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Producer Manufacturing

Samsung Heavy Industries Co., Ltd.

  • 8,870.00 KRW
  • +20.00
  • +0.23%
  • South Korea
    Mar 21, 2019
  • Ticker
    KRX(010140)
  • Prev. close
    8,850
  • Market cap (KRW)
    5,575.50B
  • Market cap (USD)
    4,945.01M
  • 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 2018 KRWUSD
Revenue5,265.10B4,784.20M
Gross Profit----
Operating income-409,300M-371.91M
Income before tax-497,600M-452.15M
Net income-388,200M-352.74M
EBITDA----
Diluted EPS-616.07-0.55
Dividends Per Share----
Total Assets14,375.60B12,883.67M
Total liabilities----
Total equity6,733.60B6,034.77M
Operating cash flow----
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 5,265.10B
Gross Profit 704,989.00M -1,025.16B 403,610.70M -225,461.91M --
Operating income 183,019.97M -1,501.90B -147,199.51M -524,163.79M -409,300M
Income before tax 190,454.70M -1,461.15B -68,545.69M -463,899.24M -497,600M
Net income 149,224.54M -1,205.41B -121,231.32M -338,779.13M -388,200M
EBITDA 467,676.25M -1,197.97B 169,798.18M -209,683.96M --
Diluted EPS 542.08 -4,598.70 -433.05 -830.39 -616.07
Dividends Per Share 195.55 0 0 0 --
Total Assets 17,122.23B 17,301.59B 17,217.46B 13,818.11B 14,375.60B
Total liabilities 11,549.07B 13,035.84B 10,942.15B 8,020.66B --
Total equity 5,537.47B 4,237.36B 6,264.30B 5,789.56B 6,733.60B
Operating cash flow -457,461.38M 620,279.37M -1,554.75B 540,067.54M --
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 12,234.79M 8,583.15M 8,976.28M 6,989.08M 4,784.20M
Gross Profit 669.72M -905.78M 347.88M -199.43M --
Operating income 173.86M -1,327.00M -126.87M -463.65M -371.91M
Income before tax 180.92M -1,291.00M -59.08M -410.34M -452.15M
Net income 141.75M -1,065.03M -104.49M -299.66M -352.74M
EBITDA 444.28M -1,058.46M 146.35M -185.47M --
Diluted EPS 0.51 -4.06 -0.37 -0.73 -0.55
Dividends Per Share 0.18 0 0 0 --
Total Assets 15,577.70M 14,755.52M 14,255.22M 12,907.48M 12,883.67M
Total liabilities 10,507.27M 11,117.51M 9,059.57M 7,492.09M --
Total equity 5,037.96M 3,613.80M 5,186.54M 5,408.02M 6,034.77M
Operating cash flow -434.57M 548.04M -1,340.08M 477.72M --

Valuation Measures

Dec 2018
PER--
ROA-2.75%
ROE-6.19%
Operating margin-7.77%
Profit margin-7.37%

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%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.8%)
  • Samsung Asset Management Co., Ltd. (1.7%)
  • Dimensional Fund Advisors LP (1.2%)

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 21 Mar, 2019

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