HL D&I Hanla, Q1 'Earnings Surprise'... Operating Profit Soars 105%

Sales up 18.4%, Operating Profit up 105.6%, Net Profit up 108.2%
Significant Resolution of Unstarted PF Contingent Liabilities
Mapo and Hapjeong Sites Preparing for Main PF Conversion

HL D&I Hanla recorded an earnings surprise in the first quarter of this year.

HL D&I Hanla announced on the 30th that it achieved an operating profit of 18.3 billion KRW on a consolidated basis in the first quarter of this year. Operating profit increased by 105.6% compared to the same period last year. Net profit also rose by 108.2% to 11.9 billion KRW. Sales reached 398.5 billion KRW, up 18.4%.

HL D&I Hanla image photo. [Photo by HL D&I Hanla]

The completion of sales in its own business sites, such as the Bucheon Sosa Station apartment move-in and the full-scale construction in Jakjeon-dong, Incheon, drove the performance. Despite cost pressures from rising material and labor costs, strong innovation helped secure a favorable cost ratio. A representative from HL D&I Hanla said, "In the industry, a cost ratio of 90% is considered acceptable. Currently, HL D&I Hanla's cost ratio is 89%, which is a good level."

HL D&I Hanla also stated that concerns over contingent liabilities related to real estate project financing (PF) have been largely resolved recently. On the 15th, the bridge loan for the Icheon Bubal project was converted into the main PF, resolving about 30% of HL D&I Hanla's approximately 138 billion KRW in unstarted PF contingent liabilities. Other sites such as Mapo and Hapjeong are also preparing for conversion to the main PF. The representative said, "We are discussing the conversion to the main PF for the Mapo and Hapjeong sites with financial institutions," adding, "We expect the Id site to convert to the main PF within next month."

Cash and short-term deposits also improved, recording 141.4 billion KRW, a 33% increase compared to the end of last year in the first quarter of this year.

HL D&I Hanla will apply its new apartment brand 'Epyt' for the first time to the Icheon Bubal (676 units) and Yongin Dunjeon (1,275 units) residential complexes. 'Icheon Bubal Epyt' is located directly opposite SK Hynix and is adjacent to Bubal Station, where the metropolitan express railway (GTX) D line is scheduled to pass, making it a representative ‘banse-gwon’ (semiconductor station area) residential complex. The ‘Yongin Dunjeon Epyt’ in Geumeo-ri, Cheoin-gu, Yongin City, is also evaluated as the prime beneficiary location of the semiconductor cluster including Samsung Electronics and SK Hynix, attracting great interest from prospective buyers.

A representative from HL D&I Hanla said, “Based on strong performance and financial stability, we will enhance our resilience to economic fluctuations while expanding high-quality orders.”