Samsung E&A recorded a sharp improvement in earnings for the third quarter of this year, prompting Hyundai Motor Securities to raise its target price for the stock. Both revenue and operating profit increased year-on-year, drawing positive assessments of the company's improved profitability. The share price moved in tandem. As of the morning of the 23rd, Samsung E&A's stock price jumped more than 6.8% from the previous day to 59,200 won.

◆ 'Buy' Rating Maintained... Target Price Raised from 69,000 to 74,000 Won

On the 23rd, Hyundai Motor Securities maintained its 'BUY' investment opinion on Samsung E&A and raised the target price from the existing 69,000 won to 74,000 won. The 5,000-won increase represents a rise of about 7.25%.

◆ Revenue Up 45.8%, Operating Profit Up 183.6%... Profitability Improvement Stands Out

Samsung E&A's consolidated revenue for the third quarter of this year came to 2.9105 trillion won, up 45.8% from the same period a year earlier. Operating profit rose 183.6% over the same period to 500.6 billion won. With the operating profit growth rate far outpacing revenue growth, the improvement in profitability was notable. The third-quarter operating margin was tallied at approximately 17.2%.

Hyundai Motor Securities assessed that Samsung E&A's third-quarter results significantly exceeded market expectations. In particular, it noted the possibility that this earnings improvement would not remain a one-off achievement but lead to structural profitability gains. Accordingly, the brokerage maintained its existing buy rating while raising the target price.

Going forward, whether profitability improvement will continue in Samsung E&A's earnings trajectory is emerging as a key point of interest.

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