"GS Engineering & Construction to Ride 1 Trillion Won in Construction Orders" ... Data Center and Nuclear Power Double Momentum; Kakao Pay Posts Record Results [Zootopia]

[Financial News] Here is a roundup of major brokerage reports as of the morning of August 5.
Analysts said GS Engineering & Construction has three major tailwinds at once: GS Group's investment in AI data centers, its move into nuclear power projects in Vietnam, and a recovery in housing redevelopment orders.
Kakao Pay posted record quarterly results in the second quarter, with balanced growth across payments, securities, and insurance. It was also praised for settling into a quality-growth path centered on profitability. As for ISC, the global specialist in semiconductor test sockets, IBK Investment & Securities initiated coverage and called it a model case in Korea's Materials, Parts, and Equipment Industry.
◆GS Engineering & Construction (006360)― BNK Securities / Analyst Lee Sun-il
- Target price: 50,000 won (unchanged) | Previous close: 28,750 won
- Investment rating: Buy (unchanged)
BNK Securities maintained its target price of 50,000 won for GS Engineering & Construction, citing three investment points: GS Group's plan to build 1.2-gigawatt (GW) AI data centers by 2028, its entry into Vietnam's nuclear power market, and expanding orders in housing redevelopment projects.
Analyst Lee Sun-il said, "If GS Group builds 1.2 GW of data center capacity by 2028 as announced, we estimate that construction orders worth about 10 trillion won will be placed in less than three years." He added, "For GS Engineering & Construction, this would create an order and earnings momentum on a scale never seen before."
He also assessed the company's overseas nuclear power prospects. Lee said, "GS Engineering & Construction is seeking its first overseas nuclear power project through Vietnam's Ninh Thuan 2 project." He added, "It has applied as a non-lead contractor for Team Korea, led by KHNP, and the result is likely to be announced within this year." If the order result is announced this year, the company's successful expansion into overseas nuclear power projects is expected to become more visible.※ Vietnam Ninh Thuan 2 project (Ninh Thuan 2)This is a national project to build a nuclear power plant in Ninh Thuan Province in south-central Vietnam. Vietnam assigned construction of Units 1 and 2 to Russia and Japan in 2009, but scrapped the project in 2016. It has since revived the plan as power demand has surged. Russia is effectively leading Unit 1, while South Korea has emerged as a strong candidate for the remaining Unit 2 partnership.※ Team KoreaThis refers to a national consortium formed by Korean institutions and companies to win nuclear power export deals. Nuclear power is such a massive business that no single company can handle everything from design and equipment manufacturing to construction and operations. As a result, public companies such as KEPCO and KHNP handle project management, technology, and operations, Doosan Enerbility supplies key equipment such as reactors, and private builders share construction work. This structure helped Korea win the Barakah Nuclear Power Plant in the UAE and the Dukovany Nuclear Power Plant in the Czech Republic. It is now being used in the bid for Vietnam's Ninh Thuan 2 unit. The "non-lead contractor" that GS Engineering & Construction applied for means a construction partner that participates in the team rather than leading the project.
◆Kakao Pay (377300)― LS Securities / Analyst Sun Yu-jin
- Target price: 61,000 won (unchanged) | Previous close: 43,800 won
- Investment rating: Buy (unchanged)
LS Securities maintained its target price of 61,000 won for Kakao Pay after the company posted record second-quarter results, with broad-based growth across payments, securities, and insurance. The brokerage said, "The platform ecosystem is becoming more solid, while user activity indicators are improving rapidly."
Second-quarter revenue rose 40.6% from a year earlier to 335.1 billion won, a quarterly record. Operating margin reached 17.5%, keeping profitability in double digits for a second consecutive quarter.
Analyst Sun Yu-jin said, "The strong second-quarter performance appears to have been driven largely by Kakao Pay Securities within the financial services segment." He added, "The momentum for domestic virtual asset legislation, which is becoming more visible in the second half, is also a factor investors can look forward to."
Kakao Pay is also accelerating new businesses. It has launched an open beta version of its financial AI agent, "Financial AI Coach," which specializes in consumer analysis. The company has also signed a memorandum of understanding with Circle in the United States as it prepares infrastructure for issuing and distributing won-based stablecoins.※ StablecoinA stablecoin is a virtual asset designed to be pegged 1:1 to the value of a real currency such as the dollar or the won, so that its price does not swing wildly. Because its value is stable, it is better suited than bitcoin for everyday financial uses such as remittances and payments. Countries around the world are racing to regulate it.
◆ISC (095340)― IBK Investment & Securities / Head of Kosdaq Research Center Lee Geon-jae
- Target price: 180,000 won (new) | Previous close: 131,500 won
- Investment rating: Buy (new)
IBK Investment & Securities initiated coverage of ISC, a specialist in semiconductor test sockets, and assigned a target price of 180,000 won and a Buy rating.
Lee Geon-jae, head of the Kosdaq Research Center, introduced ISC as a company that manufactures test sockets, a key consumable used in semiconductor testing. He said the company commercialized silicon rubber sockets for the first time in the world and has maintained the No. 1 position in the global market.
He highlighted that every business division, from memory to non-memory chips such as Graphics Processing Unit (GPU), is making money from AI. "What investors should focus on is the simultaneous growth across all divisions as the AI investment cycle strengthens," he said. "The operating margin of the GPU sockets we supply is around 50%, showing overwhelming profitability."
He also said ISC is expected to break its own record again this year after posting all-time-high results last year. "As a model case in Korea's semiconductor Materials, Parts, and Equipment Industry, market attention is likely to rise even further," he added.※ Test socketA test socket is a component that electrically connects a semiconductor chip and testing equipment when checking whether a finished chip works properly. Because it wears out during testing, it must be replaced periodically. Demand therefore rises as semiconductor production increases.

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