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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Sang Jin] Major listed construction companies in South Korea are expected to report mixed first-quarter earnings, as rising costs weigh on profitability while restructuring efforts and project revenues support some firms.
According to industry sources on April 23, companies including Samsung E&A, HDC Hyundai Development Company, Daewoo Engineering & Construction, Hyundai Engineering & Construction, Samsung C&T, GS Engineering & Construction, and DL E&C are scheduled to release their Q1 earnings this week.
Consensus estimates compiled by FnGuide show combined operating profit for major builders rising 6% year-on-year to KRW 606.3 billion.
HDC Hyundai Development Company is expected to post an 86% surge in operating profit, driven by progress on a large-scale Seoul development project. GS Engineering & Construction and DL E&C are also projected to see profit growth despite declines in revenue, reflecting improved margins.
Samsung E&A has already reported a 20% increase in operating profit, supported by strong performance in petrochemical and advanced industrial plant projects.
In contrast, Hyundai Engineering & Construction and Daewoo Engineering & Construction are expected to report declines in both revenue and operating profit, as cost pressures continue to mount.
Analysts warn that supply disruptions in key materials, such as naphtha used in concrete additives, could further delay construction progress and weigh on revenues in the coming quarters.
알파경제 Kim SangJin Reporter(ceo@alphabiz.co.kr)
