April 25, 2024

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[THE INVESTOR] GS Engineering and Construction’s earnings in the third quarter will be surprisingly high, said Hana Financial Investment on Oct. 2, maintaining a “buy” recommendation and raising the target price to 77,000 won (US$69.02) from 70,000 won. 

Its revenue in the period will rise 19.9 percent on-year to 3.4 trillion won and operating profit will surge 219.6 percent to 227.4 billion won, gaining from the previous quarter as well, said analyst Chae Sang-wook.

The long-term growth potential of its new city development project in Nha Be, Vietnam, will push its earnings from next year. It has purchased the site fort US$200 million and the price will leap more than 10 times after development. From a long-term perspective the firm is very likely to tackle the market successfully, said the analyst, suggesting it as a “top pick” among construction industry stocks. 

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