"Construction Firm’s Target Price Raised from 33,000 Won to 42,000 Won After Building Value Chain from Data Center Design to Leasing" [Click e-Stock]
NH Investment & Securities Raises Target Price for GS Engineering & Construction
From 33,000 Won to 42,000 Won
On August 25, NH Investment & Securities maintained its "Buy" investment opinion on GS Engineering & Construction and raised its target price from 33,000 won to 42,000 won.
Lee Eunsang, an analyst at NH Investment & Securities, stated, “We positively evaluate the strengthening of the new business portfolio centered on data centers based on captive orders. This upward revision of our target price reflects expected earnings from the GS Donghae Data Center project, which is scheduled to break ground at the end of the year.”
!["Construction Firm’s Target Price Raised from 33,000 Won to 42,000 Won After Building Value Chain from Data Center Design to Leasing" [Click e-Stock]](http://www.asiae.co.kr/news/img_view.htm?img=2026081918500185686_1787133001.jpg)
According to the announcement of three major megaprojects, the data center construction capacity allocated to GS amounts to 2.4GW. Of this, for Phase 1, which is 1.2GW, a specific power supply plan is being established that connects the site at Bukpyeong Industrial Complex in Donghae, Gangwon Province, with GS Donghae Power. The total construction cost for Phase 1 is 12 trillion won, with the revenue recognition period set at three years. According to Lee, 5 trillion won out of this total has already been reflected in the earnings estimate. He added, “Going forward, capital raising, signing of lease contracts, and visualizing construction workforce requirements will be key triggers for the stock’s revaluation.”
Hot Picks Today
"30,000 Won in Korea, 70,000 Won in Japan"—Koreans Fill Suitcases as Illegal Direct Purchases Soar
- "Will Burst Within 3 Years, Gather Gold and Bitcoin"…World's Largest Hedge Fund Founder Warns
- In Korea, It's a Beloved Side Dish... But Miami Spends $4.1 Million to Remove 9,000 Tons from Its Beaches
- Homeless Man with Necrotic Leg Refusing Help Opens Up to Police After Two Months of Consistent Visits
- "Never Experienced This in My Aviation Career": Crew Shocked as Stranger Unexpectedly Enters First-Class Suite
In addition, Lee positively assessed the establishment of an integrated value chain for design, construction, and rental of data centers through the subsidiaries Xi C&A and GBestco Asset Management. He explained, “GS Engineering & Construction and Xi C&A are responsible for construction, while GBestco Asset Management oversees securitization and leasing operations. He also emphasized that a scenario in which the 1.3 trillion won in proceeds from the sale of GS Inima, expected to be received at year-end, is invested as equity in the data center business is also under positive review.”
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
