[Asia Economy Reporter Ji Yeon-jin] On the 22nd, Samsung Engineering is showing strength as expectations rise that it will achieve its order target of 6 trillion won this year.
As of 10:22 AM on the same day, Samsung Engineering was trading at 25,750 won on the Korea Exchange, up 6.85% (1,560 won) from the previous day. During the session, it rose to 25,900 won, setting a new 52-week high.
Earlier, SK Securities maintained a buy rating on Samsung Engineering, stating that the low base and positive expectations would be favorable for the stock price, and raised the target price to 28,000 won.
Researcher Shin Seo-jeong said, "At the beginning of the year, Samsung Engineering presented conservative guidance due to uncertainties regarding COVID-19 and oil prices," adding, "Contrary to early concerns, oil prices have remained above $70, and order volumes in the Middle East and North Africa (MENA) region are steadily increasing."
She added, "Samsung Engineering's major pipelines include UAE's Hail and Ghasha, Indonesia's Lotte Chemical line, and Saudi Aramco's Zuluf."
Researcher Shin said, "Capital expenditures (Capex) of major clients are also expected to increase compared to last year's low base," and "Overall, the low base and positive expectations are anticipated to act as favorable factors for the stock price."
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