Sambu Construction Posts Operating Profit of 8.4 Billion KRW in Q3, Up 123% Year-on-Year

[Asia Economy Reporter Jang Hyowon] Sambutogeon recorded significantly increased sales and profit performance in the third quarter despite the prolonged COVID-19 pandemic and intensified real estate regulations causing a continued downturn in the construction industry.

According to the Financial Supervisory Service's electronic disclosure system on the 16th, Sambutogeon's sales in the third quarter of this year reached 290.5 billion KRW, a 106.5% increase compared to 140.7 billion KRW in the same period last year. Operating profit rose 123.3% from 3.8 billion KRW to 8.4 billion KRW, and net profit increased 81.5% from 9.1 billion KRW to 16.6 billion KRW.

After completing rehabilitation procedures in October 2017, Sambutogeon quickly stabilized management and laid the foundation for growth. Due to the rehabilitation process from 2015 to 2017, orders were impossible, causing sales to plummet, but in 2018, the company succeeded in turning a net profit of 200 million KRW. Sales rebounded from the low point of 177.3 billion KRW in 2018 to 226.2 billion KRW in 2019, with operating profit of 5.9 billion KRW and net profit of 9.4 billion KRW, showing improved performance.

This year, the third quarter sales, operating profit, and net profit have already far exceeded the previous year's annual figures, and it is expected that sales and profit margins will significantly expand by the end of the year.

In September, Sambutogeon sold the ‘Cheonan Sinbang Samburenaissance’ apartment complex, and by the end of this year, a large-scale self-developed project in Asan, Chungnam is planned. Next year, the Asan Phase 2 project, and in 2022, a joint apartment project in Namyangju City are scheduled for sale. The volume of self-developed projects secured through 2025 is expected to exceed approximately 1.3 trillion KRW. This ensures a stable sales structure and profitability for a considerable period.

A Sambutogeon official stated, “Based on continuous sales and profit growth, the company is focusing its capabilities on securing high-profit projects such as self-developed projects and planned proposal-type projects, while diversifying its business base and securing growth and profitability by entering real estate development and implementation businesses, as well as fuel cell businesses.” He added, “In the overseas construction sector, in addition to previously entered Middle East, Pakistan, and Nepal, the company is pursuing orders for profitable public procurement and development projects in Southeast Asian countries such as Indonesia, the Philippines, Cambodia, Laos, and Vietnam.”

This content was produced with the assistance of AI translation services.