1. What Happened?: Q2 2025 Earnings Release

Keangnam Construction announced its Q2 2025 preliminary earnings on August 14, 2025. While revenue slightly missed expectations at 734 billion KRW, operating income reached 49 billion KRW and net income reached 25.5 billion KRW, both significantly exceeding market forecasts. Notably, the company returned to profitability, signaling a positive trend.

2. Why?: Analyzing the Earnings Fluctuations

The strong operating and net income figures are attributed to efficient cost management and a profitable business portfolio. Conversely, the revenue decline appears to be due to the slowdown in the construction market and the downturn in the real estate sector. Rising raw material prices may have also played a role.

3. What’s Next?: Future Outlook and Investment Strategy

In the short term, the earnings surprise is expected to create upward momentum for the stock price. However, a cautious investment approach is warranted given the construction market slowdown and macroeconomic uncertainties. In the medium to long term, the success of the company’s new growth engines, such as smart farms and data center construction, will be crucial for its growth. Keangnam Construction’s future hinges on the performance of these new businesses and the trend of its financial soundness.

4. Investor Action Plan

  • Short-term investors: Be mindful of increased stock price volatility immediately following the earnings announcement and consider short-term profit-taking strategies.
  • Long-term investors: Continuously monitor the progress and performance of new growth businesses and make investment decisions from a long-term perspective.