[Market Focus] IS Dongseo Surges Over 10% on Turnaround Outlook

IS Dongseo is showing strong performance on December 17. Investor sentiment appears to have improved following forecasts from securities firms that the company will begin a turnaround in earnings next year.

As of 10:53 a.m. on this day, IS Dongseo shares were trading at 24,200 won on the Korea Exchange, up 10.50% from the previous trading day. The stock opened at 23,150 won and at one point during the session rose to 25,700 won, setting a new 52-week high.

On this day, Shin Young Securities analyzed IS Dongseo, stating, "After reflecting one-off expenses such as goodwill impairment in the fourth quarter of this year, the company will hit bottom, and a turnaround in earnings will begin next year, leading to a full-fledged revaluation of the company's value." The firm raised its target price nearly twofold, from 26,000 won to 50,000 won.

Regarding the factors behind the earnings rebound, the firm explained, "With the successful launch of sales for 'Ulsan Lake Park Aileen's Garden' in November this year, the company has entered a period of concentrated sales, aiming for a rebound." It added, "All business divisions are showing signs of recovery after passing the bottom."

Furthermore, the firm stated, "Next year, revenue of approximately 500 billion won based on delivery standards from the occupancy of Blocks 6 and 7 in the Deogeun District will be recognized in the first half of the year." The firm also noted, "With the progress of new sales projects in Ulsan and additional revenue from the sale of remaining unsold units, the company's own business division alone is expected to record 500 billion won in revenue."