Expansion of market due to inter-Korean economic cooperation and expectation of multiple recovery of construction industry
남북 경제협력에 따른 시장 확대, 건설업종 멀티플 회복 기대
Kyobo Securities | 2018.03.12
Expectations for inter-Korean economic cooperation continue for the time being. Expansion of economic cooperation to 80 trillion won annually
The rise in the construction sector index is expected to continue for the time being due to inter-Korean summit talks and expectations for economic cooperation. Despite solid earnings, the construction sector's 12MF P / E is 6.3x, the lowest level since the financial crisis. Domestic market expansion limit is the main factor for multiple discounts in construction sector. The expansion of inter-Korean economic exchanges is expected to increase the market to more than 80 trillion won per year (domestic orders of 50% in 2007). Even if the construction sector rebounds to a 10-year average P / E (10.4x), it is up 65% over the current share price. Maintain Overweight on the sector
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