[Click eStock] "Samsung C&T, Undervalued Appeal to Emerge Amid Government Market Stimulus"
Eugene Investment & Securities Raises Target Price for Samsung C&T Corporation
On the 1st, Eugene Investment & Securities stated, "With the government's policy to resolve the Korea discount in the stock market, the undervaluation appeal of ‘Samsung C&T’ will be highlighted," and raised the target stock price to 190,000 KRW.
Analyst Han Byunghwa of Eugene Investment & Securities said in a report on the same day, "It is not necessarily true that a stock with a low price-to-book ratio (PBR) is undervalued," adding, "Considering Samsung C&T's profitability, business structure, and shareholder value improvement, the stock price is significantly undervalued."
Analyst Han explained, "Samsung C&T has stabilized its profit margins through restructuring in construction, trading, and fashion sectors, and will generate stable profit margins from Samsung Electronics' domestic and overseas semiconductor plants and Samsung Biologics' expansion projects," further stating, "Profit generation is also expected in biosimilars, hydrogen, and battery recycling."
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He continued, "Samsung C&T returns 60-70% of its dividend income to shareholders and has shortened the period for treasury stock cancellation, originally planned over five years, to three years," forecasting, "With treasury stock accounting for 13% of total shares, further stock price increases can be expected."
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