Samsung C&T shares experienced a significant increase of over 7% during trading on expectations of rising value from its stake in Samsung Electronics and potential contracts in the nuclear power sector.
According to the Korea Exchange, as of 2:04 PM, Samsung C&T shares were trading at 454,500 won, up 32,000 won (7.57%) from the previous trading day.
Earlier, analysts adjusted their target prices for Samsung C&T, citing the increased value of its Samsung Electronics stake, along with improved prospects in nuclear and solar energy projects and investments in affiliates.
Hana Securities maintained a 'Buy' rating on Samsung C&T and raised its target price from 400,000 won to 600,000 won.
Kim Seung-jun, a researcher at Hana Securities, stated, "Although the stock price has risen significantly over the past week, Samsung C&T's valuation remains attractive. Currently, the price-to-book ratio (PBR) is around 0.7 times when reflecting Samsung Electronics' stock price."
He emphasized, "Considering the premiums for nuclear power, solar energy, and affiliate investments, we recommend buying Samsung C&T shares."
Kim added, "A PBR of 0.7 is significantly lower compared to other holding companies (SK at 1.3, SK Square at 3.1, Doosan at 17.3, CJ at 1.4) and is also lower than construction firms with market capitalizations over 10 trillion won (Hyundai Engineering & Construction at 2.1, Samsung E&A at 2.4, Daewoo Engineering & Construction at 3.6)."
He further noted, "There is a strong narrative supporting valuation premiums due to expected quarterly profit increases, accelerating semiconductor investments and related revenue growth, efforts to secure nuclear contracts, growth in Raemian orders, and initiatives in the U.S. solar operations (IPP business)."
* This article has been translated by AI.
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