Samsung Heavy Industries leads the race for floating data centre orders

DS Investment Securities maintained a buy rating and a target price of 42,000 won on Samsung Heavy Industries on the 25th, judging it the most likely of South Korea's major shipbuilders to secure orders for floating data centres (FDCs).

In a research note, the brokerage argued that Samsung Heavy has already demonstrated the relevant technical credentials through its leading position in floating liquefied natural gas (FLNG) facilities — a business that requires mastery of seawater cooling systems and offshore safety infrastructure. Current enquiries from global technology giants are focused on nearshore models in the 70–100 megawatt range, which are simpler to design and faster to deliver.

Samsung Heavy obtained approval in principle (AiP) for a 50MW FDC concept design from classification societies ABS and Lloyd's Register in April this year. Since then, the company has signed memoranda of understanding and technical co-operation agreements with Super Micro Computer, Capital, and Lloyd's Register Advisory, among others.

The FDC market is expected to be driven initially by repeat, series orders for 70–100MW nearshore units. A single 500MW project could generate simultaneous orders for five to seven vessels, with a construction period of roughly two years per unit.

The FLNG business is expanding rapidly in parallel. Samsung Heavy has signed a main contract for the Mozambique FLNG project and secured the first Delfin order, bringing its FLNG backlog to four units in total. DS Investment Securities forecasts FLNG revenue of approximately 3 trillion won in 2027, rising to around 4.5 trillion won in 2028.

By 2028, the brokerage expects the company to achieve an operating margin in excess of 20%, as deliveries of the Z-LNG and Cedar FLNG vessels generate repeat-build efficiencies and change-order settlements fall due simultaneously. From orders placed after 2027, Samsung Heavy's proprietary liquefaction system, SENSPO, is expected to be adopted. SENSPO consumes roughly 14% less energy than competing products, and its in-house production addresses liquefaction equipment — which accounts for 30–35% of total FLNG component costs — pointing to further margin improvement.

DS Investment Securities projects Samsung Heavy's 2026 revenue at 12.383 trillion won, with operating profit of 1.519 trillion won. Based on the current share price of 24,600 won, the target price implies upside of 70.7%.