Factual Summary
HS Hwasung (formerly Hwasung Industrial Co., renamed in March 2024) is a Daegu-based general construction company that posted FY2025 consolidated revenue of KRW 659.48bn (+7.6% YoY), operating profit of KRW 43.25bn (+82.2%), and net income of KRW 30.91bn (+129.5%) (DART Annual Report, Receipt No. 20260319000781). However, cumulative H1 2026 (consolidated) results swung to a loss, with revenue of KRW 150.55bn (-43.7% YoY) and an operating loss of KRW 5.25bn (DART Semi-Annual Report, Receipt No. 20260814003892). Total shares outstanding are 10,150,000 (as of 2026-06-30), and the largest shareholder, Chairman Lee Jong-won, together with 24 related persons and 3 affiliated entities, holds a combined 41.93% (4,256,279 shares) (DART, as of 2026-06-30). Its Construction Capability Evaluation ranks 47th-48th nationwide, and No. 1 in Daegu Metropolitan City for 22 consecutive years (Ministry of Land, Infrastructure and Transport, as of 2026).
Change Context Note
The H1 2026 earnings announcement (disclosed 2026-08-14, revised 08-17), reporting an operating loss of KRW 5.25bn (a swing to loss), came close in time to the share price movement over the reference closing price window, but no report has been confirmed that states this as a direct causal link (Maeil Shinmun, 2026-08-14). Over the same period, the Bank of Korea's base rate was raised from 2.50% to 2.75% on 2026-07-16, its first rate hike in three years and six months (KAFI), and nationwide private-sector building construction orders contracted -33% to -41% YoY in H1 2026 (Bloter).
Business Overview
HS Hwasung operates in the general construction industry (building, civil engineering, landscaping, and industrial/environmental facility construction, plus in-house housing development), with its in-house housing brand Park Dream. Revenue composition (WiseReport basis, as-of date not available) is as follows.
As-of date not available (WiseReport, C) · No. 1 in Daegu for 22 consecutive years in Construction Capability Evaluation, 47th-48th nationwide (Ministry of Land, Infrastructure and Transport, as of 2026)
5-Year Financial Trend
| Period | Revenue (KRW bn) | Operating Profit (KRW bn) | Net Income (KRW bn) | Debt-to-Equity Ratio |
|---|---|---|---|---|
| 2021 | 422.23 | 28.63 | 29.68 | 93.8% |
| 2022 | 645.71 | 14.55 | 22.67 | 109.0% |
| 2023 | 908.07 | 25.25 | 19.21 | 168.4% (highest) |
| 2024 | 612.78 | 23.73 | 13.47 | 117.6% |
| 2025 | 659.48 | 43.25 (+82.2%) | 30.91 (+129.5%) | 69.5% (lowest) |
| 2026 H1 (cumulative) | 150.55 (-43.7%) | -5.25 (swing to loss) | 5.60 | 71.0% |
Source: DART Annual Reports and Semi-Annual Report (consolidated, A). Receipt Nos. for 2021-2025 in order: 20220331003395, 20230316001392, 20240314001502, 20250320001481, 20260319000781; 2026 H1: 20260814003892.
Peer Comparison
The comparison peer is Seohan (011370, Daegu), a similarly-sized regional mid-tier general contractor. Financial metrics were available for Kyeryong Construction Industrial (013580, Daejeon), but its 2026 Construction Capability Evaluation ranking and assessed value were not available.
As of H1 2026 (per semi-annual reports), order backlog stood at KRW 2,562.29bn for HS Hwasung and KRW 1,651.98bn for Seohan, with HS Hwasung's backlog about 1.55x larger (Maeil Shinmun, 2026-08-14). However, over the same period, HS Hwasung swung to an operating loss (KRW -5.25bn) while Seohan maintained an operating margin of 11.3%.
Valuation (Factual Multiples)
PER and PBR are calculated in the main session based on confirmed market cap and financial data (A). For reference, a secondary aggregator site (WiseReport) shows PER 4.04x and PBR 0.24x (as-of date unknown, C); EV/EBITDA could not be calculated due to unavailable depreciation and net debt data.
Governance & Capital Structure
As of 2026-06-30 (largest shareholder etc.) · 2026-08-18 (foreign ownership, free float; WiseReport) · Source: DART hyslrSttus.json, comp.wisereport.co.kr
| Category | Details |
|---|---|
| Board Composition | 3 inside directors (Chairman Lee Jong-won, President Lim Ki-young, Managing Director Kim Hyun-o) + 3 outside directors (Kwon Up, Son Won-jo, Nam Taek-jin, all concurrently serving on the Audit Committee) |
| Discrepancy in 5%-or-more related-party shareholder group disclosures | Substantial-shareholding disclosure shows the Lee In-jung-related group at 25.73% (2025-08-13) vs. 7.91% in the Annual Report's related-party tally — the scope of related parties differs between the two disclosures (both figures reproduced as reported) |
| Subsidiaries | Pyeongtaek Seokjeong Hwasung Park Dream (85.00%), HSHWASUNG GLOBAL PTE. LTD. (100.00%) — neither entity has a registered DART corp_code, so sub-subsidiary details are not available |
Supply & Demand Trends
The figures below are estimates from a secondary source (alphasquare) that could not be cross-checked against official KRX data (confirmed figures could not be verified as pykrx was not operational).
Over the most recent week (2026-08-11 to 08-18), foreign investors posted five consecutive trading days of net outflows (-15,464 shares), accounting for most of the one-month net outflow, while institutions offset this with net inflows (+7,959 shares) over the same period (alphasquare, C). Short-selling balance is shown as 0 shares (0.00%) as of the query time, but the exact as-of date label is not available, and margin trading balance data is not available.
Macro Environment
HS Hwasung is a domestically focused general contractor based in Daegu/North Gyeongsang, so the macro factors with direct impact on its earnings are the Bank of Korea's base rate and domestic construction/real estate indicators, rather than the U.S. Federal Reserve's rate or tariffs.
As of 2026-08-18 (base rate reflects the 2026-07-16 decision; next meeting scheduled 2026-08-27) · Source: Bank of Korea/KAFI, Bloter, MOLIT Statistics System
Key Factual Observations
Q1 2026 consolidated revenue was KRW 68.95bn (-54.36% YoY) and operating profit was KRW 0.19bn (-98.2%), and cumulative H1 results were revenue of KRW 150.55bn (-43.7%) with an operating loss of KRW 5.25bn (swing to loss) (DART Receipt No. 20260814003892; Maeil Shinmun, 2026-05-18 and 08-14). Defects including exposed rebar were reported at the Dongdaegu Station Centum Hwasung Park Dream complex, which began move-ins in April 2025 (MD Today, 2025-11-18). Meanwhile, the debt-to-equity ratio improved from a peak of 168.4% in 2023 to a 5-year low of 69.5% in 2025, and remained stable at 71.0% in H1 2026. The scale of PF contingent liabilities and in-house project borrowings, the site-specific detailed causes of the H1 2026 swing to loss, and any litigation/dispute disclosures were not confirmed in this research and remain not available.
Recent Key Disclosures & News
| Date | Details |
|---|---|
| 2026-03-27 | 68th Annual General Shareholders' Meeting · FY2025 results (revenue +7.6%, operating profit +82.2%) · Resolved cash dividend of KRW 750 per share |
| 2026-05-18 | Q1 2026 earnings disclosure (revenue -54.4% YoY, operating profit -98.2% YoY) |
| 2026-07-14 | Disclosure of joint contract award for Jeju Seogwipo Port redevelopment (HS Hwasung stake 50%, approx. KRW 13.9bn) |
| 2026-07-15 | Disclosure of contract amount change for Daegu Metro Line 4 Section 2 (KRW 42.72bn) |
| 2026-08-14 | H1 2026 earnings disclosure (revenue -43.7% YoY, swung to an operating loss of KRW 5.25bn) |
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: KRX · NASDAQ · DART · SEC EDGAR