[Click eStock] "GS Geonseol, Stock Price Uptrend Is Only a Matter of Time... Top Pick Among Construction Stocks"

[Asia Economy Reporter Kwon Jae-hee] Ebest Investment & Securities maintained a 'Buy' rating on GS Engineering & Construction on the 5th, setting a target price of 65,000 KRW. This is based on the judgment that despite cost pressure, the strong performance in the first quarter of this year reconfirms the possibility of a gradual upward trend in the stock price going forward.

Ebest Investment & Securities estimated GS Engineering & Construction's first-quarter sales at 2.1141 trillion KRW and operating profit at 180.9 billion KRW. These figures represent increases of 5% and 2.4% respectively compared to the same period last year, but fall short of market consensus by 4.2% and 5.5%.

Researcher Kim Se-ryeon of Ebest Investment & Securities analyzed, "Both first-quarter sales and profits are expected to be confirmed at a solid level," adding, "It is judged that the bargaining power of large construction companies can be confirmed amid the raw material rally."

GS Engineering & Construction's expected housing supply volume this year is 27,490 units, which is considered sufficiently achievable when taking into account the carryover from last year.

Researcher Kim stated, "Despite cost pressure, operating profit is expected to grow 29.5% annually amid the full-scale expansion of housing project progress," and "We maintain our recommendation as the top pick among large construction stocks."