Lee Hye-jin, a researcher at Daishin Securities, stated, "We have secured both high profitability in the housing business and growth potential through integration into the global SMR value chain."
The firm analyzed that profitability is improving as revenues from high-quality projects that began construction in 2023 are being reflected. In the first quarter, the housing cost ratio was 79.9%, a competitive level compared to peers, and it is expected that the trend of cost ratio improvement will continue due to reduced high-cost sites and cost-saving effects.
The SMR business is also identified as a new growth driver. DL E&C entered the global SMR value chain by signing a standard design contract with U.S.-based X-energy in March, with expectations for business expansion not only in the U.S. but also in the U.K. and Southeast Asian markets.
For this year, Daishin Securities forecasts consolidated revenue of 7.0692 trillion won, a 4.5% decrease from the previous year, while operating profit is expected to rise by 33.8% to 517.6 billion won. Lee noted, "With the current price-to-book ratio (PBR) at around 0.5, the valuation burden is limited, and gradual multiple re-rating is anticipated."
* This article has been translated by AI.
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