[Click e-Stock] "Samsung C&T Target Price Raised on Expectations of Increased Construction Orders"

Hanwha Investment & Securities announced on January 29 that it is maintaining its "Buy" investment rating on Samsung C&T, citing expectations for increased nuclear power plant construction orders, and raising its target price from 3 million won to 3.9 million won.

Yurim Song, an analyst at Hanwha Investment & Securities, stated, "The nuclear power momentum at Samsung C&T continues to become more visible." She explained, "The small modular reactor (SMR) project in Romania, in collaboration with NuScale Power, is awaiting a final investment decision (FID) after completing the front-end engineering design (FEED), while the Swedish SMR project, in partnership with GE Vernova Hitachi Nuclear (GVH), is expected to add to the pipeline through the selection of a business operator this year."

She added, "In this earnings announcement, there was an additional update on Romania's large-scale nuclear power units 3 and 4, and with Fluor confirmed as the main contractor for engineering, procurement, and construction (EPC), Samsung C&T will participate in the construction, with groundbreaking scheduled for the third quarter of next year."

Song analyzed, "Samsung C&T's consolidated revenue for the fourth quarter of last year was 10.8 trillion won, and operating profit was 822.3 billion won, up 8.4% and 29.6% year-on-year, respectively, showing figures similar to market consensus." She added, "With continued high growth in the bio segment, the full-scale realization of revenue from large-scale plant sites, and the resumption of high-tech construction projects driving a rebound in the construction segment's topline, this trend is expected to continue this year as well."