As Hyundai Engineering & Construction (E&C) is likely to show a strong performance in the third quarter, its stock price also showed strength.
On Oct. 6, the stock price of Hyundai E&C closed at 35,200 won (US$30.31), up 4.45 percent, or 1,500 won (US$1.29), in the stock market. It bounced back in three days after the decline for two consecutive days.
NH Investment & Securities expected on the same day, “Hyundai E&C has recorded a good result, which is better than expected, in the third quarter.” The company estimated that Hyundai E&C will post 4.86 trillion won (US$4.19 billion) in sales in the third quarter, up 14.1 percent from a year earlier, while posting 254.9 billion won (US$219.46 million) in operating profits, up 10.4 percent from the same period.
Kang Seung-min, an analyst at NH Investment & Securities, said, “Along with the increase in home sales in the domestic business, the rate of cost to sales was also good. Moreover, the company maintained a stable figure in the overseas business sector, which had a positive effect, unlike concerns in the industry. Since the market concern over the performance of Hyundai E&C has relieved, it is a good time to buy its stocks.”