[Click eStock] Samsung Engineering Defends Margins Despite Raw Material Price Rise... Target Price Upward Revised

[Asia Economy Reporter Hwang Yoon-joo] Ebest Investment & Securities maintained a 'Buy' rating on Samsung Engineering on the 8th, stating that it defended its margins despite rising raw material prices, while raising the target price by 15.5% to 33,000 KRW.

Kim Se-ryeon, a Samsung Engineering analyst, said, "The target price for Samsung Engineering reflects the recent rise in oil prices, Samsung Engineering's superior financial structure compared to global peers, and its hydrogen pipeline."

Analyst Kim explained, "We believe this is a phase where valuation explanatory power increases as solid earnings are confirmed amid an expanding beta due to rising oil prices."

He added, "In the short term, the elevated oil price level is expected to raise optimism about the strong order market in the core Oil & Gas sector."

Kim also stated, "In the long term, we can expect a significant EPC contract conversion in 2023 for the Malaysia Sarawak hydrogen project, which Samsung Engineering, Lotte Chemical, and POSCO are jointly undertaking."

He continued, "There is nothing unfavorable about earnings, market conditions, or short- and long-term momentum."

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