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(Photo = Shinsegae Construction) |
[Alpha Biz= Reporter Kim Jisun] Shinsegae Construction has traditionally generated revenue through commercial facility construction contracts from Shinsegae Group. Recently, however, the proportion of revenue from these group-generated projects has decreased.
The trend shows a declining reliance on group-generated revenue. Last year, the revenue breakdown by client included 19% from Starfield Suwon and 11% from Shinsegae, with commercial facility construction accounting for about 68% of total revenue. This year, in the first quarter, the proportion of group-generated revenue dropped to around 15%, cutting in half within three months. Consequently, the revenue proportion from commercial facility construction also decreased to 51%.
Currently, the company is working on several projects such as 'Shinsegae Gyeonggi Branch 20RM Construction' (764 billion won), 'Shinsegae Gangnam Branch 23RM Construction' (1.207 trillion won), 'Starfield Cheongna Phase 1' (831 billion won), and 'Guwol Traders' (848 billion won). However, all these projects are scheduled to be completed by next year.
Additionally, the company's order backlog is decreasing. As of the end of the first quarter, the order backlog stood at 1.9751 trillion won, which is only 1.3 times last year's revenue of 1.5026 trillion won. Typically, an order backlog covering 2-3 years of work is considered sufficient. Compared to the same period last year, when the backlog was 2.3672 trillion won, there has been a reduction of approximately 20%.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
