[Click eStock] "GS Geonseol, Continued Strong Performance in Housing and Active New Businesses... Stock Price Expected to Rise"

[Asia Economy Reporter Park Ji-hwan] Ebest Investment & Securities forecasted on the 4th that GS Construction will continue to show strong performance in the housing sector and is actively moving forward with new businesses such as electric vehicle battery recycling, projecting a long-term upward trend in its stock price.

Researcher Kim Se-ryeon of Ebest Investment & Securities stated, "GS Construction's Q4 revenue is expected to be 2.4166 trillion KRW, a 14.2% decrease compared to the same period last year," adding, "operating profit is expected to decrease by 2.9% year-on-year to 198.9 billion KRW." Although strong domestic housing sales are expected to continue due to the Q4 housing construction peak season, the estimate was slightly lowered from initial expectations considering the sales gap in the first half of the year.

Pre-sales are expected to slightly miss the initial guidance of 28,600 units, but this is attributed to delays in permits and pricing schedules, a situation similarly experienced by other construction companies in the industry. However, it is anticipated to finish at a higher level than last year's 26,909 units, indicating no issues in securing growth momentum.

The continued strong performance in the housing sector, GS Construction's biggest investment point, is positive. However, due to the high exposure to housing, the stock price momentum inevitably depends on major events such as the presidential election, which is considered a downside. Researcher Kim Se-ryeon said, "The intrinsic valuation has re-entered an undervalued range with a price-to-earnings ratio (PER) of 6.8," adding, "Considering the active investment in new businesses including the electric vehicle battery recycling business, a long-term upward trend is expected."

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