Samsung E&A Stocks received an upgraded target price and order forecast from NH Investment & Securities on the 24th, driven by semiconductor facility expansion and Middle East reconstruction opportunities. Analyst Lee Eun-sang maintained a Buy rating while raising the target price 11% to 80,000 won, reflecting increased orders and revenue from Samsung Electronics. The upgrade stems from Samsung Electronics' semiconductor factory expansion plans and anticipated Middle East reconstruction contracts, as semiconductor demand surge accelerates facility construction projects.
NH Investment & Securities Raises Samsung E&A Target Price to 80,000 Won
NH Investment & Securities analyst Lee Eun-sang maintained a Buy rating on Samsung E&A on the 24th and raised the target price to 80,000 won, an 11% increase. The analyst stated the target price increase reflects increased orders and revenue from Samsung Electronics. Lee evaluated positively the expansion of orders toward the Middle East for reconstruction and bypass pipelines as revenue from affiliated companies accelerates with semiconductor factory expansion plans, presenting Samsung E&A as the top pick within the sector.
Samsung E&A Order Forecast Reaches 14 Trillion Won for This Year
NH Investment & Securities projected Samsung E&A's new orders for this year at 14 trillion won, a 121% increase year-over-year. This figure exceeds the 12 trillion won annual guidance the company had presented. The analyst attributed this to expanded orders related to Samsung Electronics factory expansion, noting that considering volumes that can begin construction by 2027 planned in Pyeongtaek, Gwangju, and Yongin, orders of approximately 7 trillion won in related volumes are expected annually after 2027.
Middle East Reconstruction Orders Anticipated Based on Supply Chain Security Focus
The possibility of securing orders related to Middle East war reconstruction is high. The analyst stated that the order atmosphere after the Middle East war is being reorganized around supply chain security. Considering that Samsung E&A was responsible for construction of a significant number of major energy facilities during the 2010-2012 Middle East expansion cycle, and given the national security nature of Middle East energy EPC facilities and diplomatic considerations with major countries, meaningful volume orders are possible.
FAQ
What target price did NH Investment & Securities set for Samsung E&A Stocks?
NH Investment & Securities analyst Lee Eun-sang raised Samsung E&A's target price to 80,000 won on the 24th, representing an 11% increase, while maintaining a Buy rating.
How much are Samsung Electronics expansion projects expected to contribute to Samsung E&A's orders after 2027?
Considering Samsung Electronics' expansion plans in Pyeongtaek, Gwangju, and Yongin that can begin construction by 2027, Samsung E&A is expected to receive approximately 7 trillion won in related orders annually after 2027.
What is Samsung E&A's projected new order volume for this year?
NH Investment & Securities forecasted Samsung E&A's new orders for this year at 14 trillion won, a 121% year-over-year increase, exceeding the company's annual guidance of 12 trillion won.
