[Asia Economy Reporter Hyungsoo Park] Hirim's stock price is rebounding after four days. It appears that expectations of the remodeling market revitalizing due to increased housing transactions and supply following the presidential election are influencing the stock price. With Shinwon Comprehensive Development and Sambutogeon soaring, Hirim is also attracting attention.
As of 10:38 AM on the 10th, Hirim is trading at 9,210 KRW, up 15.85% from the previous trading day.
Kyungtae Kang, a researcher at Korea Investment & Securities, predicted, "Analyzing the pledges of President-elect Yoon Seok-yeol, the domestic construction companies' main sectors, housing contracting and self-development, are expected to show an upward trend due to increased housing transactions and supply." He added, "With the increase in transaction volume, remodeling building material companies are also expected to benefit."
President-elect Yoon Seok-yeol pledged to ease regulations on reconstruction, redevelopment, and remodeling to ensure sufficient housing supply in high-demand urban areas such as Seoul. Seoul's reconstruction and redevelopment projects are also expected to accelerate rapidly. As President-elect Yoon and Seoul Mayor Oh Se-hoon coordinate policies, expectations for various regulatory relaxations are growing.
Researcher Kang also analyzed, "There is a high possibility that regulations such as the Reconstruction Excess Profit Recovery System and the Sale Price Ceiling System, which had delayed the general sale timing of reconstruction and redevelopment associations, will be eased," adding, "Providing floor area ratio incentives on the condition of some donations will improve project profitability."
He explained, "The redevelopment pledges for first-generation new towns such as Bundang, Ilsan, Pyeongchon, Sanbon, and Jungdong are also included," and "During the president-elect's term, the supply volume of redevelopment projects in the Seoul-Gyeonggi metropolitan area will increase."
Hirim is a company expected to benefit from the revitalization of the remodeling market. Hirim's main businesses are architectural design, construction management (CM), and supervision. It ranks first in residential sales and has carried out numerous residential projects domestically and internationally. It is an architectural firm capable of handling all residential sectors, including multi-family housing, mixed-use residential-commercial buildings, officetels, reconstruction, remodeling, single-family homes, and townhouses.
Recently, Hirim partnered with remodeling design specialist H1 Comprehensive Architectural Office to win the design contract for the largest remodeling project in the Daegu area, the 'Metropole 1, 2, 3, 5 Complex Integrated Remodeling Project.' Based on successful experiences in general architectural remodeling and apartment remodeling, Hirim is currently participating as the design firm for numerous apartment remodeling projects, including Pyeongchon Mokryeon 3 Complex, Seocho-gu Jamwon Donga, Yongsan-gu Ichon Kolon, Songpa-gu Munjeong Geonyeong, Gwangjin-gu Gwangjang Hyundai 3 Complex, Suwon Sinnamusil Jugong 5 Complex and Sinmyeongdongbo, and Busan Metro City.
Last year, Hirim recorded sales of 212.1 billion KRW and an operating profit of 8.3 billion KRW. Sales increased by 4.0% compared to the previous year, while operating profit decreased by 9.4%. Net profit was 6.2 billion KRW, up 30.5% from the previous year.
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