[Click eStock] "E&Corporation, Environmental Platform Company... Notable from ESG Investment Perspective"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities announced on the 23rd that E&C Corporation is a company to watch in the mid to long term from the perspective of ESG (Environmental, Social, Governance) investment as an industrial water treatment platform company.

At the beginning of this year, E&C Corporation underwent a change in its largest shareholder and reorganized its existing business portfolio, transforming into a comprehensive environmental platform company. By successively acquiring Hanseong Cleantec, E&C Water Solution, E-Clean Water, and Daeyang Enviro, it has established an industrial water treatment value chain in the fields of water treatment EPC (Engineering, Procurement, Construction), O&M (Operation & Maintenance), and wastewater

treatment.

Hanseong Cleantec is an industrial water treatment EPC company specializing in the semiconductor, display, and petrochemical sectors. Due to expansion in semiconductor projects and overseas orders, the total order amount as of the end of last month reached 133.2 billion KRW, a 52% increase compared to the same period last year. It was selected for a national project to localize semiconductor ultrapure water. E&C Water Solution and E-Clean Water are liquid designated waste treatment companies, currently experiencing rapid performance improvement thanks to increased fees for entrusted wastewater treatment and intermediate disposal of waste. Daeyang Enviro is a water treatment O&M company that has provided environmental facility operation services for over 200 sewage treatment plants and incineration facilities domestically and internationally for more than 30 years.

Researcher Kang Kyung-geun of NH Investment & Securities stated, "With the expansion of companies' investments in water treatment facilities, the full reflection of subsidiaries' consolidation, synergy effects through the establishment of an industrial water treatment value chain, and the increase in fees for entrusted wastewater treatment and intermediate waste disposal, performance growth is expected to accelerate from next year."

The company’s sales next year are expected to increase by 76.6% from this year to 241.3 billion KRW, and operating profit is projected to rise by 292.3% to 15.8 billion KRW.