Dongwon Development동원개발

Dongwon Development's revenue and profits have fallen sharply from 2021-2023 peaks, though it trades at a low P/E and P/B with a high dividend yield in the data.

Dongwon Development is a Korean construction company focused on housing, civil engineering and urban redevelopment, mainly in Busan, Gyeongnam and the Seoul area. Trailing twelve-month revenue to H1 2026 is about ₩335B, with operating margin of 4.7% and free cash flow of about -₩51B. The share price is ₩2,020, down 24.1% over one year, and sits well below its 52-week high of ₩3,630.

What stands out

• Revenue fell 25.6% in 2025 to ₩387B, after peaking at ₩737B in 2023, and trailing figures to H1 2026 are lower again at ₩335B.
• Operating margin has compressed from 23.3% in 2021 to 4.4% in 2025 and 4.7% on a trailing basis, so profitability is thin.
• Net income is well above operating income on a trailing basis (₩26B vs ₩16B), which the data does not explain; it may reflect non-operating items.
• Borrowings of ₩228B exceed cash of ₩87B, and liabilities are 37.1% of equity; free cash flow is negative at -₩51B.
• Valuation metrics are low (P/E 7.1, P/B 0.2, dividend yield 4.5%), while the DCF base fair value of ₩1,940 is close to the current price; the bear and bull values range widely from ₩422 to ₩5,028.
• Recent filings include several debt guarantee decisions for another party and multiple major sales or supply contracts; the data does not explain their size or terms.

What to watch

• Next quarterly and annual results, to see whether revenue stabilises and margins hold near current levels.
• Further filings on debt guarantees for other parties, which could add contingent obligations given the existing borrowings.
• Foreign ownership has slipped from 3.2% to 2.5% over 60 days; the data includes no news explaining this and no analyst coverage.