Corporate Logo(source: hdec.kr)
Korea Investment & Securities on October 20 cut its target price for Hyundai Engineering & Construction (000720) to 77,000 won from 95,000 won, a reduction of 18.9%, citing downward revisions to its earnings forecasts through 2026.
As of 10:09 a.m., the stock was trading at 56,100 won, up 100 won (0.18%) from the previous session.
Kang Kyung-tae, analyst at Korea Investment & Securities, estimated the company’s third-quarter consolidated operating profit at 76.4 billion won, down 33.1% year-on-year, and said the figure would fall 64.1% short of market expectations.
He attributed the weak performance to multiple cost pressures, explaining, “At the PDH/PP plant project site in Poland, the project owner demanded performance bond execution from Hyundai Engineering, and settlement costs with subcontractors occurred at Hyundai E&C’s domestic housing projects.”
Kang added, “The big bath taken in 2024 was insufficient,” noting that the firm revised down its consolidated operating profit forecasts to 618.5 billion won for 2025 and 663.8 billion won for 2026, reductions of 40.6% (423.4 billion won) and 58.1% (920.2 billion won), respectively, from previous estimates.
He concluded, “Investors will need to lower their earnings expectations for Hyundai E&C until 2027, when profitability in plant operations normalizes and the effects of improved margins in construction and housing become more visible.”
*[KOSPI] Hyundai Engineering & Construction(000720) is the second-ranked comprehensive construction company in the 2022 Construction Capability Evaluation, responsible for civil engineering sectors such as tunnels, bridges, road construction, land development, and steel structure production and installation, as well as the construction/housing sector, including public buildings and high-rise buildings, apartments, etc. Market capitalization is 6.827 trillion won (as of October 16, 2025, closing price).
Corporate Logo(source: hdec.kr)
Korea Investment & Securities on October 20 cut its target price for Hyundai Engineering & Construction (000720) to 77,000 won from 95,000 won, a reduction of 18.9%, citing downward revisions to its earnings forecasts through 2026.
As of 10:09 a.m., the stock was trading at 56,100 won, up 100 won (0.18%) from the previous session.
Kang Kyung-tae, analyst at Korea Investment & Securities, estimated the company’s third-quarter consolidated operating profit at 76.4 billion won, down 33.1% year-on-year, and said the figure would fall 64.1% short of market expectations.
He attributed the weak performance to multiple cost pressures, explaining, “At the PDH/PP plant project site in Poland, the project owner demanded performance bond execution from Hyundai Engineering, and settlement costs with subcontractors occurred at Hyundai E&C’s domestic housing projects.”
Kang added, “The big bath taken in 2024 was insufficient,” noting that the firm revised down its consolidated operating profit forecasts to 618.5 billion won for 2025 and 663.8 billion won for 2026, reductions of 40.6% (423.4 billion won) and 58.1% (920.2 billion won), respectively, from previous estimates.
He concluded, “Investors will need to lower their earnings expectations for Hyundai E&C until 2027, when profitability in plant operations normalizes and the effects of improved margins in construction and housing become more visible.”
*[KOSPI] Hyundai Engineering & Construction(000720) is the second-ranked comprehensive construction company in the 2022 Construction Capability Evaluation, responsible for civil engineering sectors such as tunnels, bridges, road construction, land development, and steel structure production and installation, as well as the construction/housing sector, including public buildings and high-rise buildings, apartments, etc. Market capitalization is 6.827 trillion won (as of October 16, 2025, closing price).