2Q26 OP miss; now on reasonable level

研报英文原文证据摘录

2Q26 OP miss; now on reasonable level

Global Markets Research

Samsung Heavy Industries 010140.KS 010140 KS 26 July 2026

EQUITY: CAPITAL GOODS

Rating Up from Reduce Neutral2Q26 OP miss; now on reasonable level

Target price

Upgrade to Neutral and lower TP to KRW25,000 Reduced from KRW 25,000 KRW 27,000

Upgrade to Neutral and lower TP to KRW25,000, implying 9.2% upside Closing24 July 2026price KRW 22,900

We upgrade our rating to Neutral from Reduce owing to the recent steep decline in share

price. We think that Samsung Heavy’s (SHI) valuation is now on a reasonable level. The Implied upside +9.2%

stock price has corrected 33.4% from its peak on 24 Apr (vs. KOSPI up +3.6%). SHI is

trading at 2026F P/B of 3.7x. We have not raised our rating to Buy owing to the downside Market Cap (USD mn) 13,738.7

pressure on newbuilding prices from Chinese shipyard expansion. Upside risks are (1) ADT (USD mn) 106.3

blockage of Bab Al-Mandab Strait which could lead to massive new orders of tankers and

(2) unexpected floating datacenter (FDC) new orders. Downside risk will be continued Relative performance chart

expansion of Chinese shipyards.

We lower our TP to KRW25,000 from KRW27,000. Our new TP is based on a 12-month-

forward (12MF) BVPS of KRW7,456 (previously: 12MF BVPS of KRW6,738), multiplied by

a target P/B of 3.35x (previously: 4.01x). Our target P/B implies a 4.3% premium to SHI’s

core-shipbuilding implied P/B of 3.21x (Fig.11). We factor in the premium coming from

the US naval opportunity, as SHI is now participating in MASGA (Make America

Shipbuilding Great Again) through its partnerships with General Dynamics (GD US, Not

rated) and Vigor (unlisted).

2Q26 OP miss owing to one-off cost

SHI recorded revenue of KRW3.2tn (+20.4% y-y) and operating profit (OP) of KRW325bn