Seoul, South Korea – Kumho Construction is experiencing a significant upswing, driven by the consecutive sellouts of its new residential brand, Atera, and consistent achievements in the plant construction sector, particularly natural gas supply facilities.
Atera has been instrumental in turning around the company’s fortunes. Of the 7,168 units supplied this year across seven projects, the average subscription rate was a remarkable 20.7:1. The inaugural Atera project in Cheongju, North Chungcheong Province, recorded a staggering 47.4:1 subscription rate, while projects in Goyang, Gyeonggi Province, and Incheon achieved the highest subscription rates in their respective regions, selling out within two weeks.
The company’s residential division has also secured major contracts, including the Daejeon Daedong 2 residential environment improvement project worth 455.7 billion won and the priority negotiation rights for the Pyeongtaek Godeok A63 and A64 blocks, and Osan Saegyo A-12 block public housing construction projects, totaling 436.9 billion won, awarded by the Korea Land and Housing Corporation (LH).
Kumho Construction plans to aggressively target the housing market next year with the supply of approximately 10,000 units across nine projects. Starting with the Osan Saegyo A12 block in February 2025, the company will launch Atera projects in prime locations such as Busan Ecodelta 24 block and Cheongju Techno Park A7 block.
In the plant sector, the company has secured several contracts for natural gas supply facilities. Following the acquisition of a 2242 billion won contract for the Gongju natural gas power plant construction project from Korea Gas Corporation earlier this year, it recently won the contract for the Gongju combined power plant natural gas supply facility construction project. This project involves building a 27.61 km-long liquefied natural gas (LNG) supply pipeline and a supply management facility in Gongju and Buyeo, with a total contract value of 632 billion won.
Kumho Construction has become a leading player in natural gas supply facility construction, boasting the most extensive track record in this field. Since 2022, the company has secured a total of 10 natural gas supply facility construction contracts from Korea Gas Corporation, including a 2200 billion won contract for the Gumi natural gas power plant construction project.
These positive developments indicate a V-shaped recovery for Kumho Construction. As projects contracted before the surge in construction costs due to rising raw material prices and labor costs are gradually completed, new projects reflecting these increased costs will contribute to a significant portion of the company's revenue. This is expected to drive a rebound in earnings not only in the fourth quarter of 2024 but also in 2025.
A Kumho Construction official stated, "We will continue to differentiate the Atera brand and actively participate in high-profitability domestic and overseas plant projects to strengthen our future competitiveness."
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