Table of Contents
Investment summary ............................................................................................................................ 3
Earnings visibility to dilute discount factors...................................................................................... 4
Valuation and investment strategy............................................................................................................ 4
Entering phase of sector outperforming market....................................................................................... 6
Resumed housing supply to boost earnings and cut losses................................................................... 7
Start of delayed PF projects to transform credit risk into sales ............................................................. 11
Macroeconomic conditions ripe for housing demand growth................................................................ 12
Incomes rising, employment stable among high-income earners ........................................................ 15
Government to stabilize prices by increasing supply............................................................................. 18
Government using DTI regulations as trump card................................................................................. 19
Reinstating Coverage
Hyundai Engineering & Construction...................................................................................................... 20
GS Engineering & Construction.............................................................................................................. 22
Daelim Industrial ..................................................................................................................................... 24
Hyundai Development Co ....................................................................................................................... 26
Daewoo Engineering & Construction ..................................................................................................... 28