GS Construction is showing strong performance in early trading, driven by expectations of securing contracts for artificial intelligence (AI) data centers.
According to the Korea Exchange, as of 9:52 a.m. on August 5, GS Construction's shares rose by 2,550 won (8.87%) to 31,300 won. The stock opened at 29,100 won and peaked at 32,350 won during the session.
The increase in stock price is attributed to heightened expectations for long-term growth centered around the AI data center business.
Lee Sun-il, a researcher at BNK Investment & Securities, noted in a report that if GS Group follows through on its announcement to build a 1.2 GW data center by 2028, approximately 10 trillion won worth of construction orders could be issued within less than three years. He stated, “This would provide GS Construction with a level of contract and performance momentum not seen before.”
Additionally, he mentioned that GS Construction is seeking its first foray into overseas nuclear power projects through the Ninh Thuan 2 project in Vietnam. The company is currently supporting Team Korea, led by Korea Hydro & Nuclear Power, as a non-regular contractor, with results expected to be announced within the year.
Lee also highlighted that GS Construction has regained its position as a leader in the housing maintenance market after overcoming the Incheon Geomdan incident. The company ranked third in the industry for maintenance project orders last year, with 6.3 trillion won, and has recorded 7.5 trillion won in the first half of this year, placing it second, just behind Hyundai Engineering & Construction at 7.7 trillion won.
Reflecting this growth momentum, BNK Investment & Securities has maintained its target price for GS Construction at 50,000 won and its investment rating at 'Buy.'
* This article has been translated by AI.
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