Korea Investment & Securities forecasted on the 11th that the recent order of an eco-friendly liquefied natural gas (LNG) plant in Indonesia by Samsung E&A will serve as a catalyst for a valuation reevaluation. Accordingly, it maintained its investment rating as 'buy' and raised the target price from the previous 33,000 won to 40,000 won, an increase of 21.2%.
Nam Chae-min, a researcher at Korea Investment & Securities, noted, 'With Korean construction companies participating in LNG export terminals, which are at the pinnacle of the design, procurement, and construction (EPC) of chemical plants, this will serve as a valuation relaying event, securing significant revenue sources due to the high expansion potential of the LNG terminal market.'
He also predicted, 'Samsung E&A has already risen to the top tier in terms of the size of its order backlog and the profitability generated from that backlog, but it has not received the corresponding recognition in value. If it is able to carry out the EPC of the LNG export terminal through this project, it will be close to the valuation level of its competitors.'
Earlier, Samsung E&A announced that it had secured the basic design (FEED) for the Indonesian eco-friendly LNG plant. This project, taking place in the Saumlaki region of Maluku Province, Indonesia, aims to produce 9.5 million tons of LNG and 35,000 barrels of ultra-light oil (condensate) per day after receiving natural gas from the Abadi gas field and liquefying it.
Korea Investment & Securities raised its earnings estimates for 2026, reflecting the high potential for orders in the second half of the year for chemical projects. Revenue is estimated to increase by 6.8% and net profit by 10.6%. Researcher Nam analyzed, 'Considering new orders projected for next year, there is a significant likelihood that the return on equity (ROE) will also increase after 2027.'