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Samsung Heavy Industries Shares Flat Despite Q2 Operating Profit Forecast of KRW 364.6 Billion… LNG Orders Emerge as 'Key Variable'

Samsung Heavy Industries is maintaining its share price in flat territory despite securities firms forecasting earnings below market expectations. As of the mor

Wooil Shim
Staff Reporter
3 min read
Samsung Heavy Industries Shares Flat Despite Q2 Operating Profit Forecast of KRW 364.6 Billion… LNG Orders Emerge as 'Key Variable'
CBC News

Samsung Heavy Industries is maintaining its share price in flat territory despite securities firms forecasting earnings below market expectations.

As of the morning of the 3rd, Samsung Heavy Industries' stock price remained flat at KRW 23,000, continuing to trade without a clear direction.

In a report released on the same day, Sangsangin Securities projected Samsung Heavy Industries' consolidated revenue for the second quarter of this year at KRW 3.3727 trillion. This represents a 26% increase year-over-year and a 16% increase from the previous quarter. Operating profit for the same period is expected to reach KRW 364.6 billion, up 78% year-over-year and 34% from the previous quarter. The presented operating profit margin (OPM) stands at 10.8%.

However, the securities industry analyzed that despite the ongoing trend of revenue growth and profitability improvement, the company may post results that fall slightly short of market consensus (expectations) due to the reflection of certain cost factors.

Nevertheless, the stock price remained in flat territory, largely unaffected by these earnings forecasts. The market atmosphere suggests that rather than short-term earnings, investors are focusing on the company's competitiveness in winning orders for high-value-added vessels such as LNG carriers and offshore plants, as well as the future trajectory of new orders, as the key variables for the stock price.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and the final decision and responsibility for investments lie solely with the investor.]

Wooil Shim
Staff Reporter

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