Meritz Securities raised its investment opinion "buy" and appropriate stock price to 57,000 won, saying it believes GS Engineering & Construction will be able to improve its performance and momentum in the second half at the same time.
GS Engineering & Construction's second-quarter sales were 2.232 trillion won and operating profit was 125 billion won, respectively, lower than the market consensus.
This is down 12.4% and 24.2%, respectively, from the same period last year. Meritz Securities said, "We sold 1.7 million units in 2019 and 2.7 million units in 2020.
We believe that the increase in housing sales in 2020 will lead to sales in the third quarter.". Meritz Securities added, "Considering the profitability of the current housing sector, the second half performance is expected to exceed market expectations.".
GS Engineering & Construction has sold 14,500 households so far in July 2021, achieving 45.8% of the guidance of 31600 households at the beginning of the year. In the second half of the year, 17,000 households will be sold mainly for housing outsourcing and urban maintenance projects.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
