Risk factor
Resilient to price shocks
Profitability factor
Favourable analyst view
About
Hyundai Engineering & Construction Co., Ltd., founded in Seoul, South Korea, in 1947, is a prominent global player in the engineering and construction industry. The company conducts extensive operations not only in its home country but also across Middle Asia, other regions of Asia, Africa, and various international markets. Its diverse business activities are organized into key segments: Building and Residential projects, Infrastructure and Environmental initiatives, Industrial Plants and Power facilities, and other specialized undertakings. In terms of construction, the company is deeply involved in infrastructure development, including the creation of highways, railways, and bridges. It also undertakes significant projects related to water resource management, environmental systems, underground structures, and comprehensive marine, offshore, and dredging works. For building construction, Hyundai E&C constructs a wide array of facilities such as hospitals, manufacturing and logistics centers, hotels, residential complexes, governmental and commercial office buildings, transportation hubs, cultural venues, sports arenas, data centers, educational institutions, research facilities, mixed-use developments, and other bespoke projects, in addition to general housing developments. Within the industrial and energy sector, the company specializes in building critical infrastructure like oil refineries, gas processing plants, petrochemical and fertilizer production units, liquefied natural gas (LNG) and gas-to-liquid (GTL) installations, and nuclear power generation plants. Their expertise further extends to constructing conventional power plants, desalination facilities, renewable energy installations, and electrical transmission and substation networks. Beyond these core construction services, Hyundai Engineering & Construction Co., Ltd. maintains a broad portfolio of additional businesses. These encompass real estate leasing, architectural planning, comprehensive facility management, agricultural and livestock operations, property development and sales, management of condominium resorts, production of various utilities (including steam, chilled water, hot water, and air conditioning), equipment maintenance, electricity generation, and heavy machinery rental services.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/E
Target Price
The average target price of 000720.KS is 283024 and suggests 131% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation t