Daishin Securities Co. maintained its investment opinion on Hyundai Engineering & Construction and raised its target price to 60,000 won, saying that its performance is expected to turn around
The securities firm analyzed that Hyundai Engineering & Construction fell slightly short of the plan to 6,941 out of a total of 7,700 households sold in South Korea in the first quarter, but it will be easy to achieve 31,000 households annually.
"Although we failed to win the Qatar LNG project in the first quarter, we had a number of visible projects such as Kuwait ports and Hong Kong hospitals," the securities said. "This year is the beginning of a turnaround that will put an end to the profit reduction trend since 2016.".
Hyundai Engineering & Construction's first-quarter sales and operating profit fell 6% year-over-year to 4.3254 trillion won and 47% to 89.9 billion won, respectively. This is more than 1% and 17% of sales and operating profit, respectively, compared to the market outlook.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
