DL Subsidiary DL E&C Wins KRW 1 Trillion Public Housing Contract from LH... Equivalent to 13.5% of Annual Revenue, Boosting Future Earnings Outlook
DL's subsidiary DL E&C signed a construction contract with the Korea Land and Housing Corporation (LH) for the 'Seoul Jeungsan 4 Urban Public Housing Complex Project', with a total contract amount of approximately KRW 1.0018 trillion (excluding VAT, representing DL E&C's 53% share).
This large-scale order amounts to 13.53% of DL E&C's 2025 consolidated revenue (approx. KRW 7.4024 trillion). The construction period runs from May 2026 to December 2033 (about 7 years and 7 months), and involves building 3,574 residential units (B5~F41) and ancillary facilities in Jeungsan-dong, Eunpyeong-gu, Seoul.
Payment is to be made on a progress basis within the limit of sales proceeds, with any excess settled after completion. This structure is expected to contribute to DL E&C's stable cash flow.
The contract significantly boosts DL E&C's order backlog, strengthening its mid-to-long-term revenue base, and is expected to have a positive impact on parent company DL's consolidated financial statements.
[AI Comprehensive Analysis]This disclosure is positive as DL's key subsidiary DL E&C secured a major public housing project from the government, ensuring stable revenue for over 7 years. However, the long construction period and payment terms linked to sales performance expose it to real estate market fluctuations. Investors should monitor sales schedules and cost management trends.
KOSPI Filing Information
Filing: Conclusion of Single Sales/Supply Contract (Major Management Matters of Subsidiary)