[Featured Stock] Cement Shares Rise on Expectations of Expanded Housing Supply

[Asia Economy Reporter Minji Lee] Cement-related stocks are showing an upward trend amid expectations of expanded housing supply.

At 9:48 a.m. on the 26th, Ssangyong Cement was trading at 7,250 KRW, up 3.57% from the previous trading day. Asia Cement (3.27%), Hanil Cement (4.91%), Sampyo Cement (5.82%), and Koryo Cement (3.24%) are also showing gains.

The rise in cement stock prices is believed to be due to expectations that housing supply, including reconstruction, will significantly increase ahead of the Seoul mayoral by-election amid anticipated expansion in construction investment. Yoon Seung-hyun, a researcher at Hana Financial Investment, explained, “A nationwide increase in building starts is expected this year, and considering that cement input occurs from six months to two years after the start of construction, cement shipments are likely to increase through next year and beyond.”

Ssangyong Cement is also reflecting positive prospects for its eco-friendly business. In the short term, Ssangyong Cement plans to expand the proportion of waste processing through facility expansion, increase HRSG (Heat Recovery Steam Generator) equipment, and in the mid to long term, expand into waste-related businesses and power generation projects utilizing renewable energy and biomass.

Lee Min-jae, a researcher at NH Investment & Securities, stated, “The eco-friendly business will be a mid- to long-term growth driver,” adding, “The cement industry outlook, which will improve due to ongoing housing supply expansion policies, is also positive.”