Dohwa Engineering: Revenue Recovery, Thin Margins and a Wide Model Range

Thesis

The data supports a business that has regained profitability but earns low returns. Revenue grew 19.9% in 2025 to ₩698.5B and operating income swung from a ₩13.4B loss in 2024 to ₩30.1B. Trailing figures to H1 2026 show operating income of ₩24.0B and net income of ₩8.8B, so profitability is still thin at a 1.3% net margin and 3.5% ROE.

The share price is up 8.9% over one month and 11.9% over three months but down 11.8% over one year, and it sits between the 52-week low of ₩4,465 and high of ₩7,650. Free cash flow is negative at -₩47.4B and leverage is high, which the data does not offset with clear evidence of improving cash generation. The dividend yield of 5.4% is shown, but the data does not include payout history or sustainability.

Business overview

Dohwa Engineering is a KOSPI-listed engineering services company founded in 1962 and listed in 2010, with 33.72M listed shares and a market capitalization of ₩186.5B. Revenue has ranged between ₩555.8B (2022) and ₩698.5B (2025) over the five years shown. Earnings have been uneven: net income was ₩15.0B in 2021, ₩1.6B in 2022, ₩20.7B in 2023, a ₩5.3B loss in 2024 and ₩7.3B in 2025. Foreign ownership is low at 0.7% (0.8% sixty days ago) and the short balance is 0.1%. Information on segments, order backlog and guidance is not available in the data.

Model estimate of fair value

Bear

₩4,146

-24%

Base

₩16,805

+208%

Bull

₩41,717

+665%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• [Amendment] Decision on Debt Guarantee to Third PartyOct 8, 2026
• [Amendment] Decision on Debt Guarantee to Third PartySep 30, 2026
• Amended: Sale of shares in another companySep 30, 2026
• Amended: Major sales or supply contractSep 18, 2026
• Occurrence of Serious AccidentSep 8, 2026
• Half-year report (Jun 2026)Aug 13, 2026
• Sale of shares in another companyAug 11, 2026
• Sale of shares in another companyAug 11, 2026
• Insider shareholding reportJul 29, 2026
• Amended: Major sales or supply contractJun 30, 2026
• Change in largest shareholder's holdingsJun 8, 2026
• Insider shareholding reportJun 8, 2026
• Daily prices up to 2026-10-19
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 28, 2026Update noteModel fair value changeDohwa Engineering: Model Fair Value Estimate Lowered by 22%
2. Oct 20, 2026InitiationStart of coverage (reader request)Dohwa Engineering: Revenue Recovery, Thin Margins and a Wide Model Range