Fact Summary
HC Bogwang Industry is an aggregate, asphalt concrete (ascon), and ready-mixed concrete producer based in the Daegu-Gyeongbuk region. Per its FY2025 business report, consolidated revenue was KRW 38.49bn, down 39.7% from the prior year (KRW 63.88bn), with an operating loss of KRW 4.87bn and a net loss of KRW 2.49bn — the company's first loss since 2021 (DART filing no. 20260323001053). Its H1 2026 semi-annual report (filing no. 20260814001954) showed cumulative revenue of KRW 22.83bn, operating profit of KRW 0.87bn, and net profit of KRW 1.27bn, returning to profitability. The combined stake of the largest shareholder HC Homecenta and its affiliated-persons group was 68.66% as of 2025-12-08 (DART filing no. 20251208000103).
Change Context Note
The sharp decline in 2025 results coincided with a downturn in the Daegu-Gyeongbuk regional housing construction market, which the company cited as the reason for the revenue decline in its 2026-02-26 disclosure. In June 2026, Daegu construction orders fell -92.6% year-on-year, while July rose +52.6%, driven mainly by private building construction, showing significant month-to-month volatility (Daegu Ilbo report). The 5th convertible bond (KRW 7bn, conversion price KRW 2,945), issued on 2026-02-26, was intended to fund the early redemption request on the existing 4th convertible bond (KRW 18.9bn); the 2026-08-18 closing price (KRW 2,110) is below both the 5th convertible bond's conversion price and its minimum refixing floor (KRW 2,356).
Valuation (Factual Multiples)
EV/EBITDA was not calculated due to unavailable figures for cash equivalents, net debt, and depreciation. The reference PER based on FY2024 results is approximately 14.6x, but given the large divergence from 2025 earnings, this figure should be interpreted with caution (per valuation research data).
5-Year Financial Trend
| Period | Operating Margin | Net Margin |
|---|---|---|
| 2021 | 18.38% | 13.62% |
| 2022 | 17.57% | 13.81% |
| 2023 | 22.13% | 19.50% |
| 2024 | 13.87% | 8.20% |
| 2025 | -12.66% | -6.47% |
| H1 2026 (cumulative) | 3.83% | 5.56% |
Business Overview
All three business divisions (aggregate, ascon, ready-mixed concrete) form a vertically integrated structure supplying a market within a 30km radius of Daegu-Gyeongbuk (company's official website). Detailed revenue-mix figures by business segment are unavailable (require direct review of the segment notes in the original semi-annual report).
Governance and Capital Structure
| Date | Event |
|---|---|
| 2026-02-13 | Decision to issue 5th convertible bond, KRW 7bn (conversion price KRW 2,945) |
| 2026-02-26 | Disclosure of change in revenue/earnings structure (2025 revenue KRW 38.49bn, -39.7% YoY) |
| 2026-03-23 | Filed business report (FY2025), filing no. 20260323001053 |
| 2026-06-02 | Filed report on largest shareholder's special-related-party share ownership status (reason: share acquisition, extension/repayment of stock-secured loan) |
| 2026-06-26 | Received disclosure of convertible bond conversion price adjustment |
| 2026-08-14 | Filed semi-annual report, filing no. 20260814001954 |
HC Homecenta (KOSDAQ 060560, holding company) is the largest shareholder of HC Bogwang Industry (40.74%, unchanged since 2023-02-21), and the affiliated-persons group's combined stake was 68.66% as of 2025-12-08. 8.8 million shares of HC Homecenta's holdings are pledged as collateral to banks, with an outstanding loan balance of approximately KRW 14.9bn (as of 2025-12-08, per Digital Today report). Sources conflict on the CEO — WiseReport's ownership data shows Park Byung-yoon (as of appointment on 2017-08-10), while a separate web search shows Kim Yoon-su (as of 2026-01-01); cross-checking against the original source is needed (unavailable).
Competitive Landscape
| Item | HC Bogwang Industry (225530) | Eugene Corporation (023410) |
|---|---|---|
| Market Cap | KRW 76.67bn (2026-08-18, A) | Approx. KRW 255.1–260.2bn (secondary-source variance, reference date unclear) |
| PBR | 0.83–0.84x (H1 2026 basis, A) | Approx. 0.24–0.4x (secondary-source variance) |
| 2025 Revenue | KRW 38.49bn (A) | Unavailable |
| Business Scope | Specialized within a 30km radius of Daegu-Gyeongbuk | Nationwide; owns large-scale quarries (Paju, Gongju) |
Korea has approximately 1,000 ready-mixed concrete producers; aside from the four major players — Eugene, Sampyo, Aju, and Jeongsun — most are regionally based small and mid-sized companies (web research summary; original source unclear). No listed small-cap competitor of similar scale to HC Bogwang Industry was identified (unavailable). Eugene Corporation's PBR of 0.24–0.4x suggests the industry trades at low PBR levels, but given the significant variance across sources, this should be treated as directional reference only.
Macro Environment
As a domestic construction-materials supplier operating within a 30km radius of Daegu, HC Bogwang Industry shows no confirmed direct transmission channel for common macro variables such as the U.S. Federal Reserve or the dollar index. The variables acting directly on revenue are regional construction orders (highly volatile) and the Bank of Korea base rate (affecting clients' financing costs), while international oil prices have a secondary effect via ascon raw-material costs (compiled from Daegu Ilbo, The Fact, Financial News, and other sources).
Supply and Demand
Net trading by investor type (foreign, institutional, individual), foreign ownership ratio, and short-selling balance are mostly unavailable due to pykrx not being installed and access restrictions on items requiring KRX login. Over 2026-08-04 to 2026-08-18, the short-selling ratio fluctuated between 0.04% and 10.22% (secondary source: thinkpool, not cross-checked against official KRX data), and the 2026-08-18 trading volume of 37,073 shares was about 1.9x the 10-trading-day average for that window (approximately 19,693 shares), the highest in that window.
Notable Business and Financial Facts
- Operations are concentrated within a 30km radius of Daegu-Gyeongbuk, making revenue directly dependent on a single variable — the regional construction market (Daegu construction orders were -92.6% YoY in June 2026 and +52.6% in July 2026, showing extreme month-to-month volatility).
- The debt-to-equity ratio rose from 64.15% in 2022 to 95.34% in H1 2026, and total equity has declined for two consecutive years since peaking at KRW 99.73bn in 2024.
- Following the 4th convertible bond investor's exercise of the early redemption request (KRW 7.4bn) in January 2026, a funding structure emerged to repay it via the 5th convertible bond (KRW 7bn), as disclosed on 2026-02-26.
- 8.8 million shares held by largest shareholder HC Homecenta are pledged as collateral to banks (outstanding loan balance approximately KRW 14.9bn, as of 2025-12-08).
- The current operating period for the core Gunwi quarry asset is set to expire in 2028, with an extension application filed through 2059; as of March 2025, roughly 100 local residents had staged protests against it (2026 status unavailable).
- Civil engineering orders (a source of ascon demand) were down -80.5% YoY as of July 2026, remaining weak in contrast to the rebound in private building construction.
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR