[THE INVESTOR] Samsung Engineering will secure substantial orders in the first half, said Korea Investment and Securities on Feb. 24.
Its order backlog has declined to 7.8 trillion won (US$6.8 billion) as those from Kazakhstan and Yanbu, Saudi Arabia have been halted, but will build up again this year, as there are ongoing deals for new contracts and biddings around the world including in Bahrain, said analyst Lee Gyeong-ja.
Projects from its Samsung affiliates alone would tally 2 trillion won at the least and the fact that Samsung Display is considering investment is also favorable, said the analyst. Its loss in the past is from having more orders than it can handle, rather than winning undervalued orders, and forming a joint venture has eliminated risks from carrying out massive constructions, explained Lee.
The analyst recommended that now is the right time for purchasing the stocks as its valuation burden will ease and financial structure will improve significantly. The global investment cycle also coincides, said Lee.
By Hwang You-mee (glamazon@heraldcorp.com)