Samsung C&T is experiencing a strong rebound in early trading as investors take advantage of the recent drop of over 12% in its stock price.
As of 9:28 a.m. on June 24, the company’s shares were trading at 511,000 won, up 56,000 won (12.31%) from the previous trading day. The stock opened at 477,000 won and briefly surged to 514,000 won before giving back some of its gains.
Analysts attribute the rise to bargain hunting and renewed interest in the value of Samsung Electronics shares.
Market analysts are optimistic about the outlook. Mirae Asset Securities has raised its target price for Samsung C&T from 370,000 won to 680,000 won, maintaining a 'buy' rating.
Kim Gi-ryong, a researcher at Mirae Asset Securities, stated, "The increase in share value due to Samsung Electronics' surge and expectations for enhanced shareholder returns are driving this upward trend. The indirect benefits from Samsung Life Insurance's stake in Samsung Electronics are also significant."
Additionally, the diversification of the company's business portfolio is seen as a long-term factor contributing to its increased corporate value.
Kim noted, "This year, the construction sector is expected to benefit from a rise in orders and performance driven by high-tech projects, along with increased visibility in nuclear power momentum. The high-tech sector is likely to see growth in performance and orders, particularly with Samsung Electronics' capital expenditure expansion and developments at the Pyeongtaek P4-P6 site and the potential start of construction at the Taylor 2 plant in the U.S."
He added, "In the overseas nuclear power sector, large-scale projects are being pursued to hedge risks through Team Korea (in Vietnam, etc.), and collaborations with various technology firms, including GF Burnova and Hitachi (GVH), are underway to enter the European small modular reactor (SMR) market."
* This article has been translated by AI.
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