NH Investment & Securities announced on June 11 that it has raised its target price for Samsung C&T from 425,000 won to 550,000 won, citing expectations for increased high-tech construction orders and growth in nuclear power and small modular reactor (SMR) projects, along with an anticipated expansion in shareholder returns.
The firm also noted a higher likelihood of dividend increases and maintained its investment recommendation at "buy."
Lee Seung-young, a researcher at NH Investment & Securities, stated, "The construction sector is expected to see increased high-tech orders, such as those for the Pyeongtaek P5 project, due to expanded investments from clients. We anticipate that high-tech sales will begin to ramp up in the second half of this year, leading to improved profitability."
He added, "We are pursuing the expansion of large-scale nuclear power and SMR projects, participating in various initiatives including Vietnam's second nuclear power plant, Romania's Units 3 and 4, Saudi Arabia's nuclear project, Romania's SMR, and Sweden's SMR."
The researcher explained, "Our performance is steadily growing based on a diversified portfolio that includes construction, bio, and trading sectors. Currently, the stock price is trading at a 55.7% discount to its net asset value (NAV)."
He also mentioned, "According to the shareholder return policy for 2026 to 2028, we plan to return 60% to 70% of the dividend income from affiliates to shareholders. The special dividend from Samsung Electronics and the increased dividends from Samsung Life Insurance could lead to a rise in Samsung C&T's dividend income."
Furthermore, he noted, "We have adjusted the target NAV discount from 45% to 40% to reflect the rising value of investment assets such as Samsung Electronics and Samsung Life Insurance, leading to the upward revision of the target price. We also expect additional shareholder returns based on expanded dividend income in the future."
* This article has been translated by AI.
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