[Click eStock] "Daelim Industrial, Repeated Earnings Surprises... Target Price Up 11%"

[Asia Economy Reporter Park Ji-hwan] Yuanta Securities maintained a 'Buy' rating on Daelim Industrial on the 4th, stating that the company continues to record repeated earnings surprises, and raised the target price by 11% from the previous 100,000 KRW to 111,000 KRW.

Kim Ki-ryong, a researcher at Yuanta Securities, stated, "Daelim Industrial's consolidated results for the first quarter of this year recorded an earnings surprise, exceeding market expectations by 23%, with an operating profit of 290.2 billion KRW." The reason for the strong performance is analyzed to be additional profits reflecting the remaining payments from the standardized housing project (Chuncheon Hansup City) (operating profit of about 20 billion KRW), settlement profits from Malaysia, Oman, and domestic S-oil (about 20 to 30 billion KRW), and the earnings surprise effect of its subsidiary Samho.

Daelim Industrial's consolidated operating profit for this year is estimated to increase by 14% compared to the record high operating profit of 1.13 trillion KRW in 2019, reaching approximately 1.28 trillion KRW. In particular, attention is drawn to the effects of incorporating Goryeo Development and Cariflex into the consolidated results, as well as the sales performance of Acro Seoul Forest Office.

However, the new order performance is evaluated as a disappointing factor. Researcher Kim Ki-ryong explained, "New orders in the first quarter of this year amounted to about 950 billion KRW, achieving only about 9% of the guidance, showing a sluggish state," and added, "The order guidance for this year is approximately 10.9 trillion KRW."

He also stated, "Domestic housing sales, planned at about 23,000 units this year, are expected to begin in earnest starting with the first project site in June to July."

This content was produced with the assistance of AI translation services.