Corporate Logo(source: samsungena.com)
Meritz Securities stated on March 13 that Samsung E&A(028050) is expected to see significant growth potential following its acquisition of a stake in the Norwegian hydrogen company Nel. The firm maintained its "BUY" rating and a target price of 31,000 won, with the stock closing at 18,550 won the previous day.
Moon Kyung-won, an analyst at Meritz Securities, explained, "Samsung E&A acquired a 9.1% stake in the Norwegian hydrogen company Nel for 47.6 billion won, becoming its largest shareholder. Nel, which has been producing electrolysis systems for hydrogen for nearly 100 years, is considered a leader among global companies in the industry."
Nel is recognized for its wide technical spectrum and has built a strong presence in Europe, the U.S., and Asia. Moon highlighted that its unique automation system has allowed the company to quickly stabilize its performance.
Moon believes that as time progresses, this acquisition will serve as an opportunity for revaluation of Samsung E&A. He added, "Although global electrolysis installation volumes have shown impressive growth compared to expectations five years ago, hydrogen vehicles and hydrogen turbines are seeing slower growth. However, demand for industrial applications such as green ammonia and green methanol is growing."
He further noted, "The collaboration between electrolysis project design, procurement, and construction(EPC) companies and electrolysis solution providers offers significant advantages in terms of reducing uncertainty. By around 2027, we can expect project collaboration through a joint venture(JV), where Nel will produce stacks and Samsung E&A will handle the Balance of Plant(BOP)."
Moon forecasted that future growth investments and the resumption of dividends would resolve undervaluation concerns. He said, "Samsung E&A plans to continue investing in future growth engines and will resume dividends in 2025 after a 12-year hiatus. This approach is expected to alleviate market concerns over cash usage and resolve the undervaluation."
*[KOSPI]Samsung E&A(028050) is a global EPC(Engineering, Procurement, Construction) specialist company engaged in plant construction, manufacturing and sales of industrial machinery, engineering and technical services, civil engineering, environmental pollution control facilities, gas construction, energy diagnostics, environmental impact assessments, and waste management. Market capitalization is 3.6358 trillion won(as of March 12, 2025, closing price).
Corporate Logo(source: samsungena.com)
Meritz Securities stated on March 13 that Samsung E&A(028050) is expected to see significant growth potential following its acquisition of a stake in the Norwegian hydrogen company Nel. The firm maintained its "BUY" rating and a target price of 31,000 won, with the stock closing at 18,550 won the previous day.
Moon Kyung-won, an analyst at Meritz Securities, explained, "Samsung E&A acquired a 9.1% stake in the Norwegian hydrogen company Nel for 47.6 billion won, becoming its largest shareholder. Nel, which has been producing electrolysis systems for hydrogen for nearly 100 years, is considered a leader among global companies in the industry."
Nel is recognized for its wide technical spectrum and has built a strong presence in Europe, the U.S., and Asia. Moon highlighted that its unique automation system has allowed the company to quickly stabilize its performance.
Moon believes that as time progresses, this acquisition will serve as an opportunity for revaluation of Samsung E&A. He added, "Although global electrolysis installation volumes have shown impressive growth compared to expectations five years ago, hydrogen vehicles and hydrogen turbines are seeing slower growth. However, demand for industrial applications such as green ammonia and green methanol is growing."
He further noted, "The collaboration between electrolysis project design, procurement, and construction(EPC) companies and electrolysis solution providers offers significant advantages in terms of reducing uncertainty. By around 2027, we can expect project collaboration through a joint venture(JV), where Nel will produce stacks and Samsung E&A will handle the Balance of Plant(BOP)."
Moon forecasted that future growth investments and the resumption of dividends would resolve undervaluation concerns. He said, "Samsung E&A plans to continue investing in future growth engines and will resume dividends in 2025 after a 12-year hiatus. This approach is expected to alleviate market concerns over cash usage and resolve the undervaluation."
*[KOSPI]Samsung E&A(028050) is a global EPC(Engineering, Procurement, Construction) specialist company engaged in plant construction, manufacturing and sales of industrial machinery, engineering and technical services, civil engineering, environmental pollution control facilities, gas construction, energy diagnostics, environmental impact assessments, and waste management. Market capitalization is 3.6358 trillion won(as of March 12, 2025, closing price).