Daewoo E&C Q2 results to be in line with expectations

[THE INVESTOR] South Korean builder Daewoo E&C’s second-quarter earnings will meet market expectations, LIG Investment & Securities said on July 19.

The securities firm expected that Daewoo E&C would post 2.73 trillion won (US$2.42 billion) in sales in the April-June period, up 5.8 percent from a year earlier. Its operating profit is likely to fall 5.6 percent to 98.4 billion won. 

“The Q2 earnings will be on a par with market consensus because of improved revenue from domestic housing and construction business,” said Kim Ki-ryong, an analyst at LIG Investment.

Kim added that the construction company is expected to sell more than 30,000 units of apartments in 2016 including some 23,000 units to be offered in the second half of this year.

LIG Investment retained a buy rating for Daewoo E&C and a price target of 7,900 won.

The builder’s stock fell o.34 percent to 5,830 won as of 3:38 p.m.

By Park Han-na (hnpark@heraldcorp.com)