[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 8th that it has high expectations for SEOHEE CONSTRUCTION CO., LTD.(035890), noting that its growth engine is reigniting and that the company has begun a full-scale share buyback and cancellation program. However, the firm did not provide an investment rating or a target price.

Baek Jun-ki, an analyst at NH INVESTMENT & SECURITIES, stated, “According to the semi-annual report, as of the end of June, major financial assets consisted of 150 billion won in cash, 520 billion won in stocks and funds, 300 billion won in other non-current financial assets, and 180 billion won in investment real estate,” and “This year, in particular, net income is expected to increase significantly due to capital gains from holdings such as SamsungElectronics, leading us to forecast a 2026 P/E ratio (price-to-earnings ratio) of 2,” he explained.
He further emphasized, “From a PBR (price-to-book ratio) perspective, the value of financial assets is more than 1.5 times the market capitalization, indicating that the company’s approach to shareholder returns—which had previously been characterized by hoarding assets—is changing.” He noted, “In July, the company completed the cancellation of 22 million shares out of 44 million treasury shares. Even after the cancellation, treasury shares equivalent to 10.7% of the total issued shares remain. The company is transforming from a low PBR firm that hoards assets into one that returns assets to shareholders,” he emphasized.
He also predicted that the reform of the regional housing cooperative system would create a market environment favorable to stronger players.
Researcher Baek stated, “We believe the amendment to the Housing Act, which passed the National Assembly plenary session on August 20, 2026, will be positive for SEOHEE CONSTRUCTION CO., LTD. The land ownership requirement for project plan approval will be relaxed from 95% to 80%,” adding, “It will become more difficult for underperforming projects to enter the market, while the progress of high-quality projects will accelerate.”
He elaborated, “As the process of separating the wheat from the chaff in the local housing cooperative market gains momentum, a favorable environment is expected to emerge for SEOHEE CONSTRUCTION CO., LTD., which possesses extensive project experience, a strong brand, and robust financing capabilities.” He added, “Regarding the PBR of 0.4x, it is important to note that this reflects not merely an undervaluation, but rather simultaneous improvements in the risks associated with the local housing cooperative business—which previously justified the low valuation—and the previously lackluster shareholder returns.”
Furthermore, he noted, “The company’s financial assets alone already significantly exceed its market capitalization, while its core business maintains a double-digit operating profit margin and a backlog of orders worth 1.9 trillion won,” adding, “It is time for the company to be reevaluated as the leading player in the local housing cooperative sector.”