[Edaily Reporter KIM YOON-JEONG ] SANGSANGINVESTMENT&SECURITIES noted that SamsungHeavyIndustries(010140)is seeing its potential to secure a leading position in the floating data center (FDC) market highlighted alongside its robust earnings growth, and maintained its “Buy” investment rating and target price of 43,000 won.

On the 3rd, SEOYON, an analyst at SANGSANGINVESTMENT&SECURITIES, stated, “Although the company’s key investment points—including earnings growth, entry into the new FDC market, and expanded cooperation with U.S. naval vessels—remain unchanged, the company’s stock price has recently corrected by 33% from its all-time high, trading at a 12-month forward price-to-earnings ratio (PER) of 15 times.” She added, “We recommend taking advantage of this as a buying opportunity at a low price.”
SANGSANGININVESTMENT&SECURITIES projected that SamsungHeavyIndustries’ second-quarter consolidated revenue would reach 3.3727 trillion won, up 26% year-over-year and 16% quarter-over-quarter, while operating profit would rise to 364.6 billion won, up 78% year-over-year and 34% quarter-over-quarter. The operating profit margin (OPM) is expected to be 10.8%. However, the firm explained that this figure falls short of market expectations.
The analyst explained, “We expect top-line growth to accelerate due to a slight increase in operating days compared to the previous quarter, as well as the effects of production commencing at Dock 2 and the Global Operations facility.” He added, “We estimated the contribution to profit margins conservatively, considering that the Global Operations portfolio is focused on tanker vessels and that the current quarter marks the early stages of production with the construction of the first vessel.”
He added, “We expect the proportion of high-priced merchant vessels to increase, and the recognition of progress on floating liquefied natural gas (FLNG) production facilities to continue, leading to a company-wide operating profit margin of 10.8%, a 1.4 percentage point improvement from the previous quarter.”
The analyst projected that entry into the FDC market would become a new investment focus in the second half of the year. The analyst noted, “Following the certification and exhibition of the FDC conceptual design in May, inquiries regarding orders have increased and related discussions are ongoing; we expect orders to materialize within this year.” He added, “Given that relatively rapid construction compared to onshore projects is key to FDC demand, we anticipate securing high margins due to clients’ preference for short delivery times.”
He continued, “Given the nature of offshore projects, there is a high likelihood that this will lead to large-scale orders in the gigawatt (GW) range, and in such cases, we also anticipate profitability driven by economies of scale from repeat construction.”