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[Alpha Biz=(Chicago) Reporter Kim Jisun] Korea Investment & Securities pointed out that the issue of Taeyoung Construction's hundreds of billions of won in construction site implementation deposits is emerging as a risk.
"Among the balance of project financing (PF) loans, there is a considerable amount of funds that are likely to be implemented," said Kang Kyung-tae, a researcher at Korea Investment & Securities on the 20th. "If all local sites close the business without extending the loan, the guarantee will be about 720 billion won." He added, "If the project to restructure PF loans at sites that lack business feasibility is carried out in earnest from 2024, Taeyoung Engineering & Construction will be the first to face."
Korea Investment & Securities also expressed concern about Taeyoung Construction's excessive debt ratio. As of the end of the third quarter of this year, Taeyoung Construction's sequential deposit amounted to 1.93 trillion won, with its debt ratio reaching 478.7%. "Taeyoung E&C has the highest debt ratio among all large and medium-sized construction companies in the 35th place in the construction capacity evaluation," said researcher Kang Kyung-tae. "The operating profit earned is covered by interest costs."
Korea Investment & Securities believes that liquidity support from TY Holdings, the holding company of Taeyoung Group, is needed.
It also predicted that the possibility of selling its stake in SBS, a key related company, will be low. They believe that there is a higher possibility of selling other assets than SBS.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
