[Click eStock] "Hyundai Construction Positively Selected as Contractor for Hannam 3 District... Target Price Up 35%"
Hana Financial Investment Report, Expectation of Order Expansion Up
Construction Company with the Most Investment Resources... "Active Buying"
[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating on Hyundai Engineering & Construction on the 23rd, reflecting expectations for expanded orders, and raised the target price by 35% to 57,000 KRW.
![[Click eStock] "Hyundai Construction Positively Selected as Contractor for Hannam 3 District... Target Price Up 35%"](http://www.asiae.co.kr/news/img_view.htm?img=2019071007423935782_1562712159.png)
With Hyundai Engineering & Construction being selected in the bidding for Hannam 3 District, the largest redevelopment project in Gangbuk this year, its position in the domestic housing market is expanding. Chaesangwook, a researcher at Hana Financial Investment, explained, "Looking back at the bidding for Banpo Jugong 124 District in 2017, the results of bidding in key areas of Seoul lead to brand recognition, which also influences other bidding competitions."
Overseas orders in the first quarter amounted to 9.9 trillion KRW, indicating continued solid performance. In the fourth quarter of last year, Hyundai Engineering & Construction participated as the main partner in Qatar LNG, and if awarded, it is expected to record orders worth 8 to 9 billion USD.
Hyundai Engineering & Construction is actively carrying out capital investments such as securing housing project sites and purchasing prime urban land. It has already shown proactive moves including acquiring CJ’s Gayang-dong site (1 trillion KRW) in 2019, acquiring Ssangyong Motor’s Guro Service Center site (180 billion KRW) in June 2020, and purchasing its own project site in Songdo.
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The company’s large capacity to undertake aggressive capital investment is also noteworthy. Researcher Chaesangwook stated, “Capital investment can change a company’s multiple,” and added, “Among covered construction companies, Hyundai Engineering & Construction is judged to have the best net cash position, thus having the most investment resources.”
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