Samsung Heavy Industries shares experienced a significant increase early in the trading session, driven by expectations of strengthened U.S.-Korea shipbuilding cooperation.
As of 10:06 a.m. on May 11, Samsung Heavy Industries shares rose 7.36% (2,530 won) to 34,300 won, according to the Korea Exchange.
Other major shipbuilding stocks also saw gains during the same period, with HD Hyundai Heavy Industries up 3.04%, HD Korea Shipbuilding & Offshore Engineering rising 5.86%, Hanwha Ocean increasing by 4.20%, and HJ Shipbuilding climbing 3.00%.
On May 10, the Ministry of Trade, Industry and Energy reported that Minister Kim Jeong-kwan visited Washington, D.C., from May 6 to 9 (local time) to discuss strategic investment projects and industrial cooperation with key U.S. government officials.
Notably, the Ministry and the U.S. Department of Commerce signed a memorandum of understanding (MOU) for the 'U.S.-Korea Shipbuilding Partnership Initiative' and agreed to establish a 'U.S.-Korea Shipbuilding Cooperation Center.'
In a report released today, Samsung Securities raised its target stock price for Samsung Heavy Industries from 39,000 won to 43,000 won, citing "the primary reason for the increase is the premium multiple due to efforts to enter high-growth new markets."
The report further noted, "The company shows a strong willingness to enter the floating data center (FDC) market, as well as MRO and next-generation military support vessels, which are expected to see robust demand in the future. This anticipated long-term order growth could serve as a factor for applying a premium multiple."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.