[Click eStock] "US Housing Market Booming... Doosan Bobcat Faces Cost Increase Burden"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 9th that it lowered the target price for Doosan Bobcat from 60,000 KRW to 58,000 KRW, forecasting that operating profit in the third quarter would fall short of market expectations due to rising costs. However, it maintained a buy rating, anticipating demand recovery and entry into a boom cycle in the Americas region, along with market share expansion.

Doosan Bobcat's third-quarter performance this year is expected to show sales of 1.2186 trillion KRW, a 12% increase compared to the same period last year, and operating profit of 132.1 billion KRW, up 19%. While sales meet market expectations due to sustained construction demand in the Americas, operating profit is about 8% below expectations. Lee Dong-heon, a researcher at Daishin Securities, stated, "there will be cost pressure due to factors such as parts supply shortages."

The U.S. housing market continues to boom, with private housing starts reaching 11.09 million units from January to July this year, a 28% increase compared to the same period last year, and permits rising 30% to 12 million units. The Case-Shiller Home Price Index in June rose 18.6% year-on-year to 260.8 points, marking the highest increase since records began in 1988.

Researcher Lee said, "The Biden administration announced an alternative plan reflecting a 300 billion dollar budget to add 2 million housing units," adding, "Doosan Bobcat, with about 70% of its sales in the Americas and around 40% related to the housing market, is expected to benefit. Along with the U.S. infrastructure investment plan, positive issues for mid- to long-term growth are anticipated."