The stock price of HL D&I, a construction company affiliated with the HL Group, is expanding its gains as it hits a one-year high. This is interpreted as being driven by the gradual resolution of project financing (PF) contingent liabilities.
As of 12:12 PM on the 19th, HL D&I was trading at 2,600 KRW, up 10.17% from the previous day's closing price. After starting the session flat, the stock continued its upward trend during the morning session, reaching as high as 2,645 KRW at one point. The current price is the highest level since June of last year.
The rebound in HL D&I's stock price, which had been in a long-term downtrend since 2021, is interpreted as a result of the recent easing of PF contingent liability risks. HL D&I recently succeeded in raising 200 billion KRW in main PF funding for a complex building project in Hapjeong-dong, Mapo, which it has been promoting together with the developer Dior D&C.
Typically, before converting to the main PF, in the pre-construction phase, defaults on bridge loans taken to secure land often lead to construction company insolvencies. However, recently, as bridge loans in the pre-construction phase have been converted into main PF, concerns about defaults are being alleviated.
Previously, HL D&I's long-term pre-construction sites, such as the apartment construction projects in Bubal-eup, Icheon-si, Gyeonggi-do, and Dunjeon Station, Yongin-si, have successively converted existing bridge loans into main PF, significantly reducing the burden of contingent liabilities.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
