Samsung E&A target price raised to 56,000 won on resumption of semiconductor investment; Doosan Enerbility lifted to 122,000 won on imminent SMR orders [Stocktopia]

[The Financial News] On the morning of April 7, here is a summary of major brokerage reports.
Samsung E&A’s operating profit for the first quarter is projected to surge 34.5% year-on-year, beating market expectations, thanks to the resumption of semiconductor plant investment by Samsung Electronics. Doosan Enerbility has seen its target price raised on the back of higher gas turbine prices amid tight supply and expectations that it will soon win small modular reactor (SMR) orders. Hanwha Aerospace received a new target price of 1.9 million won as exports of its K9 Thunder self-propelled howitzers and Cheonmu multiple launch rocket systems expand across Europe and the Middle East.
◆Samsung E&A (028050)― Kiwoom Securities / Analyst Shin Dae-hyun
- Target price: 56,000 won (raised) | Previous close: 45,650 won
- Investment opinion: Not rated
Kiwoom Securities expects Samsung E&A to post first-quarter operating profit of 211.5 billion won, up 34.5% from a year earlier and above the market consensus of 195.8 billion won. The brokerage noted that revenue growth in the advanced industries division is now in full swing, driven by the resumption of investment in Samsung Electronics’ P4 complex and P5 semiconductor manufacturing facility, and raised its target price to 56,000 won. Analyst Shin Dae-hyun explained that Samsung Electronics is adopting a "Shell-First" strategy and plans to begin building out the P5 cleanroom in early third quarter, which could accelerate order intake and revenue more quickly than previously expected.※ Shell-FirstThis is a construction method in which the outer shell of a semiconductor plant—such as exterior walls and structural frames—is completed first, while the internal equipment is installed later in stages. The core space here is the cleanroom, an ultra-clean production facility where semiconductor circuits, which are thousands of times thinner than a human hair, are manufactured and even a single speck of dust cannot be tolerated. By erecting the shell in advance, companies can flexibly adjust the timing of equipment installation depending on market conditions, allowing construction to proceed much faster than with conventional methods.
◆Doosan Enerbility (034020)― Meritz Securities / Analyst Moon Gyeong-won
- Target price: 122,000 won (raised from 115,000 won) | Previous close: 95,700 won
- Investment opinion: Buy (maintained)
Meritz Securities raised its target price for Doosan Enerbility from 115,000 won to 122,000 won, citing expectations for additional export contracts this year following orders for seven gas turbines for U.S. AI data centers and three units for Korea South-East Power. Analyst Moon Gyeong-won noted that even if annual production capacity increases from eight to twelve units by 2028, supply will remain tight, creating room for price hikes similar to those seen at peer GE Vernova. Moon also stated that orders from TerraPower and NuScale Power Corporation in the SMR business appear to be imminent.
◆Hanwha Aerospace (012450)― SK Securities / Analyst Seunghan Han
- Target price: 1.9 million won (new) | Previous close: 1.45 million won
- Investment opinion: Buy (new)
SK Securities initiated coverage of Hanwha Aerospace with a Buy rating and a new target price of 1.9 million won, expecting exports of the K9 Thunder and Cheonmu to expand across Europe and the Middle East in the second half of this year. Analyst Seunghan Han assessed that in France’s multiple launch rocket procurement, the Cheonmu system has emerged as the leading candidate over the U.S. High Mobility Artillery Rocket System (HIMARS). He added that budget planning for K9 Thunder acquisitions in Finland and the Republic of Estonia is nearing completion, significantly increasing the likelihood of orders being finalized within the year. In the Middle East, Han explained that the Islamic Republic of Iran–Gulf tensions have weakened rival China’s position, thereby improving Hanwha Aerospace’s chances of winning contracts. Following additional orders for the Cheongung-II medium-range surface-to-air missile system, he also sees potential for export contracts for the Long-range Surface-to-Air Missile (L-SAM) system.※ K9 ThunderThe K9 Thunder is a 155 mm self-propelled howitzer independently developed by South Korea. Because it can move on its own and fire shells, it offers excellent mobility. It is one of the flagship weapons of the K-Defense Industry and has been exported to more than ten countries worldwide, including Poland, India, and Norway.※ CheonmuCheonmu is a domestically developed multiple launch rocket system. It can fire multiple rockets at once to strike a wide area and is equipped with guidance capabilities for precision attacks. It serves a similar role to the U.S. HIMARS and, following export deals with Poland and Norway, is now seen as a strong contender in France’s upcoming procurement.※ Long-range Surface-to-Air Missile (L-SAM)L-SAM is an upper-tier interception system often referred to as "K-THAAD (Korean THAAD)." It is designed to intercept ballistic missiles at altitudes of 40–60 kilometers. In a layered air defense network, the Cheongung-II medium-range surface-to-air missile system, which has already demonstrated a 96% interception rate in actual combat in the Middle East, provides secondary defense at lower altitudes, while L-SAM delivers the first line of defense at higher altitudes, together achieving a capability comparable to that of the United States and Israel.

sms@fnnews.com Minseo Sung Reporter