[Market Focus] Samsung E&A Surges Over 7% on Strong Earnings and New Business Prospects

SAMSUNG E&A is showing a strong performance with a rise of over 7%, buoyed by robust fourth-quarter results last year.

As of 10:42 a.m. on January 26, SAMSUNG E&A was trading at 29,050 won on the Korea Exchange, up 2,050 won (7.59%) from the previous session.

Previously, on January 23, SAMSUNG E&A announced that its consolidated operating profit for the fourth quarter of last year reached 277.3 billion won, with sales of 2.7571 trillion won. While operating profit decreased by 6.2% year-on-year, sales increased by 6.9%. Song Yurim, a researcher at Hanwha Investment & Securities, commented, "Operating profit exceeded the consensus (average forecast by securities firms) of 208.3 billion won by 33.2%. The company continued to post a solid operating margin due to cost improvements, favorable exchange rates, and a decline in the selling and administrative expense ratio. As a result, in 2025, the company is expected to surpass its operating profit guidance for the seventh consecutive year and achieve its highest-ever net profit margin."

Market expectations related to the restructuring of business divisions also appear to be reflected. SAMSUNG E&A announced a business restructuring plan to reorganize its existing petrochemical and non-petrochemical divisions into three segments: petrochemicals, advanced industries, and new energy. Kang Kyungtae, a researcher at Korea Investment & Securities, noted, "The launch of the new energy division is particularly noteworthy. The company has classified LNG and clean energy (low-carbon, carbon-free, resource circulation, etc.) from the existing petrochemical division, as well as water treatment projects from the non-petrochemical division, as new energy products. SAMSUNG E&A plans to expand its engineering, procurement, and construction (EPC) business for small and medium-sized LNG terminals and low-carbon ammonia in the United States, and will also strengthen its water treatment business by identifying regions that require concession services."

This content was produced with the assistance of AI translation services.