[Click e-Stock] The Construction Firm Set to Achieve Its Largest-Ever Order Volume

Mirae Asset Securities has raised its target price for SAMSUNG E&A from 70,000 won to 72,000 won, while maintaining its "Buy" investment rating.

On October 1, Kim Giryong, an analyst at Mirae Asset Securities, stated, "Given the expected increase in overseas petrochemical orders and the heightened group-wide order trends, the mid- to long-term earnings direction is also expected to maintain an upward trajectory." He added, "The expansion of product lines in the petrochemical sector, such as liquefied natural gas (LNG) and sustainable aviation fuel (SAF), combined with 3 trillion won in net cash for new business investments, provides the foundation for projecting sustainable growth."

This year's third-quarter performance is expected to exceed forecasts. Kim projected, "Third-quarter consolidated revenue will reach 2.74 trillion won, a 37.2% increase year-on-year, and operating profit is anticipated to reach 256.8 billion won, up 45.5%, exceeding the operating profit forecast by 19%." He explained, "Increased revenue from advanced industry and energy divisions, driven by group company construction projects, will help improve operating profit by easing selling and administrative expense burdens."

SAMSUNG E&A is expected to achieve its largest-ever order intake this year. Kim noted, "With robust group order volumes and the third quarter SAN 7 ammonia·fertilizer order, new orders for this year are projected to surpass the annual guidance of 12 trillion won and reach 17 trillion won." He added, "A selective ordering strategy is being applied to large-scale petrochemical projects in countries such as Mexico and Qatar, while group company orders—such as the final process of Samsung Electronics' Pyeongtaek P4, the basic construction and early start of P5 and P5 FAB2—will continue to drive the sequential pickup in order volume throughout the year."

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