* Sold-out 1st round pre-sale at Vietnam project

- We maintain BUY and a six-month price target of W29,900

Market concerns waned as the Hanoi Landmark Tower project sold out the 209 units put up in the first round of pre-sale. The successful pre-sale proved solid Vietnamese demand for upscale housing despite the economic gloom.

The counter has investment merits given strong growth potential, stable cash flow and an insignificant number of unsold pre-sale units on hand. The business portfolio ensures future growth on the back of extensive diversification by region and construction type. The company should enjoy consistent cash flow as public works account for 50% of sales. Considering its unsold pre-sale units number only 800, the builder should remain unscathed even if the housing market slump is protracted.  

Interest-bearing debt exceeded W600bn in 1H08. Given the looming risks of a credit crunch in 2H08, the debt amount is burdensome but not a cause for alarm. It is notable that the debt mostly went to land purchases and investments in E&P and resources development projects.