[Click eStock] "Samsung C&T, Value Up Expected on Strong Bio and Construction Performance"

NH Investment & Securities forecasted a rise in Samsung C&T's stock price on the 25th, citing strong performance in its core construction and bio sectors, along with expectations for a value-up program.

Samsung C&T announced in its Q1 earnings report that sales increased by 5.4% year-on-year to KRW 10.7958 trillion. Operating profit rose 11.2% during the same period, reaching KRW 712.3 billion. Net profit grew by 9.3% to KRW 822.1 billion.

By business segment, the construction division, which accounts for about 46% of sales, showed notable improvement despite a downturn in the real estate market. Construction's quarterly operating profit increased by 15% to KRW 337 billion. The bio and food & beverage sectors also saw performance improvements. Conversely, the trading and fashion divisions experienced a decline in profit scale, while the leisure business reduced its deficit.

Analyst Kim Dong-yang of NH Investment & Securities evaluated, "Samsung C&T's Q1 results exceeded market consensus (average forecast)." He added, "Samsung C&T has secured a large volume of high-tech orders in the construction sector," and predicted, "Profitability in construction will improve through strengthened project execution management, and the bio sector will realize profits in earnest due to increased operating rates."

He further stated, "The three-year shareholder return plan initiated last year is being implemented through 2025, and it has been confirmed that one-third of treasury shares will be canceled, with all shares to be canceled by 2028," expressing expectations that "the corporate value-up program to be concretized in the second half of the year will enhance shareholder value."