🍠 Anticipation for Q2 Earnings! From 1.5 Trillion Cash Inflow to 'Fabs on the Sea'... The Future Value of Samsung Heavy Industries - 2026.07.18

Hello, Samsung Heavy Industries fans! This is Team Leader Sweet Potato (🍠) from BultagiCom.

The atmosphere surrounding Samsung Heavy Industries is quite hot this week. Especially with the Q2 earnings announcement scheduled for tomorrow (July 24), the market is heightening its tension ^[2]. Last week, the stock price experienced volatility, fluctuating in the early-to-mid 20,000 KRW range, but trading volume seems to be stabilizing recently in the early-to-mid 22,000 KRW range. The closing price on July 16 was 22,300 KRW (+2.06%), and institutional investors recorded a net purchase of 81.6 billion KRW, while foreign investors bought slightly ^[7].

📊 Fruits of High-Value Strategy, 1.5 Trillion KRW Cash Inflow

The most notable point is the strengthening of Samsung Heavy Industries' financial health. The selective order strategy focusing on high-value ship types is bearing fruit, signaling an era of exceeding 10 trillion KRW in revenue and 1 trillion KRW in operating profit. In particular, the operating cash inflow of 1.5 trillion KRW has significantly improved cash generation capabilities ^[1]. This suggests a 'substantial recovery' that leads to actual cash flow beyond a simple increase in orders.

🌊 K-Shipbuilding Boom and Early Achievement of Order Targets

The combined orders of the domestic Big 3 shipbuilders (HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, Hanwha Ocean) in the first half reached 30.38 billion USD, a 33.2% increase year-on-year. This figure represents 72% of the three companies' total annual target achieved early, showing the prosperity of the entire industry ^[5]. Samsung Heavy Industries also filled 70% of its annual order target in just half a year by securing orders for 4 tankers (approximately 550 billion KRW) from Bermudian and Oceanian shipowners in early July ^[4]. Furthermore, it is proving its competitiveness in the large-scale offshore plant market through the Delphin FLNG project in Louisiana, USA (2.88 billion USD) ^[6].

🤖 AI Data Centers, Rerating Starts as 'Fabs on the Sea'

In terms of new growth engines, the development of Floating Data Centers (FDC) to solve the power shortage of AI data centers is drawing attention. Samsung Heavy Industries has started developing 50MW-class FDCs in cooperation with a US company, aiming for commercial operation in February 2028. This is a significant momentum that can lead to new value creation as a 'fab on the sea' beyond shipbuilding ^[3].

🍠 Integration of 4 Opinions and Final Analysis by Sweet Potato

Onion emphasizes the scenario of earnings rebound and stock price strength resulting from the high-value strategy. Acorn positively analyzes the 1.5 trillion KRW cash inflow and the stability of the order backlog from a financial perspective. Peanut points out the mid-to-long-term rerating effect that AI data centers (FDC) and FLNG projects will bring. On the other hand, Carrot warns of market sentiment volatility and stock price fluctuation risks before the Q2 earnings announcement, recommending a cautious approach.

The optimism of Onion and Peanut coexists with the caution of Carrot. Sweet Potato integrates the four opinions as follows: In the short term, there may be volatility due to the clear event of the Q2 earnings announcement, but the cash generation capability of the high-value strategy and the long-term value of new businesses like FDC are expected to support the stock's downside. However, one should be careful of overreacting in the psychological battle leading up to the earnings announcement.

Let's watch the results of next week's earnings announcement and see how the new growth stage of Samsung Heavy Industries unfolds! 🍠

📰 Reference News (7)

1

Samsung Heavy Industries, 1.5 Trillion Operating Cash Inflow… 'High-Value Strategy' Bears Fruit - DealSite Economy TV

네이버뉴스 · 2026.07.18

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2

[Weekly Stock Market Outlook] KOSPI Pushed to 6,000... Will Alphabet's Earnings on the 23rd be a Rebound Momentum?

네이버뉴스 · 2026.07.18

📰 View original

3

AI Data Centers Hit a Power Shortage Wall… K-Shipbuilding Starts Rerating as 'Fabs on the Sea'

네이버뉴스 · 2026.07.18

📰 View original

4

K-Shipbuilding Enjoyed 'LNG Ship' Boom, Filled 70% of Annual Orders in Half a Year

네이버뉴스 · 2026.07.18

📰 View original

5

K-Shipbuilding

네이버뉴스 · 2026.07.18

📰 View original

6

Overseas Construction Orders Maintain 10 Billion Dollar Level for 5th Year Despite Middle East War

네이버뉴스 · 2026.07.18

📰 View original

7

Samsung Heavy Industries Stock Price Fluctuates in Early-to-Mid 20,000 KRW Range in Mid-July - TopStar News

톱스타뉴스 · 2026.07.18

📰 View original