[Click eStock] "Samsung C&T, Strong Q1 Performance... Stable Business Portfolio"

Yuanta Securities maintained a target price of 170,000 KRW and a 'Buy' investment rating for Samsung C&T, which posted strong first-quarter results, citing its stable business portfolio as the driving force.

Researcher Lee Seung-woong stated, "The consolidated sales for the first quarter reached 10.8 trillion KRW, a 5.4% increase compared to the same period last year, and operating profit rose by 11.2% to 712.3 billion KRW," adding, "This strong performance, exceeding market consensus, was driven by growth in both revenue and profit in the construction, food and beverage, and bio sectors."

Lee noted, "The construction sector performed better than expected," explaining, "Construction sales increased by 21.4% year-on-year to 5.6 trillion KRW, mainly due to strong performance in large-scale high-tech processes such as the Taylor plant in the U.S. and the completion of the P4 project in Pyeongtaek."

He further analyzed, "The balanced portfolio, based on stable performance in existing businesses and growth investments, is the key driver of the strong results," adding, "The solar power development business plans to secure a pipeline of 20GW by the end of 2024, with stable annual sale gains expected to be around 80 billion KRW."

He also said, "The fashion sector is preparing to expand its own brand overseas and to grow its health and wellness business," adding, "Recently, SSF Shop has diversified its products from mainly clothing to include home appliances, developing into a lifestyle platform. The increase in online sales is expected to continuously improve the profit margin of the fashion sector."