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
Kangdong C&L is transforming from the sole Portland cement producer in the Honam region into a leisure operator through large golf course and resort acquisitions, and while 2025 revenue and operating profit rose sharply, financing costs tied to acquisition debt are constraining net profit.
2025 consolidated revenue reached KRW 71.8 billion and operating profit KRW 7.4 billion, extending a profitable trend with sharp improvement from the prior year.
Large-scale golf course acquisitions (Dianus CC, Gimje Spa Hills CC, etc.) in 2024 pushed the debt ratio from the 20% range to above 200%.
Operating profit has been consistent, but heavy interest expense has kept net profit well below operating profit levels.
Quarterly results show seasonality, with losses in the golf off-season first quarter and profits in the other quarters.
The prolonged domestic construction downturn and stagnant cement demand remain structural constraints on the core cement business.
Kangdong C&L, formerly Korea Cement, is the sole Portland cement producer in the Honam region, supplying cement as an intermediate material to construction firms, with a domestic cement market share of about 1.2% as of 2025.
Built on the more than half-century-old Korea Cement brand, the company has pursued a proximity-based sales strategy to minimize logistics costs.
However, as profitability deteriorated, the company closed its aging Jangseong plant in Jeollanam-do in 2023 and relocated mixed-cement production to its Mokpo plant, during which standalone revenue fell from KRW 69.9 billion in 2022 to roughly KRW 50.5 billion in 2023.
To address the cement business downturn, the company added tourism and resort, and theme park operation to its business purposes and changed its name from Korea Cement to Kangdong C&L, expanding aggressively into the leisure business.
In 2024, it acquired the 27-hole membership golf course Dianus CC in Gyeongju, Gyeongsangbuk-do, owned by Blue One, an affiliate of the Taeyoung Group, along with an attached resort (296 rooms), waterpark, and wedding hall, in a deal reportedly worth about KRW 350 billion.
Separately, the company also acquired Gimje Spa Hills CC in Gimje, Jeollabuk-do, from Hyundai Asset Management, broadening its leisure portfolio.
The company currently operates two reporting segments: cement (supply of construction materials) and leisure (golf course and condominium operations), with cement generating traditional intermediate-goods revenue and leisure generating service revenue from green fees, memberships, and accommodations.
The broader Kangdong Group is a local conglomerate in the Gwangju and Jeolla region with businesses spanning cement, ready-mixed concrete, piles, asphalt concrete, quarries, and golf courses, and the listed Kangdong C&L is one of its core affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩19.3B | ₩2.8B | 14.7% |
| 2025Q3 | ₩21.7B | ₩2.7B | 12.4% |
| 2025Q4 | ₩19.3B | ₩2.7B | 13.9% |
| 2026Q1 | ₩12.5B | -₩800M | −6.3% |
| 2026Q2 | ₩19.7B | ₩2.5B | 12.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩69.9B | -₩12.6B | -₩7.8B | −18.1% | −7.1% | 25.5% |
| 2023 | ₩50.5B | -₩17.2B | -₩15.8B | −34.1% | −17.2% | 24.3% |
| 2024 | ₩47.4B | ₩5.6B | -₩7.7B | 11.7% | −5.7% | 227.6% |
| 2025 | ₩71.8B | ₩7.4B | ₩700M | 10.3% | 0.5% | 218.3% |
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
Annual results show revenue of KRW 69.9 billion with an operating loss of KRW 12.6 billion in 2022, and revenue of KRW 50.5 billion with a deepened operating loss of KRW 17.2 billion in 2023, reflecting the impact of cement plant restructuring.
In 2024, revenue declined slightly further to KRW 47.4 billion, but operating profit turned positive at KRW 5.6 billion, a result attributable to plant rationalization effects.
However, the 2024 net result remained a loss of KRW 7.7 billion, and given that the debt ratio jumped from 24.3% to 227.6% that same year, financing costs tied to expanded borrowing for golf course acquisitions appear to have offset the operating profit.
In 2025, revenue rose sharply year-over-year to KRW 71.8 billion, operating profit expanded to KRW 7.4 billion, and net profit turned positive at roughly KRW 0.66 billion.
The gap between the KRW 7.4 billion operating profit and much smaller net profit reflects a still-substantial interest expense burden, suggesting the debt structure from the large leisure asset acquisitions could persist for some time.
Recent quarterly trends show revenue of KRW 19.3 billion, operating profit of KRW 2.8 billion, and net profit of KRW 1.5 billion in Q2 2025; revenue of KRW 21.7 billion, operating profit of KRW 2.7 billion, and net profit of KRW 0.9 billion in Q3; and revenue of KRW 19.3 billion, operating profit of KRW 2.7 billion, and net profit of KRW 0.2 billion in Q4, maintaining generally solid profitability.
However, in Q1 2026, revenue fell sharply to KRW 12.5 billion with an operating loss of KRW 0.8 billion and a net loss of KRW 2.0 billion, largely reflecting the seasonal overlap of the winter golf off-season and the cement off-season.
In Q2 2026, revenue recovered to KRW 19.7 billion with operating profit of KRW 2.5 billion and net profit of KRW 1.6 billion, again widening the profit margin, illustrating a quarterly earnings structure heavily driven by seasonality.
The domestic cement industry is said to have entered a low-growth 'new normal' phase amid a prolonged construction downturn.
The Korea Cement Association projected 2026 cement demand at around 36 million tons, a slight decline from the prior year, with sluggish construction starts, real estate project-financing risk, and tight credit conditions cited as factors constraining a demand recovery.
Additionally, the fourth phase of the Emissions Trading Scheme (ETS) beginning in 2026 is increasing carbon-reduction pressure on the cement industry, with the average annual emissions allowance in the fourth phase cut by 16.4% versus the third phase, potentially adding to cost burdens.
In this environment, defending profitability has become a common industry challenge given the difficulty of passing costs through in a domestically oriented industry.
Amid this nationwide demand slowdown, Kangdong C&L maintains a cost advantage from proximity-based sales backed by its regional monopoly in the Honam region, though its overall market share remains limited at around 1% nationally.
Meanwhile, the leisure (golf) industry has fared relatively better; according to the Korea Leisure Industry Research Institute, the combined operating margin of membership and public golf courses recently stood in the 30% range, higher than pre-pandemic 2019 levels.
However, concerns over declining green fees and falling visitor numbers have also been raised, suggesting the golf course industry, too, may be entering a growth slowdown.
Ultimately, Kangdong C&L operates a dual structure spanning a structurally stagnant cement business and a relatively resilient but decelerating golf leisure business.
The company's future direction hinges on two main axes.
In the cement segment, having already completed restructuring through the Jangseong plant closure and relocation to the Mokpo plant, resources are likely to be directed more toward complying with the fourth-phase Emissions Trading Scheme than toward further facility rationalization.
In the leisure segment, the timing at which Dianus CC and Gimje Spa Hills CC, acquired in 2024, are fully reflected in annual results is important, and the sharp year-over-year revenue increase in 2025 appears to partly reflect this consolidation effect.
Going forward, whether the leisure assets' profit contribution becomes fully realized, and whether the interest expense burden from acquisition debt eases over time, are likely to be the key variables for net profit improvement.
However, as seen in the first quarter of 2026, periods when the golf off-season overlaps with the cement off-season can bring greater earnings volatility, warranting an approach that accounts for quarterly variance in annual results.
No specific quantitative revenue or profit guidance from the company has been confirmed, and this will require verification through future disclosures. Whether the company pursues further leisure asset acquisitions or divestitures, or additional restructuring in the cement segment, also remain key variables to watch.
The stock trades at a discount relative to net asset value, with the price-to-book ratio remaining below 1x. On an earnings basis, however, the valuation sits well above the upper end of its typical trading band in recent years, meaning asset-based and earnings-based valuations point in different directions.
This reflects the fact that while 2025 net profit turned positive, its scale remained much smaller than operating profit. As for dividends, no recent payout history has been confirmed, making it difficult to assess using dividend-related metrics.
Compared with profitable peers within the chemicals and construction materials sector, the valuation relative to earnings appears relatively elevated, though this can also be a feature of an early-stage earnings recovery, warranting cautious interpretation.
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
2025 revenue reached KRW 71.8 billion and operating profit KRW 7.4 billion, both sharply higher year-over-year, continuing a two-year improvement trend since the 2024 turn to operating profit. Q2 2026 also posted solid results with revenue of KRW 19.7 billion and operating profit of KRW 2.5 billion. Both cement restructuring and leisure asset integration appear to be contributing to the expanded revenue base.
As the sole Portland cement producer in the Honam region, the company holds a structural advantage in reducing logistics costs through its proximity-based sales policy. Built on a brand history spanning more than half a century, its trading relationships with local construction firms remain stable. Even amid a nationwide cement demand slowdown, the regional demand base can be relatively defensive in nature.
According to the Korea Leisure Industry Research Institute, the combined operating margin of domestic membership and public golf courses recently stood in the 30% range, higher than pre-pandemic levels.
Dianus CC, a membership course, and Gimje Spa Hills CC, a public course, acquired by Kangdong C&L have the potential to align with this industry-average profitability structure.
As utilization rates and membership/green fee revenue at the two courses stabilize, there is room for the leisure segment's operating margin to improve.
The debt ratio jumped from 24.3% in 2023 to 227.6% in 2024 and 218.3% in 2025 due to large borrowings for golf course acquisitions, and has remained elevated.
The resulting financing cost burden kept 2025 net profit at only KRW 0.66 billion despite KRW 7.4 billion in operating profit, and in 2024, net profit was a loss of KRW 7.7 billion even though operating profit was positive.
If the debt structure does not improve in the near term, the pace of net profit improvement could remain limited.
The Korea Cement Association projected 2026 cement demand at roughly 36 million tons, a slight decline from the prior year, with the construction downturn and real estate project-financing risk continuing to constrain a demand recovery.
With the entry into the fourth-phase Emissions Trading Scheme increasing carbon-reduction burdens, easing cost pressure is difficult given the domestically oriented industry's limited ability to pass through costs. The structural stagnation of the cement segment remains a downside factor for overall company performance.
Q1 2026 revenue fell sharply to KRW 12.5 billion from the prior quarter, turning to losses with an operating loss of KRW 0.8 billion and a net loss of KRW 2.0 billion. This appears to largely reflect the seasonal overlap of the winter golf off-season and the cement off-season.
This seasonality suggests that quarterly variance must be consistently factored into forecasting annual results.
The debt ratio remains elevated in the low-to-mid 200% range due to expanded borrowing for golf course and resort acquisitions. If the interest rate environment stays elevated or additional borrowing becomes necessary, the financing cost burden could increase further. The need for balance sheet improvement measures, such as asset sales or capital raises, persists.
Amid a prolonged construction downturn and stagnant cement demand, the fourth-phase Emissions Trading Scheme starting in 2026 is adding to carbon-reduction burdens. Given the domestically oriented industry's limited ability to pass through costs, regulatory compliance expenses could further pressure profitability. Changes in government construction and housing policy are also a source of demand volatility.
There is a possibility that profit contribution from the large-scale leisure assets acquired in 2024, such as Dianus CC and Gimje Spa Hills CC, could be delayed relative to expectations during post-merger integration.
The Korea Leisure Industry Research Institute has noted that golf course visitor numbers and green fees could decline slightly amid an economic slowdown, so downside risk to leisure segment demand itself cannot be ruled out.
Given the disparate nature of the two businesses (cement and leisure), organizational and operational integration costs must also be considered.
The Q3 2026 quarterly report is due, and it will be important to check whether golf course autumn peak-season results and interest expense trends translate into net profit improvement.
The full-year 2026 annual report will show the leisure assets' complete annual contribution and whether the debt ratio and financing costs have improved.
Changes in cement segment cost and capital expenditure burdens from the fourth-phase Emissions Trading Scheme, and the company's response, should be monitored through further disclosures or media reports.
It is worth checking whether actual shipment volumes reported by bodies such as the Korea Cement Association align with the previously projected 2026 demand of roughly 36 million tons.
The debt ratio, net borrowings, and interest expense trends should be continuously monitored to see whether the financial leverage that surged in 2024–2025 is moving toward a more manageable level.
Kangdong C&L is restructuring a cement core business that endured operating losses for years, while simultaneously mobilizing large-scale debt to acquire golf course and resort assets in an attempt to transform into a leisure company.
As a result, tangible progress has emerged, including the 2024 turn to operating profit and the simultaneous expansion of 2025 revenue and operating profit, but the interest expense burden from acquisition-related debt clearly constrains the pace of net profit improvement.
Quarterly results show pronounced seasonality, with losses in the golf off-season first quarter and profits in the other quarters, which must be factored into any annual assessment.
On the industry side, the cement segment faces structural pressure from the construction downturn and tightening carbon-reduction regulation, while the leisure segment benefits from relatively favorable industry-average profitability, creating a contrast between the two businesses.
Key points to watch going forward include when the leisure assets achieve full profit contribution, whether the debt ratio and financing costs improve, and the scale of regulatory compliance costs in the cement business.
Investors should continuously monitor disclosures and industry indicators, taking this combined financial and industry structure into account.
Report written 2026-10-01 · Data as of 2026-09-30
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