[THE INVESTOR] Hyundai Engineering and Construction’s orders and earnings will take rise next year, said Shinhan Financial Investment on Dec. 12, maintaining a “buy” recommendation and 54,000 won (US$49.58) target price.
Its fourth-quarter revenue will fall 3.3 percent on-year to 5.2 trillion won and operating profit by 15.1 percent to 346.6 billion won, estimated analyst Oh Gyeong-seok. The strong apartment market since 2015 will continue to boost its growth in the housing sector but some of its overseas projects have been completed and the figures will decline slightly, noted the analyst.
Next year, the amount of new orders will rise 5.5 percent from this year to 22 trillion won on the back of rising oil prices, and orders for civil engineering and plant construction overseas will expand, explained Oh. Revenue in 2018 will rise 5.9 percent on-year to 18.8 trillion won and operating profit by 9.9 percent to 1.2 trillion won, he estimated.
Hyundai will grow more steadily than its peers thanks to strong housing market and Hyundai Motor’s new headquarter project, and its profits will improve faster as overseas cost rate declines, according to the analyst.
By Hwang You-mee (firstname.lastname@example.org)