"GS Engineering & Construction Poised for Data Center Orders... Strong Buy Recommendation" [Click e-Stock]
Hana Securities Raises Target Price from 45,000 Won to 52,000 Won
On July 2, Hana Securities maintained its "Buy" investment rating on GS Engineering & Construction and raised its target price from 45,000 won to 52,000 won.
Hot Picks Today
"Now Is Not the Time to Sell, Buy More on Sharp Declines"... Advice Amid Market Volatility
- "Semiconductor Peak Passed" Renewed 'Peak-Out Theory'... 3.2 Trillion Won in Foreign Net Selling Sends KOSPI Below 8,000
- "An 'Easy Group' but Early Exit: Japanese Media Names South Korea Among 'Worst Teams of the World Cup'"
- "Why Did You Call Me to the World Cup!" Jens-Hong Myung-bo Assault Video Surpasses 10 Million Views... Revealed as AI
- Suspicious Achievements of Famous 'Beauty' Policewoman Revealed to Be Handed Over by Male Colleagues... Taiwan in Shock
Seungjoon Kim, an analyst at Hana Securities, stated, "We strongly recommend buying due to expectations for domestic AI data centers." According to Kim, GS Engineering & Construction has steadily built up its data center references, having constructed more than 10 data centers since the 2010s for clients including LG Uplus, Hana Financial Group, and Naver. Recently, the company has also expanded into the development and operation of data centers by directly investing equity stakes. He added, "There are five data centers scheduled to be developed from last year through this year, and through the Donghae Project, the company could potentially secure orders for data centers on a gigawatt (GW) scale." He also stated that orders exceeding 10 trillion won could contribute to sales within three years, and that the company's overall revenue could grow at a very rapid pace. He further noted, "If this coincides with the construction industry cycle, the current share price may appear extremely undervalued."
!["GS Engineering & Construction Poised for Data Center Orders... Strong Buy Recommendation" [Click e-Stock]](http://www.asiae.co.kr/news/img_view.htm?img=2026062918054927326_1782723949.jpg)
GS Group has announced its plan to complete a total of 2.4 GW of AI data centers at the Bukpyeong 2nd Industrial Complex in Donghae, Gangwon Province, with 1.2 GW in Phase 1 by 2028 and an additional 1.2 GW in Phase 2 by 2029. This announcement comes as GS Group is concretizing its business plan, including establishing a subsidiary called GS AI Infrastructure under the GS umbrella. Kim explained that there is potential synergy because GS Donghae Power, a subsidiary of GS E&R, operates a coal-fired power plant in Donghae. He added, "Group affiliates such as GS Engineering & Construction and Xi C&A (a subsidiary of GS Engineering & Construction) have experience with data centers, so the likelihood of affiliate orders is considered high."
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
