TY Holdings Subsidiary Taeyoung Construction Wins 218.3 Billion KRW Urban Expressway Contract from LH
TY Holdings' subsidiary Taeyoung Construction has won a contract from Korea Land and Housing Corporation LH for the Gwacheon Umyeonsan urban expressway relocation project.
The contract value is 218.3 billion KRW excluding VAT, representing 10.04% of Taeyoung Construction's 2025 consolidated revenue, with Taeyoung's share at approximately 35%.
The construction period runs from August 2026 to October 2031, about five years, expected to contribute stable revenue.
This order is a large-scale infrastructure project from the government, with the highly creditworthy LH as the counterparty, lowering counterparty risk and likely having a positive impact on profitability.
However, there is no advance payment and the contract is on a progress payment basis, which may require initial working capital. Long-term risks include potential fluctuations in raw material prices.
[AI Summary]This large road construction contract from LH for Taeyoung Construction positively impacts TY Holdings' consolidated revenue and earnings, but long-term cost variability exists. While not a direct stock price catalyst, it secures stable revenue streams supporting mid-to-long-term shareholder value.
KOSPI Filing Information
Conclusion of Single Sales/Supply Contract (Major Management Matters of Subsidiary)