LS Securities announced on June 19 that it expects Samsung C&T to see significant momentum in its nuclear power and small modular reactor (SMR) businesses. As a result, the firm raised its target price for Samsung C&T from 550,000 won to 630,000 won, while maintaining a 'buy' rating.
Kim Se-ryeon, a researcher at LS Securities, noted that Samsung C&T's current market capitalization is approximately 39% below its net asset value (NAV). He stated, "The increase in the value of key subsidiary stakes, along with the reassessment of the construction sector's nuclear and SMR business, will drive stock price growth."
LS Securities highlighted the potential for expansion in Samsung C&T's nuclear business. The company is pursuing a dual-track strategy, working on the APR1400 project with Korea Electric Power Corporation and Korea Hydro & Nuclear Power, while also collaborating with North American firms on the AP1000 and CANDU nuclear projects. It is recognized for its competitive edge in the overseas nuclear market, leveraging its past experience with the Vogtle nuclear project in the United States.
The SMR business is also seen as a long-term growth driver. Samsung C&T is establishing strategic partnerships within the global value chain (GVH) to explore business opportunities in Europe and Southeast Asia. Projects such as the NuScale initiative in Romania and the U.S., as well as ongoing projects in Sweden, Estonia, Poland, and Finland, are viewed as part of a long-term order pipeline. The company also plans to collaborate with fourth-generation non-water-cooled SMR technology firms.
Additionally, Samsung C&T is expanding its renewable energy business strategy. Kim explained, "Previously, the focus was on developer projects that involved site development and permitting before asset sales. Moving forward, we plan to expand our business value chain to include power sales, power brokerage, and maintenance services."
* This article has been translated by AI.
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