Reconstruction Theme Over? It's Just Starting | Kim Seung-jun, Hana Securities Research Center Research Fellow

Summary

Kim Seung-jun, Research Fellow at Hana Securities, argues that the reconstruction theme is just beginning despite recent pullbacks, driven by actual post-ceasefire orders. He names Samsung Engineering and DL E&C as top plays once a definitive settlement is reached. He also picks Samsung C&T as his top construction sector pick for its semiconductor ties and energy infrastructure growth. He advises avoiding Daewoo E&C due to high valuation and weak momentum, and monitoring domestic housing stocks for a potential Q4 entry.

• Reconstruction theme is not over; actual orders expected after a real ceasefire and reopening.
• Samsung Engineering (028050.KS) is the purest overseas EPC play with the highest Middle East exposure.
• DL E&C (375500.KS) offers high beta to reconstruction and a unique Iran office advantage.
• Samsung C&T (028260.KS) is the top sector pick, leveraging its Samsung Electronics stake, nuclear, and solar growth.
• Daewoo E&C (047040.KS) is expensive and lacks near-term momentum; avoid for now.
• Domestic housing stocks (e.g., GS E&C) face cost pressures, with a potential entry window in Q4.