[Click eStock] Which Construction Stock Is Recommended as Orders Pile Up?

The steady flow of orders for SAMSUNG E&A continues, leading to an analysis that the current share price presents a buying opportunity.

On July 9, LS Securities researcher Kim Saeryeon stated, "SAMSUNG E&A is expected to achieve a record-high level of new orders this year. In addition to orders from group affiliates such as Samsung Electronics P5 and Samsung Biologics Plant 6, there are also downstream plant order deals, including the $2 billion Saudi Arabia Khafji Gas project and the $4 billion Qatar urea and DEF plant."

Researcher Kim added, "With downstream petrochemical production facilities recently impacted by the Iran war, expectations for SAMSUNG E&A to secure reconstruction orders have risen further. This year’s order growth will drive fundamental improvements, and the company’s ongoing efforts to enter the LNG sector are creating valuation multiples in line with global competitors."

Second quarter revenue this year is projected to reach 2.511 trillion won, up 15.3% year-on-year. Operating profit is expected to rise 13.0% over the same period, reaching 204.3 billion won. Kim explained, "The recognition of sales from Samsung Electronics P5, strong revenue contribution from the major Saudi Fadhili petrochemical project, as well as ongoing key construction projects such as UAE’s TA’ZIZ methanol and Malaysia’s SAF, will continue to drive growth. It is also encouraging that the company recently secured a 1.2 trillion won construction order for a Middle East water treatment project and obtained a 20-year O&M contract starting from 2030." Kim further noted, "Taking these orders and the P5 contract into account, the likelihood of exceeding the annual order target of 12 trillion won has increased significantly."

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