[Click eStock] "Jaes&D, Year-End Earnings Growth Expected"

No Short-Term Momentum but Still Strong Fundamentals
Ebest Investment & Securities "Lowering JaesND Target Price from 16,500 KRW to 14,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Jaes & D's performance in the upcoming fourth quarter is expected to show strong results, supported by solid fundamentals and the peak construction season. However, securities analysts say that there is no short-term momentum, so investors will have to wait until the end of the year.

On the 13th, Ebest Investment & Securities maintained its "Buy" rating on Jaes & D. The target price was lowered from the previous 16,500 KRW to 14,000 KRW. The closing price on the 10th was 9,680 KRW.

The absence of short-term momentum led to the downward revision of the target price. Researcher Kim Se-ryeon of Ebest Investment & Securities explained, "The construction sector has entered a phase of stock price fatigue and a short-term momentum lull after political factors that continued since the end of last year." Jaes & D recorded 13,645 KRW earlier this year, showing a rise of more than five times compared to March of last year.

However, the fundamentals remain strong. On the 9th, Jaes & D announced the signing of a construction contract for the Gwacheon 3-3 Block officetel complex project. This project involves constructing one building with seven basement floors and 15 above-ground floors on commercial land in Gwacheon Knowledge Information Town, including 135 officetel units, offices, and neighborhood living facilities. In the second quarter, the first contracted project, Namyangju Byeollae Jaiela, was completed, generating settlement profits. As of the cumulative second quarter, housing sector sales reached 77.2 billion KRW, already surpassing last year's total housing sector sales of 72.5 billion KRW. The housing order backlog stands at 763.6 billion KRW, setting a record high each quarter.

Strong performance is expected in the fourth quarter. The HI division, which provides value-added services such as home networks and contributes the most to sales, is expected to be influenced by GS Construction's fourth-quarter move-ins. Researcher Kim said, "Sales will grow in the fourth quarter due to the peak housing construction season. In the third quarter, along with the fourth quarter's performance, stock price elasticity is also expected due to anticipation of eased construction market regulations following next year's presidential election."

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