[Infostock Daily= Reporter An Hoe Hyun] Eugene Investment & Securities predicted on the 15th that Hyundai E & C’s overseas orders, which had been low in the third quarter, would increase in the fourth quarter. As a result, the target stock price remained at 45,000 won and investment opinion remained 'BUY'.
"It has achieved about 50% of its overseas order target of 13.1 trillion won in the first half of the year even in the difficult environment due to COVID-19 and low oil prices," said Eugene Investment & Securities, adding, "It is sluggish in the third quarter, but it is likely to receive orders from Saudi Jafurah gas field($1.5 billion), Iraq Baghdad train and oil refinery in the fourth quarter, and the results of Qatar LNG bidding process will be announced by the end of the year."
"Hyundai E & C announced the development of new and renewable energy, eco-friendly projects and smart cities as a future new growth project, and if these projects are concrete, valuation will be revalued," the company said, adding, "It is still uncertain, but we need to watch the possibility of announcing shareholder return policies such as dividend expansion."
However, we estimate that 3Q earnings were affected by COVID-19 and low oil prices. "We estimate that Hyundai E & C’s third-quarter sales would have increased by 1.8% to 4.1607 trillion won and operating profit would have fallen by 20.3% to 190.6 billion won from the same period last year," the company said.
"We believe that the overseas project ordering schedule is delayed somewhat due to the continued low oil prices with COVID-19, but we expect domestic housing to support the downward performance for the time being, although overseas earnings are sluggish," the company predicted.
Reporter An Hoe Hyun ahh@infostock.co.kr
