[Edaily Reporter Shin Ha-yeon ] On the 10th, Hana Securities projected that NRB, inc.’s stock price would begin to rise as public modular housing orders pick up in earnest during the fourth quarter. The analysis suggests that, in line with the government’s policy to expand housing supply, a market worth at least 1 trillion won annually is expected to form starting next year. However, with the company’s current market capitalization standing at only 100 billion won, there is a high likelihood of revaluation once new orders begin to flow in. The firm did not provide an investment rating or target price.

Park Chan-sol, an analyst at Hana Securities, stated, “Although the stock price fell from February to July this year due to the prolonged vacancy of the LH president’s position and policy uncertainty surrounding public housing, we now view this as a turning point for the stock price to reverse its decline.”

NRB, inc operates South Korea’s largest precast concrete (PC) modular production facilities. The company operates three production bases: Gunsan Plants 1 and 2, and the Gimje Plant. Gunsan Plant 1 has a maximum annual production capacity (CAPA) of 4,600 modular units, Gunsan Plant 2 has a capacity of 4,400, and the Gimje Plant can produce up to 4,000 restrooms annually.

Considering that the average supply price per modular unit is approximately 100 million won, the company’s current effective production capacity is estimated to be between 460 billion and 500 billion won. The company’s use of the PC (Precast Concrete) method to manufacture modular homes, tailored to domestic housing culture, was cited as a key differentiator from competitors using steel-frame construction.

Hana Securities forecasts that orders for public modular housing will surge starting in the fourth quarter. While the Korea Land and Housing Corporation (LH)’s existing annual supply plan calls for 3,000 units, supply is scheduled to begin in the fourth quarter of this year.

Researcher Park stated, “Based on modular housing standards, we expect public tenders for a total of 2,076 households—754 in Pocheon Songu, 500 in Namyangju Wangsook, and 822 in Goyang Changneung—to be concentrated in October and November,” and “It appears that orders for an additional 900 to 1,000 units may also be issued before the first quarter of next year to meet the annual target of 3,000 units,” he explained.

He added, “I expect fierce competition in tenders for 3 to 6 modular housing projects around the end of this year and the beginning of next year.”

He projected that the market itself would expand significantly starting next year. This is because, in accordance with the “Plan for the Rapid Supply of Housing to Stabilize the Rental and Sales Markets” announced by the government on the 13th of last month, the supply plan for modular housing has been increased from the previous annual target of 3,000 units to 5,000 units.

Researcher Park stated, “A market worth at least 1 trillion won will form each year from 2027 to 2030,” adding, “Based on NRB, inc.’s supply prices, a 1 trillion won market will be created annually.”

Considering NRB, inc.’s existing market share, the company is expected to see a significant increase in new orders. Hana Securities estimated that NRB, inc.’s market share in the high-rise modular housing market was around 40–50% in 2024–2025.

Researcher Park assessed, “Given the existing market share, new orders from now until the end of next year could approach 750 billion won at most,” adding, “Considering that the current order backlog is in the low 100 billion won range, the company is poised to move up a weight class next year.”

NRB, inc.’s order backlog increased from 10.3 billion won in 2021 to 122.7 billion won in 2024 and 150.8 billion won last year, reaching 141 billion won as of the end of the second quarter of this year.

In addition, there is the Hanam Gyo-san project volume, which has not yet been reflected in the order backlog. Last February, NRB, inc. was designated as the contractor or subcontractor for a PC modular construction project worth 83.6 billion won, but this has not yet been included in the order backlog. Of the approximately 140 billion won in order backlog as of the end of the second quarter, the remaining volume for the Uiwang Chopyeong project amounts to about 65 billion won.

The company is also pushing ahead with plans to expand production capacity. NRB, inc. plans to increase the production capacity of its Gunsan Plant 1 from the current 4,600 modules per year to 5,600 modules by the first quarter of next year. It also plans to fully equip Gunsan Plant 2 with production facilities in preparation for new orders next year.

First-half performance this year has also improved. First-half revenue totaled 37 billion won, and operating profit reached 3.3 billion won. Compared to last year’s full-year revenue of 59.5 billion won and operating profit of 4.5 billion won, the company achieved 62% and 73% of those figures, respectively, in just the first half. Second-quarter revenue was 19.9 billion won, and operating profit was 1.9 billion won, up from 17.2 billion won and 1.5 billion won in the first quarter.

Analyst Park noted that the company’s current market value falls short of its order backlog. Based on the closing price of 9,110 won on the 9th, NRB, inc.’s market capitalization stands at approximately 99.3 billion won.

He stated, “NRB, inc.’s current market capitalization of approximately 100 billion won falls significantly short of its actual order backlog and is severely undervalued relative to expected future new orders,” adding, “I believe that once the market’s price discovery mechanism kicks in amid the flow of new orders, NRB, inc.’s stock price will rise very sharply.”