January 19, 2000 in Social Responsibility News

Warburg Dillon Read Securities Recommends SAMSUNG Heavy Industries' Stocks "BUY"

A European securities company recommends investors to buy the shipbuilding industry stocks, which are underestimated in the local stock exchange market, compared with the other information telecommunications stocks that are in a sharp up-curve. In its January 18 investment analysis report, the Warburg Dillon Read Securities recommended Samsung Heavy Industries (SHI) as a representative underestimated blue chip in the manufacturing industry pointing out the fact that SHI has a stable profit foundation in the shipbuilding and construction industry. Warburg Dillon Read suggested 12,000 won as the target price of an SHI stock. The reasons for the recommendation are as follows: The quantity of orders has sharply increased since the three-quarters of 1999. The local shipbuilders received orders of 12.7 million tons last year beyond their expectation, and at this rate they expect further orders to increase by more than 10% this year, while the shipbuilding price shows an upturn in the construction of VLCCs and bulk carriers by a small margin. Since they have the large backlog of shipbuilding orders that have to be filled for the coming two years, they forecast a favorable business climate this year, too. Especially in the case of SHI, high value-added ships such as FPSOs, passenger ships and ultra-large container ships consist of more than 40% of orders, whereas the general merchant vessels of a thin margin such as the bulk carriers were excluded. SHI is playing a leading role in getting the orders for the construction of high value-added special ships. Also, SHI has introduced the conception of software into the hardware industry, that is, the traditional heavy industry. SHI developed the automatic navigation system and the automatic ship control system, which belong to a type of the digital control system, and has got authorization from international certified agencies such as the U.S. Classification Society. SHI has finished commercializing these control systems and will engage in a full-dress business this year while, on the other hand, applying them to the building control system. Since the SHI's digital control system based on the shipbuilding know-how has a competitive edge in price against the European and Japanese players, SHI expects to obtain synergic effect. Meanwhile, in addition to the existing engineering and construction of office buildings, SHI launched a customized housing program called Chereville, whose sales are on the up and up. Last year the customized housing program accounted for 30% of the sales of the construction department, boosting its profit by 14%. Keeping pace with the recovery of the economy, demand for high-class customized houses is likely to become animated. Orders for general houses and commercial buildings, which had been stagnant, rose last year by 46%, and are expected to grow better this year.


Welcome to Samsung

Sign up & get 10% off

Sign up and get 10% off your first order of $100 or more! Shop Samsung.com to find the best tech at the best prices and recieve news on our latest technology and exclusive offers.*

*Exclusion apply. Order must be a minimumm of $100 or more. Offer valid only for new Samsung.com customers. Must sign up for emails by 11/12/16. Promo code must be used by 11/19.

Fast, easy checkout with Shop Samsung App
Easy sign-in, Samsung Pay, notifications, and more!
Or continue shopping on Samsung.com
×
The Shop Samsung app
Free standard shipping, exclusive offers and financing options.
GET
×
The Shop Samsung app
Free standard shipping, exclusive offers and financing options.
GET
×

You Are About To Be Redirected To Investor Relations Information for U.S.

Thank you for visiting Samsung U.S. Investor Relations. You will be redirected via a new browser window to the Samsung Global website for U.S. investor relations information.
CANCEL
CONTINUE
×

Redirect Notification

As of Nov. 1, 2017, the Samsung Electronics Co., Ltd. printer business and its related affiliates were transferred to HP Inc.

For more information, please visit HP's website: http://www.hp.com/go/samsung


Select CONTINUE to visit HP's website.

CANCEL
CONTINUE