Hana Securities announced on July 1 that it has raised its target price for GS Construction from 45,000 won to 52,000 won, citing expectations for benefits from the expansion of the domestic artificial intelligence (AI) data center market. The firm maintained its investment rating at "buy."
In a report released on the same day, analyst Kim Seung-jun noted, "GS Construction has steadily built a strong portfolio of data center references. Since the 2010s, it has constructed over ten data centers for clients including LG Uplus, Hana Financial Group, and Naver (in Chuncheon and Sejong)."
Kim added, "Recently, the company has expanded into direct equity investments for development and operation. There are five data centers scheduled for development from last year to this year, and we can expect to secure gigawatt-scale data centers through the Donghae project."
He also mentioned that GS Construction and its subsidiary, Xi C&A, are currently working on three data centers (in Goyang, Paju, and Sejong) and plan to initiate two additional projects (in Ilsan and Busan) this year. "A total of 120 megawatts are planned for the second half of this year, with nearly 1 trillion won in orders expected," he explained.
Kim concluded, "With over 10 trillion won in orders potentially contributing to revenue within the next 2-3 years, the overall revenue growth rate could be very rapid."
* This article has been translated by AI.
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