Input 2021.02.04 11:13
According to the Korea Exchange on the 4th, the stock prices of most large construction companies ended higher the day before. HDC Hyundai Industrial Development (294870)Silver ended the transaction at 31,000 won, up 1800 won (6.16%). Hyundai E&C (000720), Daewoo Construction (047040), Samsung C&T (028260)Rose by more than 3%. Daelim Construction, GS E&C (006360)It also closed 1.62% and 2.26%, respectively.
On this day, the government announced its 25th real estate measure. This is the first measure Byun Chang-heum inaugurated and announced by Minister of Land, Infrastructure and Transport, and attention was focused on the fact that it could be the largest housing supply plan ever to target the whole country beyond Seoul and the metropolitan area.
From the beginning of the year, President Moon Jae-in has re-emphasized that he will come up with special measures related to housing supply. President Moon mentioned at a New Year’s press conference on the 18th of last month that “we will alleviate public anxiety at once by supplying real estate far exceeding the expected level.”
Stock prices are pouring out positive outlooks for builders as the total housing supply this year is likely to increase from last year. However, in the short term, it is expected that the stock price may go down depending on the strength or reality of this supply plan.
Moon-jong Jang, a researcher at KB Securities, said, “Considering that the rate of share price increase has accelerated since the change of ministers, the current stock price of construction stocks already reflects the expectation of a change in the policy stance.” said.
The target amount for housing supply proposed by five major construction companies, including HDC Hyundai Industries, this year is 131,000 households, an increase of 17.2% from last year. By company, Hyundai E&C set a target of 32,000 households and DL E&C increased by 61.1% and 25.5% from the previous year, respectively, with 20,000 households.
In addition, the issue of revitalizing urban reorganization projects is highlighted as a good news before the by-election of the mayor of Seoul in April. Last month, Kim Jong-in, chairman of the People’s Forces Emergency Response Committee and Ahn Cheol-soo, head of the National Assembly Party, announced measures that included real estate deregulation and increased housing supply.
Researcher Jang said, “In the case of candidates’ policies to revitalize urban improvement projects, we are focusing on supply expansion in Seoul and the metropolitan area.” did.
Lee Dong Heon Daishin Securities (003540)The researcher said, “The stock price of construction stocks has been recovering since November last year due to anticipation of the corona vaccine, but this year’s earnings consensus share price-to-earnings ratio (PBR) is still undervalued compared to the average for the past five years.” Overseas orders and increased stability are also factors that can increase its value.”