1. What Happened?

DL E&C has been selected as the preferred bidder for the Gwangmyeong-Siheung public housing construction project. DL’s expected participation amount is $340 million, representing 5.37% of its recent sales.

2. Why Does It Matter?

This contract is expected to positively impact DL E&C’s order backlog and future performance. It’s anticipated to partially offset the sluggish performance of the manufacturing and auto parts sectors seen in Q1 2025.

3. So, What’s the Outlook for DL Stock?

Positive Factors

  • • Increased order backlog leading to stable sales
  • • Driving growth in the investment and other sectors
  • • Improved investor sentiment and upward momentum for stock price

Negative Factors

  • • Risks associated with large-scale projects (technical issues, rising material costs, construction delays, etc.)
  • • Potential decline in profitability due to fluctuations in raw material prices and interest rate hikes
  • • Burden of interest rate increases due to DL’s high debt ratio

4. Investor Action Plan

Before making any investment decisions, be sure to check the following:

  • • Project progress and risk management strategies
  • • Trends in raw material prices and interest rates
  • • DL E&C’s financial soundness and additional financial information
  • • Changes in the external environment (KRW/USD exchange rate, international situation, etc.)