[Click eStock] "Samsung Heavy Industries: Second Quarter Results May Miss Expectations, But Orders Are Progressing Smoothly"

On June 25, KB Securities maintained its "Buy" investment rating and target price of 35,000 won for Samsung Heavy Industries, stating that although the company's second quarter results this year are expected to fall short of market expectations, new orders are progressing smoothly.

KB Securities estimates Samsung Heavy Industries' second-quarter sales at 3.2162 trillion won, up 19.9% year-on-year, and operating profit at 361.2 billion won, up 76.4% from a year earlier. Dongik Jung, a researcher at KB Securities, said, "Both sales and operating profit are expected to slightly miss the consensus (average of securities firms' forecasts), and if the company sets aside provisions related to the Supreme Court's ruling on Target Achievement Incentives (TAI), the miss could be even greater." He added, "Pre-tax profit is expected to fall even further short of consensus due to derivative losses related to the Russia project."

New orders are progressing smoothly. By June 10, the company had secured a total of 9.6 billion dollars in orders, including 14 LNG carriers, 6 tankers, and 2 container ships (totaling 5.2 billion dollars for commercial ships), as well as 2 offshore plants worth 4.4 billion dollars. Researcher Jung analyzed, "Given this year's order targets of 5.7 billion dollars for commercial ships and 8.2 billion dollars for offshore plants, the company has achieved a fulfillment rate of 91.2% for commercial ships and 53.7% for offshore plants, making it highly likely that the annual targets will be exceeded."

There is also an opinion that attention should be paid to additional offshore plant orders and the timing of the first Floating Data Center (FDC) order. Earlier this month, Samsung Heavy Industries finalized contracts for the Coral and Delfin-1 Floating Liquefied Natural Gas (FLNG) facilities. Researcher Jung commented, "In the second half of the year, the company is working to win orders for the Delfin-2 and Western Ksi Lisims FLNG projects, each expected to be worth around 2.5 billion dollars. If it succeeds in securing both, offshore plant orders this year could reach up to 9.4 billion dollars. Also, attention is warranted as the recently unveiled FDC by Samsung Heavy Industries may translate into order results in the second half. If successful, it is expected to become another growth driver following FLNG."

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