PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
HC Bokwang Industry, a leading aggregate producer in the Daegu-Gyeongbuk region, swung to an operating loss in 2025 amid a regional housing downturn, but posted a rebound in operating profit in the second quarter of 2026.
2025 consolidated revenue fell 39.7% year over year to KRW 38.5 billion, with operating profit swinging to a loss of KRW 4.9 billion
Second-quarter 2026 revenue reached KRW 15.0 billion with operating profit of KRW 2.4 billion, the clearest rebound among recent quarters
The Daegu-Gyeongbuk Integrated New Airport project advanced with a government notice finalized in December 2025, though the project has a history of schedule delays
Controlling shareholder HC Homecenter has steadily raised its stake to around 69% through open-market purchases in 2026
Holders of the 4th convertible bond exercised put options to recover KRW 7.4 billion, highlighting a funding pressure factor
HC Bokwang Industry is a specialized aggregate producer that operates a roughly 430,000-square-meter quarry in Gunwi-gun, Daegu, focused on crushed aggregate for concrete and mixed aggregate for road paving.
The company has been cited in securities industry commentary as the largest dedicated aggregate producer in the Daegu-Gyeongbuk region, supplying KS-certified aggregate to Daegu and surrounding small and medium cities within a 30-kilometer radius.
In the asphalt concrete segment, it is the first and only producer in the Daegu area of GR-certified recycled asphalt concrete, a structure that limits new entrants given the environmentally regulated nature of the business.
Its ready-mixed concrete segment benefits from a central Daegu location and the use of its own KS-certified aggregate, supporting quality and supply stability. Aggregate is reported to account for roughly half of total revenue, with asphalt concrete and ready-mixed concrete making up the remainder.
The controlling shareholder is HC Homecenter, a holding-company-like entity overseeing more than 20 affiliates spanning aggregate, asphalt, ready-mixed concrete, building materials, transportation and other businesses, with HC Bokwang Industry and Homecenter Holdings as the group's two KOSDAQ-listed entities.
As of July 27, 2026, HC Homecenter and related parties held a 69.23% stake in HC Bokwang Industry. Given this structure, revenue and profit are heavily tied to the Daegu-Gyeongbuk construction cycle, particularly housing starts.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩10.2B | ₩1,811,600 | 0.0% |
| 2025Q3 | ₩9B | -₩500M | −5.3% |
| 2025Q4 | ₩11B | -₩2.7B | −24.6% |
| 2026Q1 | ₩7.9B | -₩1.5B | −19.3% |
| 2026Q2 | ₩15B | ₩2.4B | 16.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩87.5B | ₩15.4B | ₩12.1B | 17.6% | 13.6% | 64.2% |
| 2023 | ₩85.5B | ₩18.9B | ₩16.7B | 22.1% | 17.5% | 74.1% |
| 2024 | ₩63.9B | ₩8.9B | ₩5.2B | 13.9% | 5.3% | 79.6% |
| 2025 | ₩38.5B | -₩4.9B | -₩2.5B | −12.7% | −2.7% | 90.6% |
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 was KRW 38.49 billion, down 39.7% from KRW 63.88 billion in 2024, while operating profit swung to a loss of KRW 4.87 billion from a profit of KRW 8.86 billion in 2024. Net income also turned negative at a loss of KRW 2.49 billion, compared with a profit of KRW 5.24 billion the prior year.
The company cited a downturn in Daegu-Gyeongbuk regional housing construction activity as the primary driver of the revenue and profit decline.
On a quarterly basis, second-quarter 2025 revenue was KRW 10.19 billion with operating profit of just KRW 1.8 million, essentially break-even, while third-quarter revenue was KRW 9.03 billion with an operating loss of KRW 478 million.
Fourth-quarter revenue rose to KRW 11.04 billion, yet the operating loss widened to KRW 2.71 billion, deepening the full-year deficit.
First-quarter 2026 revenue contracted further to KRW 7.86 billion with an operating loss of KRW 1.52 billion and a net loss of KRW 1.52 billion, extending the weak run, but second-quarter revenue jumped to KRW 14.97 billion, delivering a clear rebound with operating profit of KRW 2.39 billion and owners' net income of KRW 2.79 billion.
As a result, owners' net income summed over the most recent four quarters (Q3 2025 through Q2 2026) came to KRW 319 million, a modest but positive turn from the preceding loss-making stretch.
Given that the company posted revenue of KRW 85–87.5 billion and operating margins of 17–22% in 2022–2023, the recent volatility reflects a pronounced cooling in the regional construction cycle.
The construction aggregate, asphalt concrete and ready-mixed concrete industry is a classic cyclical sector tied directly to housing and civil construction activity.
The Daegu-Gyeongbuk region has seen accumulating unsold housing inventory in recent years alongside a prolonged construction downturn, which has weighed on the performance of regional building materials companies including HC Bokwang Industry.
Indeed, the broader HC Homecenter group posted a 22.8% year-over-year decline in consolidated quarterly revenue and swung from an operating profit to a loss, indicating the sector-wide chill extended across the group.
The aggregate and asphalt industry carries high barriers to entry rooted in environmental permitting requirements, which limits new competition and helps defend incumbents' regional positions. However, when underlying demand itself contracts, such barriers offer limited protection for earnings.
The region's largest anticipated catalyst is the Daegu-Gyeongbuk Integrated New Airport (TK New Airport) project, which advanced with a finalized government notice in December 2025, though the project has a history of repeated delays that has pushed back the earnings contribution from companies that invested ahead of the schedule.
In terms of competitive positioning, HC Bokwang Industry is classified as a small-to-mid-sized regional specialist focused on Daegu-Gyeongbuk, in contrast to large national cement makers such as Hanil Cement and Asia Cement or large building materials names such as KCC and LX Hausys.
The company has continued to attribute its 2025 earnings weakness to the ongoing Daegu-Gyeongbuk housing downturn, and Ministry of Land, Infrastructure and Transport statistics show unsold housing inventories in Daegu and Gyeongbuk ranking among the highest of Korea's metropolitan and provincial areas.
At the group level, capacity was expanded ahead of schedule in anticipation of the TK New Airport project, raising annual aggregate capacity from 2.07 million to 3.1 million cubic meters and acquiring HC Gunwi Industry, HC Uiseong Industry and HC Uiseong Remicon to broaden ready-mixed concrete supply, leaving room for utilization improvement across the group if airport construction accelerates.
At the same time, the group is pursuing vertical integration in response to weak construction-segment results, acquiring HC Donghwa Housing, operator of the "I Wish" brand, for KRW 48.4 billion in March 2026 with expectations of annual revenue in the tens of billions of won, and is also preparing to enter the mortar business.
The TK New Airport project advanced a step further with a finalized government notice in December 2025, but given a history of repeated schedule slippage, the timing of actual construction start and resulting demand for aggregate and ready-mixed concrete remains uncertain.
The controlling shareholder group has continued small monthly open-market purchases through 2026, steadily raising its stake, which can be read as an effort to reinforce control.
However, the exercise of put options by holders of the 4th convertible bond, recovering KRW 7.4 billion, illustrates a degree of market caution toward group liquidity that warrants continued monitoring of future funding and repayment activity.
With earnings over the most recent four quarters having shifted from losses to a modest profit, income-based valuation metrics currently have limited explanatory power. On a price-to-book basis, the share price sits below net asset value, meaning the stock trades at a discount to book value.
The company has a history of paying annual dividends, but given the recent earnings slowdown, the sustainability of future payouts is likely to hinge on the pace of earnings recovery.
Compared with the higher-profitability period of 2022–2023, current earnings levels are markedly smaller, making direct comparison of valuation multiples with that boom-era baseline difficult.
In a period of high earnings volatility, it is useful to weigh the price level relative to net asset value alongside the trajectory of any earnings recovery.
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
Second-quarter 2026 revenue of KRW 14.97 billion and operating profit of KRW 2.39 billion marked the clearest improvement among the most recent four quarters. With the loss streak that persisted through the first quarter having paused, the next quarter's figures will be watched to gauge whether a trough has passed. Still, a single quarter's rebound requires further confirmation before it can be called a trend.
The Daegu-Gyeongbuk Integrated New Airport project advanced with a finalized government notice in December 2025, and the group has pre-emptively expanded aggregate capacity from 2.07 million to 3.1 million cubic meters.
As the company has been cited as the largest aggregate producer in Daegu-Gyeongbuk, it is mentioned as a possible beneficiary once large-scale regional construction begins in earnest. However, given a history of repeated delays, the actual construction start date remains uncertain.
The aggregate and asphalt industry has high entry barriers rooted in environmental permitting, and the company is the sole recycled asphalt concrete producer in the Daegu area.
Controlling shareholder HC Homecenter has continued small monthly open-market purchases through 2026, steadily raising its stake from the upper-68% range to the upper-69% range. This can be read as a factual indication of intent to reinforce control.
The backdrop to 2025's 39.7% revenue decline and swing to an operating loss is the downturn in Daegu-Gyeongbuk housing construction. Ministry statistics show unsold housing inventories in Daegu and Gyeongbuk ranking among the highest nationally at the regional level, suggesting demand recovery could be slow.
Revenue contraction and losses persisting through the first quarter of 2026 suggest the downturn may not be short-lived.
Performance has swung sharply on a quarterly basis, from near break-even in the second quarter of 2025 to consecutive operating losses in the third and fourth quarters, then a loss again in the first quarter of 2026 before a swing to profit in the second quarter.
This volatility makes it difficult to project a clear earnings trend, and a single quarter's return to profit is not sufficient on its own to conclude a structural improvement.
The exercise of put options by holders of the 4th convertible bond, recovering KRW 7.4 billion, reflects a degree of market caution.
A substantial portion of the controlling shareholder's shares are pledged or used as loan collateral with banks, a structure in which sharp share price declines could bring collateral-related issues to the fore.
Affiliate HC Homecenter is itself responding to weak construction-segment results by pursuing vertical integration.
Revenue and assets are concentrated in the Daegu-Gyeongbuk region, directly exposing performance to swings in that region's construction cycle. Compared with large building materials companies with nationwide operations, the ability to cushion a regional downturn is relatively limited. Repeated delays in large regional projects such as the new airport could lead to further earnings weakness.
Over the most recent five quarters, results have alternated between profit and loss, lowering the predictability of earnings. On a full-year 2025 basis, the company recorded both an operating loss and a net loss. The possibility of similar volatility recurring in future quarters cannot be ruled out.
The controlling shareholder and related parties hold a stake exceeding 69%, leaving a relatively low free float, and a substantial portion of those shares are pledged as bank collateral. The exercise of put options by an affiliate's convertible bond holders may reflect market concern about group liquidity.
The debt-to-equity ratio also rose from 64.2% in 2022 to 90.6% in 2025, indicating increased financial burden that warrants attention.
This is the statutory deadline for the third-quarter 2026 quarterly report; the key point to verify is whether the second-quarter rebound continued into the third quarter.
It is worth tracking how follow-up procedures unfold after the December 2025 government notice, including the master plan, environmental impact assessment, and construction start date. Whether the schedule slips further will determine the timing of any resulting demand for regional aggregate and ready-mixed concrete.
Disclosures on open-market purchases and collateral loan repayments by controlling shareholder HC Homecenter and related parties can be tracked to see how the stake evolves and whether collateral-related risk eases.
Trends in unsold housing inventory in Daegu and Gyeongbuk can be used to gauge whether the regional construction cycle is recovering.
It is worth monitoring the effect of incorporating HC Donghwa Housing and progress on the mortar business entry, to see how the group's construction-segment response affects demand for HC Bokwang Industry's aggregate and ready-mixed concrete.
HC Bokwang Industry is a producer of aggregate, asphalt concrete and ready-mixed concrete specialized in the Daegu-Gyeongbuk region, whose revenue fell 39.7% in 2025 amid a regional construction downturn, with both operating and net losses recorded.
However, revenue and operating profit rebounded clearly in the second quarter of 2026, turning the trailing four-quarter sum modestly positive.
The TK New Airport project advanced with a finalized government notice in December 2025, but given a history of repeated delays, the timing of any resulting demand remains uncertain.
Steady stake accumulation by the controlling shareholder may be read as a signal of intent to stabilize control, while the exercise of put options on an affiliate's convertible bond and a rising debt-to-equity ratio remain financial factors to watch.
Regional concentration, quarter-to-quarter earnings volatility, and the extent of pledged shares are factors worth weighing together. Continued monitoring of third-quarter results, follow-up procedures on the new airport project, and regional unsold housing trends is warranted going forward.
Report written 2026-10-01 · Data as of 2026-09-30
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