[Special Stock] Profit Turnaround Effect... Taeyoung Construction Rises Over 12%

Too Soon to Be Assured...
Creditors' Shares to Be Unlocked in July

Taeyoung Construction's stock price is on the rise. The news that last year's performance turned profitable appears to have acted as a positive factor.

As of 10:13 AM on the 17th, Taeyoung Construction's stock price recorded 2,775 KRW, up 12.58% compared to the previous trading day. Following a rise of over 9% at the close of the previous day, this marks two consecutive days of gains.

The announcement last week that the 2024 performance returned to profitability seems to have been a favorable factor. Taeyoung Construction posted consolidated sales of 2.6903 trillion KRW and an operating profit of 15.1 billion KRW last year. This contrasts with the previous year when it recorded an operating loss of 404.5 billion KRW and entered a workout (corporate financial restructuring process).

Although performance improved thanks to the completion of large-scale projects, it is still considered too early to be assured. After the workout, the stock lock-up on 273,995,695 shares converted from debt by Taeyoung Construction's creditors and TY Holdings will be lifted in July, which could cause stock price volatility. The locked-up shares currently account for 93% of the 293,856,211 shares listed. Additionally, the construction industry's downturn is expected to pose further challenges.