Daewon대원

Daewon's revenue has shrunk sharply and it has swung to losses, though its share price and book value are both very low.

Daewon, a Korean construction and textile company, reported trailing twelve-month revenue of ₩107B and an operating loss of ₩9.3B for the period to H1 2026, after a much larger loss of ₩13.8B in 2025. Borrowings of ₩150B exceed its ₩78B of cash, and free cash flow over the period was negative at about ₩-78B. The stock is down 30% over one year and trades at a price-to-book ratio of 0.1.

What stands out

• Revenue fell 59.5% in 2025 to ₩112B, following a 36.4% drop in 2024, so the top line has contracted for two years running.
• Operating margin was -8.7% on a trailing basis, and net income was negative at about ₩-1.9B, with ROE at -0.7%.
• Liabilities are 90.5% of equity, and the data shows borrowings of ₩150B against cash of ₩78B.
• The data shows a dividend yield of 6.4%, but the filings provided do not explain how it is funded given the losses.
• In October 2026 the company filed a merger decision and a corporate value-up plan, and news reports say Finda is acquiring Daewon Savings Bank, though the data does not explain how these items relate to the core construction business.
• Foreign ownership fell slightly to 0.6% from 0.7% over 60 days, and 20-day flows show foreign investors net sellers.

What to watch

• The terms, timing and approval of the merger decision and the amended attachment, which the data does not detail.
• The next quarterly or half-year filings, to see whether revenue and operating losses keep narrowing or widening.
• Whether the company can keep servicing ₩150B of borrowings given negative free cash flow and the dividend's sustainability.