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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘GS E&C satisfies Q2 earnings outlook’

  • PUBLISHED :July 17, 2018 - 13:31
  • UPDATED :July 17, 2018 - 13:31
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[THE INVESTOR] GS Engineering and Construction’s second-quarter earnings will be solid, said Mirae Asset Daewoo on July 17, maintaining a “buy” recommendation and raising the target price to 58,000 won (US$51.53) from 48,000 won.




Its earnings will be in line with market consensus, with 2.94 trillion won revenue and 216.7 billion won operating profit. Its over 200 billion won quarterly operating profit on a standalone basis is a record high and tops that of the industry, 

Sales in residential market remain solid while loss from overseas business continues to shrink. As it maintains solid earnings, improvement of financial health will accelerate. Its debt-equity ratio will decline by 245 percent this year and 195 percent next year, said analyst Lee Gwang-su.

Strong earnings and better financial structure will lead to expansion overseas, and housing projects in Vietnam and orders from foreign clients will let it secure long-term growth potential. Investors should pay attention to its swelling market dominance, he added pointing out that despite declining sales of apartment housings since 2016 GS E&C’s share remains almost unchanged. 

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

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