[Edaily Reporter Kwon Oh Seok ] SG CO., LTD.(255220)’s stock price is surging in early trading. It appears that buying interest is surging in response to positive analyst reports from the securities industry. (Photo courtesy of SG CO., LTD.) According to MP Doctor on the 26th, as of 9:16 a.m., SG CO., LTD. shares are trading at 1,293 won, up 6.33% from the previous trading day. Earlier that day, the independent research firm Aris analyzed that SG CO., LTD.’s earnings growth would gain momentum starting in the second half of this year. However, it did not provide an investment rating or a target price. Lee Jae-mo, an analyst at Aris, stated, “SG CO., LTD. successfully returned to profitability in both operating profit and net income in the second quarter.” He added, “To minimize the impact of soaring raw material prices on profitability, the company adopted a flexible volume management strategy focused on profitability—including adjusting some production and delivery schedules—and achieved improved second-quarter earnings through the price-indexed structure of government-contracted asphalt concrete.” He continued, “By signing a Multi-Supplier Agreement (MAS) worth 98.5 billion won for a two-year period from early this month through the end of July 2028, the company has secured a sales base for government-procured asphalt to supply the central government, local governments, and public institutions,” and “We operate nine asphalt production plants nationwide, including those of our affiliates, and have established a production system connecting the Seoul, Incheon, Gyeonggi, and Chungcheong regions,” he added. SG CO., LTD. is utilizing funds from a paid-in capital increase to pursue the acquisition of a new asphalt plant in northern Gyeonggi Province. Once this new facility is added, it will strengthen supply capacity in northern Gyeonggi by linking it with the existing Pocheon production facility, while simultaneously establishing a production and logistics network covering the entire Seoul Metropolitan Area. Overseas, the company is expanding its business with a dual focus on entering new markets in Indonesia and participating in reconstruction projects in Ukraine. Based on its EcoSteel Asphalt technology—an eco-friendly, highly durable paving material commercialized in Korea—the company is pursuing entry into local road infrastructure markets.
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