Yuanta Securities offered Samsung Engineering's investment opinion 'buy' and target stock price of 31,000 won.
Since the announcement of the "Green Solution Provider" in April, Samsung Engineering has mentioned its plan to expand its business in the field of carbon neutral (energy optimization / carbon capture / hydrogen) and eco-friendly plastic.
Yuanta Securities estimated that Samsung Engineering's consolidated earnings for the third quarter of 2021 will be 1.69 trillion won in sales and 1,093 billion won in operating profit, which will be in line with market expectations.
It is predicted that the expansion of large overseas sites in Mexico, Saudi Arabia and UAE, which have already won orders, will continue to lead to sales growth centered on the chemical sector.
"Operating profit for this quarter is expected to improve year-on-year due to the effect of sales expansion, but it is expected to fall by 27% compared to the previous quarter due to the base effect stemming from the reflection of the company's on-site settlement gains (KRW 37 billion) in the second quarter," said Yuanta Securities.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
