[Click eStock] "Hyundai Construction Profit Slump Continues... Target Price Downgraded"

Daol Investment & Securities forecasted on the 23rd that Hyundai Construction's profit improvement will be slow until the first half of next year. Accordingly, they maintained a 'Buy' investment rating and lowered the target stock price to 46,000 KRW.

Park Young-do, a researcher at Daol Investment & Securities, stated, "The operating profit in the third quarter significantly missed the consensus," and added, "The cost ratio, which had deteriorated to an unusual level in the second quarter, continued."

Researcher Park analyzed, "The cost of sales ratio was 95.8%, showing no recovery from the previous quarter, and the increase in the cost ratio due to additional expenses at overseas construction sites was the main cause of the deterioration in the third quarter's cost ratio," further explaining, "Originally, a full recovery was expected in the second half of 2025, but the level of cost reflection exceeded expectations."

He added, "Considering the possibility of additional cost reflection, we have lowered the profit forecast until the first half of 2025."