Daishin Securities said on the 16th that Samsung E&A has strong order momentum, from Middle East reconstruction and new energy to captive volumes in semiconductors. It newly set a "buy" investment opinion and a target price of 73,000 won. The previous trading day's closing price was 52,100 won.
Daishin Securities pointed to Samsung E&A's strength as securing a rich order pipeline. It presented annual order guidance of 12 trillion won this year, but said there is also room for an upward revision.
In particular, it assessed that among construction stocks, it has the most solid order momentum, spanning Middle East reconstruction, new energy, and affiliates. Daishin Securities selected Samsung E&A as its top pick in the construction sector.
Researcher Lee Hae-jin of Daishin Securities said, "Since the war, the Middle East market offers two opportunities: demand for reconstruction and expanded investment in energy infrastructure."
Researcher Lee Hae-jin of Daishin Securities explained, "Based on its experience executing engineering, procurement and construction (EPC) in the Middle East, it may be able to participate in reconstruction projects," adding, "We can also expect benefits from accelerated plant and infrastructure investment by Gulf Cooperation Council (GCC) countries as fiscal capacity expands on the back of high oil prices."
The researcher expected that as the global trends of energy transition and stronger energy security continue, order momentum will strengthen across the new energy value chain where Samsung E&A is focusing.
The researcher said, "Samsung E&A is progressing with a repositioning beyond traditional chemical EPC—such as liquefied natural gas (LNG), green hydrogen, ammonia, sustainable aviation fuel (SAF), carbon capture, utilization and storage (CCUS), and clean methanol—into a global energy EPC," and forecast, "An expansion of affiliate facility investment (CAPEX) driven by the semiconductor supercycle could also contribute to Samsung E&A's stable growth."