South Korea's top builder Daewoo Engineering & Construction Co. (KSE:047040) said Tuesday its net profit went up 7.9 per cent in 2006 from a year earlier on a rise in sales and improved profit margins.

Net income climbed to 438.7 billion won (US$466.5 million) last year from 406.7 billion won the previous year, the company said in a regulatory report.

Sales gained 12.9 per cent year-on-year to 5.7 trillion won in 2006, with operating profit surging 45.7 per cent to 628.8 billion won.

Daewoo shares rose 0.56 per cent to 18,050 won as of 9:52 a.m.

The company ascribed the earnings gain to increased sales and improved profit margins stemming from high-end orders.