[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 (firstname.lastname@example.org)