[Click eStock] "HanmiGlobal Accelerates Growth Through Overseas Expansion"

Expansion of Overseas Projects Boosts HanmiGlobal's PM Role
Strong Growth in U.S., U.K., and Saudi Markets
Rising Importance of Project Management in Domestic Construction
Differentiated Valuation Needed as Overseas Business Matures

On September 5, DS Investment & Securities initiated coverage on HanmiGlobal, stating, "With the increasing number of large-scale overseas projects, the role of construction project management (PM) is expanding." The firm assigned a new "Buy" rating and set a target price of 30,000 won.

Kim Jinhyung, a researcher at DS Investment & Securities, explained, "HanmiGlobal is the top PM company in the domestic construction project management and project management market, and ranks eighth globally excluding the United States." He added, "The company is actively expanding its overseas business through its domestic project experience and an aggressive strategy of acquiring global PM companies."

The expansion of overseas revenue share is particularly notable. Kim pointed out, "Since last year, the proportion of overseas revenue has surpassed that of the domestic market, with strong performance in the United States, the United Kingdom, and Saudi Arabia." He further detailed, "Last year, revenue by region was 42% from Korea, 30% from the United States, 12% from the United Kingdom, 11% from Saudi Arabia, and 5% from other regions." He also noted, "There are large-scale investments underway in the United States and the Middle East. Saudi Arabia announced its economic reform plan in 2016 and is set to invest more than 1 quadrillion won in infrastructure alone by 2030."

Opportunities are also expanding within the United States. Since the passage of the Inflation Reduction Act (IRA) in 2022, the construction of local production facilities has increased, and the revival of manufacturing has become a top priority following the Trump administration, leading to large-scale investments by Korean companies in the United States. Kim commented, "The larger and more complex the project, the greater the role of PM companies. As construction costs soar and the risk of project delays increases, companies with professional project management capabilities will become more valuable."

For this year’s performance outlook, Kim estimated sales of 473.6 billion won (an 11.5% increase year-on-year) and operating profit of 35.4 billion won (a 4.4% increase). He attributed this to an increase in domestic data center orders, which account for the largest portion of sales, as well as a rise in reconstruction projects such as Hannam Districts 3 and 4.

Additionally, Kim stated, "The importance of PM is rising in the domestic construction market, and as HanmiGlobal is the leading company, it stands to benefit significantly." He added, "The company is demonstrating strong growth in large overseas markets. Unlike Korea, the added value of PM services is higher and market maturity is different overseas, so a differentiated valuation should be considered."

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