Samsung Heavy Industries: FDC emerges as a new growth pillar in earnings step-up; target price of 41,000 won

[The Financial News] Daol Investment & Securities forecast that Samsung Heavy Industries would post a marked improvement in profitability in the shipbuilding sector in the third quarter. It said strong earnings growth would continue next year as well, taking into account the expansion of its floating data center (FDC) business.
The brokerage maintained its “Buy” rating and target price of 41,000 won.
On the 7th, Kwang-Sik Choi, a researcher at Daol Investment & Securities, described Samsung Heavy Industries as “a preferred pick for the third-quarter earnings season and a company that will lead the opening of the FDC market,” adding that “its operating profit growth will be substantial in 2027 as well, given its later order-book vintage than other companies.”
Samsung Heavy Industries’ third-quarter revenue was estimated at 3.2487 trillion won, up 23% year on year and 1% from the previous quarter. Operating profit is forecast to rise 58% to 376.8 billion won, up 16% from the previous quarter. The operating margin is expected to improve by 1.5 percentage points from the previous quarter to 11.6%.
Daol Investment & Securities expected revenue and profitability to improve despite the won-dollar exchange rate falling by at least 5% from the second quarter and the number of operating days declining by 6%.
The improvement is expected to be supported by expanded global operations and increased construction of floating liquefied natural gas (FLNG) production facilities. In particular, the improvement is forecast to accelerate in the fourth quarter as the number of operating days rises and the effects of a change in order-book vintage come into play.
The order trend was also viewed positively. Samsung Heavy Industries’ cumulative orders this year stand at $11.59 billion, including $7.15 billion onshore and $4.4 billion offshore.
Onshore orders have already surpassed the previous target of $5.7 billion. The company is expected to be able to meet its annual order target of $13.9 billion if it secures orders for at least one of the two remaining FLNG units.
Particular attention was paid to the development of the FDC business, seen as a new growth driver. Samsung Heavy Industries is working with Museuterian on the final design for FDCs. Museuterian’s “Zeus” project has a total capacity of 500 MW, of which 100 MW is planned for offshore operation. Samsung Heavy Industries aims to deliver two 50-MW FDCs by the first half of 2028.
Daol Investment & Securities said FDC orders could quickly spur follow-on projects as vessel prices and investment costs become clear and pilot projects emerge. It also highlighted the potential for further growth by leveraging existing offshore production facilities, noting that Samsung Heavy Industries is preparing a large-scale, 200-MW FDC.

[email protected] Kang Jung-mo Reporter