[Click eStock] "Jinheung Construction to Lead Hyosung Heavy Industries' Transformer Expansion... Expected to Benefit from AI Infrastructure"

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On March 16, independent research firm ValueFinder gave a positive evaluation of Jinheung Construction, highlighting expectations for improved profitability through a full-fledged earnings turnaround and the potential benefit from its parent company Hyosung Heavy Industries' expansion of transformer capacity.

This is because, as the transformer supercycle driven by the expansion of AI infrastructure is expected to continue, Jinheung Construction is positioned to benefit by being responsible for the construction work when Hyosung Heavy Industries increases its transformer capacity.

Established in 1977, Jinheung Construction is engaged in building construction and housing development and was listed on the KOSPI market in 1977. Based on its long history, the company has secured strong technological capabilities and a solid portfolio of completed projects. Its parent company, Hyosung Heavy Industries, holds a 48.19% stake. Although the company reflected a one-off provision for losses of 26.7 billion won in the fourth quarter of last year, a full-fledged earnings turnaround is expected as order volumes for 2024 and 2025 are projected to be reflected in this year's results.

Lee Choongheon, a researcher at ValueFinder, analyzed, "As of the third quarter of last year, the current ratio stood at 204%, the highest among KOSPI-listed construction companies, while the debt ratio was 134%, ranking third, indicating solid financial soundness. In the current environment of increasing market volatility in the construction industry, these figures are expected to play a positive role in providing a floor for the company."

Lee also added, "The company has already secured positive momentum in transformers, as evidenced by its disclosure of a super high-voltage transformer construction project for Hyosung Heavy Industries, and is expected to benefit further from additional capacity expansions. In addition, the company has already secured orders worth approximately 630 billion won in the first quarter of this year, so it is expected to be able to secure new orders exceeding 1 trillion won this year, making it a company to watch closely at this time."