Corporate Logo(source: gsenc.com)
LS Securities stated on July 8 that GS Engineering & Construction (006360) is expected to reach the bottom of its earnings cycle this year and re-enter a growth trajectory next year. The brokerage maintained its “Buy” rating and target price of 30,000 won.
LS Securities projected the company’s second-quarter operating profit at 114.6 billion won, up 22.6% year-on-year, with revenue estimated at 3.0751 trillion won, largely flat from the same period last year. Both figures are expected to be broadly in line with market consensus, indicating a stable performance.
The construction and housing division is anticipated to benefit from the expanded contract scope of projects such as Maple Xi and Cheolsan Xi. However, the report also noted that the high number of housing unit completions in the second quarter could increase margin volatility. In the new business segment, losses related to the liquidation of Elements are expected to be reflected, resulting in simultaneous recognition of housing settlement gains and liquidation-related losses, which will likely lead to increased earnings volatility.
Nonetheless, LS Securities stated that improvements in project mix and proactive cost recognition provide a clear path toward annual earnings recovery.
The brokerage also pointed to the potential for balance sheet improvement following the sale of Inima, along with the company’s attractive valuation—reflected in a price-to-book ratio (PBR) of 0.4x. It added that expectations for interest rate cuts and government-led housing supply expansion policies could drive a sector-wide re-rating over time.
Analyst Kim Se-ryeon commented, “With a solid backlog of redevelopment and reconstruction projects in key areas of Seoul and the greater metropolitan region, GS E&C is well positioned to benefit from market recovery through flexible housing supply and structural growth.” She added, “As the earnings recovery becomes more apparent, the company’s share price is likely to follow a structurally upward trend.”
*[KOSPI] GS Engineering & Construction(006360) ranks 5th in domestic contract orders(as of 2023) and is a major affiliate of GS Group. The market capitalization is 1.759 trillion won (as of July 7, 2025, closing price).
Corporate Logo(source: gsenc.com)
LS Securities stated on July 8 that GS Engineering & Construction (006360) is expected to reach the bottom of its earnings cycle this year and re-enter a growth trajectory next year. The brokerage maintained its “Buy” rating and target price of 30,000 won.
LS Securities projected the company’s second-quarter operating profit at 114.6 billion won, up 22.6% year-on-year, with revenue estimated at 3.0751 trillion won, largely flat from the same period last year. Both figures are expected to be broadly in line with market consensus, indicating a stable performance.
The construction and housing division is anticipated to benefit from the expanded contract scope of projects such as Maple Xi and Cheolsan Xi. However, the report also noted that the high number of housing unit completions in the second quarter could increase margin volatility. In the new business segment, losses related to the liquidation of Elements are expected to be reflected, resulting in simultaneous recognition of housing settlement gains and liquidation-related losses, which will likely lead to increased earnings volatility.
Nonetheless, LS Securities stated that improvements in project mix and proactive cost recognition provide a clear path toward annual earnings recovery.
The brokerage also pointed to the potential for balance sheet improvement following the sale of Inima, along with the company’s attractive valuation—reflected in a price-to-book ratio (PBR) of 0.4x. It added that expectations for interest rate cuts and government-led housing supply expansion policies could drive a sector-wide re-rating over time.
Analyst Kim Se-ryeon commented, “With a solid backlog of redevelopment and reconstruction projects in key areas of Seoul and the greater metropolitan region, GS E&C is well positioned to benefit from market recovery through flexible housing supply and structural growth.” She added, “As the earnings recovery becomes more apparent, the company’s share price is likely to follow a structurally upward trend.”
*[KOSPI] GS Engineering & Construction(006360) ranks 5th in domestic contract orders(as of 2023) and is a major affiliate of GS Group. The market capitalization is 1.759 trillion won (as of July 7, 2025, closing price).