Samsung Heavy Industries shares rose more than 6% on expectations of strong first-quarter results.
As of 11:42 a.m. on April 23, the stock was up 2,050 won, or 6.45%, from the previous session at 33,850 won, according to the Korea Exchange. It climbed as high as 35,350 won intraday, marking a 52-week high.
Investor buying appeared to follow upbeat forecasts ahead of the company’s first-quarter earnings release. FnGuide estimates Samsung Heavy’s consolidated operating profit for the quarter at 340.1 billion won and net profit at 238.8 billion won, up 176.34% and 164.94%, respectively, from a year earlier.
Kim Yong-min, an analyst at Yuanta Securities, said his operating profit estimate above the consensus of 340 billion won reflects a higher share of revenue recognized from higher-priced work in the first quarter, even though the number of operating days did not change much from the previous quarter. He cited deliveries in the fourth quarter of last year of four low-priced LNG carriers and two container ships, which he said increased the proportion of higher-priced sales recognized in the first quarter. He also said the normalization of one-off wage-related costs booked in the fourth quarter of last year had a positive effect.
* This article has been translated by AI.
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