Kang Kyung-tae, a researcher at Korea Investment & Securities, noted on the 28th that after visiting Samsung Heavy Industries' Geoje shipyard, the floating liquefied natural gas production, storage, and unloading facility (FLNG) and the liquefied natural gas (LNG) carrier production systems were all well-established.
Kang noted that he maintained a 'buy' recommendation on Samsung Heavy Industries and raised the target price from 17,000 won to 20,000 won, an increase of 17.6%. This is 49.6% higher than Samsung Heavy Industries' closing price (13,770 won) the previous day.
Kang remarked that through this visit, he observed the FLNG process at Samsung Heavy Industries and confirmed, "The efficient layout established by the world's top operator was verified."
The FLNG-related facilities at Samsung Heavy Industries' Geoje shipyard include two floating docks (maritime vessel construction facilities), K quay, and 7 quay. According to Kang, the FLNG 'PFLNG TIGA,' which Samsung Heavy Industries secured from Malaysia's state-owned oil company Petronas in 2023, completed launching at the floating dock last month and is currently undergoing cargo tank insulation work at K quay. The upper modules are being produced at 7 quay and are expected to be completed and installed in August.
Kang confirmed the operation of the largest 3 dock at the Geoje shipyard. The 3 dock is a facility capable of constructing two LNG carriers simultaneously. Since last year, Samsung Heavy Industries has entered a production system that can launch 20 LNG carriers annually from the 3 dock.
Kang evaluated the operation status of Samsung Heavy Industries' Geoje shipyard positively. He said, "Based on the progress rate of PFLNG TIGA, I have revised upward the revenue projections for the institutional sector, and also increased the estimated operating profit margin considering smooth processing speed." He added, "It is the right time to actively buy Samsung Heavy Industries, which has the brightest outlook for orders and performance in the institutional sector as a monopoly business operator for FLNG."