2023-07-06 08:05:21
GS E&C
The news that GS E&C decided to completely reconstruct the Incheon Geomdan New City apartment made a big slippage.
According to the Korea Exchange on the 6th, GS E&C shares closed at 14,520 won, down 19.47% (3510 won) from the previous trading day.
When the Ministry of Land, Infrastructure and Transport announced the cause of the collapse the day before, GS E&C decided to proceed with full reconstruction and compensation for damage caused by delays in moving in.
Bae Se-ho, a researcher at HI Investment & Securities, said, “The total contract amount for the apartments in question with 1666 households (17 buildings) is 277.3 billion won, and the completion rate has exceeded 66% as of the end of the first quarter of last year.” It is an effort to minimize the loss of value.”
Securities companies estimated the additional cost that could be incurred due to the full-scale reconstruction at around 300 billion won to 500 billion won. Hi Investment & Securities offered 540 billion won. KB Securities expected 500 billion won and Korea Investment & Securities 340.3 billion won in losses from reconstruction.
Jang Moon-joon, a researcher at KB Securities, said, “It is not easy to accurately calculate the cost related to reconstruction at this point, but the estimate of 1 trillion won is rather high.” This is derived,” he said.
The problem is that uncertainty regarding the full-scale reconstruction still remains.
Kang Kyung-tae, a researcher at Korea Investment & Securities, said, “The problem is that more tangible and intangible losses will occur.” There seems to be a decrease in the performance of orders for maintenance business sites,” he said.
Korea Investment & Securities downgraded its investment opinion on GS E&C from ‘buy’ to ‘neutral’ on the same day.
There is also an opinion that the stock price of housing-related stocks will also be negative.
Researcher Jang said, “Investment sentiment in housing-related stocks, which have been sluggish, will worsen further,” and predicted, “The future stock prices will be influenced by the atmosphere of the pre-sale market amidst absolutely low valuations.”
Nice Credit Ratings said in a report on the same day, “When looking at similar cases in the past, investor sentiment toward the company may be weakened due to factors such as a decline in credit rating and the prospect of negative administrative measures by the Seoul Metropolitan Government.” “In this case, difficulties in refinancing real estate PF This could lead to a financial burden on the company.”
Reporter Kim Kyung-min min@
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Finance and Securities Department
Reporter Kim Kyung-min
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