[Click eStock] "Hyundai Construction, Simultaneous Growth in Housing and Overseas Sales from 2Q"

[Asia Economy Reporter Kwon Jae-hee] Hanwha Investment & Securities maintained a buy rating on Hyundai Engineering & Construction on the 11th, setting a target price of 72,000 KRW. Although operating profit for the first quarter is expected to fall short of market expectations, the company's outstanding order performance is projected to continue this year.

Hyundai Engineering & Construction's consolidated first-quarter sales are estimated at 4.2 trillion KRW, with operating profit at 179.5 billion KRW. Sales increased by 0.3% year-on-year, while operating profit decreased by 10.7%.

Researcher Song Yu-rim of Hanwha Investment & Securities analyzed, "The main cause of the decline in operating profit is attributed to Hyundai Engineering's somewhat sluggish performance amid minimal total sales growth."

The strong momentum in Hyundai Engineering & Construction's order intake is expected to continue this year. First-quarter new orders (on a separate basis) are around 6 trillion KRW, most of which are domestic orders focused on housing. This marks another record high for housing orders in the first quarter, and the annual order target of 6 trillion KRW is likely to be achieved by the second quarter.

Major housing orders include Pohang Hwanho Park (600 billion KRW), Siwha MTV (500 billion KRW), and Heukseok District 9 (450 billion KRW). Significant architectural orders such as Hanadream Town (450 billion KRW) and Yongin Data Center (540 billion KRW) also followed. Additionally, a large portion of the first-quarter housing orders are understood to be subcontracted, indicating an increase in supply volume within the year. The planned housing supply for this year is 30,405 units; 7,052 units were supplied in the first quarter, and as of April 8, 10,366 units have been supplied.

Researcher Song stated, "On a separate basis for Hyundai Engineering & Construction, housing sales growth was weaker than expected, while overseas sales have shown a sharp recovery since the second half of last year. From the second quarter of this year, simultaneous growth in housing and overseas sales is anticipated."

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