[Click eStock] "Hyundai Construction, Significant Potential for Stock Price Increase... Target Price Up"

Target Price Raised from 43,000 KRW to 50,000 KRW

Hanwha Investment & Securities raised the target price for Hyundai Construction from 43,000 KRW to 50,000 KRW on the 3rd, citing significant potential for stock price growth. The investment rating was maintained as 'Buy.'

Song Yurim, a researcher at Hanwha Investment & Securities, stated, "This is the point where a true earnings turnaround is expected," adding, "Although the stock price rose nearly 20% within four trading days after this year's guidance announcement, Hyundai Construction's stock is still at the lower end of valuation with a 12-month forward price-to-earnings ratio (PER) of 5.7 times and a price-to-book ratio (PBR) of 0.41 times. There is considerable room for stock price appreciation."

Researcher Song highlighted Hyundai Construction's investment points as ▲ earnings turnaround ▲ mid- to long-term earnings improvement ▲ still attractive stock price. He explained, "With the provisional earnings announcement for Q4 last year and the 2025 operating guidance released, our earnings estimates have been adjusted with sales down 2.8%, operating profit up 78.4%, 12-month forward earnings per share (EPS) up 60.3%, book value per share (BPS) down 3.7%, and return on equity (ROE) revised from 5.1% to 8.6%. Currently, the market consensus operating profit is 962 billion KRW, while our estimate is 1.1773 trillion KRW, and there is not a single estimate exceeding the company's guidance of 1.1828 trillion KRW. Positively interpreted, if the company achieves this year's guidance, there is room for the market consensus operating profit to be revised upward by 23%," he said.

He also expressed that the current stock price is a comfortable buying zone. Researcher Han said, "Considering the potential for further upward revision of earnings consensus and valuation compared to past earnings, the current stock price is a comfortable buying zone," adding, "Supply and demand are also favorable in this vacant market."