▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 28, 2024

Stocks & Bonds

[EQUITIES] ‘Daewoo E&C grossly undervalued’

  • PUBLISHED :October 17, 2017 - 14:00
  • UPDATED :October 17, 2017 - 14:00
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] Daewoo Engineering and Construction will break earnings record in the third quarter, continuing on its good performance for three consecutive quarters, said Kyobo Securities on Oct. 17. The securities firm maintained a “buy” recommendation and 12,000 won (US$10.60) target price. 




Its third-quarter revenue and operating profit will reach 3 trillion won and 244 billion won, up 7.0 percent and 150.3 percent on-year, respectively, estimated analyst Baek Gwang-je. 

Although the domestic construction industry is in the low season, revenue from its Hanoi project and sales of there will boost the bottom line. Over 40 billion won operating profit in Vietnam will push the third-quarter earnings to a record 250 billion won, said the analyst. 

Its stock price has been dented by concerns over the slowing housing market following the new real estate policy, but will be reevaluated as its earnings continue to improve. Orders from overseas will reach the target amount and income from Vietnam will be reflected, according to Baek.

Its operating profit for the whole year will top 1 trillion won, the highest among domestic construction companies on a standalone basis, added the analyst, underlining that its stocks are grossly undervalued. 

By Hwang You-mee (glamazon@heraldcorp.com)

EDITOR'S PICKS