[Alpha Biz= Reporter Kim Minyoung] Hana Securities lowered Hyundai Construction's target price from 45,000 to 40,000 Korean won on July 3rd.
Hana Securities stated, "Key indicators for this year and next are margins and costs. Confirmation of margin improvement or alleviation of cost concerns could provide upside potential to the target price."
Hana Securities estimated Hyundai Construction's second-quarter sales at 8.5 trillion won, with operating profit at 1.774 trillion won.
They estimated Hyundai Construction's separate operating profit at 126.1 billion won and Hyundai Engineering's operating profit more conservatively at 21.3 billion won, anticipating quality-related costs (such as Mu'an) to be reflected in the second quarter.
Hyundai Construction's second-quarter consolidated orders are estimated at about 6.5 trillion won, with an order backlog of 89.1 trillion won. They sold around 3,000 units in the second quarter separately and approximately 5,600 units in the first half. A significant number of units are expected to be sold in the second half, including Daejeon Doan and D.H. Banbae.
Hana Securities mentioned plans for CJ to commence construction on the CJ Goyang site and for LG to commence construction on the LG Gasan site from the latter half of this year. The CJ Goyang site project is reported to have an estimated project cost of 3 trillion won.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
