Its profits are deteriorating and it will suffer 490 billion won and 240 billion won operating loss in 2017 and 2018, respectively, estimated analyst Yoo Jae-hun.
The diluted effect of capital raise and concerns over short-term profitability are already reflected in the stock price and increasing orders and vessel prices will boost profits from 2019, noted the analyst.
Samsung will win new orders worth up to 9 trillion won next year and its 2019 revenue will recover to over 7.3 trillion won, according to Yoo. As the industry is certain to grow, its stock price will be on an upturn from the second quarter of 2018, said the analyst maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)