Daishin Securities announced on June 16 that it has initiated coverage of Samsung E&A with a "buy" rating, citing the company's strong momentum in securing contracts in the Middle East reconstruction and new energy sectors. The firm set a target price of 73,000 won for the company.
Lee Hye-jin, a researcher at Daishin Securities, stated, "We consider Samsung E&A to be our top pick in the construction sector," adding that the company is repositioning itself as a global energy EPC firm, moving beyond traditional chemical engineering and construction (EPC) services in line with global energy transition trends.
He projected that Samsung E&A's consolidated revenue for 2026 will reach 10.2689 trillion won, with an operating profit of 910 billion won, representing increases of 13.7% and 14.9%, respectively, compared to the previous year.
Lee emphasized that the company's strength lies in its robust pipeline of contracts, noting that while it has set an annual order guidance of 12 trillion won for 2026, there is potential for upward revision.
He explained that the post-war Middle East market presents two significant opportunities: reconstruction demand and increased investment in energy infrastructure. Samsung E&A's experience in executing projects in the region positions it well for participation in reconstruction efforts, and the financial capacity of Gulf Cooperation Council (GCC) countries is expected to accelerate investments in plants and infrastructure due to rising oil prices.
Additionally, Lee forecasted that momentum in securing contracts will strengthen across the new energy value chain, including LNG, green hydrogen, ammonia, sustainable aviation fuel (SAF), carbon capture, utilization, and storage (CCUS), and clean methanol. He noted that increased capital expenditures (CAPEX) from affiliated companies driven by the semiconductor supercycle will contribute to stable growth through high visibility in orders and rapid revenue recognition.
* This article has been translated by AI.
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