Kiwoom Securities projected on the 17th that Samsung Heavy Industries will continue its growth trend that meets expectations. Thus, it maintained a 'buy' investment opinion and raised the target price to 17,000 won. The last transaction day, Samsung Heavy Industries closed at 13,350 won.
According to Kiwoom Securities, Samsung Heavy Industries' sales for the fourth quarter of 2024 are expected to be 2.641 trillion won, an 8.5% increase compared to the same period last year, with operating profit anticipated to rise by 90.5% to 150.5 billion won. This figure meets market expectations. The new order performance for 2024 is estimated at about $7.3 billion. The company secured a total of 36 ships, including 22 liquefied natural gas (LNG) carriers, achieving its annual order target.
Lee Han-gyeol, a researcher at Kiwoom Securities, noted, "The increase in the sales ratio of ships, along with the longer working days compared to the previous quarter, will likely lead to continued improvement in financial performance due to the order backlog," adding, "However, in the marine institutional sector, the political uncertainty in Mozambique is delaying the Coral FLNG project orders."
On the 20th, it is expected that approval for the United States' liquefied natural gas (LNG) exports will resume following the inauguration of President Donald Trump. The researcher stated, "With the increase in orders for LNG carriers and the activation of marine projects, Samsung Heavy Industries is expected to benefit," and "This year, new orders exceeding $10 billion are anticipated. The year-end order backlog is expected to maintain workloads for 3 to 3.5 years, leading to a prolonged improvement in financial performance."
Samsung Heavy Industries is projected to have sales of 10.782 trillion won in 2025, a 9.5% increase compared to the same period last year, with operating profit expected to rise by 54.7% to 740.8 billion won. The researcher added, "This year, revenues from the LNG carriers scheduled for delivery in 2026 are expected to increase, resulting in a moderating pace of profitability improvement in the institutional sector," but also mentioned, "Recently, as the United States has strengthened its measures against China's shipbuilding and shipping industries, a feedback benefit is anticipated."