Dongbu Construction has reported a significant increase in revenue and net profit for the first half of the year, surpassing 1 trillion won in sales and achieving a 267% rise in net profit compared to the previous year.
On August 14, Dongbu Construction announced that its consolidated revenue for the first half of the year reached 1.03 trillion won, with an operating profit of 28.2 billion won and a net profit of 39.1 billion won. Compared to the same period last year, revenue increased by 24.3%, operating profit rose by 69.2%, and net profit surged by 266.5%.
The improvement in performance was particularly notable in the second quarter. Revenue for the second quarter was 596.1 billion won, a 44.3% increase from the same period last year. Operating profit soared to 18 billion won, up from just 1.6 billion won in the second quarter of last year, while net profit turned around to 23.1 billion won from a loss in the previous year.
This growth was driven by increased sales in public civil engineering and construction, housing, and semiconductor industrial facility projects. As public infrastructure projects such as roads, railways, and ports ramped up, the housing sector also saw progress, along with a rise in sales from advanced industrial facilities supporting semiconductor production.
The housing sector contributed to profitability through increased sales and improved cost ratios. Additionally, strong performance from affiliate HJ Heavy Industries bolstered the overall results.
Dongbu Construction's equity method gains turned around from a loss of 14.1 billion won last year to a profit of 18.2 billion won this year, reflecting an improvement of approximately 32.3 billion won, driven by increased high-value ship sales and effective cost management in the construction sector.
The company also strengthened its order backlog. Dongbu Construction secured major public projects this year, including the Gyeonggi-do Highway and the Southern Inland Railway, while continuing to win contracts in the private sector, such as the Seoul Moa Town and urban housing redevelopment projects. The cumulative new order amount has exceeded 2 trillion won this year.
In the semiconductor sector, the company is expanding its revenue through projects like the Amkor Technology Korea expansion in Songdo and the SK Hynix Cheongju Campus auxiliary facilities.
Looking ahead, Dongbu Construction plans to maintain a stable business foundation in public infrastructure and housing while increasing its focus on high-profit private projects and advanced industrial facilities. The company aims to continue expanding its new orders and converting its backlog into revenue and profits based on a balanced portfolio across public and private sectors, civil engineering and construction, and housing and advanced industrial facilities.
A company representative stated, “The first-half results reflect the growth of our core business centered on public projects and advanced industrial facilities, along with the investment performance from HJ Heavy Industries. We will continue to pursue a profitability-focused business operation and maintain a balanced order portfolio to sustain our growth momentum in the second half of the year.”
* This article has been translated by AI.
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