[EQUITIES] ‘Samsung Heavy’s loss may worsen in 2018’
[THE INVESTOR] Samsung Heavy Industries’ estimated loss next year might be higher than expected, said SK Securities on Dec. 7, maintaining a “hold” recommendation and lowering the target price to 10,000 won (US$9.15) from 11,000 won.
Its earnings guidance speculated that its operating loss in 2017 and 2018 will reach 490 billion won and 240 billion won, respectively, reflecting the rising fixed costs and commodities prices as well as appropriation funds, said analyst Yoo Seung-woo.
There has been an agreement to raise the price of thick plates for three major shipbuilders but there is a possibility that there will be a further increase in the first half of next year, and that could deepen Samsung Heavy’s loss in 2018, noted the analyst.
By Hwang You-mee (firstname.lastname@example.org)