[Edaily Reporter Kwon Oh-seok] Daishin Securities announced on the 16th that it is initiating coverage of #DL E&C with a "Buy" rating and a target price of 106,000 won.

Lee Hye-jin, an analyst at Daishin Securities, explained, "With the current PBR at 0.5x, valuation concerns are limited," adding, "We expect a gradual multiple re-rating as stable housing profitability and SMR (small modular reactor) growth momentum converge."
Regarding the housing sector, the analyst noted, “The company has entered a phase of profitability improvement as revenue from high-quality projects started after 2023 begins to materialize. The housing cost ratio in the first quarter was 79.9%, demonstrating superior profitability compared to peers,” adding, “The trend of improving cost ratios is expected to continue, driven by a reduction in the proportion of high-cost sites and cost-saving measures.”
He further elaborated, “Even under conservative assumptions, we expect the cost ratio to remain in the mid-80% range for the year.”
Regarding the nuclear power business, the company emphasized, “We joined the global SMR value chain by signing a standardization design (CI) contract with ‘X-Energy’ in March 2026,” noting, “This design is scheduled to be applied starting with Unit 3 of the Xe-100 project, and our goal is to expand the design scope to include the nuclear island (NI) and participate in the EPC (Engineering, Procurement, and Construction) for the entire pipeline.”
He added, “As our pipeline is expanding beyond the U.S. to the UK and Southeast Asia, we expect to benefit once the SMR market takes off in earnest.”