April 26, 2024

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[THE INVESTOR] GS Engineering and Construction will resume winning overseas orders in earnest in the latter half, said Yuanta Securities Korea on Aug. 28, maintaining a “buy” recommendation and 63,000 won (US$56.72) target price.

It will be able to receive significant number of large projects such as oil refineries in Algiers (US$2.5 billion) and Indonesia (US$4 billion) as well as Lotte Chemical’s naphtha cracking center in Malaysia (US$4 billion). Meanwhile, a pilot development project to build multi-unit residences in Vietnam estimated to be worth 10 billion won will be carried out as planned, said analyst Kim Gi-ryong.

Its corporate value will rise as profits are boosted by major overseas projects and improved cash flow following the completion of building 25,000 housing units in the domestic market. GS Group is planning to invest 20 billion won, and combined with a secure captive market within the group and expectations for dividends, there is ample room for its stock price to rise further, said the analyst.

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