[News] Outstanding Financial Stability Despite the COVID-19 Shock

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Date created	2023-12-06 09:32:47	Hit	34
[DealSite Reporter Park Seong-jun] Dong-A Geological recorded its first-ever loss last year due to the COVID-19 shock, but it is managing to endure the loss based on its strong financial stability. With the construction industry in a slump, securing large new contracts has become challenging, making it difficult to expect growth in its size. However, the company has recently been reducing its debt and has adopted a more conservative approach to managing financial stability. According to Dong-A Geological's quarterly report on the 5th, the operating profit margin has been on a continuous decline since 2017, but it has started to recover this year due to improvements in cost rates. Dong-A Geological's operating profit margin peaked at 7.2% in 2018, but has steadily declined since then, falling to 1.4% in 2021 and turning negative in 2022. However, the company has returned to profitability this year, with the operating profit margin slightly improving to 2.8% in the first half of the year.