Samsung Heavy Industries (010140) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Samsung Heavy Industries is a shipbuilder that makes and sells high-value vessels and offshore facilities such as LNG carriers and FLNG (floating liquefied natural gas production units), booking contracts worth hundreds of billions of won per ship years in advance and recognizing revenue as each is built. In 2025 it sharply expanded its profit, with revenue of ₩10.65 trillion and operating profit of ₩862.2 billion, and the recovery continued into the first quarter of 2026, when operating profit rose 121.9% year on year to ₩273.1 billion. What stands out lately is that while LNG carrier demand and large FLNG contracts keep coming in, low-priced backlog rolls off and high-priced orders turn into revenue, lifting margins in a stepwise fashion; conversely, debt stands at 3.6 times equity, and interest and currency costs can eat into net profit, so if the ordering cycle turns down this structure can swing back into a burden.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Shipbuilding” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/B.
Shipbuilding rides a heavy vessel-ordering cycle, with profits bunching in upturns and slipping into losses in downturns, so current-year earnings alone give an unstable read. That makes price-to-book (P/B) — the share price against the value of docks and facilities the company owns — the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 268.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 82.7%).
- Revenue rose 7.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 16.4% higher than a year earlier.
- ROE is 12.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 9.2%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Samsung Electronics 15.23% (individual)
Controlling bloc incl. related parties 20.85%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Samsung Heavy Industries is a shipbuilder that makes merchant ships and offshore facilities. Its mainstay is the LNG carrier (a specialized vessel that transports liquefied natural gas at minus 163 degrees). It also builds general merchant ships such as container ships, crude-oil carriers and gas carriers. The recent axis of growth is FLNG. FLNG is a large offshore plant that extracts and liquefies gas directly at sea, with contracts running into the trillions of won per unit. Ships are contracted in advance and built over two to four years, with revenue recognized in line with the percentage of completion. So today's results are the outcome of orders won years ago, and the backlog being built now determines future revenue.
The latest close is ₩22,100 and the market capitalization is ₩19.4 trillion. The price sits above its 20-day moving average (₩21,630) and below its 60-day moving average (₩25,072). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.5, a neutral level. The one-month change is -1.6%, the three-month change is -30.6%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSPI is 16 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 16% of all stocks. Over the past three months it lagged the index by 22.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability is clearly improving. ROE (how much is earned in a year on equity) is 13.2%, and the operating margin (the share of revenue left as operating profit) is 8.1%. The balance sheet, however, is heavy. The debt ratio (debt against equity) is 360%, meaning debt far exceeds equity. The current ratio (assets that can be turned to cash immediately against debt due within a year) is 78.6%, below 100%. Because shipbuilding receives advance payments to build ships, debt tends to be recorded large, but with interest coverage at a low 1.44, the point to note is that interest costs have significantly weighed on profit. The picture shifts somewhat when debt is factored in: EV/EBIT (enterprise value divided by operating profit — a debt-adjusted counterpart to the P/E) is 24.9x, and EV/EBITDA (on a pre-depreciation earnings basis) is 18.7x. Net debt (total borrowings minus cash) is roughly ₩1.26 trillion, a structure with residual debt rather than net cash. On the other hand, the FCF yield (actual cash generated relative to market cap) is 6.7%, so the ability to draw in cash as ordered ships are delivered is not bad.
The recovery has been wide. Operating profit swung from large losses of ₩1.31 trillion in 2021 and ₩854.4 billion in 2022 to a turnaround profit of ₩233.3 billion in 2023. After that it grew sharply for three straight years, to ₩502.7 billion in 2024 and ₩862.2 billion in 2025. Net profit likewise grew from a ₩148.3 billion loss in 2023 to ₩63.9 billion in 2024 and ₩545.5 billion in 2025. The first quarter of 2026 confirmed the direction: revenue rose 16.4% year on year to ₩2.90 trillion and operating profit rose 121.9% to ₩273.1 billion. The Q1 operating margin of 9.4% has already risen above the 8.1% full-year figure for 2025. This is a phase where margins climb as ships ordered cheaply during the downcycle roll off and high-priced LNG carriers and FLNG turn into revenue. The company has set a 2026 revenue target of ₩12.8 trillion, roughly 29% larger than 2025. With revenue growing double digits and margins rising, this year's earnings power should step up a level from last year. Net profit, however, may not grow as fast as operating profit because of interest and currency costs.
The disclosure flow reflects the nature of the business directly. From May into June, single sales and supply contract disclosures (ship and facility orders) came in one after another. In particular, on June 8, 2026, the company signed a large FLNG main contract worth roughly ₩3.6 trillion. That single deal alone equals one-third of 2025's annual revenue. LNG carrier orders also came in steadily through the first half. Rising orders mean several years' worth of work is secured. As of June, the merchant-ship division had already filled 91% of its annual order target. Regular filings such as ownership-change and governance reports were also submitted. Because order contracts are recognized in revenue by percentage of completion rather than as an upfront payment, the current order rush will flow into results across 2026-2028 rather than immediately.
Samsung Heavy Industries is a classic cyclical, recovery stock whose profit jumps in stepwise fashion when the shipbuilding cycle is good. The strengths are clear. Large orders keep coming in the high-value areas of LNG carriers and FLNG. The backlog is ample, so several years of work is visible. This is a phase where margins rise as low-priced volume rolls off, so this year's profit is likely to be a level larger than last year's. The cautions are also clear. With a debt ratio of 260% and low interest coverage, net profit cannot grow as cleanly as operating profit and can be swayed by interest and currency moves. Because shipbuilding is a business where new ordering rises and falls over multi-year cycles, this upward trajectory could flatten if LNG and FLNG ordering cools. In short, as long as the ordering cycle and high-priced orders continue, earnings power keeps growing, but if those conditions waver, the heavy balance sheet returns as a burden.
🔎 Valuation vs peers Fairly valued
Compared with large domestic listed shipbuilders (builders of merchant ships and offshore facilities) whose business substance is similar.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Hyundai Heavy Industries | 37.60x | 5.48x | 19.61% |
| Hanwha Ocean | 22.31x | 4.07x | 22.43% |
| HD Korea Shipbuilding & Offshore Engineering | 13.06x | 2.09x | 19.91% |
| HJ Shipbuilding & Construction | 29.32x | 2.17x | 10.29% |
The trailing P/E of 35.3x looks expensive at first glance, but that is because of a low base: net profit was near a bottom of ₩63.9 billion through 2024 before recovering sharply to ₩545.5 billion in 2025. For a stock at an earnings inflection, it is right to look at this year's earnings rather than last year's. Factoring in the company's revenue target (₩12.8 trillion, +29%) and the operating margin that already rose to 9.4% in Q1, this year's earnings power is a level above last year's. On a forward basis reflecting this, the P/E is roughly 26.7x, lower than the trailing 35.3x. Against peers it is similar to HD Hyundai Heavy Industries (trailing 34.9x, also in an earnings-recovery phase) and higher than Hanwha Ocean (20.2x). HD Korea Shipbuilding & Offshore Engineering (10.9x) looks lower because of its holding structure that consolidates results, making a simple comparison difficult. The P/B of 4.6x is not low either, but viewed alongside a 13.2% ROE and the improving earnings trend, it is not in an extremely expensive zone. Taken together, there is a premium, but one grounded in the backlog and improving margins, and it is neither clearly undervalued nor clearly overvalued — a fair zone.
Price history Close · MA20 · MA60
The latest close is ₩22,100 and the market capitalization is ₩19.4 trillion. The price sits above its 20-day moving average (₩21,630) and below its 60-day moving average (₩25,072). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.5, a neutral level. The one-month change is -1.6%, the three-month change is -30.6%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSPI is 16 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 16% of all stocks. Over the past three months it lagged the index by 22.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -21.99% / 6M -36.59% / 12M -39.72%
Key metrics Computed vs sector median
Valuation
The P/E of 35.65x is above the sector median (12.80x). The P/B of 4.31x is above the sector median (1.61x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.3%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.32x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.3%, in line with the sector average (13.0%). The operating margin is 9.2%. The debt ratio is 268.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.6B | $7.0B | $7.5B | +7.54% ↓ slower |
| Operating profit | $163.9M | $353.1M | $605.7M | +71.52% ↓ slower |
| Net profit | -$104.2M | $44.9M | $383.2M | +754.06% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.7B | $4.2B | $5.6B | $7.0B | $7.5B |
| Operating profit | -$921.7M | -$600.2M | $163.9M | $353.1M | $605.7M |
| Net profit | -$1.0B | -$435.2M | -$104.2M | $44.9M | $383.2M |
| Revenue CAGR | 4-yr avg 12.61% | ||||
Revenue rose 7.5% year over year (2023 ₩8.0 trillion → 2024 ₩9.9 trillion → 2025 ₩10.7 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 71.5% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.6%. The two-year revenue CAGR is 15.3%. In the most recent quarter (Q1 2026), revenue was 16.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 12.3% points to solid profitability.
Points to watch
- Revenue rose 7.5% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-08UpdateSigned a large FLNG (floating liquefied natural gas production unit) main contract worth roughly ₩3.6 trillion, equal to about one-third of 2025 annual revenue.A core volume that lifts offshore-division revenue and margins over the medium term. Recognized in results over the coming years by percentage of completion. Source
- 2026-06-02UpdateSigned single sales and supply contracts (ship orders). Merchant-ship orders continued throughout the first half.Expands the short-term backlog. A factor that broadens the future revenue base. Source
- 2026-05-27UpdateSigned multiple single sales and supply contracts (ship orders), concentrated in LNG-carrier-led merchant ships.Contributes to medium-term margin improvement through a higher share of high-value ship types. Source
- 2026-06-01FilingRegular disclosure of the corporate governance report and large business group status.Routine reporting on governance and group status. Limited direct impact on results. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-08Single supply/sales contract (amended)
- 2026-06-08Single supply/sales contract
- 2026-06-08Single supply/sales contract
- 2026-06-04Single supply/sales contract (amended)
- 2026-06-02OwnershipLargest-shareholder ownership change report
- 2026-06-02Single supply/sales contract
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-27Single supply/sales contract
- 2026-05-27Single supply/sales contract
- 2026-05-27Single supply/sales contract
- 2026-05-18Single supply/sales contract
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.