[Asia Economy Reporter Park Hyungsoo] As the domestic housing supply increases, Samil CNS's performance is also expected to improve.
Hana Financial Investment forecasted on the 16th that Samil CNS's concrete division will drive performance improvement this year.
Choi Jaeho, a researcher at Hana Financial Investment, explained, "Samil CNS, established in 1965, is the leading concrete pile supplier in Korea" and "is at the forefront of the housing supply big cycle returning after five years."
He added, "Since the second half of last year, housing supply expansion policies have been implemented to resolve the housing supply cliff that has continued since 2016," and "the company has an annual concrete pile production capacity of over 1.15 million tons and an efficient logistics structure through major production bases such as Yongin, Chungju, and Chilseo."
Furthermore, he said, "Concrete piles serve as the foundation that transfers the building load to the ground" and "are essential construction materials used in the foundation work, which is the initial stage of construction."
He emphasized, "The domestic housing supply market has a history of repeated recessions and booms due to regulatory tightening and easing," and "Samil CNS's concrete division also recorded operating losses from 2018 to 2020 due to market fluctuations but succeeded in turning a profit in the first quarter of this year."
Researcher Choi analyzed, "The cumulative building permit area nationwide in the first half of this year reached 93.7 million m2, marking the highest level in the past seven years," and "it is expected to continue increasing due to government-led expansion of new housing supply and increased implementation of private-led redevelopment projects."
He stated, "Building permits and housing start areas are leading indicators of concrete pile shipment volume," and "an increase in shipment volume in the second half of this year and next year is fully predictable."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
