Kumho Engineering & Construction Co., Ltd. Surges to Intraday Limit-Up on String of Major Contract Wins and Improved Results [Stock NOW]

[Financial News] Kumho Engineering & Construction Co., Ltd. surged to the day's upper price limit during trading on news of a string of large-scale construction contract wins and improved profitability in the third quarter.
As of 9:25 a.m. on the 13th, Kumho Engineering & Construction Co., Ltd. was trading at 10,430 won, up 1,800 won (20.86%) from the previous trading day's close. The stock opened at 9,200 won and climbed to its upper limit of 11,210 won before giving back some of its gains.
After the market closed the previous day, Kumho Engineering & Construction Co., Ltd. announced that it had signed a 372 billion won contract with Yonsei University Health System to build Songdo Severance Hospital. The contract value is equivalent to 18.43% of the company's consolidated revenue last year. The contract runs from the 12th through December 31, 2028.
The project involves constructing a medical facility with three basement levels and 13 above-ground floors at Yonsei International Campus in Songdo-dong, Yeonsu-gu, Incheon. On the 11th, Kumho Engineering & Construction Co., Ltd. also won a 327.9 billion won contract to relocate the Livestock Resources Development Department of the National Institute of Animal Science under the Rural Development Administration. The total value of contracts announced over the two days came to 699.9 billion won.
Earnings also improved. Kumho Engineering & Construction Co., Ltd. posted consolidated operating profit of 22.2 billion won in the third quarter of this year, up 44.2% from the same period a year earlier. Revenue for the period fell 5.5% to 494.5 billion won, while net profit rose 61% to 12.4 billion won. As the cost-of-sales ratio declined from 93.7% to 91.9%, the operating margin also rose from 2.9% to 4.5%.
Cumulative new orders through the third quarter of this year totaled 2.8481 trillion won, up 91.5% from the same period a year earlier. The total has already exceeded the full-year order target of 2.7 trillion won. As of the end of September, the order backlog stood at 10.1963 trillion won, up 9.8% from the end of last year.

[email protected] Lee Jeong-hwa Reporter