Park Roche Seoul Won, a residential project by IPark Hyundai Development [IPark Hyundai Development]
Park Roche Seoul Won, a residential project by IPark Hyundai Development [IPark Hyundai Development]

IPark Hyundai Development announced preliminary second-quarter results of 914.6 billion won ($618 million) in sales and 122.7 billion won in operating profit, up 36% and 53% respectively from the previous quarter, as the company continued its profitability-led growth. The operating margin came in at 13.4%.

A company official said Friday that sales and operating profit both rose in the second quarter on the back of a portfolio centered on high-quality project sites, adding that achieving an operating profit above 100 billion won marked the first time in about five years.

The official added that the 13.4% operating margin in the second quarter meant the company had posted a double-digit operating margin for two consecutive quarters.

On the operating profit improvement, the official attributed it to better cost ratios and a project portfolio focused on high-margin in-house developments and large, high-quality sites. The company expects the improvement to continue in the second half, supported by stable earnings contributions from in-house projects including Seoul Won IPark, as well as large premium sites such as Cheonan IPark City and Unjeong IPark Forest.

IPark Hyundai Development plans to sustain stable profitability through rigorous cost management and a selective order strategy centered on high-quality sites. The official said the company will maintain a stable operating margin in the second half by continuing to improve cost ratios and fully reflecting earnings from in-house projects and large premium sites, and that it plans to pursue quality growth centered on profitability.

The company has set targets of 4.23 trillion won in consolidated sales and 6.53 trillion won in new orders this year, and plans to expand urban redevelopment orders and increase supply at large, high-quality project sites. In the urban redevelopment segment, the company intends to build on its order win at the Seongnam Taepyeong District 3 project — worth 585.2 billion won — and broaden its order base by targeting major redevelopment projects in Seoul and prime locations nationwide.

The company also plans to continue supplying more than 13,000 units nationwide, led by large-scale projects including Cheongju Gagyeong IPark complexes 7 and 8, Cheonan IPark City complexes 5 and 6, and City O'Ceil complex 9, while maintaining stable pre-sales.

"We plan to continuously strengthen our portfolio around projects that can secure both profitability and growth," a company official said. "We will build a stable business foundation through urban redevelopment and expanded supply at high-quality sites, and secure long-term growth drivers on the strength of the IPark brand."

Building on solid first-half profitability, IPark Hyundai Development plans to sustain stable earnings momentum in the second half. The company will maintain its selective order approach and strict cost management while reinforcing both profitability and financial soundness through a portfolio centered on in-house developments and high-quality project sites. It also aims to continue quality growth that enhances customer and shareholder value on the basis of a sustainable growth platform.

Meanwhile, IPark Hyundai Development has fully renewed its IPark brand for the first time in about two years, marking the company's 50th anniversary.


lucky@heraldcorp.com