Hankook Securities reported that Samsung C&T's net asset value (NAV) has increased due to rising share values of major affiliates such as Samsung Electronics and Samsung Life Insurance since the end of July. As a result, the firm raised its target price for Samsung C&T from 450,000 won to 540,000 won while maintaining a 'buy' rating.
Park Jong-ryul, a researcher at Hankook Securities, noted, "Since the end of July, the share values of affiliates including Samsung Electronics, Samsung Life Insurance, Samsung SDS, and Samsung E&A have risen. Recently, Samsung C&T's stock price has also rebounded, suggesting that improved performance and increased shareholder returns will lead to a reevaluation of the stock price."
Hankook Securities forecasts that Samsung C&T's consolidated revenue for the third quarter will reach 11.4 trillion won, a 12.4% increase from the same period last year, while operating profit is expected to rise by 12.6% to 1.1 trillion won. For the full year, the firm anticipates consolidated revenue of 45.9 trillion won, up 12.7% year-on-year, and operating profit of 3.9 trillion won, an 18.6% increase.
Park added, "The bio sector is expected to continue strong performance due to full operation of the first to fourth factories and the impact of rising exchange rates. As the fifth factory and the Rockville plant in the U.S. gradually come online, we expect sustained growth alongside high profitability."
He further stated, "This year, the bio sector will lead performance growth, while improvements across all business divisions, including construction, trading, fashion, leisure, and food, will enhance profit generation capabilities."
In the construction sector, profitability is expected to improve as high-tech P4 finishing work and P5 structural work ramp up, along with smooth progress on overseas plant projects. However, the trading sector is projected to see a slowdown in performance compared to the previous quarter due to reduced volumes from the European Union's import steel quota regulations.
The fashion sector is anticipated to improve profitability due to increased normal price sales driven by market recovery, while the leisure sector is expected to see growth in performance thanks to a rise in visitors to Caribbean Bay. The food and beverage sector is also expected to improve performance due to increased food sales from new business expansions and growth in food distribution.
* This article has been translated by AI.
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