"DL E&C's Data Center and SMR Businesses Take Shape... Target Price Raised" [Click e-Stock]
NH Investment & Securities Raises Target Price from KRW 81,000 to
KRW 95,000
NH Investment & Securities maintained its Buy rating on DL E&C on October 8 and raised its target price to KRW 95,000 from KRW 81,000.
“We view the solid earnings capacity of the housing business and the expansion of its new business portfolio, including data centers and small modular reactors (SMRs), positively,” said Lee Eunsang, an analyst at NH Investment & Securities.
Lee viewed positively the housing business’s gross profit margin (GPM) exceeding 20%. In the second quarter of this year, the housing business’s GPM reached 23%, reflecting the impact of construction cost increases at projects nearing completion, including public housing projects involving private-sector participation. DL E&C’s highest housing GPM in the past 10 years was 21%, recorded in 2020 and 2021. “With the completion of high-cost projects and the effects of higher sale prices, the company could set a new all-time high,” he said.
!["DL E&C's Data Center and SMR Businesses Take Shape... Target Price Raised" [Click e-Stock]](http://www.asiae.co.kr/news/img_view.htm?img=2026093016234046145_1790753020.jpg)
He also said the diversification of the company’s new business portfolio, centered on data centers and SMRs, was gaining momentum. DL E&C is providing pre-construction services for a 300 MW artificial intelligence (AI) data center in Dangjin, South Chungcheong Province. It is expected to book an order worth KRW 1 trillion for the main construction work within this year. This is expected to offset a substantial portion of the revenue gap resulting from the delayed start of construction in Sangdaewon District 2.
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He also said the SMR standard design project, based on its partnership with X-energy, was progressing smoothly. The company is currently working on the standard design for the Conventional Island, which houses the turbine and generator, and aims to win a contract for design services for the Nuclear Island, where the key equipment is located, within this year. He added that expectations for DL E&C’s participation in construction of the Cascade project in Washington for Amazon remained intact.
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