Sambu Construction Secures Stable Revenue Base with 1.5-Year Extension of Honam High-Speed Railway Phase 2 Contract

Sambu Construction filed a correction disclosure on June 16, 2026, extending the contract end date for the Honam High-Speed Railway Phase 2 Section 7 earthwork project with the National Railroad Authority from June 22, 2026 to December 31, 2027.
The contract value of 163.9 billion KRW represents 72.47% of 2019 consolidated sales, and the 18-month extension with unchanged terms ensures stable revenue recognition without any contract modifications.
The counterparty is the state-run National Railroad Authority, implying minimal credit risk, and the project is a government-led high-speed rail infrastructure initiative, positive for long-term profitability.
[AI Summary]The extension of the existing large-scale railway contract guarantees stable revenue and cash flow for Sambu Construction over the next several years. Since it is a simple extension without changes in contract terms, there is no additional financing burden or equity dilution. The transaction with a state entity carries low counterparty risk, which is positive for shareholder value.