[Edaily Reporter Lee Hye-ra] On the 8th, Hana Securities maintained its “Buy” rating on #Samsung C&T, noting that while the value of its holdings, including Samsung Electronics, has risen, the stock price has not fully reflected this increase, and raised its target price from 600,000 won to 650,000 won.
Kim Seung-jun, an analyst at Hana Securities, stated in a report released that day, “Even though the stock price has risen recently, Samsung C&T’s valuation remains cheap,” adding, “When factoring in the current Samsung Electronics stock price, the price-to-book ratio (PBR) stands at 0.7x.”
Kim analyzed that the rising value of Samsung C&T’s stakes in Samsung Electronics and Samsung Life Insurance has not been fully reflected in market estimates. He explained that the actual value of these major controlling stakes significantly exceeds market consensus.
He said, “A PBR of 0.7x is significantly low even compared to other holding companies,” adding, “It is undervalued even when compared to construction firms with a market capitalization of over 10 trillion won.”
He also assessed that there are additional growth drivers from a business perspective. His analysis suggests potential for further growth through expanded investments in nuclear power, solar energy, and semiconductors. Researcher Kim explained, “There are abundant narratives that could justify a valuation premium, including expectations for revenue growth from expanded semiconductor investments, growth in nuclear power and Raemian project orders, and solar power operations in the U.S.”
He predicted that nuclear power-related momentum would come to the fore in the second half of the year. “We can anticipate the Vietnam nuclear power plant bid in the third quarter, nuclear projects related to investments in the U.S., and the award of a large-scale nuclear power plant contract in Romania in the fourth quarter,” he said. “With this momentum continuing into next year with orders for small modular reactors (SMRs) in Europe, a sustained revaluation of the stock price is likely.”