DL E&C's share price is trading in firm territory. Brokerages expect the company's third-quarter operating profit to fall short of market expectations, but they gave a positive assessment of its financial stability.

On the 21st, DL E&C (375500) was trading at 57,700 won, up 400 won (0.70%) from the previous day. While the gain is modest, the stock is maintaining a higher price than the prior trading day.

■ Q3 Operating Profit Expected to Fall 14.9% Short of Market Expectations

IBK Investment & Securities estimated DL E&C's third-quarter 2026 revenue at 1.6 trillion won, a 16.0% decrease from the same period last year. It forecast operating profit of 97.4 billion won, down 16.6% from a year earlier.

Notably, this operating profit forecast is 14.9% below the market consensus of 114.5 billion won. The brokerage cited delays in housing construction starts and declining sales in the plant segment as the background for the weak performance. In the fourth quarter, delayed orders are expected to be a key variable. Analysts say whether orders that were pushed back later than originally planned actually turn into contracts could determine whether the company achieves its annual order target.

■ Target Price Lowered to 87,000 Won... 'Buy' Rating Maintained

While maintaining a 'Buy' investment opinion, IBK Investment & Securities lowered its target price for DL E&C to 87,000 won. Compared with the current share price of 57,700 won, the target price is about 50.8% higher.

The brokerage assessed that DL E&C's financial stability is far superior to that of its competitors. However, it pointed out that for this financial strength to translate into higher corporate value, revenue growth must back it up.

Ultimately, there are two key points to watch in DL E&C's performance: how much the delayed housing construction starts and the decline in plant sales improve, and how much the orders deferred to the fourth quarter contribute to achieving the annual target. Despite the positive assessment of its financial stability, whether revenue growth recovers remains the key challenge in valuing the company.

[This article is intended to provide information for investment reference and does not recommend buying or selling specific stocks. Content may vary depending on market conditions. Investment decisions and any resulting responsibility rest with the investor. AI provided partial assistance.]