In-Depth Financial Analysis
HJ Shipbuilding & Construction (HJSC) recently secured the highly-anticipated ‘Busan Namcheon Baeksan Apartment Small-Scale Reconstruction Project,’ valued at approximately ₩73.8 billion. While this appears to be encouraging news, can this victory truly be a turning point for HJSC, a company grappling with severe declines in revenue, profitability, and an uncertain outlook?
This analysis clearly pinpoints HJSC’s current situation, future outlook, and the key financial metrics investors must focus on to make informed decisions beyond the headline news.
On September 29, 2025, HJ Shipbuilding & Construction was officially selected as the contractor for the ‘Busan Namcheon Baeksan Apartment Small-Scale Reconstruction Project.’ This contract secures new business amidst ongoing uncertainty in the construction market, providing a positive signal.
Despite securing the new project, a comprehensive look at HJSC’s financials reveals a company facing severe profitability deterioration and a challenging outlook, raising concerns about its long-term viability without significant restructuring.
The shift from profit to massive projected losses in 2024 highlights the depth of the current crisis.
-50.29%
-4.30%
-0.84%
0.75x
(Potential undervaluation relative to asset value)
Weighing the positive contribution of the new contract against the severe underlying financial weaknesses yields a cautious outlook.
While the contract is a welcome piece of news, it does not solve the structural financial issues plaguing HJSC. Investors should exercise extreme caution and maintain a long-term perspective focused on genuine management change.
Short-Term View: The contract may provide short-term positive momentum for the stock price. However, limited upside potential exists due to the severe lack of confidence in fundamental profitability improvements.
A: On September 29, 2025, HJ Shipbuilding & Construction was selected as the constructor for the ‘Busan Namcheon Baeksan Apartment Small-Scale Reconstruction Project’, valued at approximately ₩73.8 billion.
A: No. While it helps short-term revenue, the ₩73.8 billion contract (3.92% of revenue) is insufficient to fundamentally offset HJSC’s severe profitability issues, including projected operating and net losses in 2024.
A: Investors should approach with caution. It is necessary to monitor the ongoing trend of fundamental financial deterioration and focus on concrete results from management’s strategic plans, rather than relying solely on short-term contract announcements.
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