[Click eStock] "Hyundai Construction, Abundant Overseas Order Pipeline in the First Half"

[Asia Economy Reporter Eunmo Koo] Korea Investment & Securities evaluated that Hyundai Engineering & Construction has a rich overseas order pipeline in the first half of this year and has a bright order outlook for the entire year.

On the 6th, researcher Chiho Kim of Korea Investment & Securities reported that Hyundai Engineering & Construction's overseas order pipeline is abundant in the first half of this year. Researcher Kim said, "Along with the Lusail Plaza Tower (600 billion KRW) that was ordered as soon as the new year began, the results of multiple large-scale project bids will be announced in the first half of this year," adding, "The total order volume includes Qatar North Field LNG worth 16 billion USD, Iraq CSSP (2.9 trillion KRW), Iraq power plant (1.4 billion USD), and Panama Metro (2.5 billion USD), all awaiting results announcements within the first half." Projects that have already received Letters of Intent (LOI) (CSSP) and projects selected as preferred negotiators (Panama Metro) are expected to lead the order momentum in the first half.

The order outlook for this year is positive. Researcher Kim estimated that Hyundai Engineering & Construction's sales in the fourth quarter of last year decreased by 5% year-on-year to 4.3 trillion KRW, and operating profit increased by 27% to 210 billion KRW, falling short of consensus. He analyzed, "Compared to the same period last year, which reflected large losses at overseas sites, operating profit has improved, but sales will slightly decrease due to a gap in plant orders," and added, "The order confirmation for the Iraq Well Water Supply Facility (CSSP, 2.9 trillion KRW) and Algeria Combined Cycle Power Plant (1 trillion KRW), which were expected to be finalized in the fourth quarter, has been postponed to this year, making it practically difficult to achieve last year's order guidance." However, he diagnosed, "The order of these projects is only a matter of timing, and this year is expected to see order confirmations for delayed projects along with a favorable overseas order environment."

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