KB Securities has raised its target price for Samsung C&T from 400,000 won to 490,000 won, reflecting an increase in the value of its holdings and the potential for a reduced corporate value discount rate. The investment recommendation remains a 'buy.'
Jang Mun-jun, a researcher at KB Securities, stated, "The target price was adjusted upward by changing the target net asset value (NAV) discount rate from 45% to 40% and reflecting the increase in the value of holdings. In the future, we can expect not only changes in the value of holdings but also a reduction in the discount rate."
He added, "The year 2026 is expected to mark the resumption of simultaneous growth in scale and profits, and we anticipate significant business expansion in the nuclear power sector based on a differentiated track record."
Jang projected that consolidated sales for the second quarter would reach 11.1 trillion won, with operating profit estimated at 858.3 billion won, aligning with market expectations. He noted that strong sales across all business divisions would drive favorable results.
Furthermore, he mentioned, "We are steadily advancing the nuclear power business, which is a new growth driver for the construction sector. In the small modular reactor (SMR) field, we are pursuing projects with leading 3.5th generation SMR developers such as NuScale and GVH (GE Vernova-Hitachi)."
He also stated, "Our strategy is to become a flexible design, procurement, and construction (EPC) company that can respond to the expanding SMR market, regardless of the model. If the large nuclear power market expands, we are likely to become a company that clients naturally seek out, leveraging our experience from the UAE Barakah project."
* This article has been translated by AI.
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