Samsung Heavy Industries shares are showing gains of more than 3% as the stock is being revalued as a beneficiary of the U.S.-Korea shipbuilding cooperation program, the MASGA project.
As of 9:58 a.m. that day, Samsung Heavy Industries was trading on the main bourse at 26,850 won, up 950 won (3.67%) from the previous trading day.
That day, the securities industry said Samsung Heavy Industries should be re-evaluated as an MASGA beneficiary stock.
Choi Gwang-sik, a researcher at DAOL Investment & Securities, said, "Samsung Heavy Industries does not run a special ship business, so the MASGA benefit appeared the weakest, but with this cooperation it has now signed partnerships with a total of three U.S. shipbuilders, so we judge there is little difference," and added, "We raise the appropriate PER from the previous 15 times to 20 times, the same MASGA multiple as its peer group."
Choi raised the target price for Samsung Heavy Industries to 37,000 won from 30,000 won.
Earlier, Samsung Heavy Industries announced a business cooperation with Vigor Marine at the start of MASGA during the U.S.-Korea negotiation period in Oct. It then said last week it had also signed partnerships with General Dynamics NASSCO (NASSCO) and Conrad Shipyard (Conrad).