Samsung Heavy Industries: Profit Recovery Continues While Shares Trade Near 52-Week Low

Thesis

The data supports a clear earnings turnaround. Operating margin rose from -19.8% in 2021 to 8.1% in 2025 and 9.8% on a trailing basis, and revenue has grown in each year since 2022. Free cash flow of ₩3.4T over the trailing period is large relative to net income of ₩565.3B.

The market has not rewarded this recently. The close of ₩18,010 is 49.0% below the 52-week high of ₩35,350 and only 0.6% above the low of ₩17,910, with returns of -15.8% over one month and -18.3% over three months. The data does not explain the decline, and no news headlines are available.

Valuation is the main tension. The P/E of 28.0 and P/B of 3.3 are higher than peers on P/E, though P/B is only modestly above them. Investor flow, foreign ownership and short-interest data are not available, so we cannot say who has been selling.

Business overview

Samsung Heavy Industries is a shipbuilder listed on KOSPI since January 1994, with 880M listed shares and a market capitalisation of about ₩15.8T. The company was founded in August 1974. Per the data, the CEO is 최성안.

Revenue was ₩6.6T in 2021 and ₩10.7T in 2025, with trailing revenue of ₩11.6T as of H1 2026. Among the peers listed, HD Hyundai Heavy Industries has a market cap of ₩32.4T and Hanwha Ocean ₩20.6T, so Samsung Heavy sits third by size among the larger names. The data does not give an order backlog or product breakdown.

Financial analysis

These figures come from filed financial statements (DART).

Revenue grew 34.7% in 2023, 23.6% in 2024 and 7.5% in 2025, reaching ₩10.7T. Growth is slowing even as profit improves.

Operating income went from a ₩854.4B loss in 2022 to ₩233.3B in 2023, ₩502.7B in 2024 and ₩862.2B in 2025. Trailing operating income to H1 2026 is ₩1.1T, a 9.8% margin. Net income was a ₩148.3B loss in 2023, ₩63.9B in 2024, ₩545.5B in 2025 and ₩565.3B trailing, a 4.9% net margin.

Return on equity was 13.7% in 2025 and is 13.2% on a trailing basis, up from 1.8% in 2024.

Liabilities to equity are 281.3%, which is a high leverage ratio. Cash is ₩807.4B against reported borrowings of only ₩5.1B, though the large liabilities figure indicates obligations beyond borrowings that the data does not detail. Trailing free cash flow is ₩3.4T.

Valuation

At the latest close the P/E is 28.0, P/B is 3.3 and P/S is 1.4. Dividend yield is 0.0%. Enterprise value is about ₩15.0T; EV/EBITDA is not available.

Against its own recent history, the year-end 2025 P/E was 38.9 and P/B 5.1, so both multiples are lower now. Earlier year-end multiples are not available because earnings were negative or low.

Against peers, HD Hyundai Heavy Industries shows P/E 12.9 and P/B 3.1, and Hanwha Ocean P/E 9.9 and P/B 2.7. Samsung Heavy's P/E is more than double theirs, reflecting lower net margins relative to its market value. Multiples for the other three peers are not available.

Catalysts

• The company filed major sales or supply contract disclosures on 2026-08-31, 2026-09-14, 2026-09-30 and 2026-10-02, indicating ongoing order activity, though contract values are not in the data.
• The half-year report for June 2026 was filed on 2026-08-14 and underlies the current trailing figures, showing operating margin of 9.8%.
• Changes in the largest shareholder's holdings were filed on 2026-09-10 and 2026-10-06, and the details are not provided in the data.
• Trailing free cash flow of ₩3.4T and cash of ₩807.4B give the company financial capacity, though the dividend yield is currently 0.0%.

Risks

• The share price is near its 52-week low with a 15.8% fall in one month, and the data gives no reason for the move.
• A P/E of 28.0 is well above the peers with available data, leaving the shares sensitive to any earnings disappointment.
• Liabilities to equity of 281.3% indicate a heavily leveraged balance sheet.
• Revenue growth has slowed from 34.7% in 2023 to 7.5% in 2025.
• Investor flow, foreign ownership and short-balance data are unavailable, so selling pressure cannot be assessed.

Closing view

The filed numbers show a company that has moved from heavy losses to solid operating profit and strong trailing cash flow, with steady contract disclosures in recent weeks. Against that, the shares have fallen sharply, the P/E is much higher than that of the two peers with data, leverage is high and revenue growth is slowing. The evidence is mixed: operating recovery is well documented, while the market's reaction and the drivers behind it are not explained by the available data.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationSamsung Heavy Industries: Profit Recovery Continues While Shares Trade Near 52-Week Low