[Edaily Reporter Kwon Oh-seok] Daishin Securities announced on the 16th that it is initiating coverage on #Daewoo Engineering & Construction with a "Buy" rating and a target price of 28,000 won.

Lee Hye-jin, an analyst at Daishin Securities, explained, “The contract for the Dukovany Nuclear Power Plant in the Czech Republic is significant as it marks Daewoo E&C’s first overseas nuclear power project. Based on its experience in domestic nuclear power projects, we expect the company to demonstrate its overseas nuclear construction capabilities and expand its role within Team Korea.”
She added, “Successful execution of this project could expand opportunities for participation in the global nuclear power value chain,” noting, “We also anticipate follow-up projects such as the additional Temelin nuclear power plant in the Czech Republic and the Ninh Thuan nuclear power plant in Vietnam.”
The analyst emphasized, “Diversifying the countries and types of projects through nuclear power plant contracts is positive,” noting, “While the sharp rise in stock prices during the first half of the year was a concern, valuation pressures have eased following recent market adjustments.”
Furthermore, he noted, “There is a valid possibility of the company being re-evaluated as a global EPC firm following the signing of the main EPC (Engineering, Procurement, and Construction) contract for the Czech nuclear power plant and the expansion of the subsequent nuclear power plant pipeline,” and projected consolidated revenue of 8.059 trillion won (up 0.1% year-on-year) and operating profit of 682.5 billion won (return to profitability) for this year.