"Daewoo E&C Wins Major Overseas Orders, Target Price Raised" [Click e-Stock]

Hanwha Investment & Securities Raises Target Price

from 7,300 Won to 22,000 Won

On August 27, Hanwha Investment & Securities maintained its "Buy" investment rating for Daewoo Engineering & Construction and raised its target price from 7,300 won to 22,000 won.

Yurim Song, a researcher at Hanwha Investment & Securities, stated, "The company has several positive investment points, including growth in new orders, improvements in the housing segment, and strengths in nuclear power and liquefied natural gas (LNG)."

Song highly evaluated Daewoo Engineering & Construction's significant upward revision of its order guidance for this year from 18 trillion won to 27 trillion won. The projects underpinning the revised guidance total five, with a combined value of 18 trillion won. She noted, "Even if only half of these orders are realized, achieving 27 trillion won would not be difficult." The five projects include the Czech Dukovany nuclear power plant, for which the company has already secured the contract; the Papua New Guinea LNG CPF, where Daewoo Engineering & Construction was selected as the preferred bidder; and Mozambique's Rovuma LNG, for which the company has received a letter of intent (LOI). Additionally, the Nigeria chemical plant and the new airport in Gadukdo are also candidates.

Song further remarked that, even if these projects do not significantly contribute to revenue growth next year, it is important to note that Daewoo Engineering & Construction's order backlog has been shrinking due to a lack of large-scale overseas orders since 2021. She described the recent upward revision of the order guidance as clearly positive news.

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