Corporate Logo(source: samsungshi.com)
NH Investment & Securities on the 18th raised its target price for Samsung Heavy Industries(010140) by 16%, to 20,000 won, while maintaining a "BUY" rating. The firm expects the company to achieve its annual order target through the receipt of shuttle tanker orders in the first half and liquefied natural gas(LNG) carrier orders in the second half of the year.
Jeong Yeon-seung, an analyst at NH Investment & Securities stated, "Samsung Heavy Industries has set its order target for this year at 9.8 billion USD(5.8 billion USD for merchant ships and 4 billion USD for offshore units)." So far, the company has secured 1 LNG carrier and 9 shuttle tankers, totaling 1.59 billion USD in orders.
He also noted, "There is potential for Samsung Heavy Industries to secure orders for Ice Class shuttle tankers currently under discussion, as the company has experience with deliveries in this area." Furthermore, he highlighted that the company’s strong position in floating liquefied natural gas(FLNG) production facilities increases the likelihood of securing two FLNG units by the end of this year.
NH Investment & Securities estimates that Samsung Heavy Industries' first-quarter revenue and operating profit will increase by 4.1% and 75.8% year-on-year, reaching 2.4 trillion won and 136.9 billion won, respectively.
Jeong emphasized, "Due to a 100% hedging strategy, the company has no exposure to exchange rate fluctuations. While a decrease in the number of operating days in Q1 will lead to slower revenue growth, the high-margin FLNG units, expected to begin construction in Q4, will significantly enhance profitability."
*[KOSPI]Samsung Heavy Industries(010140) is one of the top three domestic shipbuilding companies in South Korea, engaging in the shipbuilding and construction sectors. Market capitalization is 13 trillion 15.2 billion won(as of March 17, 2025, closing price).
Corporate Logo(source: samsungshi.com)
NH Investment & Securities on the 18th raised its target price for Samsung Heavy Industries(010140) by 16%, to 20,000 won, while maintaining a "BUY" rating. The firm expects the company to achieve its annual order target through the receipt of shuttle tanker orders in the first half and liquefied natural gas(LNG) carrier orders in the second half of the year.
Jeong Yeon-seung, an analyst at NH Investment & Securities stated, "Samsung Heavy Industries has set its order target for this year at 9.8 billion USD(5.8 billion USD for merchant ships and 4 billion USD for offshore units)." So far, the company has secured 1 LNG carrier and 9 shuttle tankers, totaling 1.59 billion USD in orders.
He also noted, "There is potential for Samsung Heavy Industries to secure orders for Ice Class shuttle tankers currently under discussion, as the company has experience with deliveries in this area." Furthermore, he highlighted that the company’s strong position in floating liquefied natural gas(FLNG) production facilities increases the likelihood of securing two FLNG units by the end of this year.
NH Investment & Securities estimates that Samsung Heavy Industries' first-quarter revenue and operating profit will increase by 4.1% and 75.8% year-on-year, reaching 2.4 trillion won and 136.9 billion won, respectively.
Jeong emphasized, "Due to a 100% hedging strategy, the company has no exposure to exchange rate fluctuations. While a decrease in the number of operating days in Q1 will lead to slower revenue growth, the high-margin FLNG units, expected to begin construction in Q4, will significantly enhance profitability."
*[KOSPI]Samsung Heavy Industries(010140) is one of the top three domestic shipbuilding companies in South Korea, engaging in the shipbuilding and construction sectors. Market capitalization is 13 trillion 15.2 billion won(as of March 17, 2025, closing price).