[Click eStock] "Daelim Industrial's Q3 Housing Sales Slightly Below Expectations Due to Reduced Operating Days"

[Asia Economy Reporter Eunmo Koo] Ebest Investment & Securities evaluated that Daelim Industrial's housing sales in the third quarter will slightly underperform expectations due to a decrease in operating days, but the expectations for fourth-quarter performance and shareholder return policies remain valid. The investment opinion and target price were maintained at 'Buy' and 140,000 KRW, respectively.

Ebest Investment & Securities estimated that Daelim Industrial's third-quarter sales will be 2.3915 trillion KRW, a 10.5% increase compared to the same period last year, and operating profit will rise by 6.7% to 234.8 billion KRW, both falling short of market expectations. Researcher Se-ryeon Kim of Ebest Investment & Securities stated in a report on the 12th, "Compared to peer companies, Daelim has relatively fewer overseas sites, and domestic housing growth is continuing, so aside from the possibility that domestic housing sales in the third quarter may be slightly lower than market expectations due to fewer operating days, the fundamentals are expected to remain stable without major variables." He added, "Not only on a standalone basis but also due to the continued strong performance of consolidated subsidiaries such as Daelim Construction and Carryflex, the downside risk to third-quarter earnings compared to peer companies is relatively supported."

The expectation for fourth-quarter performance and shareholder return policies is considered valid. Researcher Kim explained, "At a time when unstable overseas plant orders and issues such as overseas sales delays and additional cost reflections due to COVID-19 are avoided, the solid fundamentals driven by housing and domestic plant profits stand out compared to peer companies."

Furthermore, he analyzed, "Since the announcement of the split, the absence of shareholder return policies and the reduced merger expectations with Daelim Construction and the newly established Daelim Construction from the split have led to profit-taking selling pressure causing an excessive stock price decline. However, valuation upside is high based on calculations, and the absolute price-to-book ratio (PBR) has also reached an attractive level." He added, "The announcement of shareholder return policies, a strong sales turnaround led by housing in the fourth quarter, and temporary gains from the sale of Seoul Forest D Tower all indicate that the performance momentum remains valid."

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