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
KD saw revenue drop sharply and post a large net loss in 2025, while its debt ratio surged past 2,000%, warranting close attention to balance-sheet stability.
2025 revenue fell sharply to KRW 27.79 billion from KRW 157.6 billion a year earlier, with an operating loss of KRW 4.27 billion and a net loss of KRW 25.59 billion.
Equity shrank from KRW 39.45 billion (2024) to KRW 14.11 billion (2025), pushing the debt ratio from 690.1% to 2,041.1%.
Q1 2026 revenue spiked to KRW 45.92 billion with net income of KRW 5.38 billion, but Q2 reverted to KRW 8.57 billion in revenue with a KRW 14.0 billion net loss, underscoring extreme earnings volatility.
The company's core business is housing construction and real estate development under in-house brands including Aramchae, KDU Plaza and Pentville, and it is pursuing the absorption merger of four subsidiaries during 2025.
The controlling shareholder entity's stake has fluctuated frequently between roughly 20% and 28% in short periods, warranting scrutiny of governance stability.
KD (044180) is a construction and real estate development company founded in 1974 and listed on KOSDAQ in November 2000, headquartered in Ansan, Gyeonggi Province.
Its core business spans housing construction, real estate development, and leasing, with the vast majority of revenue generated from the construction segment.
The company operates in-house brands including Aramchae, KDU Plaza and Pentville, pursuing a strategy centered on optimal site selection, brand competitiveness, quality improvement and cost reduction. It has five consolidated subsidiaries and disclosed plans to absorb-merge four of them during 2025.
Revenue is recognized across the full development cycle—permitting, pre-sales and completion—through orders won in self-developed, government and private construction projects.
The company also has exposure to regional housing association (union-led) housing projects, which tend to add variability to results depending on project progress and pre-sale performance.
Within the KOSDAQ construction sector, KD is classified as a small-to-mid-sized developer/contractor with a relatively concentrated project and regional footprint compared with large nationwide homebuilders.
Notable swings in the controlling shareholder entity's stake over short periods have also been observed alongside the business.
The company has a history of capital actions including rights offerings, convertible bond issuances and capital reductions, reflecting capital structure management as a recurring corporate task.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩7B | -₩2.7B | −38.4% |
| 2025Q3 | ₩3.6B | -₩1.9B | −53.0% |
| 2025Q4 | ₩6.4B | ₩100M | 2.2% |
| 2026Q1 | ₩45.9B | ₩6B | 13.1% |
| 2026Q2 | ₩8.6B | ₩200M | 2.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩103.5B | -₩2.4B | -₩2.9B | −2.3% | −7.9% | 707.3% |
| 2023 | ₩179.4B | ₩4.4B | -₩3.8B | 2.5% | −11.6% | 805.4% |
| 2024 | ₩157.6B | ₩2.9B | ₩4.5B | 1.9% | 11.5% | 690.1% |
| 2025 | ₩27.8B | -₩4.3B | -₩25.6B | −15.4% | −181.3% | 2041.1% |
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 rose from KRW 103.48 billion in 2022 to KRW 179.41 billion in 2023, eased slightly to KRW 157.64 billion in 2024, and then collapsed to KRW 27.79 billion in 2025.
Operating profit stayed positive at KRW -2.43 billion (2022), KRW 4.40 billion (2023) and KRW 2.92 billion (2024) before swinging back to an operating loss of KRW 4.27 billion in 2025.
Net income attributable to owners was negative in both 2022 (KRW -2.86 billion) and 2023 (KRW -3.77 billion), turned positive in 2024 at KRW 4.52 billion, then reversed sharply into a KRW 25.59 billion net loss in 2025.
According to FnGuide, cumulative nine-month revenue through Q3 2025 fell 79.0% year over year with both operating profit and net income turning negative, indicating the full-year deterioration was not confined to a single quarter.
On a quarterly basis, Q2 2025 revenue was KRW 7.02 billion with a net loss of KRW 2.10 billion, Q3 2025 revenue was KRW 3.64 billion with a net loss of KRW 2.68 billion, and Q4 2025 revenue recovered to KRW 6.44 billion with a modest operating profit of KRW 0.14 billion, yet the net loss widened sharply to KRW 18.54 billion, suggesting a large non-operating charge.
Q1 2026 saw a sharp rebound with revenue jumping to KRW 45.92 billion, operating profit of KRW 6.00 billion and net income of KRW 5.38 billion, but Q2 2026 reverted to KRW 8.57 billion in revenue with only KRW 0.21 billion of operating profit against a KRW 14.00 billion net loss, again showing a wide gap between operating and net results.
This pattern suggests project-based revenue recognition combined with non-operating items (potentially equity-method losses or asset impairments) are heavily influencing reported results.
Owners' equity fell from KRW 36.38 billion in 2022 to KRW 14.11 billion in 2025, while the debt ratio rose from 707.3% to 2,041.1% over the same period, reflecting a substantial increase in financial leverage.
Korea's domestic housing construction and real estate development sector is a cyclical industry sensitive to interest rates, government housing policy, and regional pre-sale market conditions.
Ongoing discussions around real estate tax reform continue, and at a forum hosted by the Korea Institute of Public Finance, experts called for raising the threshold for ultra-high-value housing and expanding the basic deduction for the comprehensive real estate tax, reflecting persistent tax-related uncertainty.
Regional housing association-led projects require multiple stages including member recruitment, permitting and contractor selection, often resulting in long and slow-moving timelines that make the timing of earnings recognition difficult to predict.
Small and mid-sized developers/contractors such as KD tend to have higher dependence on specific regions and individual projects compared with large builders, meaning the success or failure of individual pre-sales has a direct impact on results.
Competition within the sector often favors larger players in terms of brand power, funding capacity and construction quality, pushing smaller companies toward niche regions and product segments.
Broader low-growth conditions in the construction cycle and unsold-unit risk are commonly cited challenges across the industry.
The company has disclosed plans to absorb-merge four subsidiaries during 2025, which, if completed, could simplify the consolidated structure and reduce administrative costs. However, no specific revenue or profit guidance nor major new order announcements have been identified in currently available disclosures.
The sharp revenue and profit increase in Q1 2026 appears to reflect concentrated completion and pre-sale recognition of a specific project, and whether similarly sized project completions continue in subsequent periods will be key to future results.
Given the nature of regional housing association projects, disclosures on the progress of member recruitment and permitting stages for any ongoing projects will be important information for future earnings estimates.
With equity having declined sharply and the debt ratio surging, whether further capital-raising measures (such as a rights offering) are discussed going forward also warrants monitoring.
No separate management guidance or analyst consensus was identified at this time, making it necessary to track upcoming quarterly, semiannual and annual report disclosures.
Following a large net loss and shrinking equity in 2025, KD's net-asset-based metrics have fallen to some of their lowest levels in recent years. The share price appears to trade near or below per-share book value, though the exact gap varies depending on the calculation method used.
Over the most recent four quarters (Q3 2025 through Q2 2026), net income has remained in negative territory, which limits the usefulness of earnings-based valuation comparisons. No dividend was paid based on the most recent fiscal year, which contrasts with sector peers that maintain dividend payouts.
Given the profit recovery seen in 2024 and the net income rebound in Q1 2026, whether future results turn profitable again or whether large non-operating losses similar to those in 2025 and Q2 2026 recur will be a key variable shaping the trajectory of the company's capital metrics.
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 returned to profit in 2024 with net income of KRW 4.52 billion, and again posted strong results in Q1 2026 with revenue of KRW 45.92 billion and net income of KRW 5.38 billion.
This demonstrates that results can improve substantially when specific project completions and pre-sales are concentrated in a given period. Should similar project completion schedules continue, a renewed recovery phase is possible.
The company holds multiple in-house brands including Aramchae, KDU Plaza and Pentville, giving it a base to address various product categories such as apartments, officetels and commercial facilities.
Securing a pipeline of regional housing association and other housing development projects also reflects business diversification. This can help reduce dependence on any single product type or region.
The company disclosed plans to absorb-merge four subsidiaries during 2025. A simplified affiliate structure could reduce administrative costs and improve decision-making efficiency. A smaller number of consolidated entities may also aid financial statement transparency.
2025 revenue fell sharply to KRW 27.79 billion from KRW 157.64 billion a year earlier, with an operating loss of KRW 4.27 billion and a net loss of KRW 25.59 billion. According to FnGuide, cumulative nine-month revenue also fell 79.0% year over year, indicating the annual weakness was not confined to a single quarter. This suggests either a gap in project revenue recognition or a shortfall in new orders.
Equity fell sharply from KRW 39.45 billion in 2024 to KRW 14.11 billion in 2025, while the debt ratio surged from 690.1% to 2,041.1%. This indicates a significant weakening of capital stability and could highlight the need for additional capital raising or debt restructuring.
Given the company's history of rights offerings and capital reductions, similar capital adjustments cannot be ruled out.
Quarterly results have swung dramatically, from net income of KRW 5.38 billion in Q1 2026 to a net loss of KRW 14.00 billion in Q2 2026. The fact that net results deteriorated sharply even as operating profit remained modestly positive suggests recurring non-operating loss factors. This volatility reduces the reliability of forward earnings estimates.
The 2025 debt ratio surged to 2,041.1% while equity shrank to KRW 14.11 billion, indicating very high financial leverage. If this equity contraction continues, pressure for additional capital raising or debt restructuring could intensify.
Given the company's history of capital reductions and rights offerings, the recurrence of similar capital measures should also be monitored.
The majority of revenue comes from housing and real estate development, and revenue and profit tend to concentrate in specific quarters depending on project completion and pre-sale timing. Union-led projects such as regional housing associations often progress slowly, and delays or plan changes can affect results. If new orders do not follow sufficiently, there is a risk that revenue gaps could recur.
According to disclosures, the controlling shareholder entity KD Technology Investment's stake fluctuated frequently, rising from roughly the 20% range to about 28% before falling back to around 20% within a short period.
Such shareholding volatility can raise concerns about the stability of management control or consistency of key decision-making. Investors should continue to track future disclosures related to the controlling shareholder.
Around the Q3 2026 quarterly report filing deadline, it will be important to check whether the pattern of large non-operating losses seen in the prior two quarters continues.
Given the shrinking equity and high debt ratio, disclosures related to additional rights offerings, capital reductions, or other capital adjustments should be monitored.
The FY2026 annual business report and regular shareholders' meeting will reveal full-year changes in equity, the debt ratio, and the audit opinion.
If further disclosures on changes to the controlling shareholder's stake are filed, their implications for governance stability should be reviewed.
After a profit recovery in 2024, KD's revenue and earnings deteriorated sharply in 2025, resulting in a large net loss, while equity contracted significantly and the debt ratio surged to 2,041.1%, sharply raising financial leverage.
In 2026, Q1 saw a strong rebound in revenue and profit, but Q2 reverted to lower revenue and another large net loss, reconfirming very high earnings volatility.
On the business side, the company maintains multiple brands and a pipeline of regional housing association projects centered on housing construction and real estate development, and is pursuing structural simplification through a subsidiary merger during 2025.
However, no specific revenue or profit guidance nor major new order news has been identified, making ongoing review of quarterly disclosures essential to gauge future direction. Frequent changes in the controlling shareholder's stake are also a factor to watch from a governance stability perspective.
Overall, this stock combines earnings variability driven by project-based revenue recognition with elevated financial leverage, making continued monitoring of capital structure and earnings trends through future disclosures important.
Report written 2026-09-05 · Data as of 2026-09-04
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