[Edaily Reporter PARK MIN ] On the 13th, DS Investment & Securities maintained its “Buy” rating and target price of 42,000 won for SamsungHeavyIndustries(010140), noting that while earnings are showing a clear improvement driven by the inclusion of high-priced inventory, momentum in securing orders for floating data centers (FDCs) and floating liquefied natural gas (FLNG) production, storage, and offloading facilities is gaining full steam. This represents an upside potential of 133.2% compared to the previous trading day’s (October 12) closing price of 18,010 won.

Kim Dae-sung, an analyst at DS Investment & Securities, said in a report published that day, “Although the number of operating days will decrease by 9 days compared to the previous quarter due to summer vacations and the Chuseok holiday, this will be offset by revenue growth resulting from global operations and the reactivation of Dock 2, and we expect top-line revenue to grow slightly compared to the previous quarter.” He added, “We believe the trend of improving profitability will continue as the proportion of revenue from high-priced orders secured after 2024 increases and the effect of rising LNG ship prices persists.”

According to DS Investment & Securities, SamsungHeavyIndustries’ third-quarter results are estimated to show revenue of 3.236 trillion won, a 22.8% increase year-over-year, and operating profit of 379.1 billion won, up 59.2%. The operating profit margin is projected to be around 11.7%, exceeding the market consensus (345 billion won) by approximately 10%.

The possibility of securing new project orders in the fourth quarter is also gaining attention.

Through a project collaboration with Mustarian, SamsungHeavyIndustries is highly likely to secure an order for an FDC with a capacity of 100 MW (two 50 MW units). Considering the project’s commissioning date (Q2 2028), it is highly probable that the main contract will be signed within the fourth quarter. This model is likely based on the 50MW-class hull design (length 190m, width 60m, depth 20m) that recently obtained classification society certification, and the two units are scheduled to be built simultaneously in parallel at Dock 2 (length 390m, width 65m), which recently resumed operations.

Consequently, FDC is expected to achieve commercialization faster than the other two major shipbuilders, and securing ship prices that exceed those of existing high-value-added vessel types is expected to drive an improvement in the order mix and a structural re-rating.

The FLNG segment of the offshore plant business is also on track. Following the additional order for the Delphin II in the second half of the year, a large FLNG unit for Western is also highly likely to be secured by the first half of 2027. As the order backlog fills up, FLNG revenue is projected to expand to approximately 3.2 trillion won starting in 2027, and profitability is also expected to gradually improve as the settlement of change orders begins in earnest.

DS Investment & Securities projected that SamsungHeavyIndustries(010140) will post annual revenue of 12.916 trillion won and operating profit of 1.416 trillion won in 2026. For 2027, the firm forecast revenue of 15.423 trillion won and operating profit of 2.33 trillion won.

Analyst Kim Dae-sung stated, “As the company maintains a 100% foreign exchange hedging policy, we expect the performance gap with competitors to gradually narrow amid increasing exchange rate volatility,” adding, “We believe the company has secured both earnings stability and growth potential based on its unrivaled FLNG competitiveness and the momentum from its new FDC project.”