Kye-Ryong Construction Industrial계룡건설

Kye-Ryong Construction shows a sharp share price rebound and a profitable first half of 2026, but its balance sheet is heavily leveraged and free cash flow is negative.

Kye-Ryong Construction Industrial is a Korean construction group with civil engineering, property sales, distribution and leisure operations. On trailing twelve-month figures to H1 2026 it reported revenue of ₩3.0T, operating income of ₩197B and net income of ₩125B, but revenue has fallen from its 2024 peak and the shares have risen about 50% over the past year to ₩26,600. Recent filings are dominated by new sales or supply contracts and a share cancellation decision.

What stands out

• Trailing operating margin is 6.6% and net margin 4.2%, up from 3.1% and 5.8% in 2024 and 2025 respectively for operating margin, with 2025 revenue down 8.9% year on year.
• Liabilities are 232.5% of equity and borrowings are ₩1.19T against cash of ₩530B, so leverage is high.
• Trailing free cash flow is negative at about -₩20B.
• The price is ₩26,600, within a 52-week range of ₩16,300 to ₩33,300, and it is up 41% over three months.
• Filings in September and October 2026 include several major sales or supply contracts, an acquisition of shares in another company, and a share cancellation decision.
• The DCF fair value model gives a base of ₩296,466 with bear and bull cases of ₩74,535 and ₩838,641, a very wide range that the data does not explain further.

What to watch

• Whether the new contracts and the November launch of 'Elif Siheung The Prime' (304 units) feed through to revenue and margins in the next full-year results.
• Progress on the cash position, borrowings and negative free cash flow, which the data shows as the main balance sheet pressure.
• Details of the share acquisition and share cancellation filings, which are not explained in the data provided.