IS Dongseo said on the 13th that it posted consolidation-based first-quarter revenue of 437 billion won, operating profit of 118.1 billion won, and net profit of 154.5 billion won.
Revenue rose 32.8% from the previous quarter and 46.1% from a year earlier. The company swung to an operating profit from a loss in the previous quarter, up 265.0% year over year. Net profit also returned to the black from the previous quarter, delivering improved results from a year earlier.
Revenue by business institutional sector: ▲ construction institutional sector 214 billion won ▲ environment institutional sector 86.4 billion won ▲ concrete institutional sector 63.4 billion won ▲ secondary battery institutional sector 55.0 billion won ▲ other institutional sector 19.1 billion won.
IS Dongseo said the main driver of the improved results was a recovery in the construction institutional sector. As revenue on a delivery basis from the Goyang Deogeun DMC IS BIZ Tower Hangang (6·7BL) site was recognized, the construction institutional sector recorded revenue and operating profit.
An IS Dongseo official said, "The steady move-in progress of the Goyang Deogeun project and the recognition of revenue from high-margin business sites contributed to improved profitability," adding, "In addition, the reversal of part of the allowance for doubtful accounts pre-emptively set in the previous quarter added to the profitability improvement."
The secondary battery institutional sector also partly contributed to better results. With profitability improving due to higher prices for key metals, the secondary battery institutional sector posted revenue of 55.0 billion won and operating profit of 8.0 billion won. The company plans to continue enhancing operational efficiency and stabilizing materials and supplies procurement while responding to market conditions.
The concrete institutional sector also saw improved profitability thanks to revenue growth centered on high–value-added projects such as Pyeongtaek P5 and increased production volume. In particular, as shipments of large-diameter piles (PILE) are expected to expand mainly for semiconductor plants in Yongin and Cheongju, stable business operations are projected to continue.
Although the environment institutional sector is expected to see a limited pace of recovery in some businesses due to a slowdown in the overall construction and manufacturing sectors, it is maintaining a stable performance trend based on increased new orders focused on environmental energy solutions and higher construction revenue. The company plans to strengthen mid- to long-term competitiveness based on its capability to stably operate environmental infrastructure and waste treatment businesses.
This quarter's results also reflected 93.8 billion won in equity-method gains from the sale of Koentec. As a result, non-operating profit and loss improved significantly, and profit before income taxes came to 201.1 billion won.
IS Dongseo plans to maintain stable business operations based on the competitiveness of its key business institutional sectors. In particular, "Gyeongsan Penta Hills W," scheduled to go on sale in Jun., is expected to have a positive impact on the construction institutional sector's results. Set to rise in Jungsan-dong, Gyeongsan, North Gyeongsang, "Gyeongsan Penta Hills W" is a large-scale project with six basement levels to 59 above-ground floors, 18 buildings in total, and 3,443 households.
A company official said, "The first-quarter results are the outcome of stable revenue recognition in the construction institutional sector and a strategy to diversify the business portfolio translating into tangible results," adding, "We plan to continue strengthening the competitiveness of our key business institutional sectors with a focus on profitability and financial stability."