[Click eStock] "Samsung Engineering, 'Attractive Low-Price Buying' Highlighted"

[Asia Economy Reporter Park Jihwan] Ebest Investment & Securities on the 27th presented a buy rating and a target price of 22,000 KRW for Samsung Engineering, stating that the recent stock price decline is excessive in the short term.

Researcher Kim Seryeon of Ebest Investment & Securities analyzed, "Although Samsung Engineering's sales growth is remarkable, considering the base effect this year and the fact that the stock price was driven up by expectations before the bidding, the stock price decline after the Q4 earnings is judged to be a price adjustment due to profit-taking."

In particular, since October, the stock price has already risen by preemptively reflecting expectations for orders from Saudi Unayzah Gas and Jafurah Gas, and the recent earnings and next year's sales guidance decrease are interpreted as an expected stock price adjustment for short-term profit realization.

Researcher Kim Seryeon evaluated, "Samsung Engineering is a company that showed remarkable order growth over two years, but due to manpower capacity issues related to the design and construction execution of backlog orders, the order stance in 2019 is conservative."

Researcher Kim explained, "Considering various order momentum such as Egypt EPPC PDH, Indonesia Lotte Chemical LINE, and petrochemical projects in Azerbaijan and UAE, a stock price rise due to an order leap is expected."