[Click eStock] "Samsung C&T, Solid Q3 Performance"

[Asia Economy Reporter Eunmo Koo] Samsung C&T posted a decent performance in the third quarter this year, although its operating profit fell short of expectations.

Samsung C&T's third-quarter sales amounted to 7.8503 trillion KRW, up 1.5% compared to the same period last year, while operating profit decreased by 0.4% to 215.5 billion KRW. Sales exceeded expectations due to the resumption of overseas construction sites and an unexpected increase in sales in the trading division, but operating profit did not meet market forecasts.

On the 28th, Yoonho Cho, a researcher at DB Financial Investment, stated in a report, "The resumption of overseas construction projects in the construction division led to the reflection of costs, but it is expected that contract price increases will be possible through negotiations with clients in the future." He also evaluated, "The steady improvement in non-operating income and expenses, due to improved financial structure, better performance of equity-method affiliates (Bioepis, Hanwha General Chemical), and a reduction in one-time losses in the construction division, is also positive."

Along with the third-quarter earnings announcement, Samsung C&T declared its coal phase-out. The company plans to discontinue coal-related businesses such as construction and trading, stating that coal-related projects already contracted (Gangneung, Vietnam) or trading will be conducted only until the contracts expire. Researcher Cho assessed, "The significance lies not in the declaration itself but in the fact that Samsung C&T has formalized a shareholder-friendly policy."

The investment opinion and target stock price were maintained at "Buy" and 140,000 KRW, respectively. Researcher Cho said, "The coal phase-out declaration can lower the company's discount rate as it allows expectations for continued shareholder-friendly policies."