1. What is the Kintex Hotel Project Win?

Tae Young Construction has been selected as the preferred bidder for the Kintex Anchor Hotel construction project, worth approximately 69.8 billion won. This represents about 2.6% of Tae Young Construction’s sales, and the construction period is approximately 35 months.

2. Why is it important? A sign of workout recovery?

This project win has both positive and negative aspects.

  • Positive Impacts:
    • Increased sales and potential for earnings improvement
    • Strengthened competitiveness in the construction sector and increased expectations for future orders
    • Easing TY Holdings’ financial burden through Tae Young Construction’s financial structure improvement (limited by workout status)
    • Improved corporate image and credibility
  • Negative Impacts:
    • Uncertainty in project progress and potential funding difficulties due to Tae Young Construction’s workout
    • Risks of construction delays and cost increases
    • Concerns about a slowdown in the construction industry

In particular, the workout situation is the biggest variable that could limit the positive effects of this project win.

3. So, how should I invest in TY Holdings?

This win is a positive signal for TY Holdings, but the uncertainty of the workout must be considered. Rather than expecting a short-term surge in stock prices, investors should carefully consider the progress of the workout, the Kintex Hotel project, and the construction market outlook before making investment decisions.

4. Investor Action Plan

  • Monitor the progress of Tae Young Construction’s workout and changes in its financial status.
  • Closely watch the progress of the Kintex Anchor Hotel construction project.
  • Check trends in new orders and profitability in the construction sector.
  • Review TY Holdings’ other business segments’ performance and financial restructuring efforts.