[Click eStock] "Daewoo Construction, Domestic and Overseas Performance Expected to Improve Next Year... Target Price Up 22%"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating on Daewoo Engineering & Construction on the 11th, expecting strong performance domestically this year and both domestically and overseas next year, and raised the target price by 22.2%.

Lee Dongheon, a researcher at Daishin Securities, stated, "This year's annual pre-sale volume has practically achieved the target of 34,000 units with the current 32,000 units," adding, "This is a 64.6% increase compared to last year's pre-sale volume of 20,655 units."

Next year, it is expected that more than 30,000 units will be pre-sold, including 8,200 units of self-supplied volume. The researcher believes that domestic pre-sales will continue to perform well for large construction companies due to rising housing prices and a decrease in unsold units.

He analyzed, "This year's annual new orders are expected to achieve the target of 12.7 trillion KRW, having reached 8.5 trillion KRW by the third quarter," and "In overseas orders, 2.8 trillion KRW was achieved by the third quarter out of the 5 trillion KRW target, but major projects were deferred to next year due to the impact of the novel coronavirus (COVID-19)."

In particular, next year, a large-scale surplus is expected to continue, and the book value per share (BPS) is anticipated to increase by 10% compared to this year. He predicted, "Next year, based on experience from LNG projects, orders for target projects are expected to continue, leading to sustained performance improvement."

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