"GS Focused on AI Business Capabilities, Target Price Raised"[Click e-Stock]

Heungkuk Securities Raises GS Target Price
From 1 Million Won to 1.4 Million Won

On August 13, Heungkuk Securities maintained its 'Buy' investment opinion on GS and raised the target price from 1 million won to 1.4 million won.

Jongryul Park, a researcher at Heungkuk Securities, stated, "We are raising our target price in consideration of the upward revision of profit forecasts for 2026 and 2027, as well as the increased equity value of listed companies and unlisted companies (GS Energy)."

Park evaluated the GS Group’s artificial intelligence (AI) business capabilities as particularly impressive. He explained, "GS Group is planning to invest 30 trillion won to establish a super-large-scale AI data center campus with a capacity of 2.4GW in Gangwon Province." He further noted, "GS Power, GS EPS, and GS E&R possess extensive expertise in providing stable, large-scale electricity supplies required for AI data centers, while GS Engineering & Construction, Xi C&A, and DC Bridge have accumulated experience in the construction and operation of data centers (DCs)."

He also emphasized that not only are GS Group’s future capabilities promising, but there are also positive signals starting from this year’s performance. Park forecast GS’s 2026 consolidated sales and operating profit at 29.7 trillion won and 5.6 trillion won respectively, representing year-on-year increases of 17.9% and 90.4%. He explained, "Unlike last year, this year’s operating performance of GS Caltex and GS Energy is expected to remain solid," adding, "This is because GS Energy will continue to generate stable profits from power, district energy, and resource development, while GS Caltex will maintain steady refining margins in the oil refining and lubricants businesses." He continued, "These trends are expected to persist due to ongoing geopolitical risks and supply-demand instability caused by operational disruptions in the region. Most subsidiaries such as GS Retail, GS P&L, and GS Global are also projected to show gradual improvements in performance."

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