Dongbu Corporation (005960) AI Stock Analysis

Dongbu Corporation

(Korea Exchange:005960)

Select Model

Rating:64Neutral

Price Target:KRW 8,517.00▲(16.19% Upside)

Action:initiatedcoverage

Date:10/28/26

The score is supported primarily by very strong valuation (low P/E and solid dividend yield). Offsetting that, financial quality is constrained by negative TTM operating and free cash flow despite the recent profitability rebound, and technicals are broadly neutral with only mild positive momentum.

Positive Factors

Revenue and Profitability ReboundThe return to positive earnings alongside roughly 10.3% TTM revenue growth indicates improved operating performance and renewed demand for the company’s project-based services. If this recovery persists, it can strengthen internal funding capacity and support more consistent profitability over the next several quarters.

Negative Factors

Negative Operating and Free Cash FlowPersistent negative operating and free cash flow weakens the quality of the earnings rebound and may require greater reliance on financing or project-related cash inflows. If outflows continue, liquidity flexibility could narrow and the company may have less capacity to fund projects or absorb execution delays.

Dongbu Corporation (005960) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 170.47B
Dividend Yield: 4.09%
Average Volume (3M): 56.97K
Price to Earnings (P/E): 2.2
Beta (1Y): 0.54
Revenue Growth: 18.53%
EPS Growth: ―
Country: KR
Employees: 778
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Dongbu Corporation Business Overview & Revenue Model

Company Description

Headquartered in Seoul, South Korea, Dongbu Corporation is a prominent construction and engineering company established in 1969. The firm, known as Miryung Engineering & Construction Co. Ltd until its rebranding in March 1989, engages in a wide spect...

Dongbu Corporation Financial Statement Overview

Summary

Earnings have rebounded with TTM revenue up ~10.3% and profitability back to positive (net margin ~4.1%, EBIT margin ~3.0%), and ROE recovered to ~14.1%. However, results have been volatile across years and, most importantly, cash generation is currently weak with negative TTM operating cash flow and free cash flow, which is a key risk for a project-driven contractor.

Income Statement

63Positive

Balance Sheet

60Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.96T	1.76T	1.69T	1.90T	1.46T	1.14T
Gross Profit	186.62B	177.85B	37.86B	131.73B	137.52B	140.09B
EBITDA	73.14B	37.34B	-83.01B	19.25B	58.54B	82.83B
Net Income	80.29B	52.23B	-106.49B	-4.41B	40.13B	117.10B
Balance Sheet
Total Assets	1.78T	1.69T	1.65T	1.81T	1.58T	1.26T
Cash, Cash Equivalents and Short-Term Investments	118.63B	112.23B	148.37B	169.68B	94.25B	167.87B
Total Debt	538.73B	442.84B	456.84B	563.73B	521.41B	299.22B
Total Liabilities	1.19T	1.14T	1.20T	1.23T	998.11B	702.35B
Stockholders Equity	593.13B	561.19B	455.41B	582.39B	584.97B	559.95B
Cash Flow
Free Cash Flow	-62.94B	-34.58B	166.11B	72.08B	-213.27B	-56.08B
Operating Cash Flow	-59.73B	-32.94B	171.02B	78.80B	-208.17B	-51.51B
Investing Cash Flow	-4.35B	57.27B	-52.75B	-3.85B	-9.62B	-50.35B
Financing Cash Flow	94.90B	-47.01B	-153.97B	2.76B	173.45B	129.40B

Dongbu Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price7330.00

Price Trends

50DMA7932.60Negative

100DMA7398.10Negative

200DMA7600.70Negative

Market Momentum

MACD-194.59Positive

RSI40.63Neutral

STOCH30.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:005960, the sentiment is Negative. The current price of 7330.00 is below the 20-day moving average (MA) of 7711.50, below the 50-day MA of 7932.60, and below the 200-day MA of 7600.70, indicating a bearish trend. The MACD of -194.59 indicates Positive momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 30.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:005960.

Dongbu Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:005960 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:013580	69Neutral	KRW 217.59B	1.78	―	2.89%	2.52%	117.42%
KR:003480	67Neutral	KRW 110.10B	1.67	―	2.79%	-2.74%	4.65%
KR:005960	64Neutral	KRW 173.47B	2.17	―	4.09%	18.53%	―
KR:053690	60Neutral	KRW 172.61B	12.50	―	2.33%	-0.39%	-40.23%
KR:004960	59Neutral	KRW 119.29B	1.43	―	1.44%	-27.47%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:002150	55Neutral	KRW 179.46B	19.63	―	5.67%	10.68%	―

* General Sector Average

Performance Comparison

KR:005960 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:005960	Dongbu Corporation	7330.00	1760.70	31.61%
KR:002150	Dohwa Engineering Co., Ltd.	5290.00	-489.41	-8.47%
KR:003480	Hanjin Heavy Industries & Construction Holdings Co., Ltd.	4305.00	-355.75	-7.63%
KR:004960	Hanshin Construction Co., Ltd.	10440.00	2686.69	34.65%
KR:013580	Kye-Ryong Construction Industrial Co., Ltd.	24200.00	7173.13	42.13%
KR:053690	HanmiGlobal Co., Ltd.	17170.00	-610.89	-3.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Dongbu Corporation AI Stock Analysis