HDC Hyundai Development extended its run of improving profitability in the third quarter, posting operating profit of more than 160 billion won. Expanded construction at its own development projects and lower cost ratios at major housing sites pushed quarterly operating profit to its highest level in about six years, since the fourth quarter of 2020.
Third-quarter operating profit came to 165.8 billion won on a consolidated basis, up 127.1% from a year earlier, according to a regulatory filing with the Financial Supervisory Service on the 22nd. The figure was also 35.1% higher than the 122.7 billion won posted in the previous quarter. It was the first time quarterly operating profit exceeded 160 billion won since the fourth quarter of 2020.
Revenue rose 2.8% from a year earlier and 18.3% from the previous quarter to 1.0821 trillion won. Net profit climbed 179.2% from a year earlier to 111.3 billion won. The operating margin reached 15.3%, staying in double digits for a third consecutive quarter since the first quarter of this year.
Cumulative revenue for the first three quarters fell 14.5% from a year earlier to 2.6707 trillion won. Cumulative operating profit, however, rose 77.9% to 368.6 billion won, showing that profitability improved even as the top line contracted.
The earnings gain was driven in part by expanded construction at Seoul One IPARK, one of the company's own development projects. As work moved into full swing, revenue and profit recognition increased, while improved cost ratios at major subcontracted housing sites such as Cheonan IPARK City and Paju Unjeong IPARK Forest also lifted profitability.
New projects are also underway. Major housing sites including Cheongju Gagyeong IPARK complexes 7 and 8 have broken ground, and large development projects such as the Bokjeong Station area development and the private investment project to build the Jamsil sports and MICE complex are in progress.
"We achieved revenue growth and improved profitability at the same time, based on full-scale construction at our own development projects and a portfolio centered on high-quality sites," an official at HDC Hyundai Development said. "We will continue to firmly establish a virtuous cycle of value-up so that earnings improvements lead to stronger financial soundness and enhanced shareholder value."