SSANGYONG ENGINEERING & CONSTRUCTION CO.,LTD. (Seoul) (South Korea)

Despite growth in the civil works, firms biz revenue went down YoY, due to rapid decline in the building construction sector, arising from private sector housing stagnation.Net profit turned into deficit, because of fixed cost burden expansion, deriving from biz revenue reduction, and bad debt expense recognition in some housing project sites.Amid continuous working capital burden, due to poor APT sales in some project sites, firms fund flows from operating activities slowed down. Biz revenue recovery is not likely easy, in view of decrease in construction balance, based on construction commencement, delay of new APT sales and fierce competition in the overseas sector.Although improved profitability in the overseas sector is forecast, firm profitability is forecast low, owing to bad debt expense burden along with sales cost ratio increase, according to sluggish domestic construction industry.Smooth fund flows are expected, due to reduction trend of PF contingent liabilities, arising from APT sales ration enhancement, and cash and cash equivalent assets and fund balance.