[Featured Stock] Samkang M&T Rises Over 5% on Expectations of Earnings Turnaround

[Asia Economy Reporter Kwon Jae-hee] Samkang M&T, a mid-sized shipbuilding equipment company, is showing strong performance in the early trading session. This is due to increased expectations for a turnaround in this year's earnings.

As of 10:15 AM on the 5th, Samkang M&T is trading at 19,450 KRW, up 5.71% compared to the previous trading day.

On the same day, Eugene Investment & Securities maintained a 'Buy' rating on Samkang M&T and set a target price of 40,000 KRW. This is because, despite a big bath (large-scale loss recognition) in the fourth quarter of last year, the company holds an order backlog of 1.7 trillion KRW as of year-end.

Han Byung-hwa, a researcher at Eugene Investment & Securities, said, "Although the company recorded poor performance due to the big bath impact in the fourth quarter of last year, sales and operating profit for the first quarter of this year are expected to turn around with 153 billion KRW and 12 billion KRW, respectively," adding, "They have also secured work orders for more than two years."