[Click eStock] "Samsung C&T, Record High Operating Profit Achieved"

Heungkuk Securities Report

[Asia Economy Reporter Kwangho Lee] Heungkuk Securities forecasted on the 3rd that Samsung C&T will continue to achieve record-high operating profits this year despite the global economic downturn, maintaining favorable earnings momentum. The investment rating was maintained as Buy, and the target price was raised to 190,000 KRW.

Jongryeol Park, a researcher at Heungkuk Securities, stated, "We expect consolidated sales of 12.1 trillion KRW (+24.0% YoY) and operating profit of 593.7 billion KRW (+81.7%) in the fourth quarter, continuing strong performance following the previous quarter," adding, "With improved results across all business divisions except the trading division, strong performances in the construction and bio sectors will drive the overall increase in operating profit."

Researcher Park added, "Although uncertainty regarding the global economic recession is increasing, a relatively steady operating performance is expected in 2023 as well," and explained, "Samsung C&T has established a diverse business portfolio, so despite profit declines in the trading division, stable profit generation in construction and bio sectors will minimize earnings volatility."

The annual performance for 2023 is projected at consolidated sales of 46.0 trillion KRW (+3.1%) and operating profit of 2.8238 trillion KRW (+13.5%). He anticipated profit maximization in construction (due to strong high-tech performance and the full-scale start of overseas new project sales) and bio (operation of the 4th plant, with a global No.1 CMO production capacity of 600,000L), along with steady improvements in fashion, leisure, and food & beverage sectors.

He added, "The investment point lies in transforming into a growth value stock through resilient operating performance despite the recession, a stable financial structure with net cash status, enormous value in held stocks and real estate, and securing new growth engines."

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