Fact Summary
Kumho E&C is a comprehensive construction company operating in building construction (including housing redevelopment/reconstruction), civil works, plant, and environmental segments. In H1 2026 (consolidated), it recorded revenue of KRW 965.0bn, operating profit of KRW 28.6bn (+30.6% YoY), and net income of KRW 24.4bn (+117.9% YoY) (Semiannual Report, receipt no. 20260813000466). The consolidated debt-to-equity ratio has been improving, from 588.7% in 2024 to 405.5% in H1 2026, and the company raised capital by issuing KRW 30.0bn of hybrid capital securities on 2026-06-26 (Material Fact Report, receipt no. 20260626000209). Since the Ministry of Land, Infrastructure and Transport confirmed on 2026-07-29 that the former Gwangju military airport site would be a candidate for the Honam-region semiconductor national industrial complex, a related theme has formed and the stock has hit the daily upper price limit multiple times. The largest shareholder is Kumho Buslines Co., Ltd., holding a 44.13% stake (Business Report, receipt no. 20260318001135).
Price-Change Context Note
The closing price on 2026-08-18 was KRW 13,950, up +4.10% from the previous day, with trading volume surging to 10,887,447 shares, even as the KOSPI fell -1.55% the same day (News1; confirmed not included in EBN's list of top 30 gaining stocks). This relative strength follows two consecutive days at the upper price limit on August 11-12 and the H1 earnings announcement on August 13, but no dedicated news report directly explaining the August 18 surge itself was identified.
Business Overview and H1 2026 Revenue Breakdown by Segment
Kumho E&C is a comprehensive construction company operating in building construction (including housing redevelopment/reconstruction), civil works, plant, and environmental segments. Consolidated cumulative revenue for H1 2026 was KRW 965.0bn (primary source, Semiannual Report receipt no. 20260813000466), with the segment revenue breakdown below (compiled from 1conomynews.co.kr and jasoseol.com, Label C — cross-checking against the original DART filing notes is recommended).
Shares are approximate (C), calculated against H1 2026 revenue of KRW 965.0bn. Growth rates are YoY.
5-Year Financial Trend
Peer Comparison
PER was compared against Kyeryong Construction Industrial, Hanshin Engineering & Construction, and Dongbu Corporation — listed mid-tier general contractors ranked 11th-30th by construction capability evaluation with similar business structures (compiled from media and aggregator sites, Label C — reference dates differ across sources, so the same-reference-date requirement is not met).
The average debt-to-equity ratio of the 8 companies ranked 11th-30th by construction capability evaluation was 273.19% as of Q1 2026, with Kumho E&C reported in the press as being above this level (asiatime.co.kr, 2026-05-28, Label C — estimated on a standalone-financial-statement basis; see the previous section for the primary consolidated figure).
Supply-Demand Position
Investor-type (foreign/institutional/retail) trading flow and securities-lending-related metrics for 2026-08-18 and the preceding 1-4 weeks are unavailable due to data access constraints. Foreign ownership is also marked as unavailable, since the three secondary sources surveyed (WiseReport 0.93%, Daum Finance 2.85%, INDEXerGO 38.81%, each as of a different reference date) diverge too widely to be reconciled into a single figure.
Governance and Capital Structure
Source: Business Report (Dec. 2025, receipt no. 20260318001135, A) · Report on Changes in Major Shareholder's Shareholding (2026-04-17, receipt no. 20260417800288, A)
| Date | Event |
|---|---|
| 2026-03-26 | Board resolves third-party-allotment rights offering (debt-to-equity conversion) and treasury stock disposal |
| 2026-04-17 | Rights offering terms finalized · Report on Changes in Major Shareholding filed · Treasury stock disposal results reported |
| 2026-04-21 | Rights offering payment completed |
| 2026-05-08 | Scheduled listing date for new shares |
| 2026-06-26 | Hybrid capital securities (KRW 30.0bn) issuance resolved |
The 2026 rights offering (KRW 42.35bn) represents the remaining debt-to-equity conversion of confirmed-loss obligations (related to joint and several guarantees) resolved by the creditor financial institutions' council during the 2011-2013 workout, and a rights offering of the same nature (KRW 6.945bn) also took place in 2025 (Material Fact Reports, receipt nos. 20260326001295 and 20250325000658). Approximately 79.64% of the ownership structure of the largest shareholder, Kumho Buslines Co., Ltd. itself, could not be confirmed in the original DART filings and is therefore unavailable.
Macro Environment
| Factor | Current Value (Reference Date) | Transmission Channel |
|---|---|---|
| Bank of Korea base rate | 2.75% (raised 2026-07-16) | Upward pressure on PF funding costs and interest expense |
| Nationwide unsold housing units | 67,464 units (end of June 2026, +3.4% MoM) | Risk of lower pre-sale rates at redevelopment/self-developed sites |
| Real estate PF auction/public-sale processing balance | KRW 10.6tn (end of Sep. 2025) | Potential re-expansion of the burden of fulfilling existing PF guarantees |
| Domestic construction orders (H1 cumulative) | KRW 116.1tn (+25.8% YoY, public-sector +48.3%) | Expanded public-sector orders provide a buffer for the civil works and plant segments |
| 2027 SOC budget | Korea Construction Association proposed KRW 30tn+ (June 2026, not yet finalized) | Positive for the public pipeline if finalized |
Source: Bank of Korea, Ministry of Land, Infrastructure and Transport (Stat Nuri), Korea Construction Association, Asia Economic Daily, etc.; reference date noted for each item (C)
Stock Price Event Timeline
| Date | Event |
|---|---|
| 2026-06-26~06-30 | Honam semiconductor cluster theme forms; stock hits the upper price limit for 4 consecutive trading days |
| 2026-07-01 | Kumho E&C preferred shares designated an investment-warning stock (KRX) |
| 2026-07-08 | Trading halted (1 day); resumed 07-09 |
| 2026-07-29 | Ministry of Land, Infrastructure and Transport confirms Gwangju military airport site as candidate for the Honam-region semiconductor national industrial complex |
| 2026-07-30 | Upper price limit (+30.00%, closing price KRW 9,490) |
| 2026-08-11 | Upper price limit (+29.98%, closing price KRW 11,490) |
| 2026-08-12 | Upper price limit (+29.94%, closing price KRW 14,930) |
| 2026-08-13 | H1 2026 (consolidated) earnings disclosed; operating profit +30.6% YoY |
| 2026-08-18 | Closing price KRW 13,950 (+4.10%), volume 10,887,447 shares — relative strength as KOSPI fell -1.55%; no directly triggering news identified |
Risk Factors
- Financial Structure The consolidated debt-to-equity ratio surged to 588.7% in 2024 before improving to 520.2% in 2025 and 405.5% in H1 2026, but remains elevated (calculated from primary financial data).
- PF Contingent Liabilities The remaining debt-to-equity conversion of confirmed-loss obligations from the 2011-2013 workout is being executed continuously through 2025-2026, and some view H2 2026 as the peak period for industry-wide PF maturity burden (compiled from macro research, C).
- Credit Rating Per the Business Report (Dec. 2025), the last confirmed rating was BBB-/Negative from Korea Ratings (2024-05-09); however, conflicting reports also indicate that as of 2026 the company has not applied for a credit rating and currently holds none, so the current status is unavailable.
- Public-Sector-Focused Strategy Of the 9 complexes (4,152 units) scheduled for 2026, 5 complexes (about 55%) are price-cap-regulated public housing with private-sector participation, which carries relatively lower unsold-unit risk than private pre-sales (secondary source, C).
- Hybrid Capital Securities Terms The KRW 30.0bn of hybrid capital securities issued on 2026-06-26 carry a fixed 7.0% coupon until 2028-06-29, after which a step-up clause applies at each reset date — a structure that could increase long-term interest expense if not called early.
Valuation (Factual Multiples)
Note: The market capitalization, PER, and PBR above use a price reference date (2026-08-20) that differs from the financial reference date (2025-12-31 or 2026-06-30). On the analysis reference date (2026-08-18), the closing price was KRW 13,950.
Theme Relevance
Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data source: Korea Exchange · DART