[Click eStock] "GS Geonseol, the Period of Revenue Normalization Returning After 3 Years"

[Asia Economy Reporter Park Jihwan] On the 13th, Eugene Investment & Securities forecasted that GS Geonseol would post solid results in the fourth quarter of last year and that sales growth would fully materialize this year. It is analyzed that the valuation of the construction sector as a whole has reached a normalization point. The investment opinion 'Buy' was maintained, and the target price was raised by 17.8% from the previous 45,000 KRW to 53,000 KRW.

Researcher Kim Yeolmae of Eugene Investment & Securities stated, "GS Geonseol's fourth-quarter sales last year are expected to be 2.6873 trillion KRW, a 4% decrease compared to the previous year." Operating profit was expected to rise by 14.1% to 208 billion KRW.

Considering the overseas COVID-19 situation, overseas sales are conservatively estimated, but domestic sales and profitability are expected to remain favorable due to strong performance in the housing sector. Last year, overseas orders were about 1.5 trillion KRW, underperforming against targets, but domestic housing sales exceeded the target of 25,641 units with approximately 27,000 units sold.

This year, attention is drawn to the fact that sales will grow again for the first time in three years. According to Researcher Kim, due to the increase in housing sales last year, visibility for housing sales growth and profit increase this year is high. Considering the nationwide housing market boom and the carryover volume from the previous year, about 30,000 new units are expected to be sold this year.

Researcher Kim said, "With cash inflows during the housing business boom, various new businesses are being pursued, including water treatment, modular housing, elevator manufacturing and services, and data centers," adding, "It is expected that new businesses will generate more than 1 trillion KRW in annual sales this year."