[Click e-Stock] LNG Carrier and FLNG Orders on the Rise... Which Stocks Will Benefit?

IBK Investment & Securities has newly set a target price of 37,000 won for Samsung Heavy Industries. The investment opinion is a buy recommendation.

On the 16th, IBK Investment & Securities analyst Jang Sung-ho stated, “Samsung Heavy Industries builds both liquefied natural gas (LNG) carriers and floating LNG production facilities (FLNG), which increases the stability of its business portfolio.” He added, “Although both businesses are within the LNG value chain, their investment cycles differ, so we can expect a hedging effect against the LNG market conditions.”

Analyst Jang explained, “Starting from 2030, when operations begin in earnest at the new docks, strong orders for LNG carriers are expected.” He cited the planned large-scale expansion of LNG liquefaction plants, mainly in the United States, as the reason. He further commented, “By 2031, global LNG production capacity is projected to reach 802 million tons, a 54.2% increase compared to last year, with 44.2% of that expansion in the United States.” He noted, “Since the U.S. is far from Asia, more LNG carriers will be needed for the same plant capacity.”

FLNG orders are also expected to continue steadily. Analyst Jang stated, “As the investment cost of FLNG projects falls to the level of onshore plants, more projects are likely,” adding, “Samsung Heavy Industries has a unique track record, having won 7 out of 11 new global FLNG orders, and is the only company to build large new FLNG facilities with a capacity over 3 million tons. Therefore, the company stands to gain the most benefit.”

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