Daewoo E&C expects additional earnings improvement in 2H (NH Investment & Securities)

NH Investment & Securities analyzed on the 30th that Daewoo Engineering & Construction is expected to further improve its performance in the second half of the year. Investment opinions and target stock prices remained at KRW 10,000 and buying.

NH Investment & Securities explained, "Daewoo E&C's consolidated performance in the second quarter recorded sales of 2.2 trillion won and operating profit of 192.3 trillion won, up 12.4% and 137.1% from the same period last year, exceeding estimates of market consensus".

"However, the cost ratio of the civil engineering sector was sluggish because a one-off cost of 31 billion won was recognized due to COVID-19 in some projects in Southeast Asia," NH Investment & Securities said. "Housing sales reached 1.4 trillion won in the second quarter, similar to the first quarter due to weather and construction material issues, but housing sales in the second half are expected to grow to more than 1.6 trillion won per quarter.".

NH Investment & Securities said, "The goal of winning new orders this year is 11.2 trillion won, which is 8.8 trillion won domestic and 2.4 trillion won overseas," adding, "We completed 4.9 trillion won in the first half, but the number of households sold in the first half was completed by 31% compared to the target of 35,000 households.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com