[Market Focus] Samsung E&A Surges Over 7% on Strong Earnings and New Business Prospects

SAMSUNG E&A is showing a strong performance with a rise of over 7%, buoyed by robust fourth-quarter results last year.

As of 10:42 a.m. on January 26, SAMSUNG E&A was trading at 29,050 won on the Korea Exchange, up 2,050 won (7.59%) from the previous session.

Previously, on January 23, SAMSUNG E&A announced that its consolidated operating profit for the fourth quarter of last year reached 277.3 billion won, with sales of 2.7571 trillion won. While operating profit decreased by 6.2% year-on-year, sales increased by 6.9%. Song Yurim, a researcher at Hanwha Investment & Securities, commented, "Operating profit exceeded the consensus (average forecast by securities firms) of 208.3 billion won by 33.2%. The company continued to post a solid operating margin due to cost improvements, favorable exchange rates, and a decline in the selling and administrative expense ratio. As a result, in 2025, the company is expected to surpass its operating profit guidance for the seventh consecutive year and achieve its highest-ever net profit margin."

Market expectations related to the restructuring of business divisions also appear to be reflected. SAMSUNG E&A announced a business restructuring plan to reorganize its existing petrochemical and non-petrochemical divisions into three segments: petrochemicals, advanced industries, and new energy. Kang Kyungtae, a researcher at Korea Investment & Securities, noted, "The launch of the new energy division is particularly noteworthy. The company has classified LNG and clean energy (low-carbon, carbon-free, resource circulation, etc.) from the existing petrochemical division, as well as water treatment projects from the non-petrochemical division, as new energy products. SAMSUNG E&A plans to expand its engineering, procurement, and construction (EPC) business for small and medium-sized LNG terminals and low-carbon ammonia in the United States, and will also strengthen its water treatment business by identifying regions that require concession services."