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Factual Summary
H1 2026 (cumulative, consolidated) revenue disclosed on 2026-08-14 was KRW 511.3 billion (YoY -15.4%), operating profit was KRW 39.8 billion (+16.6%), and net income was KRW 31.2 billion (approx. 4.1x the KRW 7.6 billion recorded in the same period last year). The operating margin rose 2.14%p to 7.79% from 5.65% in the same period last year. The company attributed the revenue decline to lower pre-sale income following the completion of own-account projects, and the profit increase to expanded construction-segment revenue and an improved cost-of-sales ratio (1.79%p) (Korea Specialty Construction News, 2026-08-18). Over the same period, new pre-sales proceeded, including Hanshin The Hue Megacentum in Changwon (2,016 units, pre-sale launched 2026-07-24) and Hanshin The Hue Uiwang Station (297 units, resident recruitment notice 2026-08-13), and Korea Ratings Corporation maintained the BBB unsecured bond credit rating on 2026-06-19 while raising the outlook from Stable to Positive.
Context Note on Change
The sharp rise in H1 2026 net income reflects a base effect from the low H1 2025 figure (KRW 7.6 billion). On a five-year annual basis as well, the operating margin has trended upward, from a low of 1.13% in 2023 to 5.61% in 2025 and 7.79% in H1 2026, while the debt-to-equity ratio has fallen for three consecutive years, from 227.91% in 2023 to 162.76% in H1 2026.
Business Overview
Founded on February 24, 1967, Hanshin Engineering & Construction is a general construction company organized into Building (housing, mixed-use, urban redevelopment), Civil Works (roads, railways, water/sewage, land development), Plant, and New Business (urban living housing, senior care, mixed-use development, smart cities, parking, overseas SOC) segments.
5-Year Financial Trend
H1 2026 Results and Financial Stability
Peer Comparison — Mid-tier Construction Companies
| Company | 2025 Revenue | 2025 Operating Profit | 2025 Net Income | PER | PBR |
|---|---|---|---|---|---|
| Hanshin E&C | KRW 1,149.2bn | KRW 64.5bn | KRW 57.9bn | 2.21x | 0.147x |
| Kyeryong Construction | Not available | Not available | Not available | 1.8x | 0.2x |
| Kumho E&C | KRW 2,017.3bn | KRW 45.9bn | KRW 61.8bn | 5.01x | 1.29x |
| IS Dongseo | KRW 1,234.4bn | KRW 68.1bn | Not available | 3.61x | 0.38x |
By PBR, Hanshin E&C (0.147x) and Kyeryong Construction (0.2x) sit at a lower range than IS Dongseo (0.38x) and Kumho E&C (1.29x) (as of August 2026; peer data from secondary web aggregation).
Valuation Metrics
Trading Flow by Investor Type
Governance and Capital Structure
The largest shareholder of Koam C&C Development Co., Ltd. is Chairman Choi Yong-sun, as stated in DART's executive disclosures; since Koam C&C Development itself does not file periodic reports, Choi's exact stake is not available. The largest shareholder's stake has not changed since 2025-12-31.
| Filing Date | Ownership Ratio | Reporting Reason |
|---|---|---|
| 2026-02-19 | 5.65% | New report of 5%+ ownership |
| 2026-04-09 | 8.31% | Change report of 1%+ stake |
| 2026-06-10 | 10.27% | Change report of 1%+ stake |
| 2026-08-10 | 12.36% | Change report of 1%+ stake |
| Name | Position | Registration Type | Relationship to Largest Shareholder |
|---|---|---|---|
| Choi Mun-gyu | Vice Chairman (CEO) | Inside Director | Related party of largest shareholder |
| Jeon Jae-sik | President (CEO) | Inside Director | - |
| Kim Kyung-soo | Executive Director | Inside Director | - |
| Baek Mun-il | Independent Director | Independent Director | - |
| Park Jong-o | Independent Director | Independent Director | - |
| Lee Kang-mo | Auditor | Auditor | - |
Macro and Industry Environment
| Factor | Current Value (Base Date) | Impact Direction |
|---|---|---|
| Bank of Korea Base Rate | 2.75% (raised 2026-07-16) | Negative |
| Top-5 Bank Mortgage Add-on Rate | 3.27% (June 2026, up from 3.05% in January) | Negative |
| Nationwide Unsold Housing Units | 67,464 units (end of June 2026, +3.4% MoM) | Negative |
| Real Estate PF Exposure (All Financial Sectors) | KRW 177.9 trillion (end of Sept 2025, -KRW 8.7tn QoQ) | Positive |
| August 13 Real Estate & Housing Supply Measures | Expanded household loan quota, KRW 48tn PF support (announced 2026-08-13) | Positive |
| Rebar Distribution Price | Domestic KRW 860,000-870,000/ton (early July 2026) | Negative |
Risk Factors
Seven subsidiaries are in full capital impairment (combined approx. KRW 95.9 billion, per media report dated 2025-09-02, equal to 12.2% of consolidated total equity), and as of Q1 2026, capital impairment continued to be confirmed at YJD2 (total equity -KRW 16.4bn) and Nogok PFV (total equity -KRW 27.9bn).
Provision for litigation losses increased 81.5% from KRW 3.9 billion in the prior period to KRW 7.1 billion, and net borrowings rose by KRW 39.2 billion, from KRW 521.3 billion to KRW 560.5 billion (per report dated 2026-06-10).
Korea Ratings Corporation maintained the BBB unsecured bond credit rating on 2026-06-19 while raising the outlook from Stable to Positive.
A two-month business suspension order related to a 2019 fatal accident at a Gijang-gun, Busan site took effect following confirmation on appeal on 2025-12-17, and the suspension period ended before the base date. Zero serious accidents were reported from 2021 through April 2026.
Recent Pre-sales and Order Awards
| Date | Details |
|---|---|
| 2026-02-03 | Signed construction contract for Hoewon District 2 Housing Redevelopment Project (Changwon), contract value KRW 603.92 billion |
| 2026-04-28 | Signed contract for Gwangju Sangmu District–Cheomdan Industrial Complex road construction, Section 1, KRW 32.38 billion |
| 2026-05-19 | Groundbreaking ceremony for Hanshin The Hue Megacentum, Changwon |
| 2026-07-24 | Model house opening and pre-sale launch for Hanshin The Hue Megacentum, Changwon (2,016 units) |
| 2026-07-29 | First-priority subscription for Hanshin The Hue Megacentum, Changwon averaged 7.66:1 (676 units offered, 5,178 applications received) |
| 2026-08-13 | Resident recruitment notice for Hanshin The Hue Uiwang Station (297 units) |
| 2026-08-14 | Model house opening for Hanshin The Hue Uiwang Station · Disclosure of H1 2026 semi-annual report |
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Fact Highlights
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