Samsung E&A Raises Third-Quarter Order Outlook

Samsung Electronics & Automotive (E&A) has increased its order outlook for the third quarter, with forecasts now projecting guidance of at least 16 trillion won ($12.31 billion). Analyst Shin Dae-hyun of Kiwoom Securities expressed confidence in the company's growth prospects, noting that Samsung E&A received a significant SAN7 order worth approximately 4.7 trillion won in the third quarter.

This follows previous guidance increases from 3 trillion won to 7 trillion won. The analyst anticipates multiple high-tech industry orders in the fourth quarter, primarily for Samsung Electronics.

Furthermore, discussions are taking place to accelerate production timelines for Ph1 and commence construction for P6 within the current year. The potential for starting construction on Taylor Fab 2 this year is also deemed likely. While third-quarter orders may be lower than anticipated due to timing discrepancies in main contracts, Shin is confident that the majority of these contracts will be signed in the fourth quarter.

Key revenue drivers include the Fadhili gas plant in the chemical engineering sector, expected to peak in the first quarter of 2027, as well as Middle East LOA and SAN7 orders. These factors are projected to contribute to revenue growth and a potential operating profit margin of over 10% next year, surpassing the 13 trillion won mark. Samsung E&A's large-scale pipelines, including Qatar UREA, Mexico Mexinol, Abadi LNG, and DG Fuel, are also highlighted as major revenue generators.