KB Securities said May 7 it raised its target price for Samsung E&A to 73,500 won from 67,000 won, citing a boom in the global plant market and expanding orders. It maintained its “buy” rating.
Jang Moon-jun, an analyst at KB Securities, said the rapid buildout of artificial intelligence infrastructure and stronger energy security are shifting the key competitive factor in the global plant market to speed.
“In terms of execution capability to deliver large projects within a set period, Samsung E&A’s competitiveness is standing out,” Jang said.
He said the company is facing its best environment for new orders since its founding. “In the first quarter alone, it secured about 40% of its annual guidance, and this year’s annual orders will reach at least 15.5 trillion won,” he said.
Jang said a resumption of capital spending by affiliates, increased global ordering tied to energy security, and postwar reconstruction demand in the Middle East are converging, calling it a structural shift rather than a one-off cycle.
He said Samsung E&A has strengthened its ability to shorten construction schedules through wider use of modular methods, a FEED-to-EPC structure and investment in AI-based design automation. He said the company has entered a phase in which it is selected for execution rather than price, and that revenue and profit growth will resume in earnest starting in 2026.
* This article has been translated by AI.
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