1. The Significance of the Yeonhui 2 Project

On July 25, 2025, DL E&C secured a $3 billion contract with the Seoul Housing & Communities Corporation for the Yeonhui 2 public redevelopment project. This represents 4.80% of DL E&C’s consolidated revenue for Q3 2025 and is expected to contribute to increasing order backlog and strengthening the ‘e-Pyeonhansesang’ brand competitiveness. Winning this key project in Seoul could serve as a stepping stone for stable sales growth in the future.

2. DL E&C’s Financial Health

DL E&C boasts a substantial order backlog of $21.65 billion and diversifies its business across housing, plant, and civil engineering projects to mitigate risks. The strong brand recognition of ‘e-Pyeonhansesang’ and ‘ACRO,’ along with continuous R&D investment, are key strengths. However, rising raw material prices and interest rates, uncertainties in the housing market, PF risks, and overseas business risks could negatively impact profitability.

3. Key Investment Risks

Rising raw material prices and the prevailing high interest rate environment could adversely affect DL E&C’s profitability. There is also a possibility of project delays if the housing market experiences a downturn. PF-related risks and uncertainties in overseas projects are also critical factors to consider when investing.

4. Action Plan for Investors

While the Yeonhui 2 project offers long-term growth momentum, it’s crucial to carefully monitor short-term market volatility and risk factors. Continuously analyze the impact of external variables such as raw material prices, interest rates, and housing market conditions. Make informed investment decisions based on your risk tolerance and investment goals.