Ebest Investment & Securities maintained its target stock price of KRW 18,000 and its investment opinion of "buy", saying that Kumho Engineering & Construction is improving its financial structure due to a steep increase in profits.
"The net profit in the third quarter was KRW 29.2 billion, 57.3% higher than the consensus net profit of KRW 24.9 billion, which is attributable to the continued low corporate tax rate due to returns from winning KEMCO-related losses and a claim to correct the last carry-over loss," Ebest Investment & Securities said.
"Housing sales are growing rapidly, and due to the improved cash balance, the debt ratio fell 108.3% p to 144.6% from 252.9% at the end of last year," Ebest Investment & Securities said.
Ebest Investment & Securities also added, "Its own business is scheduled from 433 last year to 2,264 this year, and since its own houses, such as 6-3 in Sejong, Dongtan A53BL in Hwaseong, and Yongmaru 1BL in Incheon. It is positive to see a significant improvement in profit margin as well as sales growth in the future.".
Reporter Lee Dong-hoon firstname.lastname@example.org