April 26, 2024

• 

[THE INVESTOR] As expected, Samsung Heavy Industries’ third-quarter earnings declined significantly but the amount was smaller which is positive, said Meritz Securities on Nov. 8. 

The securities firm upgraded its recommendation to a “buy” from a “trading buy” and raised target price to 16,000 won (US$14.36) from 13,000 won.
Its earnings guidance reported that revenue dropped 36.9 percent on-year to 1.85 trillion won and operating profit by 71.9 percent to 23.6 billion won.

A decline in profits has been forecast since last year, according to analyst Kim Hyeon. However, in the third quarter risks have been alleviated as unbilled projects decreased and marine process stabilized, noted the analyst. 

The fact that orders for its highly competitive marine plants, LNG carriers and container vessels are recovering is positive and Samsung Heavy is expected to reclaim its top spot in the industry, said Kim. 

By Hwang You-mee (glamazon@heraldcorp.com)