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
Samho Development restored profitability with operating income surging in 2025, but margins eased again and the order backlog contracted in the first half of 2026, presenting a mixed picture.
2025 revenue reached KRW 409.7bn with operating profit of KRW 14.5bn (3.5% margin), a sharp recovery from 2024's weak 0.3% margin.
In 1H 2026, revenue and operating profit slowed versus 2H 2025, with the operating margin slipping back into the low single digits.
Exposure to large-scale projects grew as Hyundai Engineering & Construction and SK affiliates expanded their share of prime contracts, including the Yongin semiconductor cluster, yet total remaining contract value declined.
The debt ratio rose from 29.0% in 2022 to 53.9% in 2024 before easing slightly to 51.8% in 2025.
Media reports have flagged repeated contract disclosure revisions and slowing operating cash flow as questions around earnings quality.
Founded in 1976, Samho Development is a civil engineering specialty contractor focused on roads, railways, subways, tunnels, and land/industrial complex development.
Unlike general contractors centered on large-scale housing presales, its business is anchored in public-sector infrastructure work such as expressways and railways.
The company operates its own heavy equipment fleet for large-scale earthworks and maintains aggregate and asphalt concrete production facilities, supporting cost competitiveness.
It has expanded into airports, power plants, ports, and industrial site development, and has gained construction experience in advanced-industry infrastructure through civil works tied to the Yongin semiconductor cluster.
Its prime contractors are mainly large builders such as Hyundai Engineering & Construction and SK Ecoplant, and the company has positioned itself as a subcontracting partner to these majors.
As of 1H 2026, the total contract value of major projects involving Hyundai Engineering & Construction and SK affiliates rose year-on-year, and their combined share of major contracts also expanded.
In September 2026, the company secured a portion of a deep underground rainwater tunnel project near Gangnam Station from Hanshin Engineering & Construction, adding a contract equivalent to a significant portion of 2025 consolidated revenue.
Given the nature of the business, public SOC order volume, order backlog, and cost management—rather than private housing cycles or project financing—are the key variables driving results.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩99B | ₩4.2B | 4.2% |
| 2025Q3 | ₩104.4B | ₩4B | 3.8% |
| 2025Q4 | ₩111.3B | ₩1.7B | 1.5% |
| 2026Q1 | ₩90.7B | ₩1B | 1.1% |
| 2026Q2 | ₩95.6B | ₩1.2B | 1.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩307.5B | ₩4.5B | ₩5.9B | 1.5% | 2.7% | 29.0% |
| 2023 | ₩361.9B | ₩10.5B | ₩15.1B | 2.9% | 6.6% | 44.4% |
| 2024 | ₩401.8B | ₩1.2B | ₩5.3B | 0.3% | 2.3% | 53.9% |
| 2025 | ₩409.7B | ₩14.5B | ₩18.7B | 3.5% | 7.8% | 51.8% |
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 reached KRW 409.7bn, slightly above 2024's KRW 401.8bn, while operating profit surged to KRW 14.5bn from just KRW 1.2bn a year earlier, lifting the operating margin from 0.3% to 3.5%. Net income attributable to owners also jumped to KRW 18.7bn from KRW 5.3bn in 2024.
Compared with operating profit of KRW 10.5bn (2.9% margin) in 2023 and KRW 4.5bn (1.5%) in 2022, the 2025 profitability recovery stands out as the strongest of the past four years. Quarterly trends, however, were uneven.
Revenue of KRW 99.0bn and operating profit of KRW 4.2bn (4.2% margin) in Q2 2025 were followed by a solid Q3 with revenue of KRW 104.4bn and operating profit of KRW 4.0bn (3.8%), but Q4 saw operating profit fall to KRW 1.7bn (1.5%) even as revenue rose to KRW 111.3bn.
Entering 2026, both revenue and margins stayed below mid-2025 levels, with Q1 revenue of KRW 90.7bn and operating profit of KRW 1.0bn (1.1%), followed by Q2 revenue of KRW 95.6bn and operating profit of KRW 1.2bn (1.2%).
Net income attributable to owners, in contrast, rose from KRW 2.4bn in Q1 2026 to KRW 3.4bn in Q2, outpacing the operating profit gain and suggesting a contribution from non-operating items such as subsidiary results.
Operating cash flow fell to KRW 27.6bn in 2025 from KRW 36.7bn in 2024, indicating that cash generation weakened even as operating profit rose sharply.
In the 2026 government budget, the Ministry of Land, Infrastructure and Transport's allocation was confirmed at a record KRW 62.8 trillion, with SOC-related spending reported at either KRW 21.1 trillion or KRW 27.7 trillion depending on classification, both up from the prior year.
The Construction & Economy Research Institute of Korea projected 2026 construction orders to grow 4.0% year-on-year, driven by expanded public-sector ordering.
However, some analyses note that road-specific budgets may stagnate or decline, raising doubts about whether the headline SOC increase will directly translate into more civil-engineering orders.
The private building and housing sector remains weak due to project-financing strain and unsold inventory, and most forecasts see only a gradual recovery in overall construction investment.
Policy research institutes have characterized 2026 construction conditions as an attempt to exit a prolonged downturn, with the civil-engineering segment expected to hold relatively steady given its reliance on SOC and government-subsidized projects.
Samho Development, as a civil-works specialty contractor built around public SOC orders, is positioned as a subcontracting partner to large general contractors and is therefore directly exposed to policy direction.
Tightening safety regulation, including the Serious Accidents Punishment Act and related construction-safety rules, has also been flagged as a potential cost burden across the industry.
In September 2026, the company disclosed winning a portion of a deep underground rainwater tunnel project near Gangnam Station from Hanshin Engineering & Construction worth KRW 41.8bn, equivalent to roughly 10.2% of 2025 consolidated revenue.
At the same time, contracts tied to Hyundai Engineering & Construction and SK affiliates as prime contractors—including civil works for the Yongin semiconductor cluster and a district energy project—have continued to see contract-value increases through change orders.
The company has stated that these increases reflect volume growth and contract modifications on existing sites rather than genuinely new orders.
The concern is that even with these change-order increases, total remaining contract value (order backlog) has been declining, raising questions about whether new order intake is keeping pace with the depletion of existing sites.
The company has said it continues to pursue new site acquisitions separate from existing projects.
The expanded 2026 SOC budget and the Ministry of Land, Infrastructure and Transport's plans for rail and GTX transit infrastructure could provide a favorable public-ordering environment, though the timing of budget execution and actual project releases remain variables to watch.
On the dividend side, the company raised its 2025 year-end dividend above the prior year to a record level, and has stated it maintained a dividend policy even during a period of operating losses.
Samho Development's shares tend to trade at a notable discount to net asset value, with the price-to-book ratio sitting well below 1x. Looking at recent profit trends, the trajectory shifted from operating weakness in 2024 to a profit recovery in 2025, before slowing again in the first half of 2026.
As a result, the market-assigned valuation multiple has fluctuated within its multi-year trading range, with valuation discussions tending to resurface around quarterly profit surprises or major contract announcements.
The company has a long history of paying cash dividends and has recently adjusted policy toward a larger payout, which is worth noting as context. That said, the recent divergence between rising profit and softer operating cash flow is a factor analysts flag when assessing the quality of reported earnings.
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
The 2025 operating margin of 3.5% exceeded 3% for the first time since 2021, and net income attributable to owners rose sharply to KRW 18.7bn. This marks a clear improvement versus the low-margin years of 2022-2024, which the company attributes to executing projects with favorable profit structures. The debt ratio also eased slightly from 53.9% in 2024 to 51.8% in 2025, easing financial burden.
Samho Development's share of contract value in major projects where Hyundai Engineering & Construction and SK affiliates act as prime contractors has been growing, particularly through expanded participation in civil works tied to the Yongin semiconductor cluster.
This is helping the company build track record in advanced-industry infrastructure beyond traditional road and rail SOC work. In September 2026, it also secured an additional portion of the Gangnam Station deep underground rainwater tunnel project from Hanshin Engineering & Construction, broadening its revenue base.
The 2026 Ministry of Land, Infrastructure and Transport budget was confirmed at a record KRW 62.8 trillion, with the SOC allocation also rising from the prior year. The Construction & Economy Research Institute of Korea forecast 2026 construction orders to grow 4.0% year-on-year, led by public-sector expansion.
Given Samho Development's business structure, which is heavily weighted toward public orders, this policy direction could create a favorable ordering environment.
Operating margins fell to 1.1% and 1.2% in Q1 and Q2 2026, respectively, down sharply from the roughly 4% levels seen in mid-2025. Revenue also declined from KRW 111.3bn in Q4 2025 to KRW 90.7bn in Q1 2026 and KRW 95.6bn in Q2.
Whether the 2025 profit recovery represents a sustained trend or a temporary improvement will need to be reconfirmed in coming results.
Even as contract values for major projects tied to Hyundai Engineering & Construction and SK affiliates increased, total remaining contract value fell 6.42% year-on-year as of 1H 2026.
This aligns with the company's explanation that increases on existing sites stem from volume growth and change orders rather than genuinely new orders. If new order intake fails to keep pace with the depletion of existing sites, the revenue base could narrow going forward.
Operating cash flow fell to KRW 27.6bn in 2025 from KRW 36.7bn in 2024, a 24.9% decline that contrasts with the sharp rise in operating profit. Media coverage has flagged this profit-cash flow divergence alongside repeated revisions of major sales/supply contract disclosures as transparency concerns.
Management of trade receivables and inventory, along with the timing of cash conversion from investing activities, are cited as key variables for assessing future financial soundness.
Even with a higher headline SOC budget, stagnant or declining allocations for specific segments such as roads, or delays in budget execution, could limit the pace at which actual orders materialize. Prolonged weakness in private building and housing could also delay recovery across the broader upstream industry. Rising costs from tightened safety regulation may also weigh on the sector overall.
A structure increasingly concentrated on a small number of major prime contractors such as Hyundai Engineering & Construction and SK affiliates could heighten sensitivity to any scaling-back or delay in orders from those clients.
With total remaining contract value declining, a shortfall in new order intake versus expectations could create a revenue gap.
A rise in operating profit alongside a decline in operating cash flow can stem from various causes such as growing receivables or delayed collection of construction payments, warranting further verification.
Recent instances of repeated contract disclosure revisions have been cited as a factor that could undermine market confidence in the company's disclosure process.
The Q3 2026 earnings release should clarify whether the margin softness seen in 1H 2026 persists or improves in the second half.
Watch for new order disclosures and their scale to see whether the declining trend in remaining contract value (order backlog) reverses.
Check the 2026 SOC budget execution rate and actual project release timing to see whether the budget increase translates into real order volume.
Track the progress rate and any further change orders on the project won in September 2026 to gauge the timing of its revenue contribution.
The dividend decision based on 2026 results will show whether the recent trend toward expanded shareholder returns continues.
Samho Development achieved its clearest profit recovery in four years in 2025, with a 3.5% operating margin and KRW 18.7bn in net income attributable to owners, but revenue and margins softened again in 1H 2026.
Growing participation in large-scale projects led by Hyundai Engineering & Construction and SK affiliates—particularly civil works tied to the Yongin semiconductor cluster—has laid groundwork for business diversification, but total remaining contract value has declined, raising the importance of new order intake.
The record 2026 Ministry of Land, Infrastructure and Transport and SOC budgets could provide a favorable environment given the company's heavy reliance on public orders, though the breakdown by construction segment and the pace of budget execution remain variables to monitor.
On the financial side, the debt ratio has eased gradually and dividend payouts have expanded, but operating cash flow has lagged profit growth and repeated contract disclosure revisions leave open questions about earnings quality and disclosure reliability that warrant further verification.
Overall, the company sits at a juncture where industry-recovery expectations coexist with company-specific earnings and disclosure risks.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.