Samsung Heavy Industries (010140)
Factual Summary
Samsung Heavy Industries has an effectively single-business structure, with the shipbuilding and offshore segment accounting for approximately 96% of revenue and the construction segment approximately 4%, and holds a high market share in LNG carriers and FLNG (floating liquefied natural gas production facilities). In Q1 2026 (disclosed 2026-04-30), revenue was KRW 2.9023 trillion, up 16% year-over-year, and operating profit was KRW 273.1 billion, up 122% year-over-year. The reference-date closing price on 2026-07-20 was KRW 21,200, down 4.50% from the previous day, while the KOSPI index also fell 4.46% on the same day. During H1 2026, FLNG project order disclosures (KRW 4.3301 trillion, KRW 3.6536 trillion, etc.) and multiple LNG carrier orders continued.
Price-Change Context Note
The reference-date decline for Samsung Heavy Industries on 2026-07-20 (4.50%) was close to the overall KOSPI decline (4.46%) and KOSDAQ decline (5.33%) on the same day, and no company-specific disclosure or news for Samsung Heavy Industries was identified within the scope of this survey. Despite continued large FLNG and LNG carrier order disclosures during June-July, the share price trended downward from the KRW 31,000 range in May to the KRW 21,200 range in July.
Business Structure
The shipbuilding segment holds technological strength in LNG carriers, featuring membrane-type cargo containment technology and dual-fuel propulsion engines. The offshore plant segment is cultivating FLNG as a growth driver, with the Malaysia JT LNG, Canada Cedar, and Mozambique Coral projects underway (as of Q1 2026).
Financial Trends
| Fiscal Year | Revenue (KRW 100mn) | Operating Profit (KRW 100mn) | Net Income (KRW 100mn) | Debt Ratio (%) | ROE (%) |
|---|---|---|---|---|---|
| 2023 | 80,094 | 2,333 | -1,556 | 357.3 | -4.5 |
| 2024 | 99,031 | 5,027 | 539 | 358.5 | 1.4 |
| 2025(E) | 106,500 | 8,622 | 5,358 | 264.9 | 13.1 |
Source: fnguide (2023, 2024 = A, 2025 = E consensus) · Q1 2026 (disclosed 2026-04-30, A): revenue KRW 2.9023 trillion (up 16% YoY), operating profit KRW 273.1 billion (up 122% YoY), operating profit approximately 20% below consensus
Competitor Comparison
| Company | Vessels | Order Value (USD 100mn) | Achievement Rate vs. Annual Target |
|---|---|---|---|
| HD Korea Shipbuilding & Offshore Engineering (Group) | 104 | 125.4 | 53.8% |
| Samsung Heavy Industries | 22 | 3.9-4.7 (varies by source) | 28% |
| Hanwha Ocean | 19 | 34.4 | Not available |
Samsung Heavy Industries cumulative as of mid-July: 30 vessels, approximately USD 9.6 billion (approximately 69% of the annual target of USD 13.9 billion) — improved progress versus end-May (secondary source, outlet unspecified)
Valuation (Factual Multiples)
| Company | PER | As of |
|---|---|---|
| Samsung Heavy Industries | 18.81x | 2026-07-18 |
| HD Hyundai Heavy Industries | 29.25x | Date not specified |
| Hanwha Ocean | 20.08x | Date not specified |
PER and PBR are as of a different reference date (2026-07-18) than the system's authoritative closing price (KRW 21,200 on 2026-07-20) and are provided as reference cross-check data only · EV/EBITDA not available
Governance
The largest shareholder is Samsung Electronics, holding a 15.23% stake (as of 2026-03-31, 134,027,281 common shares); including related parties, the total stake is 20.85% (A, DART Q1 2026 report). Major shareholders with 5% or more include BlackRock Fund Advisors at 5.01% (reported as of 2026-03-31). The National Pension Service held 7.98% as reported on 2025-03-19, but with no subsequent update, its actual holding as of 2026-07-20 is not available. The Government of Singapore Investment Corporation (GIC)'s stake fell below 5% after its 2025-04-08 report, ending its reporting obligation (A).
| Board Composition | Members |
|---|---|
| Inside Directors (Registered) | 3 |
| Outside Directors (also serving on Audit Committee) | 4 |
The CEO is Vice Chairman Choi Sung-an. During June-July 2026, multiple executives reported new small-scale acquisitions of company shares (each around 0.00-0.01%, A). There were no capital increases or reductions during 2025 (the most recent instance was in 2021).
Macro Environment
| Factor | Value (as of) | Transmission Channel |
|---|---|---|
| KRW/USD Exchange Rate | KRW 1,478.4 (2026-07-20) | Linked to the KRW-translated value of USD-denominated orders and revenue; earnings volatility partly buffered by FX hedging |
| Steel Plate Price | mid-KRW 800,000s per ton (H1 2026 supply price) | Key raw material in shipbuilding costs, affecting cost ratio |
| Newbuilding Price Index | 185.59pt (2026-01-05) / 182.14pt (Feb 2026) | Leading indicator for new order contract prices; latest July figure not available |
| International Oil Prices | Brent $76.03 (2026-07-09) / WTI $82.49 (2026-07-17) | Indirect influence on offshore plant order incentives |
| US Federal Funds Rate | 3.50-3.75% (held on 2026-06-17) | Linked to shipowners' newbuilding financing costs |
| Trade Policy (US-China / MASGA) | Port fees imposed on Chinese-built vessels calling at US ports (from 2026-04-17), Korea-US Shipbuilding Cooperation Center opened (2026-07) | Potential spillover benefit from avoidance of Chinese shipyards; Korea-US shipbuilding cooperation seen as a potential new order channel |
Risk Factors
- The high FX hedge ratio has, in at least one instance (Q1 2026), had a negative effect on operating profit during periods of currency appreciation
- Fluctuations in raw material prices such as steel plate can affect the cost-of-sales ratio
- Labor shortages have been reported across the shipbuilding industry broadly, but no company-specific labor issues at Samsung Heavy Industries have been identified (not available)
- Given the nature of offshore plant projects, there is a structural possibility of recognizing provisions for construction losses due to design changes or schedule delays (years of past occurrence not available)
- Achievement of the 2026 annual order target depends on H2 progress — as of end-May, the achievement rate stood at 28%, lower than competitors
- Despite large recent orders and strong earnings in recent months, repeated share price corrections have been observed
Investor Flows
By-investor-type (institutional, foreign, retail) net buy/sell amounts and volumes, short-selling ratio and balance, and foreign ownership ratio are all not available in this survey due to unconfigured KRX login credentials. The investor group that drove the 2026-07-20 decline (-4.50%, volume 4,572,432 shares) was also not identified. For reference, on 2026-06-30, a decrease in foreign holdings (estimated at approximately 871,479 shares) was reported as the main factor behind a 4.29% decline (secondary source; the previous day was reported as foreign net buying of 533,001 shares).
Recent News Flow
On 2026-07-20, the KOSPI fell 4.46% and the KOSDAQ fell 5.33%, triggering a sidecar (reportedly driven by concerns over AI-related stocks). No company-specific disclosure from Samsung Heavy Industries was identified on that day. In early June, new FLNG order disclosures followed (6/2: KRW 4.3301 trillion, 6/8: KRW 3.6536 trillion) along with LNG carrier orders (6/8: KRW 385.5 billion; 7/8: two crude oil carriers, KRW 284.9 billion) (A, disclosure-based). On 6/12, foreign funds turned to net buying for the first time in 25 trading days, and the share price rose 6.72%; on 7/13, the KOSPI plunged 8.95%, triggering a circuit breaker.