Dongbu동부건설

Dongbu's H1 2026 trailing profits are positive after a loss-making 2024, but its balance sheet is heavily geared and free cash flow is negative.

Dongbu Construction is a Korean builder with domestic contract work across buildings, civil engineering and plants. On trailing figures to H1 2026 it reports revenue of about ₩1.96T, operating income of about ₩54B and net income of about ₩80B, a recovery from the large losses booked in 2024. Liabilities are about 205% of equity and borrowings are about ₩213B against cash of about ₩112B.

What stands out

• Trailing revenue is about ₩1.96T with a thin operating margin of 2.8% and a net margin of 4.1%.
• Net income in the trailing period (about ₩80B) is above operating income, and the data does not explain the gap.
• 2024 showed an operating loss of about ₩97B and a net loss of about ₩106B, while 2025 returned to a profit of about ₩52B.
• Trailing free cash flow is negative at about -₩58B, and the data includes no explanation of the cause.
• The share price closed at ₩7,790 on 2026-10-15, up 14.7% over three months and 38.4% over one year, but down 3% over one month and well below its 52-week high of ₩10,610.
• The stock trades at a low P/E of 2.2 and P/B of 0.3, and the fair value model gives a base value of ₩79,901, but these outputs are model-based and not a forecast.

What to watch

• Upcoming H2 2026 or full-year results, to see whether profitability holds and free cash flow turns positive.
• Recent filings cluster in September and October 2026 around major sales or supply contracts, plus amendments and a loan provision decision, so the details of these filings matter for future revenue and debt.
• Leverage (liabilities at about 205% of equity) and the reliance on borrowings in a construction business with thin margins.