[Click eStock] Samsung C&T, Affiliate Stock Price Fluctuations... Target Price Downgrade

On the 10th, NH Investment & Securities lowered the target price of Samsung C&T from 200,000 won to 190,000 won, while maintaining a 'Buy' rating. Samsung C&T's closing price on the 9th was 116,100 won.

Dongyang Kim, a researcher at NH Investment & Securities, explained, "We adjusted the target price downward by reflecting the stock price fluctuations of listed affiliates and maintaining the target discount rate relative to net asset value (NAV) at 45%."

He expected Samsung C&T's operating profit to grow at an average annual rate of 9% until 2025. Researcher Kim stated, "Samsung C&T's construction sector, buoyed by captive demand, and the expanding bio division are driving performance, and the strengthening profitability of other segments elevated operating profit to the 2 trillion won level in 2022. It is projected to continue growing at an average annual rate of 9% through 2025, and the company plans to cancel all treasury shares held by 2026."

For the fourth quarter, it is expected to approach the annual order target. Samsung C&T's fourth-quarter sales are forecasted to decrease by 3% year-on-year to 9.8368 trillion won, while operating profit is expected to grow by 7% to 673.4 billion won.

He said, "Sales decline is expected to continue due to the completion of large domestic and overseas construction projects. However, with orders such as the Qatar desalination combined power plant (4 trillion won), Turkey road projects, and domestic data centers, it is expected to approach the annual order target of 18 trillion won."

Excluding the fashion sector's sluggishness due to temperature effects, leisure and other sectors, which saw a rebound in visitor numbers, are expected to perform well.