[Click e-Stock] "Daewoo E&C Benefits from Nuclear Orders and US Investment"

Target Price Maintained at 22,000 Won

On April 8, LS Securities maintained its "Buy" investment rating and a target price of 22,000 won for Daewoo Engineering & Construction.

Kim Saeryeon, a research analyst at LS Securities, stated, "Nuclear power plant orders are expected to become visible, and momentum is likely to be highlighted due to investments in the United States."

First, Daewoo Engineering & Construction is expected to secure a construction contract for the Dukovany nuclear power plant in the Czech Republic, while the possibility of Team Korea winning orders for two reactors at Vietnam's Ninh Thuan 2 nuclear power plant is also increasing. The analyst explained that since Japan has included nuclear power and SMR (Small Modular Reactor) projects in its investment in the United States, there are also rising short-term expectations that the South Korean government's US investment will include nuclear power plant projects, which is acting as a short-term share price momentum. Although a short-term sell-on-the-news event (share price decline despite positive news) is possible after the US investment is confirmed, the analyst expects the share price to recover as order achievements are gradually confirmed.

Meanwhile, Kim forecasted Daewoo Engineering & Construction's first-quarter operating profit to be 115.1 billion won. This would represent a 24% decrease compared to the same period last year, but the analyst said it would be relatively in line with the consensus estimate of 122.1 billion won.

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