The target price of Xi S&D has increased.
If the Seoul Metropolitan Government revitalizes small-scale reconstruction, it is expected to be a boon to the housing maintenance project of Xi S&D.
Hana Financial Investment Research Institute raised its target share price of Xi S&D from 11,000 won to 13,000 won on the 15th. The investment opinion maintained a 'buy'.
In the short term, the timing of profit recognition at the site, which began construction after mid-2020, is seen as a positive factor. Xi S&D is expected to recognize profits from the second to third quarters at sites such as Gaepo City's Yeongjae Building, Yangpyeong Xibiz Tower (in-house business), Seocho Xi rene, and Daegu Bay Village Xi rene.
As a result, sales and operating profit of Xi S&D are expected to increase by 30% and 45%, respectively, this year from 2020.
Xi S&D recognizes sales by applying 100% cost ratio for cumulative input costs for about three to four quarters after construction. In other words, since both sales and operating profit will rise steeply on-site from three to four quarters after construction, we can expect a steep increase in performance.
Xi S&D is expected to generate 461.6 billion won in sales and 39.6 billion won in operating profit on a consolidated basis this year. Sales are up 29.6% and operating profit is up 45.1% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
