[Click eStock] "Samsung C&T's Affiliate Equity Value Rises... Target Price Raised"

"Business Portfolio Shift Also in Focus"

Heungkuk Securities raised its target price for Samsung C&T from 4 million won to 5.8 million won and maintained its "Buy" investment rating.

On May 13, Park Jongryeol, a researcher at Heungkuk Securities, stated, "We are revising the target price upward based on the increased value of equity holdings in affiliates such as Samsung Electronics, Samsung Life Insurance, Samsung Biologics, and Samsung SDS, as well as adjustments to the NAV discount rate."

The company also highlighted Samsung C&T's shift in business portfolio. It was evaluated that Samsung C&T has begun generating tangible results in its energy business by expanding its energy business value chain and energy solution operations, and has grown into an energy operator through renewable energy operations and power sales businesses.

Park projected that Samsung C&T’s profit-generating ability will become even more robust this year, driven by improvements across all business divisions, particularly in bio-related sectors. He forecasted annual consolidated sales of 42.8 trillion won and operating profit of 3.5 trillion won. Park analyzed, "The bio division is likely to post stable results due to increased production capacity and sales volume following the operation of the fifth plant. The construction division is expected to see full-scale growth in revenue and operating profit, thanks to the completion of the high-tech P4 project and the full-fledged frame construction of P5." He also anticipated that the fashion and leisure division will shift to a profit increase trend, driven by positive asset effects and improved consumer sentiment.

Park added, "Since April, the value of equity holdings in affiliates such as Samsung Electronics and Samsung Life Insurance has increased rapidly, accelerating the revaluation of Samsung C&T's share price. Given the strong earnings momentum and the expansion of shareholder returns going forward, the revaluation of Samsung C&T's share price is expected to be sustainable."

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