Hanwha Investment & Securities maintained its target stock price of KRW 180,000 and its investment opinion of "buy", saying that it will continue to perform well based on its high profitability and stability.
"The cumulative new orders in the third quarter fell 22% year-on-year to KRW 5.5 trillion on a consolidated basis, and the order backlog in the housing sector is also gradually decreasing," Hanwha Investment & Securities said.
"The atmosphere is quite different from our competitors who are breaking the largest-ever order backlog by increasing orders," Hanwha Investment & Securities said. "This year's housing construction plan has also been lowered from the previous 20,054 households to the 15,660 generation, which is slightly lower than last year's 16,227 generation.".
Hanwha Investment & Securities also added, "The volume of construction is likely to increase sharply next year due to the delayed sale of 4,400 households, but it seems necessary to confirm a more aggressive recovery of orders before that.".
"We proposed hydrogen energy and CCS (Carbon Dioxide Collection Facility) business as a new business among the mid-term management strategies announced in February," Hanwha Investment & Securities said. "DL E&C has a number of traditional reformed hydrogen production plant EPC (design, procurement and construction) in Oman and Russia, and has experience in ammonia plants.".
"Above all, DL E&C is the only one in Korea that has experience in carrying out everything from the basic design of CCUS (Carbon Collection Storage) to EPC. Based on this, it signed an MOU with Hyundai Oilbank in August and received a letter of intent to bid for CCUS from Daesan Power," Hanwha Investment & Securities added.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com