[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 29th that it is maintaining its “Buy” investment rating and target price of 15,000 won for ASIACEMENT(183190).

Lee Eun-sang, an analyst at NH INVESTMENT & SECURITIES, explained, “We view the ongoing recovery in the domestic construction market as valid and positively assess the company’s shareholder return policy, which has secured downside rigidity.” He added, “Although we have lowered our operating estimates by adjusting expectations for the pace of earnings recovery, the effect of shifting the valuation horizon to 2027 offsets this, so we are maintaining the target price.”
He emphasized, “Cement is an essential construction material used in all types of construction—not only residential but also industrial and commercial.” He added, “As of May 2026, year-to-date (YTD) construction starts reached 2.98 million square meters (+7% year-over-year), marking the start of a recovery. “We expect industrial and commercial construction, led by semiconductor factories and data centers, to drive new construction starts in the second half of the year,” he emphasized.
He added, “A corresponding recovery in cement shipments is also likely,” noting, “ASIACEMENT is the only domestic cement company to have formalized a shareholder return policy. Utilizing 40% of its standalone net income as funding, the company is simultaneously implementing cash dividends and share buybacks and cancellations; the expected shareholder return yield, including a dividend of 260 won per share in 2026, is 6%.”
The analyst projected that second-quarter operating profit would come in at 21.3 billion won (-48%), falling short of the consensus estimate. The analyst noted, “The war has caused supply disruptions for certain petrochemical products, such as naphtha and PVC, exposing the company to the risk of production slowdowns,” and pointed out that “the price of bituminous coal, which accounts for 30% of manufacturing costs, has risen by 18% compared to the beginning of the year, which is also weighing on earnings.”
Furthermore, the analyst stated, “Considering recent base rate hikes and sluggish housing starts in the public sector, we are lowering our expectations for the pace of earnings recovery,” and projected operating profits for 2026 and 2027 at 88.1 billion won (+14%) and 156.8 billion won (+78%), respectively.