[Click e-Stock] Daewoo Engineering & Construction, Nuclear Power Expectations Rise... Target Price Raised

IBK Investment & Securities: "Daewoo E&C Shows Strong Nuclear Expansion Potential"

On April 21, IBK Investment & Securities raised its target price for Daewoo Engineering & Construction from 14,500 won to 36,000 won, citing strong expectations for its nuclear power business. The current share price stands at around 28,000 won.

Jung-Hyun Cho, a researcher at IBK Investment & Securities, stated, "The core investment point for Daewoo Engineering & Construction is its nuclear power business." He added, "Although the contract for the Czech nuclear power plant, a key issue, is being delayed somewhat compared to initial expectations, the company is avoiding low-margin contracts and is working to secure reasonable profitability."

Cho also analyzed, "In addition to the Czech Republic, the company is approaching the Vietnamese nuclear power project with strong commitment, and is also keeping open the possibility of participating in the U.S. market as part of 'Team Korea.' Daewoo Engineering & Construction's nuclear project pipeline is forming a broader potential than initially anticipated."

He emphasized that the gas sector also warrants attention. "Daewoo Engineering & Construction has experience as the lead contractor for LNG liquefaction and gas processing facilities, and its existing business pipeline continues in Nigeria, Mozambique, and Papua New Guinea," he explained.

He further noted, "If global LNG supply chain instability rises due to potential blockades in the Strait of Hormuz or disruptions in Ras Laffan, Qatar, the demand for supply diversification among countries is likely to increase significantly. In such an environment, the strategic value of Daewoo Engineering & Construction, with its experience in LNG project execution, will inevitably rise."

Cho estimated, "The company's operating profit for the first quarter is projected at 125.9 billion won, down 16.8% year-on-year," adding, "After reflecting major cost issues in the fourth quarter of last year, profitability is expected to gradually normalize starting this year."

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