[Asia Economy Reporter Lee Seon-ae] The construction machinery sector is soaring on expectations following the confirmation of the US infrastructure stimulus package.
At 9:40 AM on the 9th, Jinseong TCC is trading at 12,500 KRW, up 7.30% from the previous trading day.
Over the past weekend, President Joe Biden's strongly promoted infrastructure budget bill worth $1.2 trillion (approximately 1,424 trillion KRW) passed the US House of Representatives. This budget includes investments in roads, transportation, ports, railroads, airports, as well as hydrogen, CCUS (carbon capture, utilization, and storage technology), and power grids.
Jinseong TCC is a heavy equipment parts manufacturer, with its largest customer being the US company Caterpillar. Sales outside of China, including the US, Europe, and Southeast Asia, account for more than 70% of its revenue.
Eugene Investment & Securities issued a new report naming it a "direct beneficiary of the US infrastructure stimulus package," maintaining a "Buy" rating and setting a target price of 18,000 KRW.
Researcher Han Byung-hwa of Eugene Investment & Securities stated, "Both traditional infrastructure expansion and energy transition infrastructure to address climate change require demand for construction machinery," and predicted, "There will be an expansion of construction machinery by region." He added, "The stimulus packages of major countries and the soaring commodity prices are expected to positively impact construction machinery demand," and noted, "Jinseong TCC is preparing new expansions in Southeast Asia and the US in response."
Meanwhile, Hyundai Construction Equipment rose to 42,750 KRW early in the session and is currently trading at 42,650 KRW, up 3.77% at this time.
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