BS Hanyang posted sharply improved first-half earnings, driven by a shift toward profitability-focused project selection and lower cost ratios.
The company disclosed Tuesday that its consolidated first-half 2026 sales reached 758.9 billion won ($536 million), with operating profit of 97.3 billion won and net profit for the period of 65.5 billion won. Sales rose 52.5 percent from 497.5 billion won in the same period last year.
Analysts attributed the turnaround to a "selective bidding" approach — filling the order book with projects of proven viability while shedding low-margin sites. As high-cost worksites launched during the raw materials price surge near completion and higher-margin new projects ramp up, the cost-of-sales ratio fell 3.7 percentage points to 79.4 percent in the first half, down from 83.1 percent a year earlier, entering the 70-percent range for the first time.
Diversification of the order portfolio also bore fruit. The company secured two additional blocks at the Sejong Smart City development — bringing its total to four blocks — and added contracts across multiple sectors, including the Hwaseong Dongtan 2 medical complex town, the Geomam S2 project and battery energy storage system (BESS) projects in Goheung and Gwangyang. As of the end of June, BS Hanyang held an order backlog of approximately 7.3 trillion won, providing a stable pipeline of work for years ahead.
In the second half, the company will push ahead with the large-scale Sejong Smart City project. The "Sejong Smart City National Pilot City," with a total project cost of 3.16 trillion won, is a major development covering 340,000 square meters in the Yeon-dong-myeon 5-1 residential zone of Sejong, encompassing residential, office and commercial infrastructure. BS Hanyang participates as a construction equity investor in the public-private joint-venture SPC Group overseeing the project.
Within that development, BS Hanyang will handle construction of four blocks in the Smart Living Zone — L6, L7, L8 and L11 — comprising a total of 2,191 units, with ground-breaking planned for the second half. The complex is designed as a next-generation residential community integrating autonomous driving, robot delivery and smart-home technology.
The company's energy segment, a new growth pillar, is also finding its footing. The Solasido solar farm and Haechang Bay floating solar plant, both already in operation, serve as steady cash generators, while BS Hanyang has established an SPC for the Goheung-Gwangyang BESS project and broken ground, broadening its energy footprint.
In addition, a 5.4 GW renewable energy complex planned for the Solasido area by 2030 is expected to serve as a key power source for AI data centers, contributing to medium- and long-term profitability. The Myodo Northeast Asia LNG hub terminal, developed in partnership with GS Energy, is also progressing smoothly toward a target commercial launch in 2028.
"We are strengthening our management fundamentals through rigorous risk management and cost-reduction efforts," a BS Hanyang official said. "In the second half, we will continue pursuing a bidding strategy centered on projects with guaranteed profitability to improve our financial soundness."
Meanwhile, BS Hanyang ranked 32nd in the Ministry of Land, Infrastructure and Transport's 2026 construction capability assessment, climbing five places from the previous year.
hwshin@heraldcorp.com
