[Click eStock] "Hyundai Construction Q4 Earnings Fall Short of Market Expectations"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities announced on the 23rd that Hyundai Construction's Q4 performance last year fell short of market expectations. However, the investment opinion 'Buy' and the target stock price of 54,000 won were maintained.

Lee Minjae, a researcher at NH Investment & Securities, explained, "Hyundai Construction's consolidated sales in Q4 last year were 4.7 trillion won, up 4.2% year-on-year, and operating profit increased by 18.4% to 192.6 billion won, falling short of consensus and our estimates." This is analyzed to be due to additional costs of 80 billion won at overseas sites in Q4 and recognition of one-time costs from the subsidiary Songdo Landmark City.

Researcher Lee Minjae said, "Last year's consolidated overseas orders recorded 10.2 trillion won, slightly below the guidance of 13.1 trillion won," adding, "This year's overseas order guidance is also presented the same as last year." The main pipeline includes Qatar Lusail Plaza (1.2 billion dollars), Algeria Oumache Combined Power Plant (800 million dollars), Saudi Jafurah Gas Field, Panama Metro (total 2.6 billion dollars), Qatar LNG (total 15 billion dollars), Iraq Oilfield Water Supply Facility (2.5 billion dollars), etc.

The researcher added, "This year, Hyundai Construction's separate basis pre-sale target is set at 20,850 units, including 5,000 units carried over from last year’s sites such as Dunchon Jugong."