Q3 Revenue and Profit Strengthen Together
Jiushun Construction (5547) announced its 2026 Q3 financial results, with single-quarter consolidated revenue of 7.72億元, up 68.23% year-on-year; gross profit of 1.05億元, up 126.15% year-on-year, with gross margin reaching 13.64%; operating profit of 0.60億元, up 242.80% year-on-year, with operating margin of 7.74%; net profit after tax of 0.48億元, up 237.19% year-on-year, a single-quarter second-high, with EPS of 0.94元. The company said Q3 profitability strengthened markedly, mainly benefiting from progress in social housing turnkey and factory/office projects, plus continued revenue recognition from large projects such as the Guoyang Xizhi commercial office project, driving expansion in revenue scale.
Cumulative First-Three-Quarter Profit Grows While Capital Expansion Dilutes EPS
Cumulative revenue for the first 3 quarters was 19.88億元, up 24.18% year-on-year; operating gross profit was 2.45億元, with gross margin of about 12.33%; operating profit was 1.28億元, with operating margin of 6.42%; net profit after tax was 1.03億元, up 11.90% year-on-year. After this year's stock dividend distribution, share capital expanded from 4.52億元 to 5.10億元, and with the increase in outstanding shares, EPS was 2.04元, flat versus 2.04元 in the same period last year after retrospective adjustment, while the actual profit scale remained better than last year.
Optimizing Project Mix While Advancing Urban Renewal Turnkey Management
In recent years the company has continued to optimize its project mix, raising the share of high-margin projects, and through BIM building information modeling, smart construction sites and precise material management, has effectively reduced construction costs, lifting Q3 gross margin to 13.64%, better than the 11.50% level in the first half. In urban renewal and dangerous-building turnkey management, its subsidiary Jiulian Construction Management currently has 7 projects progressing, of which 2 have entered the construction stage and the other 5 are in planning/integration and other stages, with opportunities to convert into future construction contracting sources for the group. Jiulian Construction Management has continued to recognize turnkey management service revenue, adopting an asset-light model focused on management service fees and construction contracting revenue without participating in unit distribution, which not only reduces capital investment pressure but also extends from early-stage integration to subsequent construction, creating dual revenue sources. In addition, the Beitou Daye urban renewal project in Taipei City has completed demolition and pre-construction preparation, and will contribute revenue in this quarter.
Ample Backlog Supports 4-to-5-Year Visibility
Looking ahead, as of the end of August this year, there were 19 projects under construction, with total contract value of 270.11億元 and unrecognized project revenue of nearly 177.66億元, of which factory/office and public works together accounted for about 75% of the unrecognized amount, providing revenue growth visibility for the next 4 to 5 years. The company noted that as urban renewal and dangerous-building projects gradually move from planning/integration into actual construction, in addition to increasing existing management service revenue, it will help expand the group's subsequent construction contracting scale, gradually demonstrating the integration benefits of construction management and the core construction business. As existing large projects continue to advance, urban renewal sources enter the construction stage, and Dashun Integrated Mechanical and Electrical Engineering and Jiulian Construction Management expand their businesses, the group will leverage vertical integration across construction, electromechanical and construction management to expand contracting capability and enhance per-project added value, laying the foundation for medium- to long-term revenue and profit growth.