Asia300

Samsung Heavy Industries Co., Ltd.

South Korea

  • 1m
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  • 1y
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Jun 23, 2017
Prev close: 12,850
Jun 23, 2017
Market cap:
Market cap(USD):
5,011.5B
4,400.49M
Shares: 390M

Currency in KRW

Company profile

Market(Ticker): KRX(010140)
Sector:
Industry:
Producer Manufacturing
Trucks/Construction/Farm Machinery
Full time employees: --

Business summary

Samsung Heavy Industries Co., Ltd. engages in the production and sale of vessels, plant, and power systems. It operates through the following business areas: Shipbuilding, Engineering and Construction, Power and Control Systems, and Wind Energy. The Shipbuilding business provides tanker, container, passenger and drill ships, crude oil production and storage facility, fixed platform, and other shipbuilding products. The Engineering and Construction business offers architecture and development works, housing, civil works, and plants. The Power and Control Systems business include digital vessel, and home and building systems. The Wind Energy business provides wind power generators. The company was founded on August 5, 1974 and is headquartered in Seongnam, South Korea.

Company background

Samsung Heavy Industries is one of South Korea's top-three shipbuilders, alongside Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. The company's strength is in high-value-added vessels, such as liquefied natural gas carriers, tankers and drill ships. It also makes offshore plants, such as floating production, storage and offloading systems.

The company was set up in 1974 by the Samsung group, South Korea's largest conglomerate. It is one of the largest shipbuilders in the world in terms of shipbuilding volume after the market leader Hyundai Heavy Industries. The company has increased orders for high-value-added vessels since the turn of the century.

In recent years, Samsung Heavy Industries has been boosting the number of orders it gets for its offshore plants, but it often gets saddled with construction delay charges. Improving the profitability of this business line is a pressing issue.

In September 2014, the company said it was planning to merge with Samsung Engineering, which focuses on onshore plants, to improve its technologies and streamline operations. The company, however, dropped the merger plan because buying back the shares of huge stockholders opposed to the deal proved too costly.

"We will give careful thought to the merger plan in view of market conditions and shareholders' opinions," a company representative said.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 10,414.18B
Gross profit 403,610.70M
Operating income -167,442.51M
Income before tax -68,545.69M
Net income -121,231.32M
EBITDA 149,555.18M
Diluted EPS -485.10
Dividends per share --
Total assets 17,217.46B
Total liabilities 10,942.15B
Total equity 6,264.30B
Operating cash flow -1,554.75B

Currency in KRW

Revenue 8,976.28M
Gross profit 347.88M
Operating income -144.32M
Income before tax -59.08M
Net income -104.49M
EBITDA 128.90M
Diluted EPS -0.41
Dividends per share --
Total assets 14,255.22M
Total liabilities 9,059.57M
Total equity 5,186.54M
Operating cash flow -1,340.08M

Currency in USD

Valuation measures

Dec 2016

PER --
ROA -0.70%
ROE -2.30%
Operating margin -1.60%
Profit margin -1.16%

Key executive

  • President, Chief Executive Officer & Director: Dae-Yong Park
  • MD & Head-Production Operations Team: Yeon-Kyung Choi
  • Executive Director & Head-Financial Support: Sang-Noh Seo
  • MD & Head-Production Technology Team: Jae-Kwang Eom
  • Vice President & Head-Compliance Management: Hyun-Dong Lee

Share holders

  • Samsung Electronics Co., Ltd.(16.9%)
  • Samsung Heavy Industries Co., Ltd.(7.5%)
  • Templeton Asset Management Ltd. (Hong Kong)(3.5%)
  • National Pension Service of Korea(3.2%)
  • Samsung Life Insurance Co., Ltd.(3.2%)
  • Samsung Electro-Mechanics Co., Ltd.(2.2%)
  • Templeton Asset Management Ltd.(1.5%)
  • The Vanguard Group, Inc.(1.4%)
  • BlackRock Fund Advisors(1.2%)
  • Dimensional Fund Advisors LP(1.2%)

Address

  • Website: http://shi.samsung.co.kr
  • Address: 23 Pangyo-ro 227beon-gil, Bundang-gu, Seongnam, 13486, South Korea
  • Phone: +82.31.5171.6104

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