Hanwha Investment & Securities raised its target price for Kolon Global on the 20th, saying it is expected to receive the largest new housing orders ever this year, while the home sale is also on the verge of supplying 10,000 units.
While maintaining 'buy' of investment opinion, the target price has been raised from 32,000 won to 35,000 won.
Operating profit for the third quarter was seen to meet market expectations. "Kolon Global is estimated to have recorded a growth rate of 19.2% and 22.3%, respectively, with third-quarter sales of 1.2 trillion won and operating profit of 61.8 billion won," Hanwha Investment & Securities said. "It is in line with the market consensus of 61.5 billion won.".
The orders are also smooth. Out of the 3.1 trillion won target for new orders this year, the company achieved 2.6 trillion won on a cumulative basis in the third quarter, recording a good 84 percent achievement rate.
The supply of housing is also smooth, with the sale of 8,519 households completed as of now, accounting for 83% of the 10,289 households planned annually.
"The housing order backlog has been on a steady rise without a single turn-off since 2015. It is expected to be able to supply sales above the past average level next year," Hanwha Investment & Securities said.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
