Samsung C&T shares have surged more than 14% on June 25, driven by expectations of a revaluation of its stake in Samsung Electronics and increased shareholder returns. Analysts suggest that the rise in Samsung Electronics' stock price is enhancing the value of Samsung C&T's holdings, leading to heightened expectations for the company's overall valuation.
As of 9:39 a.m. KST on June 25, Samsung C&T shares were trading at 551,000 won, up 69,500 won (14.43%) from the previous trading day. The stock reached as high as 563,000 won earlier in the session.
The increase in share price is attributed to expectations surrounding the revaluation of Samsung C&T's stake in Samsung Electronics, which stands at 5.05% (29,888,100 shares). With Samsung Electronics' stock price surpassing 350,000 won, the estimated value of Samsung C&T's holdings has exceeded 100 trillion won.
Kim Gi-ryong, a researcher at Mirae Asset Securities, noted, "Even applying a 50% discount rate, the value of Samsung C&T's stake in Samsung Electronics has increased by approximately 68 trillion won compared to the end of last year. We also expect performance growth based on a diversified business portfolio alongside the increase in stake value."
Expectations for expanded shareholder returns are also positive. Samsung C&T announced it would raise its minimum dividend per share from 2,000 won to 2,500 won this year. Additionally, the company unveiled a three-year shareholder return policy that aims to return 60-70% of its affiliate dividend income to shareholders. The market anticipates that if Samsung Electronics initiates special dividends or increases its dividends, Samsung C&T's dividend capacity will also grow.
There are suggestions that Samsung C&T may enter a revaluation phase similar to that of SK Square. SK Square's stock price has skyrocketed by 920.42% over the past year, driven by the rising value of its stake in SK Hynix, resulting in a market capitalization of 237 trillion won.
Kim Soo-hyun, a researcher at DS Investment & Securities, stated, "Compared to SK Square, which benefits from the same memory supercycle, Samsung C&T's net asset value discount is higher, and the market capitalization gap is excessive. Given the predictability of its dividend policy and the value of its own business in construction and small modular reactors (SMR), further corporate value revaluation is possible."
As a result, securities firms are raising their target prices for Samsung C&T. Mirae Asset Securities has adjusted its target price to 680,000 won, while Heungkuk Securities has set a target price of 700,000 won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.