Hana Securities announced on June 8 that it is maintaining a "buy" rating for Samsung C&T, citing that the current stock price does not adequately reflect the increased value of its major holdings, including Samsung Electronics. The firm raised its target price from 600,000 won to 650,000 won.
In a report released on the same day, analyst Kim Seung-jun noted, "The major controlling stake of Samsung C&T is valued at 106 trillion won, which significantly exceeds the current consensus estimate of 52 trillion won."
Kim added, "Despite the recent rise in stock prices, Samsung C&T's valuation remains low. With the current price reflecting a price-to-book ratio (PBR) of 0.7, it is considerably lower than other holding companies such as SK at 1.4, SK Square at 3.3, Doosan at 18.7, and CJ at 1.2. It is also lower compared to construction firms with market capitalizations over 10 trillion won, like Hyundai Engineering & Construction at 1.7, Samsung E&C at 1.8, and Daewoo Engineering & Construction at 2.4."
He further explained, "There is a strong narrative that could provide a valuation premium, including quarterly profit growth, accelerating semiconductor investments and the resulting revenue growth, efforts to secure large and small modular nuclear power projects, growth in Raemian orders, and the advancement of solar energy operations in the U.S."
Notably, Kim pointed out, "There is also a nuclear power story for the third quarter, as the bidding for the selection of the construction company for Team Korea in Vietnam is expected to take place, and Samsung C&T is anticipated to participate in the bidding."
Additionally, he mentioned, "If large nuclear power projects or small modular reactors appear in the form of Team Korea in relation to investments in the U.S. in July, Samsung C&T could gain prominence. Furthermore, we can also expect the potential for securing a large nuclear power project in Romania in the fourth quarter."
* This article has been translated by AI.
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