April 27, 2024

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[THE INVESTOR] GS Engineering and Construction will strengthen its position overseas in the latter half, said KB Investment and Securities on May 24, raising the target price to 58,000 won (US$53.76) from 44,000 won.

Its net profit is improving in earnest and orders from overseas will increase. Development projects in Vietnam will commence by the the end of this year, said analyst Jang Mun-jun suggesting the company as a “top pick” in construction industry. 

Following the announcement of first-quarter earnings, stabilizing profits led to a sharp increase in stock price. Although the short-term hike could be somewhat burdensome, as it gains overseas momentum the upward trend may be maintained. It is likely to win orders overseas including in Thailand, Algiers and United Arab Emirates in the second half, said the analyst.

As the mid- to long-term advance in plant order market will begin in the period, GS E&C will benefit, forecast the analyst. 

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