Net Profit Up 50%... Hantosin Succeeds in Performance Improvement with Risk Management

[Financial News] Korea Land Trust has shown strong performance despite the downturn in the industry.
According to the industry on the 29th, Hantosin recorded a net profit of 18.2 billion won in the first quarter of this year. This is a 50.4% increase compared to the same period last year. During this period, operating revenue was 60.4 billion won and operating profit was 23.6 billion won, up 27.4% and 73.5%, respectively, compared to the same period last year.
According to the company, this strong performance is attributed to risk management and selective order strategies. In particular, it is pointed out that the operation of book-based land trusts, which are high-risk products, focusing on stability, was effective.
The performance of Hantosin stands out when compared to other trust companies. In the case of 14 real estate trust companies from January to March this year, they recorded a surplus. Behind this, the performance improvement of some major trust companies, including Hantosin, played a significant role.
Some trust companies had their credit ratings downgraded. Two domestic credit rating agencies adjusted the credit rating outlook for Korea Asset Trust's corporate bonds from A (stable) to A (negative) in April this year. Previously, major financial affiliate trust companies such as KB Real Estate Trust and Shinhan Asset Trust also had their credit ratings downgraded.
The financial authorities plan to continue strengthening the capital adequacy standards for trust companies. Additional capital expansion is emerging as a key issue in the industry.
Hantosin also plans to improve asset soundness based on risk management in line with this trend. In the corporate bond demand forecast conducted in April this year, it recorded a complete sale of 50 billion won.
A company official said, "We plan to maximize profits by expanding the quantity and quality of orders," adding, "This year, significant sales contributions are expected in the maintenance project sector."




ljb@fnnews.com Lee Jong-bae Reporter