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Producer Manufacturing

Samsung Heavy Industries Co., Ltd.

  • 8,550.00 KRW
  • +130.00
  • +1.54%
  • South Korea
    Apr 19, 2019
  • Ticker
    KRX(010140)
  • Prev. close
    8,420
  • Market cap (KRW)
    5,373.90B
  • Market cap (USD)
    4,726.38M
  • 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 2018 KRWUSD
Revenue5,265.11B4,784.21M
Gross Profit-78,795.94M-71.59M
Operating income-409,252.12M-371.87M
Income before tax-497,598.48M-452.14M
Net income-387,850.71M-352.42M
EBITDA-114,401.90M-103.95M
Diluted EPS-729.28-0.66
Dividends Per Share00
Total Assets14,282.89B12,800.58M
Total liabilities7,536.61B6,754.44M
Total equity6,738.39B6,039.06M
Operating cash flow165,522.61M150.40M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 12,879.06B 9,714.44B 10,414.18B 7,901.23B 5,265.11B
Gross Profit 704,989.00M -1,025.16B 403,610.70M -225,461.91M -78,795.94M
Operating income 183,019.97M -1,501.90B -147,199.51M -524,163.79M -409,252.12M
Income before tax 190,454.70M -1,461.15B -68,545.69M -463,899.24M -497,598.48M
Net income 149,224.54M -1,205.41B -121,231.32M -338,779.13M -387,850.71M
EBITDA 467,676.25M -1,197.97B 169,798.18M -209,683.96M -114,401.90M
Diluted EPS 542.08 -4,598.70 -433.05 -830.39 -729.28
Dividends Per Share 195.55 0 0 0 0
Total Assets 17,122.23B 17,301.59B 17,217.46B 13,818.11B 14,282.89B
Total liabilities 11,549.07B 13,035.84B 10,942.15B 8,020.66B 7,536.61B
Total equity 5,537.47B 4,237.36B 6,264.30B 5,789.56B 6,738.39B
Operating cash flow -457,461.38M 620,279.37M -1,554.75B 540,067.54M 165,522.61M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 12,234.79M 8,583.15M 8,976.28M 6,989.08M 4,784.21M
Gross Profit 669.72M -905.78M 347.88M -199.43M -71.59M
Operating income 173.86M -1,327.00M -126.87M -463.65M -371.87M
Income before tax 180.92M -1,291.00M -59.08M -410.34M -452.14M
Net income 141.75M -1,065.03M -104.49M -299.66M -352.42M
EBITDA 444.28M -1,058.46M 146.35M -185.47M -103.95M
Diluted EPS 0.51 -4.06 -0.37 -0.73 -0.66
Dividends Per Share 0.18 0 0 0 0
Total Assets 15,577.70M 14,755.52M 14,255.22M 12,907.48M 12,800.58M
Total liabilities 10,507.27M 11,117.51M 9,059.57M 7,492.09M 6,754.44M
Total equity 5,037.96M 3,613.80M 5,186.54M 5,408.02M 6,039.06M
Operating cash flow -434.57M 548.04M -1,340.08M 477.72M 150.40M

Valuation Measures

Dec 2018
PER--
ROA-2.76%
ROE-6.19%
Operating margin-7.77%
Profit margin-7.36%

Key executives

  • Chief Executive Officer & Director: Joon-Wu Nam
  • 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%)
  • National Pension Service of Korea (8.0%)
  • Samsung Heavy Industries Co., Ltd. ESOA (8.0%)
  • Samsung Heavy Industries Co., Ltd. (4.1%)
  • Samsung Life Insurance Co., Ltd. (3.0%)
  • Samsung Electro-Mechanics Co., Ltd. (2.1%)
  • Samsung Asset Management Co., Ltd. (1.8%)
  • BlackRock Fund Advisors (1.8%)
  • The Vanguard Group, Inc. (1.8%)
  • Dimensional Fund Advisors LP (1.3%)

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
  • McDermott International, Inc.
  • CSBC Corp. Taiwan
  • Gaztransport & Technigaz SA
  • TechnipFMC Plc
  • Hankuk Carbon Co., Ltd
Last Updated on 19 Apr, 2019

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