Oh Secheol Reappointed for Fifth Year as CEO... Stock Price Doubles Since Early This Year

Despite Declines in Sales and Operating Profit This Year,
Overseas Orders Top the Industry and Maintenance Orders Surpass 9 Trillion Won
Turnaround Expected Next Year with High-Tech Improvements and Infrastructure Expansion

The value of the treasury shares purchased by Oh Secheol, President of the Construction Division at Samsung C&T, at the beginning of this year has doubled. The shares, acquired as part of his commitment to responsible management, have risen thanks to overseas order performance and other factors. Despite somewhat lackluster results this year, Oh will continue to lead the Construction Division, raising expectations for Samsung C&T's stock price next year.

As of the closing price on December 18, Samsung C&T shares stood at 239,500 won. Earlier this year, Oh purchased 2,000 treasury shares at 118,350 won each as part of his responsible management initiative, meaning the value has nearly doubled.

Samsung C&T's stock price has been soaring. The announcement of a shareholder return policy and the increased value of its Samsung Electronics holdings have contributed to the rise. The securities industry expects the Construction Division to post solid fourth-quarter results this year. Accumulated sales for the first to third quarters reached 10.105 trillion won, a 32% decrease from the same period last year, while operating profit fell 55% year-on-year to 388 billion won. Fourth-quarter sales are projected to be in the 3.5 trillion won range, with operating profit expected to be around 130 billion won.

With Oh set to continue leading the Construction Division next year, expectations for the stock price are growing. Oh, an engineer and field expert, was appointed CEO in March 2021. Since then, he has focused on expanding overseas business and winning domestic maintenance projects.

Industry insiders believe that next year will mark the full-scale realization of Samsung C&T's achievements in the design and development of power infrastructure. In March, the company signed a financial business agreement with Korea Hydro & Nuclear Power to establish a strategic partnership for overseas nuclear power plant development. Samsung C&T is also making significant strides in infrastructure sectors such as SMR and solar power generation. In the case of SMR, major construction companies are fiercely competing to bring new business projects to fruition. Samsung C&T has laid the groundwork for future orders by jointly participating in the basic design (FEED) of the Romanian SMR project. FEED refers to the stage before an EPC contract, involving site selection and feasibility studies.

iM Securities stated, "For the Romanian SMR project, Samsung C&T is jointly carrying out the FEED process, and future EPC-related orders are expected to materialize. The company has obtained nuclear piping system design certifications, enabling full EPC participation in future SMR projects, which lays the foundation for expanding its value chain. As SMR business expansion becomes visible, growth potential is expected to accelerate."

According to the International Contractors Association of Korea, Samsung C&T's overseas orders for the first to third quarters of this year reached 5.604 billion dollars, the second highest after Korea Hydro & Nuclear Power. The company achieved the highest performance among domestic construction companies by winning power plant projects in the United Arab Emirates, Qatar, and Australia. In August, Samsung C&T secured the Dukhan Solar Power Plant project in Qatar, and in April, it won the Nawara BESS project in Australia. A Samsung C&T representative stated, "We are achieving results in overseas orders by pursuing various new businesses in the energy sector. There are also many planned orders in the energy sector for next year."

Next year, contractors will be selected for key maintenance projects in Seoul, including Apgujeong, Yeouido, Seongsu, and Mokdong. Samsung C&T is highly likely to secure construction rights for major sites such as Yeouido Sibeom Apartments and Apgujeong Districts 4 and 5. This year, Samsung C&T achieved a record high in maintenance project performance, reaching 9.2388 trillion won-more than double its original target of 5 trillion won. The company won all competitive bids, securing construction rights for Hannam District 4 against Hyundai Engineering & Construction and for Gaepo Woosung 7th Complex against Daewoo Engineering & Construction.

In addition, Samsung C&T is pursuing organizational changes, such as establishing the AI Innovation Headquarters under the DXP Business Division. Last month, the company announced its transition to an "AI Native" construction company, stating it would utilize AI in work processes and employee decision-making. To analyze bid proposals and assess legal or contractual risks, Samsung C&T jointly developed an AI agent with AWS, which will be applied to all construction projects starting next year. The company is also piloting internal document assistants based on ChatGPT.