[Click e-Stock] "IS Dongseo Target Price Raised... Reflecting Construction Project Value"

On March 3, LS Securities raised its target price for IS Dongseo to 53,000 won, reflecting the value of the company’s large-scale construction projects, and maintained its “Buy” investment rating.

Kim Saeryun, an analyst at LS Securities, stated, “It is now time to fully reflect the development value of the large-scale project in Jungsan District (Gyeongsan, Gyeongbuk),” and forecasted, “The visibility of profits from the Jungsan District is expected to become clear starting next year.”

As further grounds, she pointed out that the price per pyong of Jungsan Xi, located near the site of PentaHills W to be supplied by IS Dongseo, is also trending upward. Kim remarked, “The preference for new developments in this residential area appears to be driving price increases,” adding, “With limited inventory burden and evidence of price rebounds in neighboring new complexes, the environment is favorable for the sale of PentaHills W.”

She continued, “According to media reports, the pre-sale price per pyong for PentaHills W is expected to be in the low 20 million won range, which is similar to or about 5% higher than that of Jungsan Xi,” and added, “Considering the scheduled completion date of September 2030, the pre-sale price appears realistic from the perspective of long-term asset value appreciation.”

Last year, IS Dongseo’s provisional results showed sales of 1.234 trillion won, operating profit of 66 billion won, a pre-tax loss of 53 billion won, and a net loss of 52 billion won. This is analyzed as the result of focusing on strengthening fundamentals rather than securing new orders since 2023, when the housing market contracted.

However, LS Securities expects a turnaround in performance from 2027, citing factors such as the sale of business units, restructuring, and reflection of development profits. LS Securities forecasts that this year, IS Dongseo will turn to profitability, with sales of 1.316 trillion won, operating profit of 97 billion won, pre-tax profit of 90 billion won, and net profit of 67 billion won. Next year’s projections are sales of 1.627 trillion won, operating profit of 183 billion won, pre-tax profit of 127 billion won, and net profit of 95 billion won.

This content was produced with the assistance of AI translation services.