SGC E&CSGC E&C

SGC E&C is loss-making on a trailing basis, carries heavy debt, and its shares have fallen sharply over the past year.

SGC E&C is a Korean construction firm doing plant EPC work, civil engineering and housing, with a logistics arm. On trailing twelve months to H1 2026 it booked revenue of about ₩1.27T and an operating profit of about ₩58B, but a net loss of about ₩46B, with borrowings of ₩643B against cash of ₩32B. The shares closed at ₩10,900 on 2026-10-23, down 18.8% over one year, and market cap is about ₩54.9B.

What stands out

• Revenue fell 35.3% in 2024 but rose 11.3% in 2025 to about ₩1.34T, while net income was a loss of ₩64B in 2025 after a profit in 2022.
• Operating margin is thin at 4.6% trailing, yet net margin is -3.6% and ROE is -13.3%, so financing and other costs are absorbing the operating profit.
• Liabilities are 321% of equity and free cash flow is negative at about -₩42B on a trailing basis.
• Valuation shows P/B of 0.2 and EV/EBITDA of 8.7, with no P/E because earnings are negative and no dividend yield.
• Recent filings include preliminary consolidated earnings on 2026-10-22, a business suspension report amended in July, debt guarantees for third parties in August, and an amended major contract in October.
• Foreign ownership is small at 1.7% and short balance is 0%; recent 20-day flows were net foreign selling of about ₩69M.

What to watch

• The full-year preliminary results released on 2026-10-22 and the related detail in the coming audited filings.
• Progress on the business suspension matter and the third-party debt guarantees, which bear on the company's leverage.
• The company's ability to generate positive free cash flow against its ₩643B of borrowings; no news headlines were in the data to add further context.