KOSPI · 004960 · Construction · ₩004960

Hanshin Construction한신공영

004960 · KOSPI · ₩004960 · 한신공영

₩10,380▼ ₩290 (2.72%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩30,910

vs the current price (₩10,380)

Enterprise value: ₩752B
Equity value: ₩358B
WACC: 4.6%

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

Why the model and the price differ

The model is 198% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩10,380, the model needs an operating margin of 2.8% every year (it uses 3.7%).
Or revenue growth −22.8 points a year higher than assumed in each of the 5 years.
39% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 1.4× against a typical 2.4× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: —
Base: ₩30,910; +197.8%
Bull: ₩167,731; +1,515.9%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (3.7%).

Revenue growth

Revenue growth, year 1-2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 30.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.7%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation0.6%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending0.1%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital40%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-11-02.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.4, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.53%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩1.1T
Net debt (borrowings and leases − cash and deposits): ₩539B
+ Stakes and investments: ₩149B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩4.6B
Shares: 11,570,702
Share price: ₩10,380
Market cap: ₩120B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.3T	₩1.5T	₩1.1T	₩1T	₩1T	₩1T	₩1T	₩1.1T
Growth	7.2%	13.9%	−22.9%	−2.0%	−0.8%	0.5%	1.7%	3.0%
EBIT	₩15B	₩37B	₩65B	₩38B	₩38B	₩38B	₩39B	₩40B
EBIT margin	1.1%	2.5%	5.6%	3.7%	3.7%	3.7%	3.7%	3.7%
After-tax EBIT	₩11B	₩27B	₩47B	₩28B	₩28B	₩28B	₩28B	₩29B
+ Depreciation	₩8.7B	₩8.7B	₩4.9B	₩6.2B	₩6.2B	₩6.2B	₩6.3B	₩6.5B
− Capital spending	₩1.7B	₩1.1B	₩1.8B	₩1B	₩1B	₩1B	₩1B	₩1.1B
− Working capital	₩194B	−₩349B	−₩84B	−₩8.4B	−₩3.3B	₩2.1B	₩7B	₩13B
Free cash flow	−₩176B	₩383B	₩134B	₩41B	₩36B	₩31B	₩26B	₩22B
Discount factor	—	—	—	0.956	0.914	0.873	0.835	0.798
Present value	—	—	—	₩40B	₩33B	₩27B	₩22B	₩17B

Terminal value ₩768B, worth ₩613B today: 82% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩74,941 a share)Now 0.14×	₩7,5550.10×	₩9,5230.13×	₩20,6120.28×
Price / earnings (last 12 months: ₩7,223 a share)Now 1.44×	₩11,4731.59×	₩17,1502.37×	₩64,0478.87×
P/E on run-rate earnings (Q2 2026 × 4: ₩6,461 a share)Now 1.61×	₩10,2631.59×	₩15,3422.37×	₩57,2968.87×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
3.6%	₩45,353	₩54,122	₩68,221	₩94,819	₩164,375
4.1%	₩33,090	₩38,003	₩45,167	₩56,671	₩78,351
4.6%	₩24,212	₩27,047	₩30,910	₩36,528	₩45,532
5.1%	₩17,485	₩19,112	₩21,214	₩24,065	₩28,194
5.6%	₩12,211	₩13,096	₩14,188	₩15,583	₩17,458

Now (TTM)

Market cap: ₩120B
Enterprise value: ₩652B
P/E: 1.4×
P/B: 0.1×
P/S: 0.1×
EV/EBITDA: 8.6×
Dividend yield: 1.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩10,300	₩6,390	₩7,220	₩8,490	₩15,700
Market cap	₩119B	₩74B	₩84B	₩98B	₩182B
P/E	2.0×	10.8×	2.6×	2.2×	3.7×
P/B	0.1×	0.1×	0.1×	0.1×	0.3×
P/S	0.1×	0.0×	0.1×	0.1×	0.1×
EV/EBITDA	8.4×	12.8×	38.0×	15.1×	12.1×
Dividend yield	1.5%	1.6%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hanshin Construction	1.4×	0.1×	0.1×	8.6×	1.4%
Hyundai Engineering & Construction	20.8×	1.0×	0.3×	—	1.0%
Daewoo Engineering & Construction	—	1.2×	0.6×	—	0.0%
GS Engineering & Construction	17.1×	0.5×	0.2×	—	1.9%
DL E&C	3.4×	0.4×	0.3×	—	1.6%
KEPCO Plant Service & Engineering	14.3×	1.4×	1.1×	8.0×	0.0%
Ipark Hyundai Development	8.6×	0.5×	0.4×	—	2.9%
Similar companies (median)	14.3×	0.7×	0.4×	8.0×	1.3%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Hanshin Construction / 한신공영 / 004960 / KRX:004960

Source: KRX statistical information