Samsung Heavy Industries is experiencing a strong opening in the stock market after securing a contract for a floating liquefied natural gas (FLNG) production facility worth 4.33 trillion won.
According to the Korea Exchange, as of 9:45 a.m. on June 4, Samsung Heavy Industries shares were trading at 28,850 won, up 4.15% or 1,150 won from the previous trading day. The stock opened at 28,050 won and reached a peak of 30,750 won during the session before giving back some gains, continuing to trade in the upper 28,000 won range.
The rise in stock price is attributed to the recent announcement of a significant contract, which has boosted investor sentiment. On June 2, Samsung Heavy Industries disclosed that it had won a contract for one FLNG unit from a North American client for 4.33 trillion won.
Analysts are also expressing positive outlooks. Korea Investment & Securities has raised its target price for Samsung Heavy Industries to 44,000 won, maintaining a 'buy' recommendation.
Kang Kyung-tae, an analyst at Korea Investment & Securities, stated, "With this contract, Samsung Heavy Industries has secured a backlog of four FLNG units in the offshore plant sector. They have achieved 40.1% of their annual offshore plant order target of $82 million. The bidding for Delfin 2, scheduled for the second half of the year, is also expected to proceed as planned."
He added, "The company has already achieved 85.7% of its target for commercial ship orders, and progress is being made in the construction of floating data centers (FDC), as confirmed in the memorandum of understanding with Greek shipowner Capital."
* This article has been translated by AI.
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