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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities raised its target price to 16,000 won from 14,000 won on the 20th, saying it expects GS Engineering & Construction's cost ratio in the housing sector to gradually stabilize.
GS Engineering & Construction recorded consolidated sales of 3.3 trillion won and operating loss of 193.7 billion won in the fourth quarter of last year. Sales fell 15.3% year-on-year and operating profit turned into a deficit.
"The housing sector shifted to a deficit as the expected cost ratio rose sharply during the re-examination of costs at existing sites, and other infrastructure sectors also suffered deficits due to the effects of one-off costs at overseas sites," Daishin Securities said. "It reflected preemptive and conservative costs."
"Considering that most of the cost review of existing housing sites has been completed and the execution cost of the remaining sites will be shifted downward, the cost ratio in the housing sector will gradually stabilize," Daishin Securities said.
GS E&C was recently suspended for eight months from the Ministry of Land, Infrastructure and Transport and one month from the Seoul Metropolitan Government in April last year after the roof of the first and second floors of an underground parking lot collapsed at the construction site of an apartment building in Geomdan New Town, Incheon.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
