Samsung C&T reached an intraday high of 565,000 won, setting a new record. This surge is attributed to rising equity values of major affiliates and expectations for increased shareholder returns.
According to the Korea Exchange, as of 2:25 PM on June 4, Samsung C&T was trading at 537,000 won, up 10.61% (51,500 won) from the previous trading day. The stock peaked at 565,000 won during the session.
The recent upward trend has been steep. Samsung C&T rose 8.26% on May 29, followed by increases of 5.20% on June 1, 6.70% on June 2, and 10.61% on June 4, totaling over a 34% increase in the last five trading days. Based on intraday highs, the stock has surged more than 40% during this period.
Samsung C&T is recognized as a significantly undervalued holding company, owning stakes in key affiliates such as Samsung Electronics, Samsung Biologics, and Samsung Life Insurance. Analysts have been raising their target prices for the stock. SK Securities increased its target price from 480,000 won to 590,000 won while maintaining a 'buy' rating.
Choi Kwan-soon, an analyst at SK Securities, noted, "The net asset value (NAV) of Samsung C&T has increased by 75.4 trillion won compared to the end of last year. The stock prices of Samsung Electronics and Samsung Life Insurance have risen by 196.9% and 204.6%, respectively, and the net debt on a standalone basis decreased by 972.7 billion won in the first quarter of this year."
Currently, Samsung C&T's equity value is estimated at approximately 165 trillion won, with Samsung Electronics accounting for 64.5% of this value, followed by Samsung Biologics at 16.5% and Samsung Life Insurance at 11.3%.
Choi added, "Considering the growth in the high-tech sector and the long-term potential of energy projects and small modular reactors (SMRs), there is a high possibility of improving cash flow. Attention should be paid not only to the increase in equity value but also to the improvement in the company's operational performance."
Expectations for increased shareholder returns are also supporting the stock price. SK Securities forecasts that Samsung C&T's dividend per share (DPS) will rise by 25% year-on-year to around 3,500 won this year.
Earlier, Samsung C&T announced a shareholder return policy in February, raising the minimum dividend per share to 2,500 won for the next two years and committing to redistribute 60-70% of the dividend income received from its affiliates. The dividend income primarily comes from Samsung Electronics, Samsung Life Insurance, Samsung SDS, and Samsung E&A, with an estimated 90% originating from Samsung Electronics and Samsung Life Insurance.
* This article has been translated by AI.
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