Korea Investment & Securities announced on the 12th that it would maintain a 'buy' rating on GS E&C and a target price of 55,000 won.
Housing sales, which are clearly rebounding from the third quarter, will lead the appearance and profitability of GS Engineering & Construction, which is in transition.
Expectations are also rising for large-scale construction orders in the fourth quarter as it is scheduled to sign the main contract for Australia's North East Link, which was selected as the preferred bidder, and recognize the remaining orders for the water treatment plant in Oman.
Global Water Solution Initial Public Offering (IPO), which will be held in the second half of next year, will be closely checked among issues related to the new business sector.
In the third quarter, GS Engineering & Construction's sales are expected to be 2.3586 trillion won and operating profit is 226.3 billion won, 5.6% and 4.2% lower than the consensus, respectively. By sector, housing sales (+19.1% YoY) are expected to rebound in three quarters.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
