[Click eStock] "Samsung C&T, Strong Earnings Expected After Implementing Shareholder Return Policy"

[Asia Economy Reporter Son Sun-hee] Daol Investment & Securities announced on the 2nd that it expects Samsung C&T to perform well following the implementation of its shareholder return policy, maintaining a 'Buy' investment rating and a target price of 150,000 KRW.

Samsung C&T is estimated to have recorded annual sales of 42.936 trillion KRW, operating profit of 2.432 trillion KRW, and net profit of 1.96 trillion KRW last year. Kim Han, a researcher at Daol Investment & Securities, said, "The investment point in January is the upcoming three-year shareholder return policy, which is expected to be announced along with the Q4 earnings report for last year," adding, "The profit level has increased compared to when the previous policy of distributing 60-70% of affiliate dividend income was announced, raising interest in the next policy." He continued, "The quarterly earnings expected to show strong performance after the announcement are the investment point," and added, "As concerns over profit decline spread across the market, the undervaluation appeal and solid earnings are expected to be highlighted."

Furthermore, referring to Samsung C&T securing approximately 10 trillion KRW worth of high-tech orders last year, he predicted, "With short delivery times and high profitability, these will offset the profit decline in the trading division and support the 2023 earnings."

Samsung C&T announced its '2020-2022 three-year shareholder return policy' in February 2020. The policy involves gradually increasing the dividend per share (DPS) from 2,000 KRW while redistributing 60-70% of affiliate dividend income and canceling 1.5% of treasury shares acquired through the exercise of stock purchase rights.

Researcher Kim explained, "Operating profit is expected to remain above 2 trillion KRW over the next three years," but added, "Excluding bio, operating profit was 1.6 trillion KRW last year, 1.4 trillion KRW this year, and 1.2 trillion KRW next year, reflecting the profit decline in the trading division and the effect of the completion of high-tech projects that surged this year."