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(Photo = Samsung Heavy Industries) |
[Alpha Biz= Reporter Kim Minyoung] Korea Investment & Securities raised its target stock price of Samsung Heavy Industries to KRW 13,700. This is the result of raising the estimates of the marine sector's performance in consideration of the construction that is scheduled to be ordered. Investment opinions also maintained a 'buy'.
Korea Investment & Securities said on the 29th, "As a result of raising the long-term earnings estimate of Samsung Heavy Industries' marine sector, we will raise our target stock price by 29.2%."
Samsung Heavy Industries recorded 2.3478 trillion won in tentative consolidated sales and 77.9 billion won in operating profit in the first quarter of this year. Although it increased by 46.3% and 298.3% year-on-year, respectively, operating profit was below 9.2% compared to the consensus.
"Samsung Heavy Industries' sales have decreased by the number of working days compared to the fourth quarter of last year, and its operating profit has also decreased by the rate of decrease in sales," Korea Investment & Securities said. "The performance was created by a mix of merchant ships and stable margins in the construction sector without one-off gains and losses such as production stabilization costs, transfer and reversal of provisions."
Korea Investment & Securities added, "As a single product of floating liquefied natural gas production facility (FLNG), Samsung Heavy Industries has already won two orders and three projects are scheduled to be won." Korea Investment & Securities estimates that this will generate more than 2 trillion won in sales every year from 2026 to 2029.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
