Shinyoung Securities said on the 17th that as IS Dongseo's earnings begin to rebound next year, the stock is likely to enter a re-rating phase. It maintained a Buy recommendation and raised the target price to 50,000 won from 26,000 won. IS Dongseo's closing price the previous day was 21,900 won.
Park Sera, an analyst at Shinyoung Securities, said, "With the successful start of sales in November for 'Ulsan Lakeside Park Aileen's Garden' (top competition rate 46.5 to 1), the company has entered a full-fledged, intensive sales period and is seeking a rebound," and noted, "Across business divisions, conditions have passed the bottom and are showing a recovery trend."
She added, "Next year, about 500 billion won in revenue based on handover standards from move-ins at Deogeun District blocks 6 and 7 will be recognized over the first half," and said, "With progress at the new Ulsan business site and additional revenue from selling remaining unsold units, the standalone business is expected to record 500 billion won in revenue."
Previously, IS Dongseo restricted orders sharply after the construction downturn, creating a sales gap, and the burden of expenses compounded, extending the earnings slump. Park said, "This year, revenue and operating profit are estimated at 1.068 trillion won and 97 billion won, down 29.5% and 42.8% year over year, respectively, and with one-off expenses reflected, net profit is expected to post a loss for a second consecutive year."