1. What Happened? H1 2025 Performance Review
Teoksu Construction reported KRW 94 billion in revenue and KRW 600 million in operating profit for H1 2025, representing a 12.6% and 67.7% year-over-year decrease, respectively. Q2 2025 was particularly weak, with zero operating profit and a net loss of KRW 700 million. However, net income increased compared to the same period last year, driven by improved performance of subsidiaries and gains from the sale of a building.
2. Why These Results? Reasons for Decline and Diversification Efforts
The decline in revenue is primarily attributed to decreased domestic construction contract sales, while the decrease in operating profit is due to lower revenue and increased selling, general, and administrative expenses. However, Teoksu Construction is actively pursuing diversification by entering the waste recycling, real estate investment, and development sectors to secure future growth engines. The waste recycling business, in particular, is expected to positively impact ESG management and generate new revenue streams.
3. What’s Next? Outlook and Investment Considerations
Teoksu Construction has positive factors such as growth potential through diversification and improved financial stability. However, it also faces challenges such as sluggish short-term performance and financial risks. The future performance of new businesses, including waste recycling, and improvements in financial structure will be key variables.
4. What Should Investors Do? Action Plan
- Monitor the performance and management efficiency of new businesses.
- Keep an eye on efforts to improve the financial status of convertible bonds and subsidiaries.
- Evaluate the company’s response strategies and performance against macroeconomic variables.
Frequently Asked Questions
What were Teoksu Construction’s sales and operating profit for the first half of 2025?
Sales decreased by 12.6% year-over-year to KRW 94 billion, and operating profit decreased by 67.7% to KRW 600 million.
What is Teoksu Construction’s diversification strategy?
The company is diversifying into waste recycling, real estate investment, and development, with a particular focus on waste recycling.
What should investors be aware of when considering investing in Teoksu Construction?
Investors should consider the sluggish short-term performance and financial risks, and closely monitor the performance of new businesses and improvements in the financial structure.