Corporate Logo(source: samsungena.com)
Samsung E&A(028050) is experiencing a strong upward movement, driven by positive analyst projections suggesting that the company’s acquisition of a stake in the Norwegian hydrogen firm Nel will boost its growth potential.
As of 10:16 AM on March 13, Samsung E&A was trading at 19,380 won, up 4% from the previous session.
Meritz Securities analyst Moon Kyung-won noted that "Samsung E&A acquired a 9.1% stake in the Norwegian hydrogen company Nel for 47.6 billion won, becoming the largest shareholder. Nel has been producing electrolysis systems for about 100 years and is a leading global player in the industry."
Moon further highlighted that Nel has a broad technical spectrum and has built a solid track record in Europe, the U.S., and Asia. The company's unique automation system has enabled it to rapidly stabilize its performance.
He predicted that over time, this stake acquisition will present a revaluation opportunity for Samsung E&A. Moon stated, "Although the growth has been less than expected compared to five years ago, global electrolysis installation volumes continue to show impressive growth. While hydrogen cars and hydrogen turbines are seeing modest growth, industrial demand for green ammonia and green methanol is rising."
Moon also emphasized that collaboration between electrolysis project design, procurement, and construction(EPC) companies and electrolysis solution providers provides significant advantages in terms of mitigating uncertainties. He anticipates that by around 2027, a joint venture(JV) could be established, with Nel producing stacks and Samsung E&A handling the Balance of Plant(BOP) responsibilities, thereby fostering further project collaboration.
He also projected that future growth investments and the resumption of dividends would resolve undervaluation concerns. Moon concluded, "Samsung E&A is planning continued investment in future growth engines, and it will resume dividend payouts in 2025 after a 12-year hiatus. This will address market concerns regarding cash utilization and help eliminate 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)
Samsung E&A(028050) is experiencing a strong upward movement, driven by positive analyst projections suggesting that the company’s acquisition of a stake in the Norwegian hydrogen firm Nel will boost its growth potential.
As of 10:16 AM on March 13, Samsung E&A was trading at 19,380 won, up 4% from the previous session.
Meritz Securities analyst Moon Kyung-won noted that "Samsung E&A acquired a 9.1% stake in the Norwegian hydrogen company Nel for 47.6 billion won, becoming the largest shareholder. Nel has been producing electrolysis systems for about 100 years and is a leading global player in the industry."
Moon further highlighted that Nel has a broad technical spectrum and has built a solid track record in Europe, the U.S., and Asia. The company's unique automation system has enabled it to rapidly stabilize its performance.
He predicted that over time, this stake acquisition will present a revaluation opportunity for Samsung E&A. Moon stated, "Although the growth has been less than expected compared to five years ago, global electrolysis installation volumes continue to show impressive growth. While hydrogen cars and hydrogen turbines are seeing modest growth, industrial demand for green ammonia and green methanol is rising."
Moon also emphasized that collaboration between electrolysis project design, procurement, and construction(EPC) companies and electrolysis solution providers provides significant advantages in terms of mitigating uncertainties. He anticipates that by around 2027, a joint venture(JV) could be established, with Nel producing stacks and Samsung E&A handling the Balance of Plant(BOP) responsibilities, thereby fostering further project collaboration.
He also projected that future growth investments and the resumption of dividends would resolve undervaluation concerns. Moon concluded, "Samsung E&A is planning continued investment in future growth engines, and it will resume dividend payouts in 2025 after a 12-year hiatus. This will address market concerns regarding cash utilization and help eliminate 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).