Daewoo Engineering & Construction shares surged after the company reported a surprise earnings beat.
According to the Korea Exchange, Daewoo E&C was trading at 39,000 won as of 1:25 p.m. on the 28th, up 17.47% (5,800 won) from the previous session. The stock earlier climbed to 39,850 won, setting a new 52-week high.
Daewoo E&C said its first-quarter operating profit rose 68.9% from a year earlier to 255.6 billion won. Revenue fell 6% to 1.9514 trillion won, while net profit jumped 237.6% to 195.8 billion won. The operating profit topped market expectations, marking the first time in 14 quarters the company posted operating profit in the 200 billion-won range.
The company said profitability in its building construction business improved as projects launched during a period of rising construction costs were completed in sequence.
Daewoo E&C said it plans to expand orders centered on energy infrastructure such as nuclear power plants and liquefied natural gas (LNG), as well as overseas urban development, data centers and urban renewal projects.
Lee Eun-sang, an analyst at NH Investment & Securities, said Daewoo E&C is the most likely to participate as a construction partner in Team Korea. He added that with additional construction cooperation in the United States and Vietnam in mind, cost negotiations in the Czech Republic will be important, and Daewoo E&C has leverage because few domestic builders have lead-underwriter construction experience.
* This article has been translated by AI.
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