Namkwang Engineering & Construction남광토건

Namkwang E&C is a small builder with thin margins, heavy debt and falling revenue, and its shares have recovered somewhat over the past three months.

Trailing twelve-month revenue to H1 2026 was about ₩340B with operating income near ₩10.8B and net income near ₩5.4B, giving a 3.2% operating margin and 1.6% net margin. Revenue has fallen sharply from ₩504B in 2024 and ₩357B in 2025 remains well below the 2022 peak, while liabilities are about 2.2 times equity and free cash flow over the period was negative at roughly -₩9.1B. The shares closed at ₩8,020 on 2026-10-21, a market value of about ₩78.9B, which is down 5.2% over one year but up 9% over three months.

What stands out

• Trailing free cash flow was negative (about -₩9.1B) even though the company reported a small profit, and borrowings (about ₩32.9B) exceed cash (about ₩30.1B).
• Revenue fell 29.1% in 2025, and net income has declined each year since 2022, when it was about ₩19.3B.
• Valuation metrics are low: P/E about 14.6, P/B about 0.6, and the company pays no dividend according to the data.
• The DCF fair value model gives a base of ₩11,754 with a bear case of ₩3,760 and a bull case of ₩26,331; these are model outputs, not forecasts or targets.
• Recent filings are mostly amended or new major sales and supply contracts, plus a notice on increased short-term borrowings and a confirmation of criminal penalties related to a serious industrial accident. No news headlines were included in the data.

What to watch

• Upcoming full-year and quarterly results, to see whether revenue stabilises and whether free cash flow turns positive.
• Further filings on short-term borrowings, debt assumption and the criminal penalties linked to the industrial accident.
• Foreign ownership fell from 1.5% to 1.1% over the last 60 days, and the data does not explain why.