[Infostock Daily= Reporter An Hoe Hyun] Kyobo Securities raised its target stock price by 80% from KRW 15,000 to KRW 27,000 on the 22nd, saying that Kolon Global has sufficient momentum for share price growth due to new businesses such as wind power and earnings growth in its main construction division.
"Continued earnings surprises have relieved concerns about future earnings, and construction profits have also increased thanks to abundant cumulative order backlogs(8.8 trillion won), new orders(1.8 trillion won), and successful sales last year(9800 households). We expect dividend growth to continue until at least 2022 due to earnings improvement, and additional momentum such as wind power and modular housing is sufficient, which is recommended as a top pick for small and medium-sized construction," the company explained.
"This year's sales are expected to increase by 4.6% to 3.6 trillion won and operating profit to increase by 28.7% to 161.6 billion won. Unlike market concerns about the construction industry and the sluggish economy, operating profit will accelerate on the continued growth of sales of construction and distribution," the company predicted.
Reporter An Hoe Hyun ahh@infostock.co.kr
