billion, operating margin 8.1%).
On a quarterly basis, operating profit was just KRW 0.24 billion in Q2 2025 with a net loss of KRW 9.0 billion, improved modestly to operating profit of KRW 2.26 billion and net profit of KRW 4.09 billion in Q3, then deteriorated sharply in Q4 to an operating loss of KRW 26.7 billion and a net loss of KRW 26.8 billion.
That fourth-quarter deterioration is consistent with a concentrated recognition of one-off charges tied to bad-debt provisions on unsold units and litigation reserves.
Q1 2026 showed a clear rebound, with operating profit of KRW 11.1 billion and net profit of KRW 9.5 billion, but Q2 revenue reached a quarterly high of KRW 220.3 billion even as operating profit narrowed again to KRW 0.5 billion and net profit to KRW 0.7 billion.
Over the most recent four quarters (Q3 2025 through Q2 2026), net profit attributable to owners totaled negative KRW 12.56 billion, indicating that the Q1 2026 profit recovery has not yet fully offset the Q4 2025 loss.
Operating cash flow was also negative for two consecutive years, at negative KRW 26.3 billion in 2025 and negative KRW 53.6 billion in 2024, suggesting pressure persists not only in accounting profit but also in underlying cash generation.
Korea's construction industry is in an unusual phase where construction investment remains weak even as order intake indicators improve.
April 2026 construction orders rose 39.3% year-on-year, with building orders up 24.4% and civil engineering orders surging 93.6%, showing particularly strong improvement in the civil works segment.
However, building permit area has yet to escape a year-on-year decline, suggesting a structural lag before improved orders translate into actual groundbreaking and construction progress.
Construction sector employment also remains weak, with the number of construction workers down 43,000 year-on-year in May 2026, while the construction cost index continues to rise, sustaining cost pressure.
Against this backdrop, Chin Hung International has responded by shifting toward public-sector orders from LH and the Public Procurement Service and small-scale redevelopment projects rather than higher-risk private pre-sale housing, and has recently been selected as the preferred bidder for detailed design on Section 10 of the Nambu Inland Railway construction project awarded by the Korea National Railway.
As a mid-tier contractor smaller in scale than the major builders, the company is positioned to target the niche market of small-scale urban redevelopment projects that larger contractors tend to pursue less actively.
Regarding the one-off bad-debt and litigation charges recognized in 2025, the company stated it had reflected risks preemptively in its accounting and would focus going forward on profitability-oriented management and stronger financial controls.
Indeed, the gross margin of the public building construction segment improved to 8.1% in 2025 from negative 30% in 2024, indicating some recovery signal in the cost structure.
On the order front, since the second half of 2025 the company has won a series of contracts including LH's Incheon Gyeyak A9BL apartment construction (KRW 77.7 billion), the Chungnam provincial relocation new town RH15BL apartment project, the Public Procurement Service's Incheon-daero road improvement project (KRW 82.2 billion), street-block housing redevelopment projects in Siheung-dong and Chunui-dong (KRW 108.8 billion and KRW 71.1 billion respectively), and the Daesa-dong District 1 redevelopment in Daejeon (KRW 332.3 billion), and in July 2026 was selected as the preferred bidder for detailed design on Section 10 of the Nambu Inland Railway (an estimated KRW 54.2 billion, with a 20% stake).
A key point to watch is how this shift toward public-sector and redevelopment-focused orders feeds through into future revenue and cash flow stability.
However, prolonged weakness in regional pre-sale housing markets means the actual supply timing for planned project sites could be delayed, and earnings volatility may persist depending on sales performance even after construction begins.
Chin Hung International's shares trade at a low multiple relative to net asset value per share, placing the stock in a range discounted against book value.
Compared with the trading multiples seen during the profitable years of 2022-2023, the current valuation reflects a market assessment made amid uncertainty over whether the company can sustain a swing back to profitability.
The company has not been paying dividends recently, making the shareholder-return angle less compelling and highlighting the question of whether an earnings recovery will translate into a resumption of payouts.
Given that the Q1 2026 profit rebound was followed by a renewed narrowing in Q2, it is difficult to judge valuation based on a single quarter's results alone.
The market also tends to view this stock as part of the Hyosung Group's construction lineup, so developments at parent Hyosung Heavy Industries, including its earnings and any changes in shareholding policy, warrant continued attention.
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 2026-08-23
Operating profit reached KRW 11.1 billion and net profit KRW 9.5 billion in Q1 2026, marking a clear rebound following the large losses of 2025. This suggests the impact of the concentrated bad-debt and litigation-related one-off charges booked in 2025 has largely run its course.
However, since profit narrowed sharply again in Q2, whether this rebound is sustained needs to be confirmed with further quarterly results.
The company is shifting its order strategy toward public-sector work from LH, the Public Procurement Service, and the Korea National Railway, where payment collection is more secure, along with small-scale redevelopment projects.
Being selected as the preferred bidder for detailed design on Section 10 of the Nambu Inland Railway and winning the Public Procurement Service's road improvement project are representative examples. This strategy is assessed as reducing exposure to private pre-sale housing risk.
By sharing the 'Harrington Place' housing brand with parent Hyosung Heavy Industries and jointly winning and executing contracts, the company has stabilized its business base relative to standalone order-taking.
Access to Hyosung Heavy Industries' financial resources and network has also been cited as a positive factor in credit assessments.
Revenue fell 20.6% year-on-year in 2025, with an operating loss of KRW 23.0 billion and a net loss of KRW 28.4 billion. One-off charges, including KRW 23.1 billion in bad-debt provisions related to unsold units and KRW 22.1 billion in litigation reserves, were cited as the main drivers of the wider loss.
Selling, general and administrative expenses also rose sharply to KRW 60.0 billion in 2025 from KRW 32.7 billion in 2024, adding to the burden.
Following a Q4 2025 operating loss of KRW 26.7 billion, operating profit rebounded sharply to KRW 11.1 billion in Q1 2026, but even as Q2 revenue hit a quarterly record of KRW 220.3 billion, operating profit came to only KRW 0.5 billion. Such large swings in quarterly profit reduce the predictability of earnings.
While construction order indicators are improving, building permit area has yet to escape a declining trend, and construction sector employment continues to shrink. A rising construction cost index could also add to cost pressure.
This industry-wide weakness could delay the point at which improved orders translate into actual revenue and cash flow.
Prolonged weakness in regional pre-sale housing markets raises the possibility of additional bad-debt burdens depending on the sales performance of planned project sites. If the actual supply timing of new housing projects is delayed, cash flow volatility could increase.
Given that the company recognized KRW 22.1 billion in litigation reserves in 2025, the outcome of ongoing or potential future lawsuits could give rise to additional one-off losses down the road.
The debt ratio rose from 102.6% in 2024 to 133.7% in 2025, and operating cash flow has been negative for two consecutive years. A continued rise in the construction cost index could further add to cost pressure.
The Q3 2026 earnings disclosure should be checked to see whether the Q1 profit rebound continues or whether the Q2 profit narrowing was temporary.
Progress on the formal contract and groundbreaking schedule for the Nambu Inland Railway Section 10 project following the design phase, as well as the status of redevelopment projects such as Daesa-dong District 1 in Daejeon, should be monitored.
The 2026 annual business report should be checked for the debt ratio, any additional bad-debt provisioning, and whether operating cash flow has improved.
Disclosures or media reports regarding any review by majority shareholder Hyosung Heavy Industries of a potential sale of its stake should be monitored continuously.
Chin Hung International posted a large net loss in 2025 due to one-off charges including bad-debt provisions and litigation reserves, then rebounded clearly in Q1 2026 with operating profit of KRW 11.1 billion, only to see profit narrow sharply again in Q2 even as revenue hit a quarterly high.
Annual results have shifted from the solid profitability of 2022-2023 to losses in 2024-2025 and are now attempting a recovery, though the sum over the most recent four quarters still shows a net loss.
The company is strengthening a selective order strategy centered on public-sector contracts from LH and the Public Procurement Service along with small-scale redevelopment projects, and is seeking to stabilize its business base through its brand and joint order-taking relationship with parent Hyosung Heavy Industries.
However, a rising debt ratio, two consecutive years of negative operating cash flow, and prolonged weakness in regional pre-sale housing markets remain burdens.
The broader construction industry is also in an unusual phase where orders are improving while groundbreaking, construction progress, and employment remain weak, making the interplay between industry conditions and the company's own recovery pace a key point to watch going forward. Investment decisions should be made based on readers' own further analysis and verification.
Report written 2026-09-05 · Data as of 2026-09-04
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