Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

Samsung Heavy Industries / Equity Bottom-Up

<ul>
<li>SHI officially terminated $3.54B worth of Russian contracts on June 18, citing prolonged non-performance by Zvezda.</li>
<li>The company is pursuing arbitration in Singapore, aiming to retain $800M in advances and seek additional damages. Most such cases have favoured shipbuilders.</li>
<li>With no production initiated and a strong $28–30B backlog, the impact on operations and FY25 guidance is expected to be minimal.</li>
</ul>


SHI officially terminated $3.54B worth of Russian contracts on June 18, citing prolonged non-performance by Zvezda.
The company is pursuing arbitration in Singapore, aiming to retain $800M in advances and seek additional damages. Most such cases have favoured shipbuilders.
With no production initiated and a strong $28–30B backlog, the impact on operations and FY25 guidance is expected to be minimal.


Samsung Heavy (010140) Ends $3.5B Zvezda Deal; Arbitration On, Order Book Unaffected

<ul>
<li>SHI reported robust Q1 2025 results with revenue of KRW 2.49T (+6% YoY) and operating profit of KRW 123B (+58% YoY), reflecting improved offshore project execution and margin expansion.</li>
<li>Management reiterated FY2025 guidance of KRW 10.5T revenue and KRW 630B operating profit, with offshore accounting for ~40% of new orders and a USD 9.8B full-year target</li>
<li>With LNG carrier replacement demand, FLNG ramp-up, and leadership in eco-vessels, SHI’s earnings trajectory supports its 22x FY27E P/E, despite execution and competition risks.</li>
</ul>


SHI reported robust Q1 2025 results with revenue of KRW 2.49T (+6% YoY) and operating profit of KRW 123B (+58% YoY), reflecting improved offshore project execution and margin expansion.
Management reiterated FY2025 guidance of KRW 10.5T revenue and KRW 630B operating profit, with offshore accounting for ~40% of new orders and a USD 9.8B full-year target
With LNG carrier replacement demand, FLNG ramp-up, and leadership in eco-vessels, SHI’s earnings trajectory supports its 22x FY27E P/E, despite execution and competition risks.


Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Jun 6th. The aggregated holding was USD571.3bn.</li>
<li>We estimate that foreign flows to be inflows of USD829mln. We tabulates the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix (000660 KS).</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Jun 6th. The aggregated holding was USD571.3bn.
We estimate that foreign flows to be inflows of USD829mln. We tabulates the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix (000660 KS).


KRX Foreign Holding Weekly (Jun 6th): SK Hynix

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

<ul>
<li>Top 3 stays unchanged — HD KSOE beats HHI on consolidated sales, and index rules push HHI to the Plus side since a group sibling’s already in the Top 3.</li>
<li>Plus Universe also looks stable, but HD Hyundai Mipo’s weight drops from 14.12% to 10% Friday — triggering ~₩40B in passive outflows, a key flow trade setup.</li>
<li>₩40B sell vs. ₩60–90B daily turnover, all hitting via one ETF desk (Shinhan SOL) Friday afternoon — flow size could move the tape. Should keep it on our radar.</li>
</ul>


Top 3 stays unchanged — HD KSOE beats HHI on consolidated sales, and index rules push HHI to the Plus side since a group sibling’s already in the Top 3.
Plus Universe also looks stable, but HD Hyundai Mipo’s weight drops from 14.12% to 10% Friday — triggering ~₩40B in passive outflows, a key flow trade setup.
₩40B sell vs. ₩60–90B daily turnover, all hitting via one ETF desk (Shinhan SOL) Friday afternoon — flow size could move the tape. Should keep it on our radar.


Friday’s Cap Reversion in the SOL Shipbuilding Top 3 ETF Sets up a Clean Flow Trade Opportunity

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of May 30th. The aggregated short interest was USD6.9bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Hanwha Systems, Samsungf&amp;Mins, Daewoo Shipbuilding, Meritz Financi, Samsung Heavy Industries, Samsung Electronics, SK Hynix, Ecopro Mat.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of May 30th. The aggregated short interest was USD6.9bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Hanwha Systems, Samsungf&amp;Mins, Daewoo Shipbuilding, Meritz Financi, Samsung Heavy Industries, Samsung Electronics, SK Hynix, Ecopro Mat.


KRX Short Interest Weekly (May 30th): Hanwha Systems, Samsungf&Mins, Daewoo Shipbuilding

South Korea

Samsung Heavy Industries Co., Ltd. manufactures crude oil tankers, container vessels, bulk carriers, cruisers, and passenger ferries.  The Company also produces steel and bridge structures, and material handling equipment.  In addition, Samsung Heavy Industries provides civil engineering, architectural, and plant construction services.

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Samsung Heavy Industries (010140 KS)

Samsung Heavy (010140) Ends $3.5B Zvezda Deal; Arbitration On, Order Book Unaffected

SHI terminates $3.54B Russian contracts due to non-performance, pursues arbitration in Singapore to retain advances and seek damages. Minimal...

Rahul Jain

Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium

SHI posts strong Q1 results, reaffirms FY2025 guidance with focus on offshore projects and LNG carrier demand driving earnings growth.

Rahul Jain

KRX Foreign Holding Weekly (Jun 6th): SK Hynix

We analyzed KRX foreign holding data for the past week. We highlighted foreign holding changes in SK Hynix (000660 KS).

Ke Yan, CFA, FRM

Friday’s Cap Reversion in the SOL Shipbuilding Top 3 ETF Sets up a Clean Flow Trade Opportunity

This post breaks down Friday’s cap reversion in the SOL Shipbuilding Top 3 ETF — a setup that presents a clear flow trade opportunity.

Sanghyun Park

KRX Short Interest Weekly (May 30th): Hanwha Systems, Samsungf&Mins, Daewoo Shipbuilding

We analyzed KRX short interest report for the past week and highlighted short interest changes in Hanwha Systems (272210 KS), Samsungf&Mins (000810...

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

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Samsung Heavy (010140) Ends $3.5B Zvezda Deal; Arbitration On, Order Book Unaffected

​SHI terminates $3.54B Russian contracts due to non-performance, pursues arbitration in Singapore to retain advances and seek damages. Minimal...

Rahul Jain

Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium

​SHI posts strong Q1 results, reaffirms FY2025 guidance with focus on offshore projects and LNG carrier demand driving earnings growth.

Rahul Jain

KRX Foreign Holding Weekly (Jun 6th): SK Hynix

We analyzed KRX foreign holding data for the past week. We highlighted foreign holding changes in SK Hynix (000660 KS).

Ke Yan, CFA, FRM

Friday’s Cap Reversion in the SOL Shipbuilding Top 3 ETF Sets up a Clean Flow Trade Opportunity

This post breaks down Friday’s cap reversion in the SOL Shipbuilding Top 3 ETF — a setup that presents a clear flow trade opportunity.

Sanghyun Park

KRX Short Interest Weekly (May 30th): Hanwha Systems, Samsungf&Mins, Daewoo Shipbuilding

We analyzed KRX short interest report for the past week and highlighted short interest changes in Hanwha Systems (272210 KS), Samsungf&Mins (000810...

Ke Yan, CFA, FRM

SHI terminates $3.54B Russian contracts due to non-performance, pursues arbitration in Singapore to retain advances and seek damages. Minimal...

SHI posts strong Q1 results, reaffirms FY2025 guidance with focus on offshore projects and LNG carrier demand driving earnings growth.