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Photo = Provided by Samsung C&T |
[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities stated on the 10th that Samsung C&T is expected to see performance improvements through growth in its construction and bio sectors, as well as strengthening its eco-friendly energy business. However, reflecting stock price volatility, the target price has been adjusted from 200,000 KRW to 190,000 KRW, a 5% reduction. The "Buy" rating is maintained, with the previous trading day's closing price at 116,100 KRW.
According to NH Investment, Samsung C&T's Q4 revenue is projected to be 9.84 trillion KRW, down 3% year-on-year, while operating profit is expected to grow 7% to 673.4 billion KRW. While the construction division may see a decline in revenue due to the completion of large domestic and international projects, the company is likely to approach its annual order target of 18 trillion KRW through projects like Qatar's desalination and power complex, Turkey's roads, and domestic data centers.
Excluding weaker performance in the fashion segment due to weather-related factors, the food distribution business, as well as leisure and dining services supported by a rebound in visitor numbers, are expected to show strong growth.
NH Investment emphasized, “Samsung C&T’s robust construction business, supported by captive demand, and its expanding bio operations are driving earnings growth. The company, which reached a new level with 2 trillion KRW in operating profit in 2022, is projected to achieve a 9% compound annual growth rate in operating profit through 2025.”
The report also highlighted the company's hydrogen business expansion, noting, “Samsung C&T plans to cancel all treasury shares by 2026 and is strengthening its competitiveness in the hydrogen sector. This includes participation in the green hydrogen demonstration project in Gimcheon, clean nuclear hydrogen projects in Korea, and green hydrogen and ammonia project agreements in Oman and Australia.” However, the target price adjustment reflects volatility in the stock prices of its listed affiliates.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
