[Stock in Focus] Samsung Heavy Industries Rises Over 2% on "Explosive Order Momentum" Outlook

Samsung Heavy Industries is showing gains of over 2% in morning trading on May 30, supported by securities analysts' reports highlighting explosive order momentum expected in the second half of the year and the possibility of Samsung Electronics selling its stake.

As of 10:03 a.m. on this day, the share price of Samsung Heavy Industries is trading at 16,580 won per share, up 2.73% compared to the previous session. At one point during the session, the stock price surged by more than 4.7%.

This is analyzed as buying driven by expectations that Samsung Heavy Industries will experience order momentum from the second half of the year, leading to improved performance. Yang Hyungmo, an analyst at DS Investment & Securities, raised his target price for Samsung Heavy Industries from 20,000 won to 24,000 won, stating that a double-digit operating margin is expected starting next year.

In particular, Yang emphasized that the order momentum in the second half is "explosive," adding, "Starting this summer, 170 LNG carriers are expected to be ordered from the United States over the next two years, and most of these orders are anticipated to go to Korean shipyards." He also explained that sales of FLNG (Floating Liquefied Natural Gas) facilities will increase in the fourth quarter, and if the design and production systems for two units are completed next year, the operating margin could rise to double digits.

The possibility of Samsung Electronics selling its stake was also mentioned. He noted, "Samsung Electronics currently holds a 15.2% stake in Samsung Heavy Industries, and if the market capitalization rises further, there is a possibility that Samsung Electronics may consider selling its stake due to the increased burden on potential buyers."