[Click eStock] "GS Geonseol Records Strong Q3 Performance Thanks to Housing"

Shinyoung Securities Issues 'Buy' Investment Rating and Sets Target Price at 34,000 Won... Closing Price on 19th at 26,450 Won

[Asia Economy Reporter Geum Boryeong] An analysis has emerged that GS Construction recorded strong third-quarter earnings thanks to its housing sector.

According to Shin Young Securities on the 20th, GS Construction's third-quarter operating profit rose 12.1% year-on-year to 210.3 billion KRW. Revenue decreased by 5.0% to 2.3201 trillion KRW.

Researcher Park Sera of Shin Young Securities explained, "Operating profit notably exceeded market estimates, resulting in an earnings surprise. This was mainly due to profit contributions from settlement gains in the housing sector. Approximately 10,000 housing units were occupied in the third quarter, leading to a housing gross profit margin (GPM) of 25.2%, the highest quarterly GPM recorded in the past three years."

GS Construction is reported to have supplied a cumulative total of 22,221 housing units in the first three quarters of this year. The company plans to supply about 29,000 units annually. Researcher Park said, "GS Construction has plans to supply 27,000 units next year, including about 7,000 units in Seoul. Based on this supply performance, a rebound in scale is expected next year, which is positive."

Park added, "As can be seen from the housing GPM performance related to occupancy volume, performance improvement due to an increase in occupancy volume can also be expected. Approximately 23,000 units are scheduled for occupancy next year, with relatively more occupancy planned in the first and fourth quarters, so differentiated performance within the industry by GS Construction can be expected in those quarters."

Shin Young Securities gave GS Construction a 'Buy' investment rating with a target price of 34,000 KRW. The closing price on the 19th was 26,450 KRW.