[Click eStock] "Daewoo Construction, Promising Q3 Earnings"

Kyobo Securities forecasted on the 16th that Daewoo Engineering & Construction will record the most outstanding performance among construction companies engaged in the housing business in the third quarter. The investment opinion was maintained as 'Buy', and the target price was kept at 6,000 KRW.

Researcher Baek Gwang-je of Kyobo Securities stated, "Third-quarter sales are expected to reach 2.9 trillion KRW, a 16% increase compared to the previous year, while operating profit is projected to be 180 billion KRW, a 12.3% decrease."

Researcher Baek explained, "Despite the visibly favorable performance, the industry continues to face challenging business environments such as the PF market and occupancy sites," adding, "Thanks to the strong performance in the non-residential sector, Daewoo E&C is considered one of the few construction companies capable of investment based on solid performance."

This assessment is due to a high order backlog and overseas business performance. Researcher Baek estimated new orders for the third quarter at around 9 trillion KRW, with the order backlog expected to reach a record high of 45 trillion KRW. Additionally, profitability from overseas non-residential sectors such as Nigeria NLNG and Iraqi ports is expected to continue contributing to earnings.

Researcher Baek analyzed, "The debt ratio has improved continuously from 290% in 2019 to 188% in the second quarter of this year," and added, "Since 2022, Daewoo E&C has maintained outstanding performance among construction companies."

He further added, "Despite ongoing cost factors such as raw material prices and labor costs, as well as instability in the local occupancy market, sales in the non-residential sector are increasing, and thanks to additional improvements in the plant division's cost ratio, the company is expected to exceed the annual guidance sales target of 10.9 trillion KRW."

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