[Click e-Stock] "Samsung E&A Rebounds on Increased Orders from Affiliates"

On August 13, Hana Securities raised its target price for Samsung E&A from 33,000 won to 39,000 won, stating that if full-scale revenue generation from Samsung Electronics' Pyeongtaek Plant 4 (P4), resumption of construction at Plant 5 (P5), and additional investment in U.S. plants are realized, upward revisions in estimates for the non-petrochemical segment will be inevitable. The investment rating was maintained at 'Buy.'

Hana Securities cited the increase in orders from Samsung affiliates as a key investment point for Samsung E&A. In particular, expectations are high for Samsung Electronics' semiconductor plant construction, which drives Samsung E&A's non-petrochemical revenue. For P4, news about the resumption of construction has been reported since April this year, and earlier this month, it was announced that personnel would be dispatched for foundational work at P5.

Kim Seungjun, a researcher at Hana Securities, stated, "The significant increase in non-petrochemical revenue from 2021 to 2023 was driven by Samsung's 'one fab per year' strategy, which included orders for P3, Taylor 1, P4, and P5 during that period." He added, "Although non-petrochemical revenue declined in 2024 due to the suspension of construction at P4 and P5, from 2025 onward, the potential resumption of work at P4 and P5, as well as expectations for affiliate investments in the United States, could lead to a renewed increase in non-petrochemical orders." In the U.S., as semiconductors and bio were specified in the $200 billion investment commitment under the mutual tariff agreement, orders for the Taylor 2 plant and Samsung Biologics plant are anticipated.

Kim also noted, "This year's estimate for the non-petrochemical order market only includes orders for Samsung Biologics Plant 6 (about 2 trillion won), and the resumption of Samsung Electronics' investments has not yet been reflected in the estimates." He evaluated, "Samsung E&A's valuation remains at the lower end of its historical band. Even with the recent share price increase, it is still undervalued."

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