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
Shinwon Construction has secured a series of small-scale housing redevelopment contracts in the southwestern Seoul metro area and improved its industry ranking, but annual revenue has declined for two straight years and quarterly earnings have swung widely.
The company won consecutive Wonjong-dong (Bucheon) housing redevelopment contracts in July and November 2025, and secured an Icheon logistics center construction contract in January 2026, broadening its non-housing exposure.
2025 consolidated revenue fell to KRW 211.3 billion from KRW 259.8 billion in 2024, and operating margin slipped to 4.1% from 5.8% a year earlier.
Quarterly results are volatile: after a strong KRW 5.88 billion operating profit in Q3 2025, the company posted a KRW 996 million operating loss in Q4 2025.
Operating profit returned to positive territory in both Q1 2026 (KRW 3.33 billion) and Q2 2026 (KRW 4.39 billion).
The debt-to-equity ratio has gradually improved, falling from 151.3% in 2023 to 98.1% in 2025.
Shinwon Construction was founded in 1983 and listed on KOSDAQ in 1994 as a small-to-mid-sized general contractor. Its business is broadly split into civil engineering/infrastructure and building/housing segments.
The civil engineering segment focuses on winning public infrastructure contracts such as roads, tunnels, bridges, and gas facility works.
The building segment supplies apartments, urban living housing, and officetels under its in-house brand 'Sinwon Achimdosi,' and also participates in BTL (build-transfer-lease) projects for schools and military housing.
In recent years the company has expanded into small-scale housing redevelopment ('street housing improvement') and small reconstruction projects in the southwestern Seoul metro area, including Bucheon, Anyang, and Ansan, and has been characterized as a strong player in this niche.
In July 2025, the company was selected as contractor for a redevelopment project at Wonjong-dong 151-2 in Bucheon, and in November 2025 it won an additional adjacent redevelopment project at Wonjong-dong 199-2 worth KRW 53.5 billion, equal to 20.60% of the prior year's revenue.
In January 2026, it secured a KRW 42.2 billion logistics center construction contract in Icheon under a subcontracted-production arrangement running from January 27, 2026 to January 26, 2027, expanding its exposure beyond housing.
Backed by these contract wins, the company's industry ranking rose 41 places to 115th in the 2024 assessment, and industry observers have suggested it could break into the top 100.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩47.9B | ₩1.3B | 2.7% |
| 2025Q3 | ₩53.5B | ₩5.9B | 11.0% |
| 2025Q4 | ₩67.7B | -₩1B | −1.5% |
| 2026Q1 | ₩48.8B | ₩3.3B | 6.8% |
| 2026Q2 | ₩65.5B | ₩4.4B | 6.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩188.2B | ₩2B | ₩4.4B | 1.1% | 4.7% | 142.1% |
| 2023 | ₩309.8B | ₩3.1B | ₩8.3B | 1.0% | 8.1% | 151.3% |
| 2024 | ₩259.8B | ₩15B | ₩5.5B | 5.8% | 5.2% | 104.0% |
| 2025 | ₩211.3B | ₩8.6B | ₩4.9B | 4.1% | 4.3% | 98.1% |
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 peaked at KRW 309.8 billion in 2023 after rising from KRW 188.2 billion in 2022, then declined for two consecutive years to KRW 259.8 billion in 2024 and KRW 211.3 billion in 2025.
Operating margin was low at 1.1% in 2022 and 1.0% in 2023, improved sharply to 5.8% in 2024, and eased slightly to 4.1% in 2025.
Net profit attributable to owners rose from KRW 4.44 billion in 2022 to a peak of KRW 8.25 billion in 2023, then declined for two straight years to KRW 5.53 billion in 2024 and KRW 4.86 billion in 2025.
Operating cash flow fell sharply from KRW 18.5 billion in 2023 and KRW 12.9 billion in 2024 to just KRW 3.4 billion in 2025, indicating a notable weakening in cash generation relative to reported profit.
On a quarterly basis, revenue of KRW 47.9 billion and operating profit of KRW 1.29 billion in Q2 2025 jumped to KRW 53.5 billion revenue and KRW 5.88 billion operating profit in Q3 2025, but the trend reversed in Q4 2025, when revenue grew to KRW 67.7 billion yet the company posted an operating loss of KRW 996 million and a net loss of KRW 4.78 billion.
In 2026, profitability returned with Q1 revenue of KRW 48.8 billion and operating profit of KRW 3.33 billion, followed by Q2 revenue of KRW 65.5 billion and operating profit of KRW 4.39 billion.
Over the most recent four quarters (Q3 2025 through Q2 2026), cumulative net profit attributable to owners reached KRW 8.42 billion, as profits in Q3 2025 and the two 2026 quarters largely offset the Q4 2025 net loss.
According to third-party financial data compiled on a non-consolidated basis, 2025 full-year revenue fell 18.7% year-on-year, operating profit fell 42.7%, and net income fell 12.1%, a pattern directionally consistent with the consolidated decline.
Korea's construction cycle failed to break out of prolonged stagnation through the second half of 2025, and monthly indicators through 2026 have continued to fluctuate without a clear recovery signal.
The Korea Institute of Civil Engineering and Building Technology projected 2026 construction orders would rise 4% year-on-year to KRW 231.2 trillion and construction investment would rise 2% to KRW 270 trillion, a limited recovery driven mainly by expanded public-sector orders, while diagnosing that private-sector investment sentiment remains suppressed by high interest rates, project-financing uncertainty, and tighter regulation.
The government set the 2026 SOC budget at KRW 27.5 trillion, up 7.9% year-on-year, and has outlined plans to break ground on 1.35 million housing units in the Seoul metro area over five years through expanded public land supply, creating a relatively favorable environment for the civil engineering segment.
On the other hand, some analyses note rising bankruptcy risk among small and mid-sized builders amid worsening financing conditions, a burden that falls more heavily on smaller firms with weaker access to capital than large contractors.
Within this environment, Shinwon Construction has concentrated on the relatively small-scale, faster-payback business model of southwestern Seoul metro street housing redevelopment, differentiating itself from large-scale reconstruction and redevelopment competitors.
However, with an industry ranking around the 100th spot, the company's scale remains modest relative to large and mid-tier peers, giving it a comparatively limited position in competing for large public-sector projects.
The key factor shaping the company's near-term earnings path is the pace at which revenue from existing contracts is recognized.
The Wonjong-dong 199-2 street housing redevelopment project won in November 2025 has a scheduled construction period of 30 months from the actual start date, meaning revenue will likely be recognized progressively through 2026-2028 depending on the timing of groundbreaking and construction progress.
The Icheon logistics center contract won in January 2026 runs through January 26, 2027, so most of the associated revenue and profit are expected to be recognized within the next four quarters.
If the government's expanded SOC budget and Seoul metro housing supply plans translate into actual new orders, there is potential for increased opportunities in the civil engineering segment, though industry observers note a time lag typically exists between policy announcements and actual construction starts or progress billing.
No specific medium-to-long-term revenue or profit guidance from the company has been confirmed publicly.
Whether the declining debt ratio trend—from 151.3% in 2023 to 98.1% in 2025—continues, and whether operating cash flow recovers from its sharp 2025 decline, will also serve as gauges of the company's financial stability going forward.
The stock currently trades at a discount to net asset value, indicating that the market is pricing the shares below their book value.
Looking at the historical earnings pattern, net profit peaked in 2023 and declined for two consecutive years before quarterly profits returned to a positive trend in the first half of 2026, and the durability of this profit recovery is likely to be a key variable in how the valuation is assessed going forward.
The company has not paid a cash dividend in the most recent fiscal year, suggesting its capital policy has prioritized balance-sheet improvement and business reinvestment over shareholder returns via dividends.
That said, as a relatively small-cap KOSDAQ-listed construction name, trading liquidity and price volatility can be elevated, which is also worth considering. No published brokerage price target could be confirmed through available search results.
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 company secured consecutive street housing redevelopment contracts near Wonjong-dong, Bucheon in July and November 2025, strengthening its regional business base. Its track record of successful small-scale redevelopment projects is seen by some industry observers as a competitive advantage for future contract wins. Its industry ranking also rose 41 places year-on-year to 115th.
The debt-to-equity ratio has declined for three consecutive years, from 151.3% in 2023 to 98.1% in 2025. Operating margin has also structurally improved from around 1% in 2022-2023 to the 4-6% range in 2024-2025. Both quarters of the first half of 2026 posted operating profit, continuing the earnings recovery.
In January 2026 the company won a KRW 42.2 billion logistics center construction contract in Icheon, broadening its revenue base beyond apartments and redevelopment work into non-housing segments such as logistics facilities.
If the government's expanded SOC budget trend continues, there is potential for additional civil engineering order opportunities.
Consolidated revenue peaked at KRW 309.8 billion in 2023 and declined for two consecutive years to KRW 259.8 billion in 2024 and KRW 211.3 billion in 2025. On a non-consolidated basis, 2025 revenue also fell 18.7% year-on-year, underscoring a clear contraction trend.
Because new redevelopment contract wins take time to convert into recognized revenue, a near-term reversal is not easy to confirm.
After a strong KRW 5.88 billion operating profit in Q3 2025, the company swung to a KRW 996 million operating loss and KRW 4.78 billion net loss in Q4 2025 despite higher revenue.
Such large quarter-to-quarter swings suggest possible one-off factors tied to construction progress recognition, reducing the predictability of future quarterly results.
Operating cash flow fell sharply from KRW 18.5 billion in 2023 and KRW 12.9 billion in 2024 to just KRW 3.4 billion in 2025. Cash generation relative to reported net profit has weakened, and the pace of actual cash collection going forward could affect the company's financial flexibility.
Analyses indicate private-sector construction investment sentiment remains suppressed by high interest rates and project-financing uncertainty. Small and mid-sized builders have relatively weaker access to capital than large contractors, so a prolonged downturn could increase liquidity pressure. This is linked to broader industry-wide concerns about rising bankruptcy risk.
Recently won individual contracts are large enough—equal to roughly 16-21% of prior-year revenue—that delays or changes to a single project's terms could materially affect results.
Redevelopment order wins are concentrated in a specific southwestern Seoul metro area, making the company sensitive to changes in local real estate conditions or the circumstances of individual project associations.
Strengthening safety and labor regulation—such as enhanced enforcement of the Serious Accidents Punishment Act and revisions to labor-related laws—could lead to construction delays and cost increases. Any shift in the direction of government housing supply or SOC policy could also affect the order pipeline.
The Q3 2026 quarterly report filing should confirm finalized revenue and operating profit figures, along with progress on the Wonjong-dong 199-2 project.
Whether actual groundbreaking begins for the Wonjong-dong 199-2 redevelopment project and whether initial revenue recognition starts should be checked.
This is the point to check whether revenue recognition on the Icheon logistics center contract is completed upon its January 26, 2027 expiry, and whether any follow-on contract is signed.
The Korea Construction Association's 2027 contractor capability assessment release will show whether the company breaks into the top 100 ranking.
Shinwon Construction is a small-to-mid-sized contractor that has been raising its industry ranking through a series of contract wins in southwestern Seoul metro street housing redevelopment.
Financially, positive signals are evident, including a debt ratio that has declined for three consecutive years and a structurally improved operating margin, but consolidated revenue has fallen for two straight years since peaking in 2023, and operating cash flow contracted sharply in 2025.
Quarterly results show significant volatility, with a strong Q3 2025 result contrasting sharply with a Q4 2025 loss, making it difficult to draw firm conclusions from any single quarter.
Both quarters of the first half of 2026 closed with operating profit, continuing an earnings recovery trend, but the pace at which recently won large contracts convert into recognized revenue and the timing of new redevelopment groundbreaking will be key variables for future results.
On the industry side, favorable public-sector order expansion coexists with unfavorable private financing conditions, creating a mixed picture across small and mid-sized builders. Investors should continue to monitor upcoming quarterly earnings disclosures and new contract announcements before drawing conclusions.
Report written 2026-09-05 · Data as of 2026-09-04
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