[Edaily Reporter Kwon Oh-seok] Shinhan Investment Securities announced on the 10th that it is maintaining its “Buy” rating and 500,000 won target price for #Samsung Life Insurance.

Lim Hee-yeon, an analyst at Shinhan Investment Securities, stated, "It is the optimal choice for outperforming the insurance sector amid the semiconductor supercycle," adding, "There is room to further raise the target price if the electronics sector’s stock rally continues. We maintain it as our top pick."
He noted, “As of yesterday, the market capitalization stood at 78.6 trillion won. Considering the 80 trillion won value of its electronics stake, the intrinsic value of its core business is effectively perceived as negative (–). Given its overwhelming market position within the industry, capital adequacy, and shareholder returns, the stock is clearly undervalued," he noted. "The core business value is around 30 trillion won. While for other affiliates, both the core business value and the market capitalization of their holdings are reflected in the overall market capitalization, Samsung Life Insurance has an asymmetric structure where the core business value is not reflected. Narrowing this gap is the driving force behind a re-rating."
Researcher Lim noted, “If the company continues to generate strong FCF (free cash flow) in 2027 and maintains its current shareholder return policy, Samsung Life Insurance could recognize another special dividend in early 2028.” He added, “In this scenario, contrary to concerns about a base effect in 2028, a structural upward revision in profit levels is possible. He further analyzed, “If special dividends are distributed annually, the cumulative amounts will serve as a factor that continuously drives up the DPS (dividend per share).”
He added, “Since the stock price is determined by the value of Samsung Electronics’ stake, both the upside and downside of the stock price are linked to Samsung Electronics. If Samsung Electronics’ shareholder returns are executed through share buybacks, dividend income could be reduced, making Samsung Electronics’ future shareholder return policy and cash dividend amounts key variables.”