Meritz Securities said on the 30th that considering its ability to generate annual cash flow, it is expected to see a gradual rise in stock prices despite its low growth pace, adding that its "buy" investment opinion and target stock price will remain at 180,000 won.
"As of the end of the second quarter, DL E&C's cash and cashable assets increased by 396 billion won on-year to 2.2328 trillion won in balance payments for households in Seoul's Acro Forest in the first half of the year and advance payments at some civil engineering project sites," said Meritz Securities
"This year's basic debt ratio improved by 10%, and net cash increased by 257.9 trillion won, maintaining a stable financial structure at 1.266 trillion won.".
DL E&C's consolidated sales in the second quarter fell 12.7% year-on-year to 1.9223 trillion won. Operating profit fell 19.9% to 229 billion won, slightly exceeding market expectations.
Based on DL E&C, orders for the housing sector in the first half fell 28.2 percent year-on-year to 1.4945 trillion won, but considering projects planned to be recognized this year, it secured a total of 4 trillion won worth of housing orders by the end of the first half of the year. The portion of orders by sector consists of 40% developer, 23% urban maintenance, and 37% general contracts.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
