[Click eStock] "Samsung Heavy Industries, Expects 'Sangjeohago' Margin Trend This Year"

Hana Securities on the 29th forecasted that Samsung Heavy Industries will experience a margin trend of lower in the first half and higher in the second half this year. They maintained a 'Buy' investment rating and a target price of 12,000 KRW.

Samsung Heavy Industries' first-quarter sales decreased by 3.5% quarter-on-quarter to 2.3 trillion KRW, and operating profit for the same period fell by 1.4% to 77.9 billion KRW, meeting market expectations.

Researcher Yoo Jae-sun of Hana Securities stated, "The construction system for 20 liquefied natural gas (LNG) carriers has been completed, and with the floating liquefied natural gas production facility (FLNG) process set to accelerate in the second half, the sales growth trend is expected to continue. The proportion of LNG carrier construction has risen to over 50%, and profit margins are expected to gradually improve as the year progresses."

Researcher Yoo added, "Recently, selective orders have been made focusing on high value-added eco-friendly ships, where market demand is increasing. Additionally, the securing of foreign labor is proceeding smoothly, and the anticipated rise in outsourcing unit costs appears to be minimal, suggesting that concerns over future labor cost increases will be limited."

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