"When the Middle East War Ends, This Stock Will Lead"... Target Price Raised 71% [Click e-Stock]

Industry-Leading Capacity for Handling Overseas Orders

On April 22, NH Investment & Securities raised its target price for SAMSUNG E&A by 71%, from KRW 42,000 to KRW 72,000, describing the company as the leading beneficiary of Middle Eastern orders.

Lee Eunsang, a researcher at NH Investment & Securities, stated, "As of the end of last year, SAMSUNG E&A had 2,600 personnel capable of handling overseas orders, the largest scale in Korea," and added, "Based on this, we expect the company to secure USD 11 billion in orders related to Middle Eastern reconstruction and pipeline expansion over the next three years."

Lee further explained, "Since March, a short-term increase in costs due to the outbreak of war is inevitable. However, as the disputed regions are clearly identified, it should be possible to recover costs through proving force majeure and filing claims as stipulated in contracts."

He continued, "The markets for liquefied natural gas (LNG), hydrogen, and carbon capture, utilization, and storage (CCUS) are in the economic viability verification stage, with SAMSUNG E&A starting from a similar position as global competitors. The key factors will be securing licenses and accumulating construction experience through continuous facility investment," emphasizing, "SAMSUNG E&A is expected to strengthen its market position based on its financial stability."

Lee also noted, "With the progress in the Saudi Fadhili project, further stabilization of costs is expected. Although annual petrochemical orders may decrease slightly due to the aftermath of the war, an increase in orders for Samsung Electronics is projected to offset this reduction."

For this year, the company forecast operating profit of KRW 965.7 billion, up 22% from the previous year, and new orders surging 98% to KRW 12.6 trillion.

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