GS Geonseol Soars with New Business Wings, Stock Price Also 'Flying High'

Stock Price Rises 35.68% in 2 Months... GS Inima Secures 2.3 Trillion KRW Seawater Desalination Project

[Asia Economy Reporter Kum Bo-ryeong] As GS Engineering & Construction actively pursues new businesses, expectations for a rise in its stock price are also growing.

According to the Korea Exchange on the 23rd, GS Engineering & Construction's stock price closed at 31,750 KRW on the 20th. The stock price has been steadily rising over the past two months. Considering the closing price of 23,400 KRW on September 24, it has increased by 35.68% in two months. During the same period, the KOSPI index rose 12.36%, from 2,272.70 to 2,553.50.

What sets GS Engineering & Construction apart from other construction stocks is its most aggressive approach to new businesses. These new businesses include projects through its subsidiary GS Inima, urban development in Vietnam, acquisition of the UK modular specialist company 'Elements,' and acquisition of the wooden detached house specialist company 'Danwood.' Elements ranks third in sales in the UK modular market, and Danwood is a strong player ranked fourth in the German modular housing market.

Some of these new businesses are now in full swing. GS Engineering & Construction announced on the 19th that GS Inima had won a seawater desalination project in Oman, Middle East, with an expected sales scale of 2.3 trillion KRW. GS Inima received bid award notifications from the Oman Power and Water Procurement Authority for two projects: Al Ghubrah Phase 3 and Barka Phase 5 private desalination power projects. Through this contract, GS Inima will be responsible for financing, construction, and 20 years of operation.

Jang Moon-jun, a researcher at KB Securities, analyzed, "It is necessary to note that based on stable cash flow from the housing business, active expansion into new businesses has become possible, and GS Inima, which has excellent profit margins, has secured additional sales and profit bases." GS Inima's annual sales are about 400 billion KRW, and from 2024, when the two projects begin operation, operating sales of about 100 billion KRW are expected to be added.

This year, the supply of about 29,000 housing units is expected to be achieved smoothly, indicating a solid housing sector. Next year, housing supply is also likely to grow slightly, raising expectations. Attention is focused on whether sales growth in the housing sector over the next 2-3 years can contribute to overall performance improvement. Park Se-ra, a researcher at Shin Young Securities, explained, "Next year, based on generally stable housing performance, the results of the new business strategy will act as a key variable for the stock price."