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Producer Manufacturing

Samsung Heavy Industries Co., Ltd.

  • 6,400.00 KRW
  • -280.00
  • -4.19%
  • South Korea
    Aug 14, 2018
  • Ticker
    KRX(010140)
  • Prev. close
    6,680
  • Market cap (KRW)
    4,208.40B
  • Market cap (USD)
    3,731.01M
  • Shares
    630M

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.

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.

Financial Highlights

Dec 2017 KRWUSD
Revenue7,901.23B6,989.08M
Gross Profit-225,461.91M-199.43M
Operating income-524,163.79M-463.65M
Income before tax-463,899.24M-410.34M
Net income-338,779.13M-299.66M
EBITDA-209,683.96M-185.47M
Diluted EPS-830.39-0.73
Dividends Per Share00
Total Assets13,818.11B12,907.48M
Total liabilities8,020.66B7,492.09M
Total equity5,789.56B5,408.02M
Operating cash flow540,067.54M477.72M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 14,834.50B 12,879.06B 9,714.44B 10,414.18B 7,901.23B
Gross Profit 1,763.89B 704,989.00M -1,025.16B 403,610.70M -225,461.91M
Operating income 914,214.28M 183,019.97M -1,501.90B -147,199.51M -524,163.79M
Income before tax 818,978.79M 190,454.70M -1,461.15B -68,545.69M -463,899.24M
Net income 632,204.49M 149,224.54M -1,205.41B -121,231.32M -338,779.13M
EBITDA 1,197.59B 467,676.25M -1,197.97B 169,798.18M -209,683.96M
Diluted EPS 2,278.62 542.08 -4,598.70 -433.05 -830.39
Dividends Per Share 391.11 195.55 0 0 0
Total Assets 17,427.14B 17,122.23B 17,301.59B 17,217.46B 13,818.11B
Total liabilities 11,581.35B 11,549.07B 13,035.84B 10,942.15B 8,020.66B
Total equity 5,845.80B 5,537.47B 4,237.36B 6,264.30B 5,789.56B
Operating cash flow 590,217.27M -457,461.38M 620,279.37M -1,554.75B 540,067.54M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 13,550.42M 12,234.79M 8,583.15M 8,976.28M 6,989.08M
Gross Profit 1,611.21M 669.72M -905.78M 347.88M -199.43M
Operating income 835.07M 173.86M -1,327.00M -126.87M -463.65M
Income before tax 748.08M 180.92M -1,291.00M -59.08M -410.34M
Net income 577.48M 141.75M -1,065.03M -104.49M -299.66M
EBITDA 1,093.92M 444.28M -1,058.46M 146.35M -185.47M
Diluted EPS 2.08 0.51 -4.06 -0.37 -0.73
Dividends Per Share 0.35 0.18 0 0 0
Total Assets 16,513.14M 15,577.70M 14,755.52M 14,255.22M 12,907.48M
Total liabilities 10,973.94M 10,507.27M 11,117.51M 9,059.57M 7,492.09M
Total equity 5,539.20M 5,037.96M 3,613.80M 5,186.54M 5,408.02M
Operating cash flow 539.12M -434.57M 548.04M -1,340.08M 477.72M

Valuation Measures

Dec 2017
PER--
ROA-2.18%
ROE-5.62%
Operating margin-6.63%
Profit margin-4.28%

Key executives

  • President, Chief Executive Officer & Director: Dae-Yong Park
  • MD & Head-Production Operations Team: Yeon-Kyung Choi
  • Managing Director & Head-Finance: Dong-Seol Kim
  • MD & Head-Chung Ang Research Institute: Boo-Ki Kim
  • MD & Head-Production Technology Team: Jae-Kwang Eom

Shareholders

  • Samsung Electronics Co., Ltd. (15.9%)
  • Samsung Heavy Industries Co., Ltd. ESOA (8.2%)
  • Samsung Heavy Industries Co., Ltd. (4.6%)
  • National Pension Service of Korea (3.9%)
  • Samsung Life Insurance Co., Ltd. (3.0%)
  • Templeton Asset Management Ltd. (Hong Kong) (2.4%)
  • Samsung Electro-Mechanics Co., Ltd. (2.1%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.3%)
  • Templeton Asset Management Ltd. (1.1%)

Contact Details

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

Related Companies

  • Daejung Offshore Wind Power Co., Ltd.
  • Samsung Heavy Industries Co., Ltd. ESOA
  • SM Solution Co. Ltd.
  • Rongcheng Gaya Heavy Industries Co. Ltd.
  • Samsung Heavy Industries (Rongcheng) Co. Ltd.
  • Samsung Heavy Industries (Ningbo) Co. Ltd.
  • Samsung (China) Investment Co., Ltd.
  • Mustang Co. Ltd.

Competitors

  • Hyundai Heavy Industries Co., Ltd.
  • Hanjin Heavy Industries & Construction Co., Ltd
  • Hyundai Mipo Dockyard Co., Ltd
  • Daewoo Shipbuilding & Marine Engineering Co., Ltd
  • CSBC Corp. Taiwan
  • McDermott International, Inc.
  • Gaztransport & Technigaz SA
  • TechnipFMC Plc
  • Hankuk Carbon Co., Ltd
Last Updated on 14 Aug, 2018

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