[Click eStock] "Jaes&D Meets Conditions for Stock Revaluation... Target Price Raised"

Cape Investment & Securities Presents 'Buy' Investment Opinion and Target Price of 10,500 Won... Closing Price on 25th at 7,410 Won

[Asia Economy Reporter Kum Bo-ryeong] Jaesand has been analyzed to have met the conditions for stock price revaluation, leading to an upward revision of its target price.

On the 26th, Cape Investment & Securities gave Jaesand a 'Buy' rating with a target price of 10,500 KRW. The previous target price was 7,500 KRW. The closing price on the 25th was 7,410 KRW.

According to Cape Investment & Securities, Jaesand's Q2 performance achieved a surprise with operating profit of 8.3 billion KRW and sales of 90.3 billion KRW, increasing by 66% and 24% year-on-year, respectively. The housing development business segment saw a 160% growth in scale compared to the same period last year due to an increase in construction sites.

Shim Won-seop, a researcher at Cape Investment & Securities, said, "Although sales have not yet reached the break-even point (BEP) level, with additional construction sites in Q3, it is expected to surpass the BEP and enter a phase of maximizing leverage through future scale growth. Given the current order flow, the visibility of exceeding 600 billion KRW in sales in 2022 is very high. If the real estate management segment's sales in 2022 are estimated to be in the high 200 billion KRW range, the construction segment with sales exceeding 300 billion KRW and operating profit of 25 billion KRW is not reflected at all in the current stock price," he explained.

In the housing development business, the number of units for sale is expected to increase sharply from 296 units last year (Byeolnae Jaiela) to about 600 units this year and about 2,000 units next year. Researcher Shim analyzed, "With a premium brand, housing business orders exceeding 400 billion KRW are expected annually. Considering that a total of 815 billion KRW was ordered over the past two years, this is seen as a reasonable level."