Stock Reports

SamsungE&A Expands Orders in High-Tech Industries… Target Price Raised by 3%—iM

Kim Kyung-eun
2026-07-24 07:49:49
[Edaily Reporter Kim Kyung-eun ] On the 24th, iM Securities raised its target price for #SamsungE&A from 67,000 won to 69,000 won—an increase of approximately 3%—citing the company’s accelerating growth in orders from high-tech industries. The firm maintained its “Buy” rating.



Bae Se-ho, an analyst at iM Securities, stated in a report released that day, “As the likelihood of increased order volume from affiliated companies rises, we have raised our 2027 earnings per share (EPS) and book value per share (BPS) forecasts by 12% and 2%, respectively.”

Analyst Bae projected, “SamsungE&A’s new orders in the high-tech sector are expected to exceed 7 trillion won in 2026 and 8 trillion won in 2027.” He added, “Revenue growth in 2027–2028 is visible, and investment catalysts such as liquefied natural gas (LNG) and investments in the U.S. remain valid,” designating the company as his top pick in the construction sector.

Second-quarter earnings significantly exceeded market expectations. SamsungE&A reported consolidated revenue of 2.6 trillion won and operating profit of 273.1 billion won for the second quarter. Operating profit rose 51.0% year-over-year, exceeding the market consensus by approximately 25%. The company explained that this reflected one-time gains based on its project execution capabilities, such as project settlement profits.

By business segment, the High-Tech Industry division drove the results. Revenue in the High-Tech Industry segment reached 838 billion won, a 42.2% increase year-over-year. The company explained that new orders translated into revenue growth as construction on the P4 and P5 projects in Pyeongtaek progressed rapidly due to expanded semiconductor investment. Combined with the exchange rate effect from the Hungary project, the gross profit margin (GPM) stood at 17.2%. However, the GPM excluding one-time factors was estimated at around 11.0%.

In the chemical engineering division, revenue declined as major project schedules were somewhat delayed due to the fallout from the war in the Middle East; however, construction is expected to return to normal starting in the third quarter. The new energy division is expected to continue its growth momentum in the second half of the year, driven by progress on the Taziz project in the UAE and the commencement of a water treatment project in Saudi Arabia.

Researcher Bae cited semiconductor investment as the key growth driver for SamsungE&A. The company raised its order target for the high-tech industry this year from 3 trillion won to 7 trillion won. Cumulative new orders for the first half totaled 7.6 trillion won, achieving 64% of the annual guidance (12 trillion won).

Analyst Bae stated, “With the remaining lines in Pyeongtaek and the start of construction on the Yongin semiconductor cluster, orders in the high-tech sector are expected to increase significantly in 2027,” adding, “If the Southwest Region semiconductor cluster also materializes, the potential for additional orders is high.”

He continued, “Given the fast revenue recognition cycle typical of the high-tech industry, 2027 revenue is projected to reach 13.3 trillion won and operating profit 1.1 trillion won—representing year-over-year increases of 25.4% and 21.4%, respectively,” adding, “We have also raised our operating profit forecast by 12% compared to our previous estimate.”

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