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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] IBK Investment & Securities lowered its target price from 47,000 won to 40,000 won, saying its operating profit for the second quarter of this year is expected to fall below market expectations. The investment opinion remained 'buy'.
IBK Investment & Securities estimates Hyundai Engineering & Construction's second-quarter operating profit will fall 17.8 percent on-year to 183.8 billion won. This is below the consensus (market expectation) operating profit of 233.4 billion won.
This is because temporary quality-related costs (Muan, Jeonnam, etc.) are estimated to be reflected in Hyundai Engineering's construction and housing sectors.
In the first half of the year, 5,600 households were sold, 27.4% of the annual supply plan of 20,451 households. The outcome of the sale in the first half of the year is regrettable, but considering that more than 10,000 households are concentrated in the third quarter, the guidance is expected to be achieved easily this year.
Hyundai Engineering & Construction is scheduled to start a large-scale semi-self-government project from the second half of this year to the end of next year. This year, construction of the LG Gasan site and CJ Gayang site is scheduled.
IBK Investment & Securities said, "Hyundai Engineering & Construction's target stock price is likely to rise if the direction of cost rate improvement becomes clear in line with the construction of the quasi-self-government project."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
