Hyundai Motor Securities on the 20th said HanmiGlobal is set to continue growing on rising sales at domestic and overseas subsidiaries and the potential to join the "Team Korea" nuclear power project. It kept its Buy rating and raised its target price to 32,000 won from 26,000 won. HanmiGlobal's closing price in the previous trading day was 23,150 won.
Hyundai Motor Securities assessed that HanmiGlobal's domestic and overseas sales will increase this year, extending its growth trend. Shin Dong-hyun, an analyst at Hyundai Motor Securities, said, "This year, we expect a gradual recovery in the domestic general construction market and added sales contributions from the high-tech segment," and noted, "We also expect solid sales to continue in the global segment, led by the subsidiaries in Saudi Arabia and the United States."
First, regarding HanmiGlobal's domestic sales, Shin said, "In the domestic market, demand for global construction management (PM) for data centers and reconstruction business sites is increasing, so we expect a rebound in sales from last year's bottom," and explained, "As Samsung Electronics resumed construction at the Pyeongtaek plant last year, HanmiGlobal also began to recognize service revenue."
He added, "In connection with the Pyeongtaek plant construction, after winning an additional phased order of about 14 billion won in the first quarter of this year, in March an extension of the contract term worth about 24.2 billion won and additional orders tied to it will also be recognized."
Shin also projected that sales at HanmiGlobal's overseas subsidiaries will increase. He said, "The Saudi subsidiary saw some sales adjustments last year due to a location shift from Neom City to Riyadh, but normal sales recognition should resume this year," and added, "The U.S. subsidiary is providing services for most of the U.S.-bound investment projects of major domestic conglomerates."
The potential to join a nuclear power project led by "Team Korea," centered on Korea Hydro & Nuclear Power Co. (KHNP), is also a growth driver.
Shin said, "HanmiGlobal is steadily planning to participate in a nuclear power project led by Team Korea," and noted, "Among domestic PM firms, HanmiGlobal is the only company capable of executing large-scale projects such as nuclear power plants, so if KHNP secures the order, we believe the company's chances of participation are also very high."