[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES released a report on #NRB, inc. on the 23rd, stating, “Benefits from government policies and the existing order backlog for public housing projects will drive substantial growth.” However, the firm did not disclose an investment rating or target price.

Lee Eun-sang, an analyst at NH INVESTMENT & SECURITIES, stated, “We expect to see a visible turnaround in NRB, inc.’s earnings as the company focuses on its modular housing business,” adding, “This is because fixed-cost burdens are easing following a reduction in depreciation expenses for existing rental assets and the completion of investments in manufacturing facilities.”
Previously, in the first quarter, operating profit margins by segment stood at 32% for the rental division (+7 percentage points year-over-year) and 14% for the manufacturing division (returning to profitability). He explained, “In the leasing segment, the depreciation burden is gradually decreasing as the useful lives of initial assets expire sequentially,” adding, “Starting in 2028, when the six-year accounting useful life ends, rental revenue from steel-frame modular units is expected to be fully reflected in operating profit.”
He further elaborated, “In the manufacturing sector, the cost structure has stabilized as large-scale facility investments—centered on PC (precast concrete) modular production and automated formwork equipment—and related R&D (research and development) expenditures have largely been completed,” noting, “87% of the total planned investment of 154억 원 has been completed.”
The analyst emphasized, “Orders for modular housing, centered on public housing—NRB, inc.’s core growth driver—are gaining momentum. Under the government’s policy to expand public housing supply, benefits are becoming visible following the enactment of special laws related to the establishment of standard criteria for modular custom design and construction, as well as the creation of production and construction certification systems.”
He added, “The company possesses the only modular high-rise technology in Korea and has strong market dominance by internalizing the entire manufacturing process. It is time for the results of its structural improvements, centered on precast concrete (PC) modular systems, to come to the fore.” He continued, “Considering the signing of the business agreement related to Hanam Gyosan, the company’s secured housing order backlog stands at approximately 2000억 won. This is expected to be fully recognized as revenue starting this year and drive growth.”