In early trading on the 15th, construction stocks rose across the board. Buying appears to have gathered after analysts in the securities industry said Hyundai Engineering & Construction and Daewoo Engineering & Construction, among other major domestic builders, are set to benefit as global nuclear power development moves into full swing.
As of 9:41 a.m., Daewoo Engineering & Construction was trading at 286,000 won, up 51,00 won (21.70%) from the previous session on the Korea Exchange. At the same time, GS Engineering & Construction was at 411,500 won, up 37,00 won (9.88%).
DL E&C (6.06%) and Hyundai Engineering & Construction (3.79%) were also gaining.
Analysts in the securities industry on the day also issued a string of notes reassessing the valuation (corporate value) of domestic builders as global nuclear power projects get underway in earnest.
Bae Se-ho, an analyst at iM Securities, raised the target price for Hyundai Engineering & Construction by 50% to 2.1 million won from 1.4 million won.
Bae said, "Considering Hyundai Engineering & Construction's specific nuclear pipeline, we value its nuclear business at 18 trillion won," adding, "As global nuclear development gains momentum, its high valuation appears justified given its leading position in engineering, procurement and construction (EPC)."
Eugene Investment & Securities also said domestic builders such as GS Engineering & Construction and Daewoo Engineering & Construction stand to benefit from nuclear project orders.
Ryu Tae-hwan, an analyst at Eugene Investment & Securities, said, "GS Engineering & Construction has completion track records within 10 years, including Shin Hanul Units 1 and 2," adding, "Considering the expansion of the global nuclear order pipeline and a scenario in which the APR1400 enters the U.S. market, there is potential to participate as a lead manager."
He also said of Daewoo Engineering & Construction, "As a strong lead-manager candidate for Team Korea, its role could expand and its standing could change."