[Alpha Biz= Kim Hyesil] Samsung Heavy Industries is expected to deliver solid mid- to long-term earnings visibility, but its market valuation remains relatively low compared to peers, according to analysts.

On April 20, Yuanta Securities estimated the company’s first-quarter revenue at KRW 3 trillion and operating profit at KRW 395 billion.

The projected operating profit exceeds market consensus, driven by a higher proportion of high-priced vessel deliveries. These include four low-priced LNG carriers and two container ships delivered in the fourth quarter, which have increased the share of higher-margin revenue recognition in the first quarter. The normalization of one-off labor-related costs booked in the previous quarter also contributed to improved profitability.

The share of LNG carrier (LNGC) revenue is expected to decline gradually—from 70% in the fourth quarter to 65% in the first quarter, and further to around 60–62% from the second quarter. However, this reflects a reduced contribution from lower-priced LNGC orders secured in 2022, while higher-priced orders from 2023 to 2025 are projected to increase their share by approximately 4 percentage points.

 

Analysts noted that despite improved earnings visibility, the company has yet to benefit from growing Korea–U.S. shipbuilding cooperation, which has supported valuations of some peers.

Kim Yong-min, an analyst at Yuanta Securities, said that while the offshore plant segment is expected to maintain strong earnings visibility following geopolitical developments such as U.S.–Iran tensions, Samsung Heavy Industries’ valuation discount persists due to its limited exposure to specialized naval vessel projects.

He added that securing contracts such as U.S. Navy-related ship design projects could help offset this weakness and serve as a key catalyst for share price re-rating.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]