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March 29, 2024

[EQUITIES] ‘Hyundai E&C remains strong, undervalued’

PUBLISHED : January 22, 2018 - 11:45

UPDATED : January 22, 2018 - 11:45

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[THE INVESTOR] Hyundai Engineering and Construction is maintaining high margins and is likely to win orders from overseas while its stock price remains attractive, said Shinhan Investment on Jan. 22, maintaining a “buy”” recommendation and 54,000 won (US$50.51) target price. 




Its revenue in the fourth quarter last year fell 7.7 percent on-year to 5 trillion won and operating profit by 25.3 percent to 304.9 billion won, estimated analyst Oh Gyeong-seok.

The housing sector will be solid but plants division would be slower than expected, and its stock price, recently on the rise, may further gain momentum depending on overseas orders, noted the analyst. 

Its operating margin is improving steadily and investor sentiment in construction stocks is recovering, according to Oh.

Its order amount this year will increase 5.5 percent from last year to 22 trillion won, and as the market conditions are favorable from rising prices of oil and housings, its stock price is still undervalued at 0.6 times its price book-value ratio, he added.

By Hwang You-mee (glamazon@heraldcorp.com)

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