KOSDAQ · 091590 · Construction · ₩091590

Nam Hwa Construction남화토건

091590 · KOSDAQ · ₩091590 · 남화토건

₩4,470▼ ₩100 (2.19%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩2,790

vs the current price (₩4,470)

Enterprise value: ₩24B
Equity value: ₩33B
WACC: 7.9%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 38% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩4,470, the model needs an operating margin of 5.3% every year (it uses 2.9%).
Or revenue growth +13.6 points a year higher than assumed in each of the 5 years.
Margins ranged from −6.1% to 8.1% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
74% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 4.8× against a typical 6.4× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩1,215; −72.8%
Base: ₩2,790; −37.6%
Bull: ₩5,525; +23.6%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (2.9%).

Revenue growth

Revenue growth, year 1-7.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-2.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.9%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation0%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
Capital spending0%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital-0.7%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.7
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.56, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.51%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩80B
Net debt (borrowings and leases − cash and deposits): −₩8.7B
Shares: 11,740,000
Share price: ₩4,470
Market cap: ₩52B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩72B	₩57B	₩73B	₩74B	₩71B	₩69B	₩70B	₩72B
Growth	−20.9%	−21.1%	28.3%	−7.1%	−4.6%	−2.1%	0.5%	3.0%
EBIT	−₩4.4B	−₩2B	₩3.8B	₩2.1B	₩2B	₩2B	₩2B	₩2.1B
EBIT margin	−6.1%	−3.5%	5.2%	2.9%	2.9%	2.9%	2.9%	2.9%
After-tax EBIT	−₩3.2B	−₩1.5B	₩2.7B	₩1.6B	₩1.5B	₩1.5B	₩1.5B	₩1.5B
+ Depreciation	—	—	—	₩0	₩0	₩0	₩0	₩0
− Capital spending	—	—	₩22,000	₩0	₩0	₩0	₩0	₩0
− Working capital	−₩38B	−₩16B	₩1.1B	₩40M	₩24M	₩10M	−₩2.4M	−₩15M
Free cash flow	—	—	—	₩1.5B	₩1.5B	₩1.4B	₩1.5B	₩1.5B
Discount factor	—	—	—	0.927	0.860	0.797	0.739	0.685
Present value	—	—	—	₩1.4B	₩1.3B	₩1.2B	₩1.1B	₩1B

Terminal value ₩26B, worth ₩18B today: 75% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩14,616 a share)Now 0.31×	₩4,0660.28×	₩5,7680.39×	₩10,5580.72×
Price / earnings (last 12 months: ₩937 a share)Now 4.77×	₩2,8083.00×	₩5,9776.38×	₩14,90315.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩210 a share)Now 21.3×	₩6303.00×	₩1,3416.38×	₩3,34315.9×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
6.9%	₩2,856	₩3,016	₩3,209	₩3,446	₩3,745
7.4%	₩2,690	₩2,822	₩2,980	₩3,169	₩3,403
7.9%	₩2,548	₩2,659	₩2,790	₩2,944	₩3,131
8.4%	₩2,426	₩2,520	₩2,630	₩2,758	₩2,910
8.9%	₩2,319	₩2,400	₩2,493	₩2,600	₩2,727

Now (TTM)

Market cap: ₩52B
Enterprise value: ₩44B
P/E: 4.8×
P/B: 0.3×
P/S: 0.7×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩4,045	₩3,915	₩6,770	₩10,550	₩8,700
Market cap	₩47B	₩46B	₩79B	₩124B	₩102B
P/E	4.3×	6.2×	—	6.1×	8.1×
P/B	0.3×	0.3×	0.5×	0.7×	0.7×
P/S	0.7×	0.8×	1.1×	1.4×	0.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Nam Hwa Construction	4.8×	0.3×	0.7×	—	0.0%
Hyundai Engineering & Construction	20.8×	1.0×	0.3×	—	1.0%
Daewoo Engineering & Construction	—	1.2×	0.6×	—	0.0%
GS Engineering & Construction	17.1×	0.5×	0.2×	—	1.9%
DL E&C	3.4×	0.4×	0.3×	—	1.6%
KEPCO Plant Service & Engineering	14.3×	1.4×	1.1×	8.0×	0.0%
Ipark Hyundai Development	8.6×	0.5×	0.4×	—	2.9%
Similar companies (median)	14.3×	0.7×	0.4×	8.0×	1.3%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Nam Hwa Construction / 남화토건 / 091590 / KRX:091590

Source: KRX statistical information