NH Investment & Securities on the 13th lowered the target price of Samsung C&T from the previous 230,000 KRW to 210,000 KRW. The investment rating was maintained as Buy. This adjustment reflects the change of the base year to 2025, fluctuations in the stock prices of listed affiliates, and changes in the target discount rate relative to net asset value (NAV).
NH Investment & Securities stated, "Samsung C&T has leveled up its profit resilience through strong construction captive (intra-affiliate transactions) and high growth in bio," and evaluated that "it has entered a virtuous cycle through expanded investments to strengthen its business portfolio."
Researchers Dongyang Kim and Seungyoung Lee analyzed, "Stable growth is underway," and "after leveling up to an operating profit of 2 trillion KRW for the first time in history in 2022, an average annual growth of 11% is expected until 2025."
They also assessed that shareholder value enhancement is expected through the concretization of the value-up program in the second half of the year. The third three-year shareholder return policy (2023?2025) is currently being implemented, and all treasury shares held are planned to be canceled by 2026.
NH Investment & Securities forecasted that Samsung C&T's second-quarter results will meet market consensus with sales of 11.585 trillion KRW and operating profit of 788.4 billion KRW. The construction segment is expected to maintain profitability at the previous quarter's level by sustaining stability in domestic and overseas project execution.
Researchers Dongyang Kim and Seungyoung Lee said, "Fashion, food and beverage, and leisure are also expected to see performance growth due to strong imported products and online strengthening, expanded food material distribution sales, increased visitors, and enhanced park product competitiveness, respectively."
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