[Edaily Reporter KIM YOON-JEONG ] SANGSANGINVESTMENT&SECURITIES forecast that #SamsungE&A’s profitability will improve due to growth in its advanced materials and new energy businesses, and that the group will continue to expand its investments in high-tech industries. The firm maintained its “Buy” rating and raised the target price from 55,000 won to 61,000 won.

On the 27th, Kim Jin-beom, an analyst at SANGSANGINVESTMENT&SECURITIES, stated, “Growth in revenue and profits from the advanced materials and new energy segments in the second quarter drove the company’s overall performance.” He added, “The advanced materials segment recorded a high gross profit margin (GPM) of approximately 17.5%, reflecting one-time factors totaling about 60 billion won and exchange rate effects, while the new energy segment also posted strong results compared to both the previous year and the previous quarter.”
SamsungE&A’s second-quarter revenue reached 2.6 trillion won, up 19.8% year-over-year and 15.1% quarter-over-quarter. Operating profit stood at 273.1 billion won, rising 51.0% year-over-year and 45.1% quarter-over-quarter, exceeding market consensus.
Revenue in the Advanced Materials division reached 838 billion won, a 45.9% increase from the previous quarter. Reflecting one-time factors totaling approximately 60 billion won and exchange rate effects, the gross profit margin (GPM) stood at 17.5%. The New Energy division also posted strong results compared to both the previous year and the previous quarter, with revenue of 698.1 billion won and gross profit of 108.1 billion won (GPM of 15.5%).
In contrast, the Chemical division saw revenue decline by 11.1% year-over-year to 159.8 billion won, as part of the Saudi Fadhili project was delayed due to geopolitical risks in the Middle East. However, since revenue from this project is expected to be recognized in the second half of the year, revenue is projected to improve compared to the second quarter.
SANGSANGININVESTMENT&SECURITIES also viewed the group’s expanded investment in high-tech industries positively. The group’s 2026 order intake guidance was raised from 3 trillion won to 7 trillion won, and reflecting this, the revenue forecast for the high-tech sector in the second half of the year was also revised upward from previous estimates.
Analyst Kim explained, “It is also positive that revenue recognition for high-tech industry orders secured in the first half can be accelerated,” adding, “Taking this into account, we are raising our revenue forecast for the high-tech industry in the second half to 2.2 trillion won.”
He continued, “Starting with the P5 project, the company will handle the design, procurement, and construction (EPC) for ultra-pure water projects and plans to target the global water treatment market based on this technology.” He added, “As the high-margin business mix expands due to accelerated investments in new energy—centered on liquefied natural gas (LNG) and water treatment—and semiconductors, both revenue and profitability are expected to continue improving.”