[Click e Stocks] Samsung Heavy Industries, Unstable Financial Stability

[Asia Economy Reporter Junho Hwang] On the 23rd, SK Securities downgraded the target price of Samsung Heavy Industries to 6,000 KRW. Following a free capital reduction, the company is currently conducting a paid-in capital increase worth 1.2 trillion KRW, but SK Securities' analysis indicates that despite numerous capital increases over the years, the financial stability remains inferior.

Researcher Seungwoo Yoo of SK Securities stated, "If there is no mid- to long-term momentum for turning a profit, this situation could persist, and it is expected that Samsung Heavy Industries will find it difficult to return to profitability even by next year."

However, Researcher Yoo viewed positively that this year’s new order volume is progressing smoothly at about 74% of the order target, which could help defend against sales declines next year and the year after. Samsung Heavy Industries has currently secured orders totaling 6.7 billion USD (52 vessels), including container ships worth 4.8 billion USD (38 vessels), tankers worth 600 million USD (7 vessels), and LNG carriers worth 1.3 billion USD (7 vessels).

Researcher Yoo added, "Given that the book value per share (BPS) over 12 months has decreased from the previous 5,086 KRW to 4,961 KRW, and that the order momentum has slowed compared to the time of the previous report publication, the investment opinion remains neutral."

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