[Click eStock] “Hyundai Construction, Clear Earnings Growth Next Year”

Strong Performance Expected in Both Housing Sales and Overseas Orders
Yuanta Securities "Maintain Hyundai Construction Target Price at 70,000 Won"

[Asia Economy Reporter Gong Byung-sun] Hyundai Engineering & Construction is expected to show clear performance growth next year, supported by the expanded housing sales so far and large overseas orders continued since 2019. Additionally, orders are anticipated from the Philippines and Iraq.

According to Yuanta Securities on the 30th, Hyundai Engineering & Construction's housing sales exceeded approximately 21,000 units on a cumulative basis through the third quarter this year, making it highly likely to meet Yuanta Securities' guidance of 32,000 units. This is also the highest annual sales record.

Housing sales are expected to continue strong performance next year as well. Considering the delayed sales schedules of redevelopment projects this year, it is projected that about 30,000 units will be sold next year. Furthermore, the domestic orders, which have already surpassed the guidance of 8 trillion KRW and reached 11.3 trillion KRW as of the third quarter this year, are also expected to continue reflecting the housing sales performance.

Overseas orders are another promising factor. Overseas sales in the third quarter this year increased compared to the same period last year for the first time since the third quarter of 2019, due to progress in large overseas projects such as Farzan in Saudi Arabia and Panama Metro. Kim Ki-ryong, a researcher at Yuanta Securities, stated, “Based on diversified capabilities by region and construction type, order achievements will continue in the Philippines railway, Egypt El-Dabaa nuclear power plant, Iraq, and others,” and predicted, “The trend of improving overseas sales will continue.”

Accordingly, Yuanta Investment & Securities maintained Hyundai Engineering & Construction’s investment opinion as ‘Buy’ and the target stock price at 70,000 KRW. They also maintained their top pick opinion for the construction sector. The closing price on the previous day was 45,600 KRW.

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