BNK Investment & Securities maintained its target price of 18,500 won and investment opinion of "buy" on Dongbu Corporation, saying that the luxury brand Centreville (Dongbu Corporation's Housing Brand) was reviving in the 2000s.
"Sales in the third quarter fell 6.5% year-on-year to 271.1 billion won," BNK Investment & Securities said. "Although orders increased significantly this year following last year, it seems that established companies have not yet begun in earnest.".
"In the case of housing, it is due to an increase in the volume of maintenance projects that require a long time to start construction, and a number of new distribution projects have been postponed from the first half to the second half," BNK Investment & Securities said.
"Despite the external congestion, operating profit has increased significantly due to the reflection of high-margin sales of its own businesses and improvement in the cost ratio of the public sector such as civil engineering.".
BNK Investment & Securities said, "In the fourth quarter of this year, the sales of order backlogs are expected to be on track to some extent," and added, "The effect of new sales is gradually becoming visible.".
"Dongbu Corporation's sales and operating profit in the fourth quarter of this year are expected to increase 1.8% and 39.4%, respectively, compared to the same period last year," said BNK Investment & Securities.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
