With Russia officially announcing progress in ceasefire negotiations with the United States and expressing its readiness for further talks, the stock market is seeing growing interest in related stocks.
On December 8, Ko Sungmin, CEO of the listed company consulting firm Peter & Partners, stated, "There is progress in ceasefire discussions within this year, which is drawing attention to reconstruction-related stocks such as road, construction, and housing companies. It is important to focus on companies that have established practical relationships in ceasefire and reconstruction projects."
According to the postwar reconstruction needs assessment report (RDNA4), jointly released in February this year by the World Bank, the European Union, and the Ukrainian government, the housing, transportation, and commercial and industrial sectors suffered the most significant damage. It was reported that more than 290 bridges and approximately 9,000 kilometers of roads were destroyed. The total reconstruction cost is estimated at 486 billion dollars (about 700 trillion won), making it one of the largest reconstruction projects in modern European history.
In the stock market, stocks related to HD Hyundai are emerging as key players in postwar recovery. HD Hyundai Construction Equipment and HD Hyundai Infracore were the top two players in the Ukrainian construction equipment market before the war. They have been continuously discussing postwar recovery projects with the Ukrainian government, and in September, the Deputy Minister of Territorial Development of Ukraine visited the HD Hyundai Construction Equipment plant in Ulsan to discuss ways to expand cooperation. Analysts believe that the faster the reconstruction process moves forward, the greater the chances for these two companies to re-enter the market.
HD Hyundai Heavy Industries is also drawing attention as a beneficiary of Europe's energy restructuring. The European Union has declared a complete halt to Russian gas imports by the fall of 2027 in order to reduce its dependence on Russian gas. Accordingly, HD Hyundai Heavy Industries, which is participating in Poland's floating LNG terminal project (FSRU), is being highlighted as a beneficiary of reconstruction and energy infrastructure projects. As the EU's energy transition policy progresses, there is a growing possibility of new orders in the LNG and gas infrastructure sectors.
SG is also considered a potential beneficiary in the restoration of Ukraine's road and transportation infrastructure. The first stage of reconstruction is to restore the lost road infrastructure. The company's core technology, Eco Steel Ascon, is an eco-friendly paving material that is up to four times more durable than conventional asphalt and reduces construction time by more than 20%. It has already been piloted and is in operation in Ukraine.
Eco Steel Ascon uses slag, a steel by-product, instead of ordinary aggregate. Ukraine, as a major global steel producer, has abundant slag resources, enabling large-scale local supply, which is another advantage. Recently, the company received quality certification for its pilot paving section in Kyiv from a Ukrainian state institution, officially recognizing its technology. SG established a local subsidiary in Ukraine in 2023 and is promoting reconstruction projects. It has also applied for a Russian patent related to Eco Steel Ascon, aiming to respond to reconstruction demand on both the Russian and Ukrainian sides after the war.
Essential construction equipment is also likely to benefit. Jeonjin Construction Robot, the largest domestic manufacturer of concrete pump trucks (CPC), produces indispensable equipment for construction sites, delivering ready-mixed concrete to desired locations on-site under high pressure. The company exports pump trucks to more than 60 countries, and exports account for over 70% of its annual sales, which total around 100 billion won. If postwar reconstruction demand accelerates, Jeonjin Construction Robot is expected to draw attention as a key supplier of essential equipment for large-scale infrastructure and urban reconstruction.
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