[Click e-Stock] "Samyoung M-Tech, Shipbuilding Industry Revival Expected"

On September 4, KB Securities analyzed that expectations for a revival in the shipbuilding industry, including the 'MASGA' project and an increase in overseas ship orders, are likely to drive performance improvement for Samyoung M-Tech.

Lim Sanguk, a researcher at KB Securities, introduced, "Samyoung M-Tech manufactures Main Bearing Support (MBS), a key structural component for large domestic ship engines, and supplies the entire production to companies such as HD Hyundai Heavy Industries."

He continued, "We expect Samyoung M-Tech to become an essential part of the MBS value chain for major domestic shipbuilders such as Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean," adding, "The company holds a global supply capability with an overseas market share of about 58 percent."

He emphasized, "With the favorable conditions in the Chinese shipbuilding industry, the profit growth of the Chinese subsidiary DSD is expected to accelerate. We also anticipate stable growth from mining plant equipment, which serves as a source of cash flow."

Researcher Lim analyzed, "Interest in nuclear power plants is increasing," and added, "Samyoung M-Tech produces key power generation equipment components such as pumps and valves for nuclear power facilities." He also stated, "Although sales in this sector are still minimal, the company is expected to benefit once nuclear power projects are fully underway. Based on this year's expected performance, the current share price is at a price-earnings ratio (PER) of around 12, which is undervalued compared to shipbuilders and peer equipment manufacturers."