NH Investment & Securities said on the 21st that Samsung E&A is expected to secure a competitive edge in Middle East orders based on the largest workforce in Korea. It maintained a Buy rating and raised the target price to 72,000 won from 42,000 won. The previous trading day's closing price of Samsung E&A was 49,550 won.
Lee Eun-sang, an analyst at NH Investment & Securities, said, "As of the end of 2025, the workforce capable of handling overseas orders stands at 2,600, the largest in Korea," adding, "Based on this, $11 billion in orders related to Middle East reconstruction and alternative pipeline expansion is expected over the next three years."
In particular, while a short-term rise in expenses due to the war since March is unavoidable, the conflict zones are clearly defined, so costs can be reimbursed under the contract or additional costs can be claimed and partially recovered on grounds of "force majeure (circumstances beyond control)."
The markets for liquefied natural gas (LNG), hydrogen, and carbon capture, utilization and storage (CCUS) are in the economic feasibility verification stage, with global competitors starting from a similar position.
The analyst said, "Securing licenses through continuous capital expenditures (CAPEX) and accumulating construction experience will be the key," noting, "It is expected to strengthen its market position based on financial capacity." Samsung E&A is investing more than 3% of revenue in CAPEX while returning 10%–15% of controlling net income to shareholders.
This year's operating profit was forecast at 965.7 billion won, up 22% from a year earlier. New orders were expected at 12.6 trillion won, up 98% from the previous year.
The analyst said, "Further cost stabilization is possible as the progress rate of the Saudi Fadhili project rises," adding, "Annual petrochemical orders may decline somewhat due to the war's impact, but increased orders from Samsung Electronics will make up for it."