[Featured Stock] DL E&C Surges Over 5% on 92%+ Guidance Increase

The stock price of DL E&C, which presented a high operating profit guidance (company's own performance forecast) this year, is on the rise.

As of 3:02 PM on the 7th, DL E&C was trading at 36,950 KRW, up 1,800 KRW (5.12%) from the previous trading day.

DL E&C's sales and operating profit for the fourth quarter of last year recorded 2.4388 trillion KRW and 94.1 billion KRW, respectively, increasing by 4.4% and 6.2% compared to the same period last year. The cost ratio of DL E&C and DL Construction's housing projects improved by 6.4 percentage points and 3.8 percentage points from the previous quarter, reaching 85.9% and 88.5%, respectively.

On the day, Park Sera, a researcher at Shin Young Securities, said, "What stood out was this year's operating profit guidance," adding, "They presented an operating profit of 520 billion KRW for this year, which is a whopping 92% increase compared to last year. DL E&C and DL Construction presented 420 billion KRW and 100 billion KRW, respectively."

She continued, "DL E&C expects to achieve a normal cost ratio of 85-88% starting from the second quarter of this year, when low-profit businesses within the housing sector will end. Considering that approximately 40 billion KRW of delayed settlement profits from LH private participation projects will be recognized in the second half of the year, the guidance was calculated accordingly."