[Click eStock] "Samsung Engineering, Order Backlog Increases... Target Price Up"

[Asia Economy Reporter Jihwan Park] Hanwha Investment & Securities evaluated on the 3rd that Samsung Engineering is expected to see another backlog level-up based on profit improvement from existing order volumes and a rich order pipeline. Accordingly, the target stock price was raised from the previous 23,000 KRW to 24,000 KRW. The investment opinion was maintained as Buy.

Yurim Song, a researcher at Hanwha Investment & Securities, said, "Samsung Engineering's consolidated sales for Q4 last year are estimated at 1.7 trillion KRW, up 5.5% year-on-year, and operating profit increased by 62.3% to 91.7 billion KRW," evaluating the performance as stable.

However, cumulative orders last year were about 5.2 trillion KRW, falling short of the initial target of 6.6 trillion KRW.

Researcher Song said, "Due to the delayed recognition of the Algeria HMD refining order (1.9 trillion KRW), expectations for 2020 order performance have rather increased," adding, "Projects expected to be ordered within this year include Algeria HMD, Malaysia Sarawak (1 billion USD), Uzbekistan fertilizer (400-800 million USD), Azerbaijan Socar (1 billion USD), US PTTGC (1.1 billion USD), Lotte Chemical Titan NCC (1 billion USD), Egypt EPPC (700-800 million USD), and Mexico PEMEX refining (2 packages, each 1.5 billion USD)."

Researcher Song added, "In addition, Samsung Engineering is also participating in bids for Saudi Jafra (2 packages, total 2.5 billion USD) and UAE Hail and Ghasha (3 packages, our share totaling 4.5 billion USD)."

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