[Click eStock] "Samsung C&T, Operating Profit Expected to Grow for 9 Consecutive Quarters... Target Price Up"

NH Investment & Securities forecasted on the 28th that Samsung C&T will continue its operating profit growth for the ninth consecutive quarter in Q4 this year and raised the target stock price from 150,000 KRW to 160,000 KRW. The investment rating was maintained at 'Buy.'

Dongyang Kim, a researcher at NH Investment & Securities, explained, "We raised the target price reflecting the upward revision of earnings forecasts and stock price fluctuations of listed affiliates," adding, "Expectations for shareholder value enhancement are also rising due to the continued strengthening of new businesses."

Samsung C&T is expected to record earnings that meet market consensus by achieving operating profit growth for the ninth consecutive quarter in Q4 this year. NH Investment & Securities projected Samsung C&T's Q4 sales to be 10.5823 trillion KRW, a 1% decrease compared to the same period last year, and operating profit to increase by 10% to 698.9 billion KRW. Researcher Kim stated, "In construction, despite a reduction in high-tech project sales, profitability is expected to remain at the previous quarter's level due to strengthened overseas projects and expansion of the housing business. In trading, the weak demand is partially offset by the increased scale of solar power sales. Food service sales are expanding in external catering and food ingredients, and fashion continues to perform well in imported goods and online sales."

Samsung C&T's profit resilience is being evaluated as strengthening. Researcher Kim said, "Construction, driven by strong captive (intra-affiliate transactions) and ongoing bio expansion, is leading earnings, while the easing of COVID-19 impacts in other sectors is strengthening profit resilience," adding, "Over the next three years, investments of 2 trillion KRW are underway to strengthen existing business competitiveness and another 2 trillion KRW to discover new businesses in eco-friendly energy, bio, and healthcare."

Expectations for shareholder value enhancement are growing. Researcher Kim noted, "Market expectations for shareholder value enhancement are rising due to the reduction of controlling shareholder stakes (31.1%) through a 0.65% disposal trust for inheritance tax payment and shareholder letters sent by global hedge funds," adding, "Since a three-year shareholder return policy linked to dividend income at the beginning of the year was announced, more concrete plans for the cancellation of 13.2% treasury shares are expected rather than changes in dividend policy."

This content was produced with the assistance of AI translation services.