[Click eStock] Samsung C&T's Bio Division Continues Strong Performance... Target Price Maintained at 190,000 Won

On May 2, DS Investment & Securities maintained its "Buy" investment rating and a target price of 190,000 won for Samsung C&T, stating, "The remarkable improvement in the bio division's performance is expected to be gradually reflected in the company's valuation."

In the first quarter of 2025, Samsung C&T's consolidated revenue was 9.74 trillion won, down 9.8% year-on-year, but operating profit increased by 1.7% to 724 billion won. Major projects focused on high-tech and solar power continued to reach completion, and the company achieved new orders totaling 3.4 trillion won, including 2.3 trillion won in high-tech projects such as those in Taylor, United States. Domestic housing project orders, including Hannam District 4 and Sinpanbo Phase 4, amounted to a total of 3.1 trillion won, further supporting strong results. Analyst Kang Taeho commented, "The company met market expectations and demonstrated stable profit-generating capabilities."

One-off profits in the first quarter included approximately 330 billion won in dividend income from affiliates such as Samsung Life Insurance (about 170 billion won), Samsung Electronics (110 billion won), and Samsung SDS (38 billion won).

Most notably, the bio division showed outstanding high growth. Biologics revenue reached 1.29 trillion won, up 37.1% year-on-year, while operating profit surged by 119.9% to 486.7 billion won. In addition to full operation at plants 1 to 3, increased utilization at plant 4, expanded sales of Silimer, and a strong dollar environment all had a positive impact on performance.

Kang noted, "In January, the company signed a contract worth over 2 trillion won with a European pharmaceutical company, already achieving about 40% of last year's annual order volume. With plant 5 beginning full-scale operations in April and plant 4's 180,000-liter line scheduled for full operation in the second half, the improvement in the bio division's performance is expected to be gradually reflected in the company's valuation."

He added, however, "The improvement in the bio division's performance is exceptionally strong, so it is also necessary to monitor whether this could be related to future changes in the company's governance structure."