Hanshin Gongyeong, Q1 Operating Profit 9.7 Billion KRW... 110% Increase YoY

Hanshin Engineering & Construction announced on the 17th that it recorded an operating profit of 9.7 billion KRW in the first quarter of this year.

Hanshin Engineering & Construction disclosed this information on the electronic disclosure system the day before. This figure represents a 110% increase compared to the first quarter of last year. Sales decreased by 7.6 billion KRW compared to the same period last year, totaling 300.4 billion KRW, and the cost ratio fell by 2% year-on-year to 92%.

A representative from Hanshin Engineering & Construction stated, “Despite the decrease in sales, operating profit more than doubled compared to the same period last year. Although profitability declined last year due to advance reflection of cost increases and rush construction, this year, profitability is expected to improve due to the completion of the relevant sites, reduction in cost ratio from contract changes for sites with advance cost reflection, and progress in self-managed construction projects.”

Currently, Hanshin Engineering & Construction is managing two sales projects: ‘Pohang Pentacity Hanshin The Hue’ and ‘Asan Gwongok Hanshin The Hue’. Pohang Pentacity Hanshin The Hue is scheduled for completion by the end of this year, and Asan Gwongok Hanshin The Hue is expected to be completed by August next year. Hanshin Engineering & Construction stated that active progress in these projects is expected to improve sales and profitability this year. In particular, the sales balance collection amount for Pohang Pentacity, which residents will move into by the end of this year, is approximately 260 billion KRW.

Additionally, sales are planned this year for three self-managed projects: Paju Unjeong 3 District, Yangju Deokgye, and Pyeongtaek Brain City. Hanshin Engineering & Construction said, “All three projects are located in excellent locations in the metropolitan area and are expected to benefit from the opening of the Great Train Express (GTX), classifying them as highly marketable projects. Their high marketability and profitability will contribute to Hanshin Engineering & Construction’s profitability improvement this year.”

Hanshin Engineering & Construction’s outstanding balance of real estate project financing (PF) guarantees stands at 326.8 billion KRW. Regarding this, Hanshin Engineering & Construction explained, “This is the result of focusing on managing contingent liability risks rather than profitability as a strategy to respond to the housing market downturn.”