1. What Happened?

XS&D was selected as the contractor for the $467 million Mangwon-dong housing redevelopment project A-7 in Mapo-gu on September 15, 2025.

2. Why Does It Matter?

This contract is a welcome development for XS&D, which struggled in the first half of 2025 with revenue of KRW 649.6 billion and an operating loss. This win is anticipated to be a turning point, especially given the underperformance of the housing business segment. The potential for additional contracts, leveraging the ‘Xi’ brand power, has also increased.

3. What’s the Impact?

  • Positive Impact:
    • Contribution to increased revenue and profitability
    • Increased likelihood of securing additional redevelopment projects
    • Strengthened competitiveness in the housing business and enhanced ‘Xi’ brand value
    • Potential synergy with the architectural business segment
  • Negative Factors and Risks:
    • Short-term revenue contribution may be limited
    • Risk management required in the funding and execution process
    • Macroeconomic and real estate market uncertainty

4. Investor Action Plan

While this contract is positive for XS&D, investors should consider the following factors:

  • Sustained growth of the architectural business (data centers, eco-friendly plants)
  • Profitability and sales performance of the housing business
  • Ability to respond to volatility in raw material prices and interest rates
  • Growth potential of the Home Solution business

Continuous monitoring is crucial to minimize investment risks and seize opportunities.