April 27, 2024

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[THE INVESTOR] Samsung Engineering’s orders will expand and boost its earnings, said Cape Investment and Securities on July 3, suggesting a “buy” recommendation and 19,000 won (US$16.90) target price. 

It has secured 53 percent of its target order amount of 8.5 trillion won in the first quarter, and from the third quarter, may win projects in Vietnam (US$550 million petrochemicals and US$200 million sewage treatment) and Algiers (US$400 million gas), said analyst Kim Mi-song. 

Its revenue this year will increase 3.9 percent from last year to 5.8 trillion won, estimated the analyst, adding that as of the first quarter the order backlog amounted to 13.3 trillion won, which will sustain the company for two years and Samsung Engineering needs to win more.

It is planning to tackle the United Arab Emirates and Vietnam, both with great growth potential, noted Kim. On the back of rising oil prices, the UAE is likely to resume a series of projects and Vietnam will grow across sectors as it builds up infrastructure and urbanizes, she added.

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