[Click e-Stock] "KB Balhae Infrastructure to Benefit from Expanding Infrastructure Market... Target Price Raised"

"Healthy Growth Rates and Expected Benefits from Market Expansion"

On August 5, Samsung Securities raised its target price for KB Balhae Infrastructure from 11,500 won to 12,300 won, while maintaining its "Buy" investment rating.

Kyungja Lee, an analyst at Samsung Securities, commented on KB Balhae Infrastructure, stating, "Operating income has grown by double digits since the fourth quarter of last year due to new investments, and toll revenue from expressways has shown healthy growth rates, buoyed by the Shindaegu-Busan Expressway." She added, "The company is benefiting from the expansion of the domestic infrastructure market and is at a growth stage through joint investments and the discovery of new investment opportunities with affiliates."

KB Balhae Infrastructure has carried out a total of four new investment commitments and executions from last year up to the present, including the Boryeong LNG, Jeonnam Pine Data Center, Suwon Ring Road, and Jeju Handong·Pyeondae Offshore Wind Power projects. In the second quarter of this year, operating income rose by 2% year-on-year; however, net profit increased by only 2% as interest expenses from new investments also grew.

Performance from investment assets has remained solid. Although average daily toll road traffic volume declined by 2.3% year-on-year, toll revenue rose by 6.8%. Analyst Lee explained, "Toll revenue from the core asset, the Shindaegu-Busan Expressway, saw a meaningful increase of 10.8%, as it included the amount requested for compensation payments." She continued, "The Boryeong LNG, which holds the second largest weight in the portfolio after Shindaegu-Busan, saw its net profit rise by 9.5% and EBITDA (earnings before interest, taxes, depreciation, and amortization) grow by 1.6% compared to the previous year. Given the contract structure with user companies, stable long-term profits are expected."

Furthermore, the analyst also analyzed that KB Balhae Infrastructure is poised to benefit from the expansion phase of the domestic infrastructure market. "The domestic infrastructure market is expected to expand as major financial groups ramp up investments in alignment with a productive finance policy," she noted. "KB Balhae Infrastructure is demonstrating investment performance by discovering and participating in numerous deals jointly with its affiliates," she said.

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