PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Daewon, a general contractor built around its housing brand CANTAVIL, saw 2025 revenue drop sharply and post an operating loss, but owner net income turned positive in both the first and second quarters of 2026, signaling a potential shift in its earnings structure.
2025 revenue fell sharply to KRW 112.1 billion from KRW 277.2 billion in 2024, with an operating loss of KRW 13.75 billion
Owner net income turned positive for two consecutive quarters in 2026 (KRW 2.50 billion in Q1, KRW 1.36 billion in Q2)
The debt ratio rose from 48.6% in 2022 to 82.4% in 2025, while operating cash flow has been negative for four consecutive years
A value-up plan disclosed in March 2026 set goals for cost management and continued dividend policy
The broader construction sector remains in a downturn marked by prolonged unsold housing inventory and project-financing contingent liabilities
Daewon (007680) is a general contractor established in 1972 and listed on KOSDAQ in December 2017. Its core business is apartment presale and construction under the housing brand CANTAVIL, supplemented by civil engineering contracts and a worsted-yarn textile segment.
As of 2025, the building-construction segment accounted for 58.5% of revenue, civil engineering contracts 14.4%, and the textile (worsted spinning) segment 12.7%, with 97.9% of sales generated domestically. The company ranked 98th nationwide in the 2024 construction capability evaluation.
Recently it presold the 612-unit 'Gimpo CANTAVIL Edition' in Gimpo's Bukbyeon District 2, and move-ins began in June 2026 at 'CANTAVIL The Suite' near Singeomdan Central Station in Incheon.
In civil and public works, the company has won contracts including the FACTS control building at the 345kV Sincheon substation, the K-Scientist Village development, and river and water-pipe network rehabilitation projects, reflecting an effort to diversify beyond pure housing exposure.
The controlling shareholder is the holding entity Daewon Cantavil, and the company is run by co-CEOs Jeon Eung-sik and Jo Jong-ho.
Within the KOSDAQ construction segment, Daewon is classified as a small-to-mid-sized regional builder, facing constraints relative to large contractors in order scale and financing capacity.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩24.3B | -₩5.8B | −23.7% |
| 2025Q3 | ₩22.7B | -₩7.8B | −34.2% |
| 2025Q4 | ₩28.5B | -₩1.6B | −5.6% |
| 2026Q1 | ₩29B | ₩40,512,850 | 0.1% |
| 2026Q2 | ₩27.1B | -₩11,690,951 | −0.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩358.3B | ₩17.8B | ₩19.5B | 5.0% | 5.7% | 48.6% |
| 2023 | ₩436.1B | -₩62.1B | -₩57.4B | −14.2% | −20.5% | 62.4% |
| 2024 | ₩277.2B | ₩200M | ₩2.8B | 0.1% | 1.0% | 67.1% |
| 2025 | ₩112.1B | -₩13.8B | -₩8.5B | −12.3% | −3.0% | 82.4% |
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
Daewon's revenue rose from KRW 358.3 billion in 2022 to KRW 436.1 billion in 2023, but then fell sharply for two straight years to KRW 277.2 billion in 2024 and KRW 112.1 billion in 2025.
Operating profit was KRW 17.8 billion (a 5.0% margin) in 2022, swung to a KRW 62.1 billion operating loss (-14.2% margin) in 2023, recovered to a thin KRW 0.2 billion profit (0.1% margin) in 2024, and then fell back to a KRW 13.8 billion operating loss (-12.3% margin) in 2025.
Owner net income likewise swung from a KRW 19.5 billion profit in 2022 to a KRW 57.4 billion loss in 2023, a KRW 2.8 billion profit in 2024, and an KRW 8.5 billion loss in 2025.
On a quarterly basis, the owner net loss narrowed from KRW 5.0 billion in Q3 2025 to KRW 0.8 billion in Q4 2025; operating profit nearly broke even at KRW 0.04 billion in Q1 2026 while owner net income turned to a KRW 2.5 billion profit, and in Q2 2026 operating profit was a marginal loss of roughly KRW 0.01 billion even as owner net income stayed positive at KRW 1.4 billion.
This pattern suggests non-operating items (such as equity-method gains or asset disposals) have materially influenced net income swings, while a clear recovery in core construction profitability has yet to be confirmed.
Meanwhile, operating cash flow has been negative for four consecutive years — KRW -8.1 billion in 2022, KRW -56.1 billion in 2023, KRW -74.9 billion in 2024, and KRW -69.4 billion in 2025 — indicating persistently weak cash generation despite the income-statement volatility.
Owner's equity declined from KRW 344.2 billion in 2022 to KRW 278.1 billion in 2025, while the debt ratio climbed sharply from 48.6% to 82.4% over the same period.
Korea's construction sector has been in a structural downturn since 2022, as rising interest rates strained project-financing (PF) conditions while construction costs surged.
In a March 2026 report, Korea Ratings assessed the construction industry as being in an 'L-shaped downturn' with persistent cost and unsold-inventory risks and limited prospects for a structural rebound.
Amid prolonged regional unsold inventory and tight PF conditions, more than 1,300 construction firms filed for business closure in 2026, with several mid-sized builders undergoing court receivership or bankruptcy.
While overall PF exposure at financial institutions has declined, the share of PF loans unrecovered for more than four years rose from 6% to 26% of total PF, pointing to growing polarization within loan portfolios.
In this environment, cost-management capability and cash-flow security are seen as more decisive for survival than order volume alone.
Daewon has been expanding beyond a housing-presale-centered portfolio into civil and public-works orders such as river rehabilitation, water-pipe networks, and power-facility construction, in line with an industry-wide shift toward prioritizing stable cash flow.
However, as a small-to-mid-sized builder, Daewon has comparatively limited credit ratings and financing channels relative to large contractors, leaving it with less buffer during sector downturns.
On March 30, 2026, Daewon disclosed a 'value-up plan' setting goals of strengthening profitability-focused management and enhancing shareholder value.
Specifically, the plan outlined stable profit generation through cost management and operational efficiency, along with continued pursuit of a dividend policy underpinned by a stable financial structure.
On the order front, in 2025 the company won a series of public and industrial infrastructure contracts, including the FACTS control building at the 345kV Sincheon substation, the K-Scientist Village development, wastewater pipe rehabilitation at the Gwangyang national industrial complex, and water-pipe network rehabilitation in Naju.
In housing, the company is currently presaling the 612-unit 'Gimpo CANTAVIL Edition' in Gimpo's Bukbyeon District 2, while move-ins began in June 2026 at 'CANTAVIL The Suite' near Singeomdan Central Station in Incheon.
Early in 2026 the company held an order-and-safety prayer event affirming goals of meeting its annual order target and achieving accident-free job sites. The statutory filing deadline for the next regular disclosure, the Q3 2026 report, is November 16, 2026, though actual filings often occur earlier.
With owner net income positive for two consecutive quarters in the first half of 2026, a key point to watch is whether second-half results translate into a recovery at the core operating-profit level.
Because Daewon's owner net income over the trailing four quarters remains in loss territory, conventional earnings-based valuation metrics carry interpretive limits.
In terms of the price-to-book ratio, the stock trades at a substantial discount to total equity, a pattern commonly observed among small-to-mid-sized builders under financial stress.
In its value-up plan disclosed in March 2026, the company stated it would continue pursuing a dividend policy underpinned by a stable financial structure, and it has a history of past dividend payments.
Over a multi-year horizon, results swung from a profit in 2022 to a large loss in 2023, a slim profit in 2024, and a loss again in 2025, before owner net income turned positive again in the first half of 2026.
This volatility in earnings suggests that one-off, quarter- or year-specific factors need to be considered alongside any valuation reading.
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
Owner net income was positive in both Q1 and Q2 2026 (KRW 2.50 billion and KRW 1.36 billion, respectively), breaking a streak of losses in three consecutive quarters of 2025. Even allowing for non-operating influences, this can be read as a signal of a shift in the earnings structure. Operating profit also improved to near breakeven in Q1 2026.
In 2025, Daewon won a series of public and industrial orders including the FACTS control building at a 345kV substation, the K-Scientist Village development, and river and water-network rehabilitation projects, continuing efforts to reduce reliance on housing presales.
This increases exposure to client-specific contracts that carry relatively lower unsold-inventory risk. Public-sector orders are also generally seen as having a comparatively stable payment-collection structure.
In March 2026 the company disclosed a value-up plan targeting profitability improvement through cost management and continuation of a dividend policy underpinned by a stable financial structure.
A track record of past dividend payments provides some reference for assessing continuity of the plan, though actual execution will need to be confirmed through future disclosures.
Revenue contracted sharply for two straight years, falling from KRW 436.1 billion in 2023 to KRW 277.2 billion in 2024 and KRW 112.1 billion in 2025.
This reflects declining presale and construction volumes, leaving the durability of any profitability improvement in question absent a confirmed recovery in top-line scale.
Operating cash flow has been negative for four consecutive years from 2022 to 2025 (KRW -8.1 billion, -56.1 billion, -74.9 billion, and -69.4 billion respectively).
Over the same period the debt ratio climbed sharply from 48.6% to 82.4%, indicating mounting pressure on cash generation and financial stability separate from income-statement swings.
The broader construction sector has been described as being in an 'L-shaped downturn' marked by prolonged unsold inventory and project-financing contingent-liability burdens.
As a small-to-mid-sized builder, Daewon has comparatively limited credit ratings and financing channels relative to large contractors, which may leave it with less capacity to absorb shocks during sector-wide downturns.
In its Q1 2026 report, Daewon stated it had no outstanding PF loans or consortium-participation exposure, but disclosed that it provides conditional debt-assumption commitments tied to completion-guarantee obligations on some projects.
If unsold units accumulate at presale sites, these completion-guarantee-related contingent liabilities could materialize. The industry-wide trend of prolonged unsold inventory is a backdrop that heightens this risk.
Operating cash flow has been negative for four straight years since 2022, and the debt ratio rose from 48.6% to 82.4% over the same period. With interest-coverage-related metrics assessed as weak, liquidity pressure could intensify if external financing conditions deteriorate.
In 2026, more than 1,300 construction firms filed for closure and the share of long-unrecovered PF loans expanded, reflecting continued structural difficulty across the industry.
Credit-rating analysts have assessed that a clear cyclical rebound is unlikely in the near term, and as a small-to-mid-sized builder, Daewon's order and presale environment is likely to move in tandem with this trend.
The Q3 2026 report filing will show whether the operating-profit turnaround continues and whether revenue shows signs of recovery.
Progress on down-payment and interim-payment collection, along with the presale rate at 'Gimpo CANTAVIL Edition' (612 units), will help gauge the housing segment's profitability recovery.
Follow-up disclosures on the execution of the cost-management and dividend-policy goals outlined in the value-up plan should be monitored.
This will be the point to check whether a dividend proposal is put forward for fiscal year 2026 and how concretely the shareholder-return policy is specified.
After enduring a sharp revenue decline and an operating loss in 2025, Daewon showed signs of change with owner net income turning positive for two consecutive quarters in the first half of 2026.
However, operating profit itself has hovered around breakeven, so whether the net-income improvement partly reflects non-operating factors will need confirmation through additional quarterly results.
On the financial side, four straight years of negative operating cash flow and a debt ratio that jumped from 48.6% to 82.4% remain points of concern.
The company has signaled portfolio diversification and a commitment to shareholder returns through expanded public and industrial infrastructure orders and its value-up plan, but the broader construction sector's structural downturn—marked by prolonged unsold inventory and project-financing contingent-liability risk—remains a sector-level constraint.
The upcoming Q3 report and the presale-rate trend at housing sites are likely to be key indicators of future earnings direction. Readers should weigh these facts to form their own judgment.
Report written 2026-10-02 · Data as of 2026-10-01
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