[Theme Stocks] HJ Heavy Industries strengthens after signing an LH public housing project contract worth 68.2 billion won

HJ Heavy Industries shows strength after signing a public housing construction contract worth 68.2 billion KRW with Korea Land and Housing Corporation (LH).

On the 22nd, HJ Heavy Industries’ trading price was 30,450 KRW, up 8.75% from the previous day.

According to the company, HJ Heavy Industries and LH signed a single sales and supply contract with regard to the public housing construction project for Namyangju Wonsuk 2 A-6BL and A-7BL mixed-use private participation. The contract amount is 68.24988 billion KRW, based on the consolidated financial statements for the end of 2025, accounting for 3.41% of the most recent sales. This is the amount reflecting HJ Heavy Industries’ 19.5% share of the total construction cost.

This project is for building 1,082 units of multi-family housing in the Ilpyeong-dong and Iypyeong-dong area of Namyangju-si, Gyeonggi-do. It consists of 519 units in A-6BL and 563 units in A-7BL. The construction period is from April 21, 2026 to April 30, 2029.

Project payments will be made without a separate advance payment, and completion conditions will be paid within the pre-sale proceeds limits based on construction progress. The company said that in the future, the construction period and contract amount may be changed in accordance with the terms of the business agreement.

The market regards this order as good news for the construction department to secure project volume. Previously, the Daebu Construction consortium was selected as the preferred negotiation counterparty for this project in December last year, and this contract is part of the subsequent process.

The Wonsuk 2 area in Namyangju is one of the third-phase new town business sites, and because of its location advantages near the GTX-B line, the market has long expected it to expand housing supply. HJ Heavy Industries carries out its business with shipbuilding and construction as its two main pillars, and in the construction sector, it is mainly responsible for public housing, urban improvement, and large passenger transportation facilities.